2011 Kentucky Revised Statutes Subtitle 11. Money Transmitters 286.11.041 Suspension or revocation of designation of an agent -- Factors to be considered by commissioner -- Procedure for hearing and appeal upon revocation of designation -- Limitations upon future designation of agent after revocation.
KY Rev Stat § 286.11.041 (1996 through Reg Sess) What's This?
286.11-041 Suspension or revocation of designation of an agent -- Factors to be
considered by commissioner -- Procedure for hearing and appeal upon
revocation of designation -- Limitations upon future designation of agent after
revocation.
(1)
(2)
The commissioner may issue a written order suspending or revoking the designation
of an agent if the commissioner finds that:
(a) The agent violates this subtitle or a rule adopted or an order issued under this
subtitle;
(b) The agent does not cooperate with an examination, investigation, or subpoena
issued by the commissioner;
(c) The agent has engaged in fraud, intentional misrepresentation, or gross
negligence;
(d) The agent has been convicted of a felony;
(e) The agent has been convicted of a misdemeanor related to the business of
money transmission;
(f) The agent has been convicted of a misdemeanor involving theft, fraud, or
breach of trust;
(g) The competence, experience, character, or general fitness of the agent or a
person in control of the agent indicates that it is not in the public interest to
permit the agent to be engaged in the business of money transmission;
(h) The agent is engaged in or is engaging in an unsafe or unsound practice;
(i) The agent is engaged in, or is engaging in, an unfair and deceptive act or
practice as that act or practice relates to the business of money transmission;
(j) The agent is insolvent;
(k) The agent has applied for an adjudication of bankruptcy, reorganization,
arrangement, or other relief under the United States Bankruptcy Code, 11
U.S.C. secs. 101 to 110; or
(l) The agent fails to timely remit all money legally due to its licensee as required
by this subtitle; or
(m) The agent, any executive officer, or other person in control of the agent is
listed or become listed on the specially designated nationals and blocked
persons list prepared by the United States Department of the Treasury or
United States Department of State under Presidential Executive Order No.
13224 as a potential threat to commit terrorist acts or to finance terrorist acts.
In determining whether an agent is engaging in an unsafe or unsound practice under
subsection (1)(h) of this section, the commissioner may consider the size and
condition of the agent's provision of money transmissions, the magnitude of the
loss, the gravity of the violation of this subtitle, the administrative regulation
adopted, or order issued under this subtitle, any action taken by another state or
federal government against the agent, or the previous conduct of the agent.
(3)
(4)
(5)
(6)
Any person who has his or her designation as an agent revoked or suspended by the
commissioner may file a written application for an administrative hearing in
accordance with KRS Chapter 13B.
An agent is deemed to have received a copy of the written order of revocation or
suspension within three (3) days of its mailing.
A written application for an appeal shall be made with the commissioner within
twenty (20) days of the date of the order of suspension or revocation in good faith
and shall briefly state the reason or reasons the agent is aggrieved, together with the
grounds to be relied upon.
The commissioner shall not designate a person as an agent again under this subtitle
where the designation of an agent has been revoked, until after three (3) years after
the date of revocation, and thereafter, not until the person again qualifies under the
applicable provisions of this subtitle. Any person whose designation as an agent has
been revoked twice by the commissioner shall be deemed permanently revoked and
shall not again be eligible for designation as an agent under this subtitle.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 849, effective July 15, 2010. -- Created
2006 Ky. Acts ch. 247, sec. 21, effective April 24, 2006.
Legislative Research Commission Note (7/12/2006). This section was created in 2006
Ky. Acts ch. 247 as a new section of KRS Chapter 366A. Sec. 38 of that same bill
also required that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A,
and 368 be renumbered as sections of a single KRS chapter entitled the "Kentucky
Financial Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1),
has codified this section as a new section of KRS Chapter 286.
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