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286.8-048 Emergency orders by commissioner -- Grounds -- Hearing -- Period
order to remain in effect.
(1)
(2)
The commissioner may enter an emergency order suspending, limiting, or
restricting the license, claim of exemption, or registration of any mortgage loan
broker, mortgage loan company, mortgage loan originator, or mortgage loan
processor without notice or hearing if it appears upon grounds satisfactory to
the commissioner that the mortgage loan broker, mortgage loan company,
mortgage loan originator, or mortgage loan processor has engaged or is
engaging in unsafe, unsound, and illegal practices that pose an imminent
threat to the public interest.
One (1) or more of the following circumstances shall be considered sufficient
grounds for an emergency order under this section if it appears on grounds
satisfactory to the commissioner that:
(a) The mortgage loan broker, mortgage loan company, mortgage loan
originator, or mortgage loan processor does not meet or has failed to
comply with more than one (1) of the requirements of this subtitle and the
violations appear to be willful;
(b) The mortgage loan broker or mortgage loan company is in such financial
condition that it cannot continue in business with safety to its customers;
(c) The mortgage loan broker, mortgage loan company, mortgage loan
originator, or mortgage loan processor has been indicted, charged with, or
found guilty of any act involving fraud, deception, theft, or breach of trust,
or is the subject of an administrative cease-and-desist order or similar
order, or of a permanent or temporary injunction currently in effect
entered by any court or agency of competent jurisdiction;
(d) The mortgage loan broker, mortgage loan company, mortgage loan
originator, or mortgage loan processor has made any misrepresentations
or false statements to, or concealed any essential or material fact from,
any person in the course of doing business in the mortgage lending
process, or has engaged in any course of business that has worked or
tended to work a fraud or deceit upon any person or would so operate;
(e) The mortgage loan broker, mortgage loan company, mortgage loan
originator, or mortgage loan processor has made or caused to be made to
the commissioner any false representation of material fact, has refused to
permit an examination, or has refused or failed, within a reasonable time,
to furnish any information or make any report that may have been
requested or required by the commissioner;
(f) The mortgage loan broker, mortgage loan company, mortgage loan
originator, or mortgage loan processor has had any license, registration,
or claim of exemption related to the financial services industry denied,
suspended, or revoked under the laws of this state or any other state of
the United States, or has surrendered or terminated any license,
registration, or claim of exemption issued by this state or any other
jurisdiction under threat of administrative action; or
(g) The surety bond required under KRS 286.8-060 has terminated, expired,
or no longer remains in effect.
(3)
(4)
(5)
(6)
An emergency order issued under this section becomes effective when signed
by the commissioner. The emergency order shall be delivered by personal
delivery or certified mail to the last known address of the party or parties. The
order shall be deemed served upon delivery or upon return of the order.
A party aggrieved by an emergency order issued by the commissioner under
this section may request an emergency hearing. The request for hearing shall
be filed with the commissioner within twenty (20) days of service of the
emergency order.
Upon receipt of a written request for emergency hearing, the commissioner
shall conduct an emergency hearing as required under KRS 13B.125, within
ten (10) working days from the date of receipt of the request for hearing, unless
the parties agree otherwise.
An emergency order issued under this section shall remain in effect until it is
withdrawn or superseded by an order of the commissioner or until it is
terminated by a court order.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 770, effective July 15, 2010. -Created 2008 Ky. Acts ch. 175, sec. 30, effective April 24, 2008.
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