1. (a) An application for issuance of a new debt management services provider registration must be submitted as prescribed by the commissioner at the date of filing and in accordance with the commissioner's instructions. Applications may be submitted electronically by Internet or e-mail, or by mail.

2. (b) The application must include the following required forms and filings. All questions must be answered.

   1. (1) Application for Registration of Debt Management Services Provider.

      1. (A) Required names and addresses. An applicant for a debt management services provider registration must provide the following:

         1. (i) the applicant's name;
         2. (ii) all other names under which the applicant conducts business;
         3. (iii) a physical street address for the applicant's principal business address and that location's telephone number;
         4. (iv) the address of each location in this state at which the applicant will provide debt management services, or if the applicant will have no such location, a statement to that effect;
         5. (v) all other business addresses of the applicant in this state;
         6. (vi) the electronic mail address of the applicant's responsible person listed in subparagraph (B) of this paragraph; and
         7. (vii) the applicant's primary Internet website address.
      2. (B) Responsible person. The person responsible for the day-to-day operation of the applicant's proposed business location must be named.
      3. (C) Authentication. An officer must authenticate the application.
   2. (2) Application Questionnaire for Debt Management Services Provider. All applicable questions must be answered.

   3. (3) Disclosure of Owners and Principal Parties of Debt Management Services Provider.

      1. (A) Detailed ownership and for-profit affiliate disclosure of nonprofit or tax exempt organizations. If the applicant is a nonprofit or tax exempt organization, a detailed description of the ownership interest of each officer, director, agent, or employee of the applicant must be provided. Any member of the immediate family of an officer, director, agent, or employee of the applicant, in a for-profit affiliate or subsidiary of the applicant, or in any other for-profit business entity that provides services to the applicant or to a consumer in relation to the applicant's debt management business must also be provided.

      2. (B) Ownership disclosure. The section inquiring about owners requires an answer based upon the applicant's entity type. If an individual's interest in an entity is community property, then spouses with a community property interest must also be listed. If the business interest is owned by a married individual as separate property, then a statement authenticating that fact must be provided.

         1. (i) All entity types. All applicants must disclose the name and home address of each officer and director of the applicant and each person that holds at least a 10% ownership interest in the applicant.
         2. (ii) Corporations. All shareholders holding 5% or more voting stock must be named. If a parent corporation is the sole or part owner of the proposed business, a narrative or diagram must be provided that describes each level of ownership and management. This narrative or diagram must include the names of all officers, directors, and stockholders owning 5% or more stock at each level.
         3. (iii) Other organizations. The owners, trustees, or governing persons must be named.
   4. (4) Statutory Agent Disclosure. The statutory agent is the person or entity to whom any legal notice may be delivered. The agent must list a Texas address for legal service. If the statutory agent is an individual, the address must be a residential address.

   5. (5) Surety bond or insurance. An applicant must file with the commissioner either:

      1. (A) a Surety Bond in the prescribed form:

         1. (i) At initial application:

            1. (I) If the average daily balance of the provider's trust account serving Texas consumers over the six-month period preceding the issuance of the bond is less than $50,000 or if the provider does not have any trust account history for Texas consumers, then a $50,000 bond is required.
            2. (II) If the average daily balance of the provider's trust account serving Texas consumers over the six-month period preceding the issuance of the bond is $50,000 or more, then a $100,000 bond is required.

         2. (ii) At annual renewal:

            1. (I) If the average daily balance of the provider's trust account serving Texas consumers over the six-month period preceding the issuance of the bond is less than $100,000, the bond amount must be equivalent to or exceed the average daily balance, but not be less than $25,000.
            2. (II) If the average daily balance of the provider's trust account serving Texas consumers over the six-month period preceding the issuance of the bond is $100,000 or more, then a $100,000 bond is required; or

      2. (B) evidence of insurance meeting the requirements of Texas Finance Code, §394.206 and clauses (i) - (iii) of this subparagraph, as follows:

         1. (i) a fidelity insurance policy, in the aggregate amount of $100,000 that provides coverage for:

            1. (I) employee dishonesty;
            2. (II) depositor's forgery;
            3. (III) computer fraud; and
         2. (ii) a professional liability insurance policy in the aggregate amount of $100,000.
         3. (iii) The fidelity insurance policy and the professional insurance policy must cover losses sustained by a Texas resident that are attributable to a debt management service or a debt management services agreement. Both the fidelity insurance policy and the professional insurance policy must contain a loss payee clause or rider stating that any loss or claim arising out of an action which occurred within the scope of Texas Finance Code, Chapter 394 may be payable in favor of the State of Texas.
   6. (6) Assumed name certificates. For any applicant that does business under an assumed name as that term is defined in Texas Business & Commerce Code, Chapter 71, the applicant must provide all assumed names used.
   7. (7) Debt management services agreement. The applicant must provide a blank copy of the written debt management services agreement as described in Texas Finance Code, §394.209.

   8. (8) Accreditation organizations. The applicant must provide the names and contact information for:

      1. (A) the independent, third-party accreditation organization of the provider; and
      2. (B) the accreditation organization or program that certifies the provider's credit counselors.

Source Note:The provisions of this §88.102 adopted to be effective November 10, 2005, 30 TexReg 7213; amended to be effective September 6, 2007, 32 TexReg 5659; amended to be effective May 6, 2010, 35 TexReg 3481.