KRS 286.8-090: Denial, suspension, or revocation of license -- Jurisdiction of Franklin

Circuit Court.

(1) The commissioner may suspend; revoke; place on probation; condition; refuse to

issue or renew a license, registration, or exemption; or accept surrender of a license,

registration, or exemption in lieu of revocation or suspension; or issue a cease and

desist order if the commissioner finds that the person, applicant, licensee, or

registrant:

(a) Does not meet, no longer meets, or has failed to comply with the requirements

of this subtitle;

(b) Is unfit through lack of financial responsibility or experience to conduct the

business of a mortgage loan company or mortgage loan broker, as the case

may be;

(c) Does not conduct his business in accordance with the law or the method of

business includes or would include activities which are illegal where

performed;

(d) Collects interest at a usurious rate;

(e) Is in such financial condition that he cannot continue in business with safety

to his customers;

(f) Is guilty of fraud in connection with any transaction governed by this subtitle,

or is the subject of an administrative cease and desist order or similar order, or

a permanent or temporary injunction of any court of competent jurisdiction

entered under any other federal or state act;

(g) Has made any misrepresentations or false statements to, or concealed any

essential or material fact from, any person in the mortgage lending process, or

has engaged in a course of business that has worked or tended to work a fraud

upon any person or would so operate;

(h) Has made or caused to be made to the commissioner any false representation

of material fact or has suppressed or withheld from the commissioner any

information that the person possesses and which, if submitted to the

commissioner, would have rendered the person ineligible to be licensed,

registered, or exempted from licensing or registration under this subtitle;

(i) Has failed to account to persons interest for all funds received for the escrow

account required under KRS 286.8-130;

(j) Has refused to permit an examination or investigation by the commissioner of

his books and affairs or has refused or failed, within a reasonable time, to

furnish any information or make any report that may be required by the

commissioner under the provisions of this subtitle;

(k) Has been convicted of any misdemeanor of which an essential element is

fraud, breach of trust, or dishonesty, or any felony, or has pending against him

any felony charge;

(l) Has had any license, registration, or c laim of exemption related to the

financial services industry denied, suspended, or revoked under the laws of

this state or any other state of the United States, or has surrendered or

terminated any license, registration, or claim of exemption issued by thi s state

or any other jurisdiction under threat of administrative action;

(m) Has employed or contracted with a person who has failed to register or has

had a license or registration denied, revoked, or suspended in this

Commonwealth or another state;

(n) Has demonstrated incompetence or untrustworthiness to act as a licensee or

registrant or to continue a claim of exemption granted by application under

this subtitle;

(o) Has failed to pay any required fee under this subtitle;

(p) Has abandoned an applicati on by failing to provide the commissioner any

information required under this subtitle, or requested by the commissioner, to

complete an application;

(q) Has influenced, or attempted to influence through coercion, extortion, or

bribery, the development, reporting, result, or review of a real estate appraisal

sought in connection with a mortgage loan;

(r) Has failed to comply with an administrative or court order imposing child

support obligations;

(s) Has failed to pay state income taxes or to comply with a ny administrative or

court order directing the payment of state income tax;

(t) Has improperly used notes or other resources to complete an examination for

a license or registration;

(u) Has violated any provision of KRS 360.100; or

(v) Has violated any pr ovision of this subtitle, administrative regulation

promulgated hereunder, or order issued by the commissioner.

(2) Any person whose license, registration, or claim of exemption has been denied,

suspended, revoked, or surrendered in lieu of revocation or s uspension under this

section is prohibited from participating in any business activity of a registrant or

licensee under this subtitle and from engaging in any business activity on the

premises where a licensee or registrant under this subtitle is conducting its business.

(3) The commissioner shall execute a written order whenever a license, registration, or

claim of exemption issued pursuant to this subtitle is suspended or revoked. The

commissioner shall serve the written order upon the licensee, registra nt, or person

claiming the exemption. The written order shall be sent by certified mail, return

receipt requested, postage prepaid, to the last known principal business address of

such licensee, registrant, or person claiming the exemption, as set forth in the

records of the commissioner. The written order shall be deemed to have been

received by the licensee, registrant, or person claiming the exemption three (3)

business days following the mailing thereof.

(4) Any person who continues to participate in an y business activity covered by this

subtitle after such person's license, registration, or claim of exemption has been

revoked, suspended, or denied shall be subject to the penalties in this section, KRS

286.8-046, and KRS 286.8-990 and shall be in violation of KRS 367.170.

(5) Any person who has had a license, registration, or claim of exemption denied by the

commissioner shall not be eligible to apply for a license, registration, or claim of

exemption under this subtitle until after expiration of one (1) year from the date of

denial.

(6) Any person who has had a license, registration, or claim of exemption revoked by

the commissioner shall not be eligible to apply for a license, registration, or claim of

exemption under this subtitle until after expiration of three (3) years from the date

of revocation. A person whose license, registration, or claim of exemption has been

revoked twice shall be deemed permanently revoked and shall not again be eligible

for a license, registration, or claim of exemption under this subtitle.

(7) The provisions of this section shall be in addition to any other penalties or remedies

available, including the penalties of KRS 286.8-046.

(8) The commissioner may notify the Department of Revenue which may institute an

action in the name of the Commonwealth of Kentucky in the Franklin Circuit Court,

or any court of competent jurisdiction, for the recovery of any civil penalty, fine,

cost, or fee assessed or levied under this subtitle.

(9) The commissioner may file a complaint in the Fr anklin Circuit Court, or any court

of competent jurisdiction, for a temporary restraining order or injunction, against

any person, where the commissioner has reason to believe from evidence

satisfactory to the commissioner that such person has violated, or is about to violate,

a provision in this subtitle, for the purpose of restraining and enjoining such person

from continuing or engaging in the violation or doing any act in furtherance thereof.

The court shall have jurisdiction over the proceeding and sha ll have the power to

enter an order or judgment awarding preliminary or final injunctive relief that is

proper. Any person who violates a temporary restraining order or injunction issued

by the court entered as a result of a violation of this subtitle shal l be held in

contempt of court.

(10) The surrender or expiration of a license, registration, or exemption shall not affect

the licensee's civil or criminal liability for acts committed prior to the surrender or

expiration. No revocation, suspension, refusa l to renew, surrender, or expiration of

any license, registration, or exemption shall impair or affect the obligation of any

preexisting lawful contract between the licensee and the borrower. The surrender or

expiration of a license, registration, or exemp tion shall not affect a proceeding to

suspend or revoke a license or registration.