7-1-1008. Prohibited acquisitions of shares without prior approval.

Except as provided in this Code section, no person shall acquire directly or indirectly 10 percent or more of the voting shares of a corporation or 10 percent or more of the ownership of any other entity licensed to conduct business as a mortgage broker or mortgage lender under this article unless it first:#

1. (1)

   Files an application with the department in such form as the department may prescribe from time to time;#

2. (2)

   Delivers such other information to the department as the department may require concerning the financial responsibility, background, experience, and activities of the applicant, its directors and officers, if a corporation, and its members, if applicable, and of any proposed new directors, officers, or members of the licensee; and#

3. (3)

   Pays such application fee as the department may prescribe.#

Upon the filing and investigation of an application, the department shall permit the applicant to acquire the interest in the mortgage broker or mortgage lender licensee if it finds that the applicant and its members, if applicable, its directors and officers, if a corporation, and any proposed new directors and officers have the financial responsibility, character, reputation, experience, and general fitness to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with law. The department shall grant or deny the application within 60 days from the date a completed application accompanied by the required fee is filed unless the period is extended by order of the department reciting the reasons for the extension. If the application is denied, the department shall notify the applicant of the denial and the reasons for the denial.#

The provisions of this Code section shall not apply to:#

1. (1)

   The acquisition of an interest in a licensee directly or indirectly, including an acquisition by merger or consolidation by or with a person licensed by this article or a person exempt from this article under Code Section 7-1-1001;#

2. (2)

   The acquisition of an interest in a mortgage broker or mortgage lender licensee directly or indirectly, including an acquisition by merger or consolidation by or with a person affiliated through common ownership with the licensee; or#

3. (3)

   The acquisition of an interest in a mortgage broker or mortgage lender licensee by a person by bequest, descent, or survivorship or by operation of law.#

4. The person acquiring an interest in a mortgage broker or mortgage lender licensee in a transaction which is exempt from filing an application by this subsection shall send written notice to the department of such acquisition within 30 days of the closing of such transaction.