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286.9-110 Revocation or suspension of license -- Effect of denial, revocation,
suspension, expiration, or surrender of license -- Circuit Court remedy.
(1)
The commissioner may suspend, revoke, place on probation, condition,
restrict, refuse to issue or renew a license, accept the surrender of a license in
lieu of revocation or suspension, order that refunds to customers be made, or
issue a cease-and-desist order, if the commissioner finds that the person,
licensee, or a person in control of a licensee:
(a) Has committed any fraud, engaged in any dishonest activities, or made
any misrepresentation;
(b) Does not meet, has failed to comply with, or has violated any provisions
of this subtitle or any administrative regulation issued pursuant thereto, or
any order of the commissioner issued pursuant thereto, or has violated
any other law in the course of its or his or her dealings as a licensee;
(c) Has made a false statement in the application for the license or failed to
give a truthful reply to a question in the application;
(d) Has demonstrated his or her incompetence or untrustworthiness to act as
a licensee;
(e) Is unfit, through lack of financial responsibility or experience, to conduct
the business of a check-cashing or deferred deposit service business, as
the case may be;
(f) Does not conduct his or her business in accordance with the law or
conducts business by a method that includes, or would include, activities
that are illegal where performed, or has willfully violated any provision of
this subtitle; or any administrative regulation promulgated or order of the
commissioner issued hereunder;
(g) Is insolvent;
(h) 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 applicable to the
person, applicant, or licensee;
(i) 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 applicant or licensee possesses
and which, if submitted by him or her, would have rendered the applicant
or licensee ineligible to be licensed under this subtitle;
(j) Has refused to permit an examination or investigation by the
commissioner of his or her books and affairs or has refused or failed,
within a reasonable time, to furnish any information or records, or make
any report that may be required or requested by the commissioner;
(k) Has been convicted of a felony;
(l) Has been convicted of any misdemeanor of which an essential element is
fraud, breach of trust, or dishonesty;
(m) Has had any license, registration, or claim of exemption related to the
financial services industry denied, revoked, suspended, conditioned,
restricted, or probated under the laws of this state, any other state, or the
(2)
(3)
(4)
(5)
(6)
United States, or has surrendered, withdrawn, or terminated any license,
registration, or claim of exemption issued or registration granted by this
state or any other jurisdiction under threat of administrative action;
(n) Has employed or contracted with a person who has failed to license or
has had a license, registration, or claim of exemption denied, revoked,
suspended, conditioned, restricted, or probated in this Commonwealth or
another state;
(o) Has failed to pay any required fee under this subtitle;
(p) Has abandoned an application or renewal application by failing to provide
the commissioner any information required under this subtitle, or
requested by the commissioner, to complete an application;
(q) Has failed to comply with an administrative or court order imposing child
support obligations;
(r) Has failed to pay state income taxes or to comply with any administrative
or court order directing the payment of state income tax;
(s) Has failed to properly verify a customer's eligibility for a deferred deposit
transaction;
(t) 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;
(u) Has suspended payment of its obligations or has made an assignment for
the benefit of its creditors;
(v) Has violated any of the recordkeeping and reporting requirements of the
United States government including 31 U.S.C. secs. 5311 to 5332 and 31
C.F.R. pt. 103; or
(w) No longer meets the requirements under this subtitle to hold a license.
If the reason for revocation, suspension, restriction, condition, or probation of a
licensee's license at any one location is of general application to all locations
operated by a licensee, the commissioner may revoke, suspend, restrict,
condition, or probate all licenses issued to a licensee.
Any person who has had a license denied by the commissioner shall not be
eligible to apply for a license under this subtitle until after expiration of one (1)
year from the date of denial.
Any person who has had a license revoked by the commissioner shall not be
eligible to apply for a license under this subtitle until after expiration of three (3)
years from the date of revocation. A person whose license has been revoked
twice shall be deemed permanently revoked and shall not again be eligible for
a license under this subtitle.
Any person whose license 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 licensee under this subtitle and
from engaging in any business activity on the premises where a licensee under
this subtitle is conducting its business.
The surrender or expiration of a license shall not affect the person's civil or
criminal liability for acts committed prior to the license surrender or expiration.
(7)
(8)
Revocation, suspension, refusal to renew, surrender, or expiration of a license
shall not impair or affect the obligation of any preexisting contract between a
licensee and a customer. The surrender or expiration of a license shall not
affect a proceeding to suspend or revoke a license.
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.
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 and any other relief that the court deems 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 and the court may assess a civil penalty in an amount equivalent to the
amounts found in KRS 286.9-991.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 814, effective July 15, 2010. -Amended 2009 Ky. Acts ch. 98, sec. 5, effective January 1, 2010. -- Amended
1998 Ky. Acts ch. 601, sec. 10, effective April 14, 1998. -- Created 1992 Ky.
Acts ch. 213, sec. 11, effective July 14, 1992; and ch. 341, sec. 11, effective
July 14, 1992.
Formerly codified as KRS 368.110.
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.
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