2011 Kentucky Revised Statutes Subtitle 8. Mortgage Loan Companies and Brokers 286.8.170 Places where records required to be kept -- Examination by commissioner -- Fee -- Access to records -- Reports.
KY Rev Stat § 286.8.170 (1996 through Reg Sess) What's This?
286.8-170 Places where records required to be kept -- Examination by
commissioner -- Fee -- Access to records -- Reports.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Every mortgage loan company and mortgage loan broker shall keep at its principal
office correct and complete records of its business transactions, books of accounts,
and minutes of proceedings of its directors, principals, or partners. Complete
records of all business transactions at the principal office shall be maintained at the
principal office. Each branch office shall keep detailed records of all transactions at
such branch office and shall furnish full control records to the principal office.
No mortgage loan company or mortgage loan broker by any system of accounting or
any device of bookkeeping shall, either directly or indirectly, enter any of its assets
upon its books in the name of any person, partnership, association, or corporation,
or under any title, designation, or value that is not thoroughly descriptive of any
assets.
The affairs of every mortgage loan company, mortgage loan broker, mortgage loan
originator, and mortgage loan processor, and the records required to be maintained
by KRS 286.8-160 are subject at any time or from time to time to such periodic,
special, or other examinations by the executive director or an examiner of the
commissioner within or without this state and with or without notice to the person
being examined, as the commissioner deems necessary or appropriate in the public
interest. All records of the person being examined shall be subject to the
commissioner's inspection.
The examiner shall make a thorough examination into the condition, workings and
affairs of the person being examined and report any violation of law or any
unauthorized unsafe practices or any failure to keep and have correct any required
books and records as he or she may find to the commissioner.
A mortgage loan company or mortgage loan broker shall pay a fee for each such
examination of its operations or employees based on fair compensation for time and
actual expense. For the purpose of avoiding unnecessary duplication of
examinations, the commissioner, insofar as he or she deems it practicable in
administering this section, may cooperate and exchange information with any
agency of the state or federal government, other states, the Nationwide Mortgage
Licensing System and Registry, or the federal National Mortgage Association,
Government National Mortgage Association, and Federal Home Loan Mortgage
Corporation, and may accept such examinations in whole or in part in lieu of an
examination by the commissioner.
The commissioner or the commissioner's examiners or designated representative
shall have access to all records of a mortgage loan company, mortgage loan broker,
mortgage loan originator, and mortgage loan processor which relate to their
business, and records kept by any officers, agents, or employees, relating to or upon
which any record of its business is kept.
A mortgage loan originator or mortgage loan processor shall make available and
grant access to the commissioner, or an examiner of the commissioner, the records
relating to its operations. A mortgage loan company or mortgage loan broker shall
make available and grant access to all records of its current and former employees
and contractors relating to its operations.
(8) Any person subject to this subtitle shall make or compile reports or prepare other
information as directed by the commissioner or an examiner of the commissioner to
include:
(a) Accounting compilations;
(b) Information lists and data concerning loan transactions in a format prescribed
by the commissioner or an examiner of the commissioner; and
(c) Such other information deemed necessary to carry out the purposes of this
section.
(9) No mortgage loan company, mortgage loan broker, mortgage loan originator, or
mortgage loan processor shall impede the commissioner or an examiner of the
commissioner from interviewing its officers, principals, members, employees,
independent contractors, agents, or customers.
(10) In making any examination or investigation authorized by this subtitle, the
commissioner may control access to any documents and records of the licensee or
person under examination or investigation. The commissioner may take possession
of the documents and records, or place a person in exclusive charge of the
documents and records in the place where they are usually kept. During the period
of control, no individual or person shall remove or attempt to remove any of the
documents and records except pursuant to a court order or with the consent of the
commissioner. Unless the commissioner has reasonable grounds to believe the
documents or records of the licensee have been, or are at risk of being, altered or
destroyed for purposes of concealing a violation of this subtitle, the licensee or
owner of the documents and records shall have access to the documents or records
as necessary to conduct its ordinary business affairs.
(11) It shall be unlawful for any person subject to investigation or examination under this
subtitle to knowingly withhold, abstract, alter, remove, mutilate, destroy, or secrete
any books, records, or other information.
(12) In order to carry out the purposes of this subtitle, the commissioner may:
(a) Retain attorneys, accountants, or other professionals and specialists as
examiners, auditors, or investigators to conduct or assist in the conduct of
examinations or investigations;
(b) Enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory
burden by sharing resources, standardized or uniform methods or procedures,
and documents, records, information, or evidence obtained under this subtitle;
and
(c) Use, hire, contract, or employ public or privately available analytical systems,
methods, or software to examine or investigate the persons subject to this
subtitle.
(13) The authority of this section shall remain in effect, whether a person acts or claims
to act under any licensing or registration law of this subtitle, or claims to act without
such authority.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 782, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 104, sec. 12, effective June 25, 2009. -- Amended 1998 Ky. Acts
ch. 197, sec. 14, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 461, sec. 18,
effective July 15, 1986. -- Created 1980 Ky. Acts ch. 365, sec. 18, effective July 15,
1980.
Formerly codified as KRS 294.170.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.