2006 Utah Code - 61-2c-401 — Investigations -- Subpoena power of division.

     61-2c-401.   Investigations -- Subpoena power of division.
     (1) The division may investigate or cause to be investigated the actions of:
     (a) (i) a licensee; or
     (ii) the following with respect to an entity that is a licensee:
     (A) a control person;
     (B) a manager;
     (C) a managing partner;
     (D) a director;
     (E) an executive officer; or
     (F) an individual who performs a function similar to an individual listed in this Subsection (1)(a)(ii);
     (b) (i) an applicant for licensure under this chapter; or
     (ii) the following with respect to an entity that has applied for a license under this chapter:
     (A) a control person;
     (B) a manager;
     (C) a managing partner;
     (D) a director;
     (E) an executive officer; or
     (F) an individual who performs a function similar to an individual listed in this Subsection (1)(b)(ii); or
     (c) any individual or entity that transacts the business of residential mortgage loans within this state, and the control persons of any such entity.
     (2) In conducting investigations, records inspections, and adjudicative proceedings, the division may:
     (a) subpoena witnesses;
     (b) take evidence;
     (c) require by subpoena duces tecum the production of books, papers, contracts, records, other documents, or information considered relevant to an investigation; and
     (d) serve a subpoena by certified mail.
     (3) A failure to respond to a subpoena served by the division is considered as a separate violation of this chapter.
     (4) The division may inspect all records related to the business of residential mortgage loans by a licensee under this chapter, regardless of whether the records are maintained at a business location in Utah, in conducting:
     (a) investigations of complaints; or
     (b) inspections of the records required to be maintained under:
     (i) this chapter; or
     (ii) rules adopted by the division under this chapter.
     (5) (a) If a licensee maintains the records required by this chapter and the rules adopted by the division under this chapter outside Utah, the licensee is responsible for all reasonable costs, including reasonable travel costs, incurred by the division in inspecting those records.
     (b) Upon receipt of notification from the division that records maintained outside Utah are to be examined in connection with an investigation or an examination, the licensee shall deposit with the division a deposit of $500 to cover the division's expenses in connection with

the examination of the records.
     (c) If the deposit described in Subsection (5)(b) is insufficient to meet the estimated costs and expenses of examination of the records, the licensee shall make an additional deposit to cover the estimated costs and expenses of the division.
     (d) (i) All deposits under this Subsection (5) shall be deposited in the General Fund as a dedicated credit to be used by the division under Subsection (5)(a).
     (ii) The division, with the concurrence of the executive director, may use the deposit monies deposited in the General Fund under this Subsection (5)(d) as a dedicated credit for the records inspection costs under Subsection (5)(a).
     (iii) A deposit under this Subsection (5) shall be refunded to the licensee to the extent it is not used, together with an itemized statement from the division of all amounts it has used.
     (e) All deposits under this Subsection (5) shall be nonlapsing.
     (6) Failure to deposit with the division a deposit required to cover the costs of examination of records that are maintained outside Utah shall result in automatic suspension of a license until the deposit is made.

Amended by Chapter 297, 2004 General Session