Section 308-29-060. What are the licensees' obligations when transferring an interest in a collection agency?

(1) In order to transfer the licensee's interest in a collection agency or out-of-state collection agency, unless the transfer is due to the death of an individual licensee, the licensee shall notify all of its clients with open accounts, or cause such clients to be notified, of the transfer of the licensee's interest.

(2) The instrument by which the interest is transferred shall be in writing, and shall indicate:

(a) That the license or branch office certificate granted under chapter 19.16 RCW is not assignable or transferable, that the transfer of the licensee's interest in the business does not include such license or certificate, that the transferee of the interest must apply for a license and/or certificate in accordance with the law, and that the transferee of the interest may not act, assume to act, or advertise as a collection agency or out-of-state collection agency as defined in chapter 19.16 RCW, without first having applied for and obtained a license under that chapter;

(b) Which party to the transaction bears responsibility for payment to clients of amounts due them between the date the instrument is executed and the effective date of the transfer;

(c) Which party to the transaction bears responsibility for maintaining and preserving the records of the collection agency or out-of-state collection agency as prescribed by RCW 19.16.230 and these rules;

(d) Whether the transfer of interest includes the right to use of the business name or trade name of the collection agency or out-of-state collection agency; and

(e) Which party to the transaction bears responsibility for providing written notice of the transfer to the clients of the collection agency who have open accounts with the collection agency or out-of-state collection agency.

(3) The licensee must provide the director a copy of the instrument transferring the licensee's interest signed by all parties to the transaction and shall indicate the effective date of the transfer.

[Statutory Authority: [RCW 19.16.410]. WSR 01-11-132, § 308-29-060, filed 5/22/01, effective 6/22/01; WSR 87-11-064 (Order PM 653), § 308-29-060, filed 5/20/87; WSR 86-14-051 (Order PM 602), § 308-29-060, filed 6/27/86; WSR 79-06-084 (Order PL-306), § 308-29-060, filed 6/1/79.]

[RCW 19.16.410]. WSR 01-11-132, § 308-29-060, filed 5/22/01, effective 6/22/01; WSR 87-11-064 (Order PM 653), § 308-29-060, filed 5/20/87; WSR 86-14-051 (Order PM 602), § 308-29-060, filed 6/27/86; WSR 79-06-084 (Order PL-306), § 308-29-060, filed 6/1/79.