By the Division of Banks

Permissibility Of Cash Prize Program For Auto Dealers Closing Auto Loans Funded By A Bank

Under Mass. Gen. Laws chapter 255B, the definition of a motor vehicle sales finance company includes banks, persons engaged in the business of purchasing retail installment contracts from one or more retail sellers, and retail sellers engaged in the business of holding retail installment contracts from retail buyers. Therefore, automobile dealerships closing loans funded by a bank would not require a license under said chapter 255B, provided that they do not purchase retail installment contracts from other retail sellers or hold retail installment contracts acquired from retail buyers.

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