BACKGROUND
Citizens of San Andreas,
The Business Licensing Bureau is pleased to announce that after much review, there are significant changes to the FSBL:01 - Finance Company license. These changes are the result of much public input, as well as significant input from the Public Notary Division of the San Andreas Judicial Branch.
The changes made are in the interest of furthering fair business practises in the state and now include several stipulations to ensure finance companies are conducting proper due diligence, as well as fair collateral treatment. The vast majority of finance companies adhere to these regulations already, so the San Andreas State Government is pleased to say that the impact should be minimal for them to adopt the new changes.
Finance companies must now ensure their contracts are notarized with the Public Notary Division of the Judicial Branch, which brings the contracts into the common ground standard that is adopted across the state. Lenders must now ensure an individual's collateral is fairly treated and used for the purpose of insurance on a loan, rather than a profit avenue. These common sense changes, ensure that all aspects of lending in our state moves towards a fair standard to help benefit our economy, the citizens of the state, as well as the private businesses.
Finance companies will have a one-month grace period to ensure they meet the new standards before they are enforced and liable. The fee of the FSBL:01 license will also be increasing to $80,000 per month as these companies are deemed as 'economy crucial businesses' and this increase brings them into line with other businesses of the same type. Individuals can *CLICK HERE* for more information on contract notarization and how they can obtain Contract Pre-Approval from the San Andreas Judicial Branch, which should greatly reduce any wait times for contracts.
The Business Licensing Bureau is pleased to announce that after much review, there are significant changes to the FSBL:01 - Finance Company license. These changes are the result of much public input, as well as significant input from the Public Notary Division of the San Andreas Judicial Branch.
The changes made are in the interest of furthering fair business practises in the state and now include several stipulations to ensure finance companies are conducting proper due diligence, as well as fair collateral treatment. The vast majority of finance companies adhere to these regulations already, so the San Andreas State Government is pleased to say that the impact should be minimal for them to adopt the new changes.
Finance companies must now ensure their contracts are notarized with the Public Notary Division of the Judicial Branch, which brings the contracts into the common ground standard that is adopted across the state. Lenders must now ensure an individual's collateral is fairly treated and used for the purpose of insurance on a loan, rather than a profit avenue. These common sense changes, ensure that all aspects of lending in our state moves towards a fair standard to help benefit our economy, the citizens of the state, as well as the private businesses.
Finance companies will have a one-month grace period to ensure they meet the new standards before they are enforced and liable. The fee of the FSBL:01 license will also be increasing to $80,000 per month as these companies are deemed as 'economy crucial businesses' and this increase brings them into line with other businesses of the same type. Individuals can *CLICK HERE* for more information on contract notarization and how they can obtain Contract Pre-Approval from the San Andreas Judicial Branch, which should greatly reduce any wait times for contracts.
Marc Ericsson, Business Licensing Bureau Director wrote:The Business Licensing Bureau is committed to promoting fair business practices that benefit both borrowers and lenders. We believe that these changes will help ensure that finance companies are conducting proper due diligence and treating collateral fairly, which will ultimately contribute to a stronger and more stable economy for all of San Andreas.
We are always happy to ensure that the private sector of San Andreas, is as prosperous as possible, whilst upholding the highest of operating standards. Business Licensing is certain these changes positively impact all in the state, and we look forward to continuing to improve our licensing offerings.
LICENSE CHANGES
FSBL:01 - Finance Company
Any business or person which focuses primarily on providing money with the expectation of repayment with interest, e.g. Loans, must obtain a Finance Company license.
*A loan defined as, a sum of money that is borrowed from a lender or a financial institution, that is expected to be repaid over a specified period of time, along with interest.*
Any business or person which focuses primarily on providing money with the expectation of repayment with interest, e.g. Loans, must obtain a Finance Company license.
*A loan defined as, a sum of money that is borrowed from a lender or a financial institution, that is expected to be repaid over a specified period of time, along with interest.*
- License Fee:
* The monthly license cost is $80,000
Restrictions & Requirements:
* Ownership of non-residential property to operate as an office.
* Must contractually bind a definitive agreement between the company and the client which is notarized by the Judicial Branch's Public Notary.
* Must keep all contracts between the company and clients stored safely for up to 90 days after the contract is completed.
* The lender shall ensure that any collateral provided by the borrower and retained by the lender is expressly detailed within the contractual agreement.
* Prior to finalizing the agreement, the lender must perform a comprehensive financial assessment to ascertain their contentment with the collateral provided by the borrower, should the lender fail to adhere to the terms of the agreement.
* The lender is prohibited from seeking any financial advantage from the borrower in the event of contract termination and collateral liquidation.
* The lender is prohibited from levying an interest rate higher than 80%.
Violations:
* Falsely advertising loan rates is considered a minor breach of licensing conditions.
* Failure to contractually bind a definitive agreement between the company and the client which is notarized by the Judicial Branch's Public Notary, is considered a minor breach of licensing conditions.
* Failure to keep all contracts between the company and clients stored safely for up to 90 days after the contract is completed, is considered a minor breach of licensing conditions.
* Exceeding the interest rate upper limit of 80% is considered a minor breach of licensing conditions.
* In the event that collateral provided by the borrower is sold by the lender due to failure to meet contractual obligations, the contract will be considered concluded. Failure to conclude the contract is considered a major breach of licensing conditions.
* 3 repeated minor offences are considered a moderate breach of licensing conditions.
* Failure to upkeep terms of a contractually bound agreement is considered a major breach of licensing conditions, along with a property removal and a business termination.
* 5 repeated minor offences or 3 moderate offences are considered a major breach of licensing conditions along with a property removal and a business termination.
CONTACT INFORMATION
Dante Buchanan
Deputy Director | Public Relations Bureau
San Andreas State Government
Marc Ericsson
Director | Business Licensing Bureau
San Andreas State Government
Lewis Langley
Governor | Board of Governors
San Andreas State Government