The transfer of a license may be required when more than 25% of the ownership of a licensed entity is conveyed. Change in ownership of more than 25% of the outstanding voting stock of a company includes a cummulation of all changes that have been made to ownership since the license was issued, based upon the information provided in the original application. For example, separate changes of 10%, then 15%, then 5% would require consent when the cumulative total is expected to total more than 25%. In this example, approval must be obtained before the last 5% change is transacted. When change in ownership is expected to occur, persons in the company may determine appropriate actions by reviewing the law under which the license or registration is authorized.

Section 2 of the Credit Card Arrangements Act, Public Act 379 of 1984 does not specifically address the transfer of a license. Because the ownership under which the license was originally issued has changed, a new license must be obtained when a change in ownership occurs. Section 2 states:

“(1) Except for a person licensed under the consumer financial services act, a person shall not make or negotiate, or offer to make or negotiate, a credit card arrangement unless that person is licensed as provided in this act.”

Transfer Instructions

Notification must be made to the Office Financial and Insurance Services to request the commissioner’s approval of a proposed change in ownership. Notification should consist of 1) a description of proposed actions, 2) a statement of who the present ownership is, and 3) to whom ownership is expected to transfer. This information will be set forth in a letter from an officer or an officer’s representative.

When is an Investigation is Required?

• If licensee proposes to transfer voting stock or other types of ownership to new persons or companies, an investigation of those persons is required.
• If licensee proposes an internal change of persons presently holding ownership, which do not include new persons, no investigation is required.

Requirement of Proposed New Owners

For the transfer of a license to new shareholders, each proposed new owners must provide 1) a personal disclosure statement, and 2) a confidential information background consent form. The cost of an investigation associated with a transfer is $450.00. (Obtain the documents in the appropriate application at www.michigan.gov/ofis under the Forms tab.)

Resignation of Shareholders

If a transfer is the result of a resigning shareholder, and there are no other changes to the licensee, copies of the resignation and cancelled stock certificates should accompany the instructions to transfer.

Consent from the Licensee

The Board of Directors, Membership Committee, or Partners will provide authority of the entity to transfer the license using language specific to the entity. A license held by an individual or sole proprietor may not be transferred.

Cost to Transfer

Licensee must pay a $50.00 fee for each certificate that is transferred, unless an investigation is made. The investigation fee is $450.00, which covers the transfer of the license certificate.

Return License Certificate

The original license certificate must be received in this office before a new certificate will be issued.

Officers and Directors

A list of officials should be included with the letter of instructions, stating all officers, directors, and other persons serving in official capacities, of the company who will serve after the ownership has changed.

TRANSFER CHECKLIST (select for document listing)

Send the transfer request and documentation to:

Consumer Finance Unit
P. O. Box 30220
Lansing, MI 48909

Or for overnight delivery:

Consumer Finance Unit
611 W. Ottawa Street, 3rd Floor
Lansing, MI 48933

Questions pertaining to the completion of a transfer request may be directed to the Consumer Finance Unit at (877) 999-6442.