KRS 286.9-110: Revocation or suspension of license -- Effect of denial, revocation,

suspension, expiration, or surrender of license -- Circuit Court remedy.

(1) The commissioner may suspend, revoke, place on probation, condition, restrict,

refuse to issue or renew a license, accept the surrender of a license in lieu of

revocation or suspension, order that refunds to customers be made, or issue a cease -

and-desist order, if the commissioner finds that the person, licensee, or a person in

control of a licensee:

(a) Has committed any fraud, engaged in any dishonest activities, or made any

misrepresentation;

(b) Does not meet, has failed to comply with, or has violated any provisions of

this subtitle or any administrative regulation issued pursuant thereto, or any

order of the commissioner issued pursuant thereto, or has violated any other

law in the course of its or his or her dealings as a licensee;

(c) Has made a false statement in the application for the license or failed to give a

truthful reply to a question in the application;

(d) Has demonstrated his or her incompetence or untrustworthiness to act as a

licensee;

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

business of a check -cashing or deferred deposit service business, as t he case

may be;

(f) Does not conduct his or her business in accordance with the law or conducts

business by a method that includes, or would include, activities that are illegal

where performed, or has willfully violated any provision of this subtitle; or

any administrative regulation promulgated or order of the commissioner

issued hereunder;

(g) Is insolvent;

(h) Is the subject of an administrative cease -and-desist order or similar order, or a

permanent or temporary injunction of any court of competent jur isdiction

entered under any other federal or state act applicable to the person, applicant,

or licensee;

(i) 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 applicant or licensee possesses and which, if submitted by

him or her, would have rendered the applicant or licensee ineligible to be

licensed under this subtitle;

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

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

to furnish any information or records, or make any report that may be required

or requested by the commissioner;

(k) Has been convicted of a felony;

(l) Has been co nvicted of any misdemeanor of which an essential element is

fraud, breach of trust, or dishonesty;

(m) Has had any license, registration, or claim of exemption related to the

financial services industry denied, revoked, suspended, conditioned, restricted,

or probated under the laws of this state, any other state, or the United States,

or has surrendered, withdrawn, or terminated any license, registration, or

claim of exemption issued or registration granted by this state or any other

jurisdiction under threat of administrative action;

(n) Has employed or contracted with a person who has failed to license or has had

a license, registration, or claim of exemption denied, revoked, suspended,

conditioned, restricted, or probated in this Commonwealth or another state;

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

(p) Has abandoned an application or renewal application by failing to provide the

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

commissioner, to complete an application;

(q) Has failed to co mply with an administrative or court order imposing child

support obligations;

(r) Has failed to pay state income taxes or to comply with any administrative or

court order directing the payment of state income tax;

(s) Has failed to properly verify a custo mer's eligibility for a deferred deposit

transaction;

(t) Has applied for an adjudication of bankruptcy, reorganization, arrangement, or

other relief under the United States Bankruptcy Code, 11 U.S.C. secs. 101 to

110;

(u) Has suspended payment of its obli gations or has made an assignment for the

benefit of its creditors;

(v) Has violated any of the recordkeeping and reporting requirements of the

United States government including 31 U.S.C. secs. 5311 to 5332 and 31

C.F.R. pt. 103; or

(w) No longer meets the requirements under this subtitle to hold a license.

(2) If the reason for revocation, suspension, restriction, condition, or probation of a

licensee's license at any one location is of general application to all locations

operated by a licensee, the comm issioner may revoke, suspend, restrict, condition,

or probate all licenses issued to a licensee.

(3) Any person who has had a license denied by the commissioner shall not be eligible

to apply for a license under this subtitle until after expiration of one (1) year from

the date of denial.

(4) Any person who has had a license revoked by the commissioner shall not be eligible

to apply for a license under this subtitle until after expiration of three (3) years from

the date of revocation. A person whose licens e has been revoked twice shall be

deemed permanently revoked and shall not again be eligible for a license under this

subtitle.

(5) Any person whose license has been denied, suspended, revoked, or surrendered in

lieu of revocation or suspension under this section is prohibited from participating

in any business activity of a licensee under this subtitle and from engaging in any

business activity on the premises where a licensee under this subtitle is conducting

its business.

(6) The surrender or expiration of a license shall not affect the person's civil or criminal

liability for acts committed prior to the license surrender or expiration. Revocation,

suspension, refusal to renew, surrender, or expiration of a license shall not impair or

affect the obligation of any preexisting contract between a licensee and a customer.

The surrender or expiration of a license shall not affect a proceeding to suspend or

revoke a license.

(7) 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.

(8) The commissioner may file a complaint in the Franklin 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 proceedin g and shall have the power to enter

an order or judgment awarding preliminary or final injunctive relief and any other

relief that the court deems 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 shall be held in contempt of court and the court may assess a civil penalty in

an amount equivalent to the amounts found in KRS 286.9-991.