By the Division of Banks

Non-Transferability Of Collection Agency License

If a new subchapter "S" corporation is created by the owners of a licensed collection agency, the new entity must apply for a new license pursuant to Mass. Gen. Laws chapter 93, section 24 and 209 CMR 18.00 et seq. Although a new entity may be owned by the same shareholders of a present licensee, if the new entity will have an entirely different federal tax identification number, different articles of organization and a different corporate name, it will become a separate legal entity. Given that a separate legal entity will be conducting the business, it is the position of the Division of Banks that the collection agency license held by the original corporation is not transferable and an application in the name of the newly created corporation must be filed.