By the Division of Banks

License Requirements For Assignees Or Subsequent Purchasers Of Motor Vehicle Retail Installment Contracts

Under Mass. Gen. Laws chapter 255B, a sales finance company is defined as any person engaged, in whole or in part, in the business of purchasing retail installment contracts from one or more retail sellers, or a retail seller engaged, in whole or in part, in the business of holding retail installment contracts acquired from retail buyers. Therefore, an entity being assigned retail installment contracts from a licensed sales finance company, or purchasing retail installment contracts from a sales finance company and not from a retail seller, would not itself be required to obtain a sales finance company license. However, as retail installment contract holders such entities would be subject to Mass. Gen. Laws chapter 255B §§ 11, 15, 17, 19, 19A and 20.