* § 740. Application for acquisition of control of buy-now-pay-later
lender by purchase of stock. 1. It shall be unlawful except with the
prior approval of the superintendent for any action to be taken which
results in a change of control of the business of a licensee. Prior to
any change of control, the person desirous of acquiring control of the
business of a licensee shall make written application to the
superintendent and pay an investigation fee as prescribed pursuant to
section eighteen-a of this chapter to the superintendent. The
application shall contain such information as the superintendent, by
regulation, may prescribe as necessary or appropriate for the purpose of
making the determination required by subdivision two of this section.

2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of section
seven hundred thirty-eight of this article.

3. For a period of six months from the date of qualification thereof
and for such additional period of time as the superintendent may
prescribe, in writing, the provisions of subdivisions one and two of
this section shall not apply to a transfer of control by operation of
law to the legal representative, as hereinafter defined, of one who has
control of a licensee. Thereafter, such legal representative shall
comply with the provisions of subdivisions one and two of this section.
The provisions of subdivisions one and two of this section shall be
applicable to an application made under such section by a legal
representative.

4. The term "legal representative," for the purposes of this section,
shall mean one duly appointed by a court of competent jurisdiction to
act as executor, administrator, trustee, committee, conservator or
receiver, including one who succeeds a legal representative and one
acting in an ancillary capacity thereto in accordance with the
provisions of such court appointment.

5. As used in this section, the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of
the management and policies of a licensee, whether through the ownership
of voting stock of such licensee, the ownership of voting stock of any
person which possesses such power or otherwise. Control shall be
presumed to exist if any person, directly or indirectly, owns, controls
or holds with power to vote ten per centum or more of the voting stock
of any licensee or of any person which owns, controls or holds with
power to vote ten per centum or more of the voting stock of any
licensee, but no person shall be deemed to control a licensee solely by
reason of being an officer or director of such licensee or person. The
superintendent may in the superintendent's discretion, upon the
application of a licensee or any person who, directly or indirectly,
owns, controls or holds with power to vote or seeks to own, control or
hold with power to vote any voting stock of such licensee, determine
whether or not the ownership, control or holding of such voting stock
constitutes or would constitute control of such licensee for purposes of
this section.

* NB Effective upon the one hundred eightieth day after the
promulgation of rules and/or regulations by the department of financial
services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §
13)