Mich. Admin. Code R. 451.1223 - Amended application

Rule 3.

(1) A proposed change of name of a firm must be filed with the department for approval prior to effecting the change. The department shall not accept a name change that would be confusing with the name of an existing firm or governmental agency, or cause confusion about services to be received from a licensee. An amended application must be filed contemporaneously with the name change.

(2) A firm shall file an amended application with the department within 5 days of the occurrence of any of the following:

(a) If a firm is a corporation, a change in its officers or directors.

(b) If a firm is a partnership, a change in its partners.

(c) If a firm is a sole proprietorship, a change in ownership.

(d) If a firm is limited liability company, a change in its members.

(e) Conviction of an officer, director, partner, member, or sole proprietor of the firm of a felony or misdemeanor involving moral turpitude.

(f) Insolvency, filing in bankruptcy, receivership, or assignment for the benefit of creditors of the licensee.

(3) If a firm transfers its debt management business to another office at a different address, its license applies to its new office only if the following requirements are met:

(a) The department amends its application to reflect the effective date of the transfer.

(b) The firm ceases to conduct debt management business at the old address on the date indicated, and has notified its clients of the change of address not less than 5 days prior to the change.

(c) The surety company has notified the department that the bond furnished pursuant to the act applies in full force and effect to the new office after the date of the transfer.

(d) The firm has submitted its license certificate or order to the department for reissuance to cover the new office, and the license or order has been so reissued.

(4) The firm shall promptly file an amended application upon the occurrence of any material event affecting the accuracy of the information contained in the current application.

(5) If the partnership agreement of a firm provides for the substitution, withdrawal, or addition of partners of the partnership without winding up the partnership business, it is not necessary to obtain a new license or exemption order because of substitutions, withdrawals, or additions if evidence satisfactory to the department is furnished as to the following:

(a) That the surety bond furnished pursuant to the act shall continue in full force and effect.

(b) The financial responsibility, experience, character, and general fitness of new partners. The licensee shall furnish an executed business history form for each new partner.

(c) That the withdrawal or substitution of new partners will not render the partnership insolvent.

(d) That at least 2/3 in number and interest of those who were partners when the license was applied for and issued are continuing as partners of the partnership, or that 1 of the original partners remains in a 2-person partnership and a new partner is added simultaneously with the departure of original partner.

(6) A change in the ownership of a sole proprietorship firm terminates the license and requires the filing of a new application and the issuance of a new license before continuance of the debt management business.

(7) If the firm seeks to open an additional branch office, it shall amend its current application to reflect the address of the additional office and the name of the office manager. The licensee or exempted person shall file the appropriate forms with the department and pay the statutory fee.

Notes

Mich. Admin. Code R. 451.1223

1979 AC; 2020 MR 17, Eff. 9/3/2020