KRS 286.4-600: Licensee's records -- Retention -- Notice of cessation -- Custodian of

records -- Request for destruction -- Withholding or altering records.

(1) (a) To enable the commissioner to determine whether the licensee is complying

with the provision s of this subtitle, and with the administrative regulations

promulgated under it, each licensee shall keep and use in his or her business

books, accounts, records, or card systems in accordance with sound

accounting principles and practices.

(b) Unless applicable state or federal law requires a longer retention period, the

licensee shall, after making the final entry in them, preserve any books,

accounts, records, or card systems:

1. For at least two (2) years; or

2. For at least three (3) years on loans secured by residential property.

(2) (a) Any licensee that intends to cease operation of any office or offices licensed

under this subtitle shall:

1. Give the commissioner at least thirty (30) days' prior written notice of

the cessation of operations, along with a plan for ceasing operations that

is sufficient to safeguard the interest of the public; and

2. Designate a custodian of records prior to the cessation of operations,

who shall:

a. Agree in writing to serve in that capacity and to comply with the

requirements of this section; and

b. Notify the commissioner of:

i. The designation of a custodian, including but not limited to

the custodian's name, physical address, electronic mail

address, and telephone number; and

ii. The physical location where the records required to be kept

under this subtitle will be preserved.

(b) This subsection shall not apply to changes of location authorized under KRS

286.4-460.

(3) (a) Except as provided in paragraph (b) of this subsection, all records ref erenced

in this section shall be made accessible to the commissioner or the

commissioner's designated representative upon demand.

(b) Records held by a designated custodian under subsection (2) of this section

shall be made accessible upon five (5) business days' written notice.

(4) If good cause is demonstrated, the commissioner may approve a written request for

the destruction of records required to be preserved under this subtitle prior to the

minimum retention period required under this section.

(5) It shall be unlawful for any person to knowingly withhold, abstract, alter, remove,

mutilate, destroy, or secrete any books, records, or other information required to be

preserved under this subtitle for the purpose of obstructing a subpoena issued, or

investigation or examination conducted, by the commissioner.