KRS 286.8-160: Records to be kept by company -- Filing of financial report and

correcting amendment -- Requirements if business discontinued -- Location of

records -- Request for destruction of records.

(1) Every mortgage loan company and mortgage loan br oker shall make and keep such

accounts, correspondence, memoranda, papers, books, data, and other records used

in the mortgage lending process:

(a) As the commissioner prescribes; or

(b) That are required by federal law.

(2) (a) Except as provided in parag raph (b) of this subsection, the records governed

under this subtitle shall be preserved for such time as the commissioner may

by regulation or order require, not to exceed a period of five (5) years after a

mortgage loan application is completed, whether approved or rejected, or on

mortgage loans paid in full, whichever is longer.

(b) Records shall be held for longer than five (5) years where federal law

prescribes or supersedes this section.

(3) Records required to be preserved under this subtitle:

(a) May be kept in an electronic retrievable format, or other similar form of

medium, that is readily accessible to examination, investigation, and

inspection by the commissioner; and

(b) Shall not be maintained at any alternate work location.

(4) Every mortgage loan company and mortgage loan broker shall file financial reports

as the commissioner prescribes.

(5) If the information contained in any document filed with the commissioner is or

becomes inaccurate or incomplete in any material respect, the person who filed the

document shall promptly file a correcting amendment.

(6) Any person who ceases operating as a mortgage loan company or mortgage loan

broker under the provisions of this subtitle shall, prior to the discontinuance of

business in the residential mortgage lending process, notify the commissioner of the

physical location where the records required to be kept under this subtitle will be

preserved. The records shall be made accessible to the commissioner upon five (5)

business days' written notice.

(7) (a) Any person who ceases operating as a mortgage loan company or mortgage

loan broker under the provisions of this subtitle shall designate a custodian of

records and notify the commissioner of the name, physical address, electronic

mail address, and telephone number of the custodian of records.

(b) The custodian of records shall preserve all records required under this subtitle

and allow the commissioner access to the records for examination and

investigation upon demand.

(8) Records may be maintained by a mortgage loan company or mortgage loan broker at

a location other than within this Commonwealth, so long as they are made

accessible to the commissioner upon five (5) business days' written notice.

(9) The commissioner may ap prove a written request for the destruction of records

required to be preserved under this subtitle prior to the minimum retention period

described in subsection (2) of this section.