REGISTRATION AND BONDING

§12-201. Registration and annual reregistration

1.__Only a nonprofit organization that is exempt from taxation under the United States Internal Revenue Code, Section 501(c)(3) may register under this Article to act as a debt management service in this State.

2.__A nonprofit organization that is exempt from taxation under the United States Internal Revenue Code, Section 501(c)(3) desiring to act, or continue to act, in this State as a debt management service shall apply to the administrator for registration or reregistration under this Article.__The application must be in a form prescribed by the administrator.__ The administrator may refuse the application if it contains erroneous or incomplete information.__A registration may not be issued unless the administrator, upon investigation, finds that the financial responsibility, character and fitness of the applicant and, when applicable, its partners, officers or directors warrant belief that the business will be operated honestly and fairly within the purposes of this Title.__The initial application for registration may be filed at any time and must include a fee of $500.__A registration or reregistration under this Article expires on December 31st of the year approved.__ An annual reregistration application must be filed by December 1st of each year and must include a fee of $250.

3.__A nonprofit organization's application for registration or reregistration as a debt management service is considered effective and accepted by the State 30 days following the submission of the registration or reregistration to the State unless the administrator notifies the applicant in writing of any errors in the application requiring correction or additional information required to complete the application within such 30- day period or, after such notice and an opportunity to cure, determines that the application is denied.

§12-202.__Bond

Each application must be accompanied by evidence of a surety bond, in a form approved by the administrator in the aggregate amount of $50,000, to run to the administrator for use by the administrator and any person or persons who may have a cause of action against a debt management service.__The terms of the bond must run concurrently with the period of time during which the license is in effect.

PART 3