Short Answer:
Yes, if located in Alabama.
Explanation:
The Alabama Consumer Credit Act, Ala. Code §§ 5-19-1 et seq. ("Mini-Code"), requires a "creditor" who takes assignment of consumer credit contracts, either from a place of business in Alabama or through use of an employee residing in Alabama whose employment includes taking assignments of consumer credit contracts, to obtain a license from the Superintendent of Banks. Ala. Code § 5-19-22(a). The Mini-Code exempts trust companies from the license requirement, but the Alabama Consumer Credit Act Regulations, Ala. Admin. Code r. 155-2-2-.01 et seq. ("Mini-Code Regulations"), provide that the license requirement does apply to a consumer finance subsidiary of a trust company. Ala. Admin. Code r. 155-2-2-.01.
The Mini-Code defines the term "creditor" to mean a person who regularly extends or arranges for the extension of credit that includes a finance charge. A creditor may be a natural person or any type of organization. A person is a creditor only if the person extended or arranged for the extension of credit more than 25 times in the preceding calendar year. Ala. Code § 5-19-1(3).
As a result, a securitization trust that purchases and holds a motor vehicle retail installment sale contract either from a place of business in Alabama or through use of an employee residing in Alabama is subject to the license requirement.
Last Revision*:
July 2, 2020 Show Redlined Changes
* The Last Revision date is the last time we made a SUBSTANTIVE revision to the answer. The date DOES NOT represent the last time we reviewed the answer. We review our answers on an ongoing basis.