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286.9-125 Emergency order suspending, conditioning, limiting, or restricting a
license.
(1)
(2)
(3)
(4)
(5)
The commissioner may enter an emergency order suspending, conditioning,
limiting, or restricting a license issued under this subtitle without notice or hearing
if it appears upon grounds satisfactory to the commissioner that the licensee has
engaged or is engaging in unsafe, unsound, or 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 licensee 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 licensee is in such financial condition that it cannot continue in business
with safety to its customers;
(c) The licensee 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 licensee has made any misrepresentations or false statements to, or
concealed any essential or material fact from, any person in the course of
doing business, 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 licensee 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 in connection with
an investigation or examination;
(f) The licensee 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 deposit required under KRS 286.9-040(1) has terminated, expired, or
otherwise no longer remains in effect.
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 person. 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 an emergency hearing, the commissioner shall
conduct an emergency hearing as required under KRS 13B.125, within ten (10)
(6)
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
stayed, 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. 816, effective July 15, 2010. -- Created
2009 Ky. Acts ch. 98, sec. 16, effective January 1, 2010.
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