Ga. Comp. R. & Regs. R. 120-2-26-.07 - Duties of Payee

(1) If the Company, or any affiliate thereof, except the agent, be the payee and the promissory note is sold or otherwise transferred, the Company shall:

(a) Notify the note maker and all co-makers regarding such transfer or sale after it occurs, inviting any questions relative to the note, or the policy which is used as collateral security for the note.

(b) Such notice may be given by the purchaser, transferee, or assignee of the note.

(2) If the agent, or a party other than the Company or any affiliate thereof be the payee:

(a) The agent shall bear the duty of notice as in this Regulation provided; and

(b) Shall furnish the Company with a copy of said notice.

(3) If the payee or intended assignee of the Note is the insurer or any affiliate thereof, except the agent, the promissory note shall not be sold or otherwise transferred by the payee, nor any commissions on the sale paid to the agent until the form outlined in Item 2 above has been received in the home office of the Company.

Notes

Ga. Comp. R. & Regs. R. 120-2-26-.07

O.C.G.A. Sec. 33-2-9, Ch. 33-6.

Original Rule entitled "Duties of Payee" adopted. F. July 18, 1972; eff. August 7, 1972. Submitted for Publishing: Mar. 15, 2007.