2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 11 - Money Transmitters 11.11-041 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.
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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)
(3)
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.
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
(4)
(5)
(6)
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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