KRS 286.4-610: Commissioner's power to issue administrative regulations and examine

licensees -- Investigations -- Enforcement of subpoena -- Powers of

commissioner.

(1) The provisions of this subtitle shall be enforced by the commissioner, who may

promulgate administrative regulations in accordance with KRS Chapter 13A for the

proper conduct of the business licensed under this subtitle. All regulations of

general application shall state the date of promulgation and the effective date. A

copy of every regula tion shall be sent to all licensees before the effective date

thereof and a copy shall be kept in an indexed permanent book in the office of the

commissioner as a public record.

(2) (a) The commissioner shall examine the affairs, business, office, and reco rds of

every licensee at least once during every twenty -four (24) month period, but

not more frequently than once during every twelve (12) month period. Every

licensee shall pay a reasonable fee sufficient to cover the cost of each routine

examination based upon fair compensation for time and actual expenses.

(b) The commissioner may also conduct investigations of licensees or persons

within or outside of the state as the commissioner deems necessary to discover

violations of this subtitle or to secure info rmation necessary for its proper

enforcement.

(c) For the purpose of making examinations or investigations under this section,

the commissioner and his or her representatives:

1. May:

a. Compel the attendance of any person or obtain any documents by

subpoenas;

b. Administer oaths and affirmations; and

c. Examine under oath or affirmation all persons whose testimony he

or she may require, relative to the loans or business of the licensee;

and

2. Shall have free access to the accounts, papers, records, files, safes,

vaults, offices, and places of business used in connection with any

business conducted under any license issued in accordance with this

subtitle.

(3) (a) The commissioner may investigate any person who is or appears to be

engaging in the business r egulated by this subtitle without first securing a

license.

(b) For the purpose of investigations of unlicensed persons, the commissioner or

his or her representative may:

1. Compel the attendance of any person or obtain any documents by

subpoenas;

2. Administer oaths and affirmations; and

3. Examine under oath or affirmation all persons whose testimony he or

she may require, relative to the loans or business of the person.

(4) If any person fails to comply with a subpoena issued by the commissioner under this

section, the commissioner may petition the Franklin Circuit Court or any court of

competent jurisdiction for enforcement of the subpoena.

(5) In order to carry out the purposes of this subtitle, the commissioner may:

(a) Retain examiners, auditors, investigators, attorneys, accountants, or other

professionals and specialists to conduct or assist in the conduct of any

examination, investigation, or enforcement action; and

(b) Use, hire, contract, or employ public or private analytical systems, methods, or

software.

(6) The authority of this section shall remain in effect whether a person acts or claims

to act under any licensing law of this subtitle or acts or claims to act without such

authority.