KRS 286.11-039: Suspension or revocation of license -- Procedure for hearing and appeal

upon suspension or revocation -- Limitations upon reissue of license -- Factors

to be considered by commissioner.

(1) The commissioner may issue a written order to suspend or r evoke a license issued

under this subtitle if the commissioner finds that:

(a) The licensee no longer meets the requirements to hold a license under this

subtitle;

(b) Any fact or condition exists that, if it had existed at the time the licensee

applied for its license, would have been grounds for denying the application;

(c) The licensee's net worth, as determined in accordance with generally accepted

accounting principles, falls below the required net worth as prescribed in KRS

286.11-011, and the license e, after ten (10) days written notice from the

commissioner, fails to take such action as the commissioner deems necessary

to remedy such deficiency;

(d) The licensee violates any provision of this subtitle, any administrative

regulation promulgated thereunder, or order of the commissioner issued under

authority of this subtitle, or any other state law or regulation related to the

business of money transmission;

(e) The licensee is conducting its business in an unsafe or unsound manner;

(f) The licensee engages in an unfair and deceptive act or practice;

(g) The licensee engages in fraud, intentional misrepresentation, or gross

negligence;

(h) The licensee is insolvent;

(i) The licensee has suspended payment of its obligations or has made an

assignment for the benefit of its creditors;

(j) The licensee has applied for an adjudication of bankruptcy, reorganization,

arrangement, or other relief under the United States Bankruptcy Code, 11

U.S.C. secs. 101-110;

(k) The licensee fails to cooperate in an examinatio n, investigation, or subpoena

issued by the commissioner;

(l) The licensee fails to make any report required by this subtitle;

(m) The licensee has been found to have violated any of the recordkeeping and

reporting requirements of the United States governm ent including 31 U.S.C.

secs. 5311 to 5332 and 31 C.F.R. pt. 103;

(n) The competence, experience, character, financial condition, or responsibility

of the licensee indicates that it is not in the public interest to permit the

licensee to continue to provide money transmission services;

(o) The licensee has been convicted of a felony;

(p) The licensee has been convicted of a misdemeanor related to the business of

money transmission;

(q) The licensee has been convicted of a misdemeanor involving theft, fraud, or

breach of trust;

(r) The licensee has failed to terminate or suspe nd its agent's authority to act on

its behalf when the licensee knew, or has been given reasonable notice that its

agent violated, or is about to violate, a material provision of this subtitle, an

administrative regulation promulgated thereunder, or an ord er of the

commissioner, or any grounds that are found in KRS 286.11-041; or

(s) The licensee, its responsible individual, or any agent, key shareholder,

executive officer, director, or other person in control of the licensee are listed

or become listed on the specially designated nationals and blocked persons list

prepared by the United States Department of the Treasury or United States

Department of State under Presidential Executive Order No. 13224 as a

potential threat to commit terrorist acts or to finance terrorist acts.

(2) A licensee who has had his or her license revoked or suspended by the

commissioner may file a written application for an administrative hearing in

accordance with KRS Chapter 13B.

(3) A person is deemed to have received a copy of th e written order of revocation or

suspension with three (3) days of its mailing.

(4) A written application for an appeal shall be made with the commissioner within

twenty (20) days of the date of the order of suspension or revocation and shall be

made in go od faith and shall briefly state the reason or reasons the person is

aggrieved, together with the grounds to be relied upon.

(5) The commissioner shall not issue a license again under this subtitle to any person

whose license has been revoked until three (3) years after the date of the revocation,

and thereafter, not until the person again qualifies under the applicable provisions of

this subtitle. 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.

(6) In determining whether a licensee is engaging in an unsafe or unsound practice

under subsection (1)(e) of this section, the commissioner may consider the size and

condition of the licensee's provision of money tra nsmissions, the magnitude of the

loss, the gravity of the violation of this subtitle, the administrative regulation

adopted, or order issued under this subtitle, any action taken by another state or

federal government against the licensee, or the previous conduct of the licensee.