Title plant companies.
1. No person may engage in business as a title plant company unless he has been granted a license to do so by the Commissioner.
2. An applicant for a license to conduct business as a title plant company shall submit as part of his application:
(a) A copy of the proposed articles of incorporation or association and bylaws, or the partnership agreement, which will govern the operation of the business.
(b) A list of the owners or participants and the nature and degree of their interest.
(c) A list of the persons who will operate the business, and their addresses and qualifications, including experience.
(d) The conditions under which ownership or participation in the business may be sold or acquired.
(e) A statement of whether or not title information will be compiled for persons other than owners or participants in the business.
(f) A pro forma balance sheet and other financial information to indicate the sufficiency of financing of the business.
(g) Other information which the Commissioner requires.
(h) A fee of $10.
3. If the Commissioner finds that:
(a) The business of the applicant will be sufficiently financed;
(b) The persons who will be operating the business are qualified;
(c) The rules of operation expressed in the articles of incorporation or association and the bylaws, or in the partnership agreement, will promote the efficiency of the operation of the owners or participants; and
(d) The operation of the business will not unduly restrict competition, he may issue a license to the applicant and permit organization of the business.
4. A license issued under this section is valid for a period of 1 year, and may be renewed by the submission of any information which the Commissioner requires and a fee of $10.
5. A license issued under this section may be suspended or revoked by the Commissioner if:
(a) The licensee ceases to operate in a manner set forth in its approved application.
(b) In the opinion of the Commissioner, the operation of the business has become a restraint on competition or is not in the best interests of the public.
(c) The licensee has not informed the Commissioner promptly of each change in conditions set forth in its application.
6. The Commissioner shall give written notice to any licensee whose license he intends to suspend or revoke, and the licensee shall be granted a hearing if he requests it in writing within 15 days after the receipt of the notice from the Commissioner. A decision of the Commissioner after hearing is final administrative action.
7. This section does not apply to any person licensed under the provisions of this chapter engaged in the business of a title plant company when the operation is not in concert with others.
Last modified: February 27, 2006