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286.8-090 Denial, suspension, or revocation of license -- Jurisdiction of
Franklin Circuit Court.
(1)
The commissioner may suspend; revoke; place on probation; condition; refuse
to issue or renew a license, registration, or exemption; or accept surrender of a
license, registration, or exemption in lieu of revocation or suspension; or issue
a cease and desist order if the commissioner finds that the person, applicant,
licensee, or registrant:
(a) Does not meet, no longer meets, or has failed to comply with the
requirements of this subtitle;
(b) Is unfit through lack of financial responsibility or experience to conduct
the business of a mortgage loan company or mortgage loan broker, as
the case may be;
(c) Does not conduct his business in accordance with the law or the method
of business includes or would include activities which are illegal where
performed;
(d) Collects interest at a usurious rate;
(e) Is in such financial condition that he cannot continue in business with
safety to his customers;
(f) Is guilty of fraud in connection with any transaction governed by this
subtitle, or is the subject of an administrative cease and desist order or
similar order, or a permanent or temporary injunction of any court of
competent jurisdiction entered under any other federal or state act;
(g) Has made any misrepresentations or false statements to, or concealed
any essential or material fact from, any person in the mortgage lending
process, or has engaged in a course of business that has worked or
tended to work a fraud upon any person or would so operate;
(h) Has made or caused to be made to the commissioner any false
representation of material fact or has suppressed or withheld from the
commissioner any information that the person possesses and which, if
submitted to the commissioner, would have rendered the person ineligible
to be licensed, registered, or exempted from licensing or registration
under this subtitle;
(i) Has failed to account to persons interest for all funds received for the
escrow account required under KRS 286.8-130;
(j) Has refused to permit an examination or investigation by the
commissioner of his books and affairs or has refused or failed, within a
reasonable time, to furnish any information or make any report that may
be required by the commissioner under the provisions of this subtitle;
(k) Has been convicted of any misdemeanor of which an essential element is
fraud, breach of trust, or dishonesty, or any felony, or has pending against
him any felony charge;
(l) 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
(2)
(3)
(4)
(5)
state or any other jurisdiction under threat of administrative action;
(m) Has employed or contracted with a person who has failed to register or
has had a license or registration denied, revoked, or suspended in this
Commonwealth or another state;
(n) Has demonstrated incompetence or untrustworthiness to act as a
licensee or registrant or to continue a claim of exemption granted by
application under this subtitle;
(o) Has failed to pay any required fee under this subtitle;
(p) Has abandoned an application by failing to provide the commissioner any
information required under this subtitle, or requested by the
commissioner, to complete an application;
(q) Has influenced, or attempted to influence through coercion, extortion, or
bribery, the development, reporting, result, or review of a real estate
appraisal sought in connection with a mortgage loan;
(r) Has failed to comply with an administrative or court order imposing child
support obligations;
(s) Has failed to pay state income taxes or to comply with any administrative
or court order directing the payment of state income tax;
(t) Has improperly used notes or other resources to complete an
examination for a license or registration;
(u) Has violated any provision of KRS 360.100; or
(v) Has violated any provision of this subtitle, administrative regulation
promulgated hereunder, or order issued by the commissioner.
Any person whose license, registration, or claim of exemption has been
denied, suspended, revoked, or surrendered in lieu of revocation or suspension
under this section is prohibited from participating in any business activity of a
registrant or licensee under this subtitle and from engaging in any business
activity on the premises where a licensee or registrant under this subtitle is
conducting its business.
The commissioner shall execute a written order whenever a license,
registration, or claim of exemption issued pursuant to this subtitle is suspended
or revoked. The commissioner shall serve the written order upon the licensee,
registrant, or person claiming the exemption. The written order shall be sent by
certified mail, return receipt requested, postage prepaid, to the last known
principal business address of such licensee, registrant, or person claiming the
exemption, as set forth in the records of the commissioner. The written order
shall be deemed to have been received by the licensee, registrant, or person
claiming the exemption three (3) business days following the mailing thereof.
Any person who continues to participate in any business activity covered by
this subtitle after such person's license, registration, or claim of exemption has
been revoked, suspended, or denied shall be subject to the penalties in this
section, KRS 286.8-046, and KRS 286.8-990 and shall be in violation of KRS
367.170.
Any person who has had a license, registration, or claim of exemption denied
by the commissioner shall not be eligible to apply for a license, registration, or
claim of exemption under this subtitle until after expiration of one (1) year from
the date of denial.
(6) Any person who has had a license, registration, or claim of exemption revoked
by the commissioner shall not be eligible to apply for a license, registration, or
claim of exemption under this subtitle until after expiration of three (3) years
from the date of revocation. A person whose license, registration, or claim of
exemption has been revoked twice shall be deemed permanently revoked and
shall not again be eligible for a license, registration, or claim of exemption
under this subtitle.
(7) The provisions of this section shall be in addition to any other penalties or
remedies available, including the penalties of KRS 286.8-046.
(8) The commissioner may notify the Department of Revenue which may institute
an action in the name of the Commonwealth of Kentucky in the Franklin Circuit
Court, or any court of competent jurisdiction, for the recovery of any civil
penalty, fine, cost, or fee assessed or levied under this subtitle.
(9) The commissioner may file a complaint in the Franklin Circuit Court, or any
court of competent jurisdiction, for a temporary restraining order or injunction,
against any person, where the commissioner has reason to believe from
evidence satisfactory to the commissioner that such person has violated, or is
about to violate, a provision in this subtitle, for the purpose of restraining and
enjoining such person from continuing or engaging in the violation or doing any
act in furtherance thereof. The court shall have jurisdiction over the proceeding
and shall have the power to enter an order or judgment awarding preliminary or
final injunctive relief that is proper. Any person who violates a temporary
restraining order or injunction issued by the court entered as a result of a
violation of this subtitle shall be held in contempt of court.
(10) The surrender or expiration of a license, registration, or exemption shall not
affect the licensee's civil or criminal liability for acts committed prior to the
surrender or expiration. No revocation, suspension, refusal to renew,
surrender, or expiration of any license, registration, or exemption shall impair or
affect the obligation of any preexisting lawful contract between the licensee and
the borrower. The surrender or expiration of a license, registration, or
exemption shall not affect a proceeding to suspend or revoke a license or
registration.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 775, effective July 15, 2010. -Amended 2008 Ky. Acts ch. 175, sec. 9, effective April 24, 2008. -- Amended
2006 Ky. Acts ch. 218, sec. 5, effective July 12, 2006, effective July 12, 2006. -Amended 1998 Ky. Acts ch. 197, sec. 9, effective July 15, 1998. -- Amended
1986 Ky. Acts ch. 461, sec. 11, effective July 15, 1986. -- Created 1980 Ky. Acts
ch. 365, sec. 10, effective July 15, 1980.
Formerly codified as KRS 294.090.
Legislative Research Commission Note (7/12/2006). This section was amended
in 2006 Ky. Acts ch. 218. In that same session, 2006 Ky. Acts ch. 247, sec. 38,
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 changed the number of this section and codified it as a
section of KRS Chapter 286. In addition, KRS references have been adjusted to
conform with the renumbering.
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