Words and terms used in this chapter that are defined in Texas Finance Code, Chapter 348, have the same meanings as defined in Chapter 348. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Affiliate--A business entity directly or indirectly through one or more intermediaries that is under common control with the applicant or licensee.
2. (2) Applicant--An entity that has filed the required forms and fees to operate under a license from the Office of Consumer Credit Commissioner pursuant to Texas Finance Code, Chapter 348.
3. (3) Foreign entity--An entity formed under the laws of a jurisdiction other than the State of Texas.
4. (4) Licensed location--The central or main location of the entity.

5. (5) Principal party--An individual with a substantial relationship to the proposed business of the applicant. The following individuals are considered to be principal parties:

   1. (A) proprietors, to include spouses with community property interest;
   2. (B) general partners;
   3. (C) officers of privately-held corporations, to include the chief executive officer or president, the chief operating officer or vice president of operations, and those with substantial responsibility for operations or compliance with Texas Finance Code, Chapter 348;
   4. (D) directors of privately-held corporations;

   5. (E) individuals associated with publicly-held corporations designated by the applicant as follows:

      1. (i) officers as provided by subparagraph (C) of this section (as if the corporation was privately-held); or
      2. (ii) three officers or similar employees with significant involvement in the corporation's activities governed by Texas Finance Code, Chapter 348. One of the persons designated shall be responsible for assembling and providing the information required on behalf of the applicant and shall sign the application for the applicant;
   6. (F) voting members of a limited liability corporation;
   7. (G) trustees and executors;
   8. (H) officers of nonprofit organizations;
   9. (I) individuals designated as a principal party where necessary to fairly assess the applicant's financial responsibility, experience, character, general fitness, and sufficiency to command the confidence of the public and warrant the belief that the business will be operated lawfully and fairly as required by the commissioner; and
   10. (J) individuals may be accepted as principal parties in compliance with this paragraph upon approval by the commissioner for certain privately-held entities with complex ownership structures. Three officers or similar employees with significant involvement in the entity's activities governed by Texas Finance Code, Chapter 348 may be designated upon approval by the commissioner.
6. (6) Privately-held corporation--A corporation that is not publicly-held.

7. (7) Publicly-held corporation--A corporation:

   1. (A) subject to the registration provisions of the Securities Act of 1933 in order to allow a public offering of voting stock; or
   2. (B) owned directly or indirectly by a parent corporation that is subject to the registration provisions of the Securities Act of 1933.
8. (8) Registered offices--Each location other than the licensed location where a licensee will originate, service, or collect on retail installment sales contracts subject to Texas Finance Code, Chapter 348. The term also includes any additional assumed name that the licensee uses at a single location to engage in a Chapter 348 transaction.

Source Note:The provisions of this §84.601 adopted to be effective May 8, 2008, 33 TexReg 3576.