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Financial Services Law Insights and Observations

Louisiana governor signs amendments relating to consumer loan licensing

State Issues State Legislation Licensing Consumer Lending

State Issues

On May 15, the Louisiana governor signed SB171, which amends a state statute that prescribes when a person acquiring or controlling ownership interest in a consumer loan licensee must obtain approval from the state’s commissioner. Under SB171, written approval by the commissioner must now be received for any person acquiring or controlling “[25] percent or more of the ownership interest in a licensee”—an amount previously set at 50 percent or more. The amendments also strike the requirement that “[a]ny person who acquires or anticipates acquiring a [75] percent interest in a licensee shall file for a new license prior to acquiring ownership of said interest either incrementally over a period of time or as one transaction.” The amendments became effective upon signature by the governor.