KRS 286.11-041: Suspension or revocation of designation of an agent -- Factors to be

considered by commissioner -- Procedure for hearing and appeal upon

revocation of designation -- Limitations upon future designation of agent after

revocation.

(1) The commissioner may issue a written order suspending or revoking the designation

of an agent if the commissioner finds that:

(a) The agent violates this subtitle or a rule adopted or an order issued under this

subtitle;

(b) The agent does not cooperate with an examinati on, investigation, or subpoena

issued by the commissioner;

(c) The agent has engaged in fraud, intentional misrepresentation, or gross

negligence;

(d) The agent has been convicted of a felony;

(e) The agent has been convicted of a misdemeanor related to th e business of

money transmission;

(f) The agent has been convicted of a misdemeanor involving theft, fraud, or

breach of trust;

(g) The competence, experience, character, or general fitness of the agent or a

person in control of the agent indicates that it is not in the public interest to

permit the agent to be engaged in the business of money transmission;

(h) The agent is engaged in or is engaging in an unsafe or unsound practice;

(i) The agent is engaged in, or is engaging in, an unfair and deceptive act or

practice as that act or practice relates to the business of money transmission;

(j) The agent is insolvent;

(k) The agent has applied for an adjudication of bankruptcy, reorganization,

arrangement, or other relief under the United States Bankruptcy Cod e, 11

U.S.C. secs. 101 to 110; or

(l) The agent fails to timely remit all money legally due to its licensee as required

by this subtitle; or

(m) The agent, any executive officer, or other person in control of the agent is

listed or become listed on the spe cially 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) In determining whether an agent is engaging in an unsafe or unsound practice under

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

condition of the agent's provision of money transmissions, the magnitude of the

loss, the gravi ty 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 agent, or the previous conduct of the agent.

(3) Any person who has his or her designation as an agent revoked or suspended by the

commissioner may file a written application for an administrative hearing in

accordance with KRS Chapter 13B.

(4) An agent is deemed to have received a copy of the written order of revocation or

suspension within three (3) days of its mailing.

(5) 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 in good faith

and shall briefly state the reason or reason s the agent is aggrieved, together with the

grounds to be relied upon.

(6) The commissioner shall not designate a person as an agent again under this subtitle

where the designation of an agent has been revoked, until after three (3) years after

the date of revocation, and thereafter, not until the person again qualifies under the

applicable provisions of this subtitle. Any person whose designation as an agent has

been revoked twice by the commissioner shall be deemed permanently revoked and

shall not again be eligible for designation as an agent under this subtitle.