RSA 399-D:1 · Definitions

399-D:1 Definitions. – In this chapter:

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I.

"Applicant" means a person who applies for a principal office license under this chapter.

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II.

"Branch office" means a business location within this state of a person required to be licensed under this chapter. Branch office does not include a person's principal office location.

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III.

"Commissioner" means the bank commissioner.

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IV.

"Compensation" means fees, fair-share contributions, and any financial or similar incentive.

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V.

"Concessions" means assent to repayment of a debt on terms more favorable to an individual than the terms of the contract between the individual and a creditor.

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VI.

"Control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person:

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(a)

Is a director, general partner, executive officer, or board of directors member;

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(b)

Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;

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(c)

In the case of a limited liability company, is a managing member; or

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(d)

In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.

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VII.

"Creditor" means a person who regularly extends credit that is subject to an interest or other charge or is payable, by written agreement, in more than 4 installments.

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VIII.

"Debt adjuster" means a person engaged in the business of debt adjustment.

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IX.

"Debt adjustment" means:

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(a)

Providing debt management advice or counseling to debtors for direct or indirect compensation;

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(b)

Creating debt adjustment contracts for debtors for direct or indirect compensation;

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(c)

Negotiating with one or more creditors on behalf of a debtor for direct or indirect compensation;

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(d)

Receiving for direct or indirect compensation as an agent of a debtor, monetary value or evidences thereof for the purpose of distributing, or supervising, coordinating, or controlling the distribution of, such money or evidences thereof among creditors in full or partial payment of obligations of the debtor;

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(e)

A person otherwise engaging in the debt adjustment business including but not limited to acting upon outstanding debt adjustment contracts is providing debt adjustment within the intent of this chapter; or

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(f)

Any person that serves as an intermediary between a debtor and one or more creditors of the debtor for the purpose of obtaining concessions.

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(1)

An intermediary includes but is not limited to any person that:

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(A)

Engages in the business of mortgage loan loss mitigation; and

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(B)

Is not subject to RSA 397-A.

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(2)

An intermediary does not include any person specifically exempted pursuant to RSA 397-A:4.

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X.

"Debt adjustment contract" means a written agreement between a debt adjuster and a debtor to provide one or more debt adjustment services, including but not limited to a debt management plan, debt repayment plan, or debt settlement plan.

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XI.

"Debt management plan" means a proposed contract which indicates that:

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(a)

Regular, periodic payments will be made to a creditor by or on behalf of a debtor to whom debt adjustment services are being provided; and

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(b)

The debtor's creditors will reduce financing charges or fees for late payment, default, or delinquency.

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XII.

"Debt repayment plan" means a proposed payment schedule created by a debt adjuster to reduce outstanding debt with one or more creditors over a fixed period of time.

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XIII.

"Debt settlement plan" means a proposed contract which indicates that:

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(a)

A lump sum payment will be made to a creditor by or on behalf of a debtor to whom debt adjustment services are being provided; and

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(b)

The debtor's creditors will settle the debt for less than the principal amount of the debt.

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XIV.

"Debtor" means a person who owes or is obligated to another or others.

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XV.

"Department" means the banking department.

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XVI.

"Direct owner" means any person, including an individual, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee.

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XVII.

"Fair share" means voluntary contributions paid to the licensee by the creditor for collecting funds from debtors pursuant to debt adjustment contracts or debt management plans.

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XVIII.

"Fiduciary" means a person who is a trustee, executor or executrix, administrator, guardian, receiver, or conservator, or who conducts similar activity.

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XIX.

"Financial institution" means a bank, savings institution, credit union, trust company, or a person licensed under RSA 361-A, RSA 397-A, or RSA 399-A.

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XX.

"Financial services" or "financial services-related" means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent.

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XXI.

"Indebtedness" means the outstanding principal debt as stated in the contract, excluding any current or projected interest or fees.

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XXII.

"Indirect owner" means, with respect to direct owners and other indirect owners in a multilayered organization:

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(a)

In the case of an owner that is a corporation, each of its shareholders that beneficially owns, has the right to vote, or has the power to sell or direct the sale of, 25 percent or more of that corporation.

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(b)

In the case of an owner that is a partnership, all general partners and those limited and special partners that have the right to receive upon dissolution, or have contributed, 25 percent or more of the partnership's capital.

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(c)

In the case of an owner that is a trust, the trust, each trustee, and each beneficiary of 25 percent or more of the trust.

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(d)

In the case of an owner that is a limited liability company ("LLC"):

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(1)

Those members that have the right to receive upon dissolution, or have contributed, 25 percent or more of the LLC's capital; and

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(2)

If managed by elected managers, all elected managers.

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(e)

In the case of an indirect owner, the parent owners of 25 percent or more of their subsidiary.

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XXIII.

"Licensee" means a person duly licensed by the commissioner under the provisions of this chapter. XXIII-a. "Nationwide Multistate Licensing System and Registry" means a national licensing system and facility developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, or their successors, for the licensing and registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers, and other non-depository financial service licensees, including debt adjusters.

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XXIV.

"Person" means an individual, corporation, business trust, estate, trust, partnership, association, 2 or more persons having a joint or common interest, or any other legal or commercial entity however organized.

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XXV.

"Principal" means an owner with 10 percent or more ownership interest in the applicant or licensee, a corporate officer, director, member, general and limited liability partner, limited partner with 10 percent or more ownership interest, trustee, beneficiary of 10 percent or more of the trust that owns the applicant or licensee, indirect owner, senior manager, and any person occupying similar status or performing similar functions.

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XXVI.

"Principal office" means the main office location of a person required to be licensed under this chapter.

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XXVII.

"Publicly traded" means a company whose securities are traded on a securities exchange system approved and supervised by the Securities and Exchange Commission, including but not limited to the NYSE, AMEX, BSE, and NASDAQ. The term also includes a public reporting company that is subject to sections 12 or 15(d) of the Securities Exchange Act of 1934.

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XXVIII.

"Senior manager" means any officer of record, assistant vice president or higher, office or branch manager, director of operations, or other position the responsibilities of which provide such employee with the discretion or ability to set policy or manage or direct affairs of the licensee as a whole, or of any division or department or unit of the licensee.

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XXIX.

"Significant event" means:

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(a)

Filing for bankruptcy or reorganization;

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(b)

Criminal felony indictment or conviction of any of the licensee's principals;

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(c)

Receiving notification of a license denial, cease and desist, consent agreement or order, suspension, or revocation, or any other formal administrative action in any state against the licensee;

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(d)

Receiving notification of any enforcement action or investigation by the attorney general of the state of New Hampshire or of any other state pursuant to any consumer protection statute, and the reasons thereof, except routine investigations of consumer complaints; or

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(e)

Entering into a consent agreement, settlement agreement, memorandum of understanding, or similar agreement with any regulatory body pertaining to the licensee's practices. Source. 2016, 151:1, eff. Jan. 1, 2017. 2018, 196:11, 12, eff. Aug. 7, 2018. 2019, 36:27, eff. May 15, 2019. 2021, 194:7, eff. Oct. 9, 2021.

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