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Bulletin No. 2005-19-CF
STATE OF MICHIGAN
DEPARTMENT OF LABOR AND ECONOMIC GROWTH
OFFICE OF FINANCIAL AND INSURANCE SERVICES
In the matter of
License Application Timeline
Under the Deferred Presentment Service
Issued and entered
this 29th day of December, 2005
By Linda A. Watters
The Michigan Legislature
enacted 2005 PA 244, the Deferred Presentment Service Transactions Act (Act),
MCL 487.2121 to MCL 487.2173, effective November 28, 2005. Article 2, Section
11(3) of the Act, MCL 487.2131, provides:
By January 1, 2006, the
commissioner by administrative bulletin, order or rule
shall establish an application process and an application timeline for license
applications under this act.
By issuance of this bulletin,
the commissioner establishes the following application timeline:
1, 2006 - Application forms available. A deferred presentment service
transactions license application form and application instructions, together
with a schedule of fees, will be available on the Office of Financial and
Insurance Services (OFIS) website at www.michigan.gov/ofis. OFIS will begin
accepting applications for processing on the same date.
31, 2006 - Initial applications deadline. Any person expecting to conduct
deferred presentment service transactions in this state on June 1, 2006 under
the Act must submit to OFIS no later than this date an application as specified
in the Act, this bulletin, and the application instructions. Those wishing
to obtain a license effective after June 1, 2006 must provide OFIS a complete
application at least 60 days prior to the date they want to begin operating.
1, 2006 - Initial licensing deadline. On and after this date, no person
shall engage in providing deferred presentment service transactions in this
state without a license issued by OFIS under the Act, unless such person submitted
a complete application for a license by March 31, 2006. This limited authority
to provide deferred presentment service transactions after June 1, 2006 without
a license ceases immediately if OFIS rejects or denies the person's
30, 2007 - Initial license expiration date. Deferred presentment service
transactions licenses will expire on September 30, 2007 unless the license
is renewed, surrendered, revoked, or suspended.
By issuance of this bulletin,
the commissioner establishes the following application process:
must follow the instructions provided and complete under oath the license
application form prescribed by the commissioner that will be available on
the OFIS website.
commissioner will determine whether the application is complete.
commissioner will investigate:
the applicant has the financial responsibility, financial condition, business
experience, character, and general fitness to reasonably warrant a belief
that the applicant will conduct its business lawfully and fairly AND
the applicant or any person who is a member, partner, executive officer,
or a shareholder with 10% or more interest in the applicant has engaged
in any criminal activity; fraud; other act of personal dishonesty; any
act, omission, or practice that constitutes a breach of a fiduciary duty;
or has been the subject of any suspension, removal, or administrative
action by any agency or department of the United States or any state.
commissioner will issue a license to engage in deferred presentment service
transactions if the applicant meets the requirements of the Act.
the commissioner determines that an applicant is not qualified to receive
a license, the commissioner shall notify the applicant in writing that the
application has been denied, stating the basis for denial and the applicant's
rights, under this Act, relative to that denial.
Any questions regarding
this bulletin should be directed to:
Office of Financial and
Deferred Presentment Service Transactions (DPST) Licensing
611 West Ottawa Street
P.O. Box 30220
Lansing, Michigan 48909-7720
Local: (517) 241-9550
Toll Free: (877) 999-6442
Linda A. Watters
Commissioner of Financial and Insurance Services