{"data":{"id":"us-ky/krs-286.12-030","jurisdiction":"us-ky","citation":"KRS 286.12-030","heading":"Application for license -- Requirements -- Denial -- Abandoned","body":"application -- License not transferable.\n(1) As used in this section, \"substantial stockholder\" means a person owning or\ncontrolling, directly or indirectly, ten percent (10%) or more of the total outstanding\nstock of a corporation.\n(2) A person applying for a license as a student education loan servicer under this\nsubtitle shall:\n(a) Submit a completed application to, and in a form prescribed by, the\ncommissioner, which shall include:\n1. The name of the applicant and each of the applicant's affiliates and\noperating subsidiaries engaged in business as a student education loan\ncompany or a student education loan broker;\n2. The name under which the applicant will conduct business in Kentucky;\n3. The physical address of the applicant's principal office and branch or\nbranches;\n4. The name, residence, and business address of each person having an\ninterest in the business as a managing officer, director, general partner,\nor managing member, as may be applicable, specifying the capacity and\ntitle of each;\n5. A description of the activities of the applicant, in such detail and for\nsuch periods as the commissioner may require;\n6. An affirmation of financial solvency, noting any capitalizat ion and\naccess to credit as the commissioner may require;\n7. A financial statement prepared by a certified public accountant, the\naccuracy of which is sworn to under oath before a notary public by an\nofficer or other representative of the applicant who is authorized to\nexecute such documents;\n8. An affirmation that the applicant, or its managing officers, directors,\ngeneral partners, and managing members, as may be applicable, are at\nleast twenty-one (21) years of age;\n9. Information as to the character, fi tness, financial and business\nresponsibility, background, and experience of the applicant, and its\nmanaging officers, directors, general partners, and managing members,\nas may be applicable;\n10. The name of at least one (1) of the applicant's managing officers who\nhas a minimum of at least two (2) years' experience in the student\neducation loan servicing industry; and\n11. Any additional detail or information as the commissioner deems\nnecessary;\n(b) Maintain the minimum net worth requirements prescribed by the\ncommissioner in administrative regulation or order, which may include the\nfollowing:\n1. Applicable reserves consisting of high-quality investments; and\n2. A surety bond;\n(c) 1. Submit an inves tigation fee prescribed by the commissioner in\nadministrative regulation which shall be adjusted by order five (5) years\nfrom July 14, 2002, and every five (5) years thereafter.\n2. An adjustment made pursuant to subparagraph 1. of this paragraph may\nbe bas ed on the nonseasonally adjusted Consumer Price Index for All\nUrban Consumers (CPI -U), U.S. City Average, All Items, as published\nby the United States Bureau of Labor Statistics; and\n(d) 1. Submit the name, address, telephone number, and electronic mail\naddress of an agent for service of process.\n2. The commissioner shall be notified in writing at least five (5) days prior\nto any change in the status of the agent for service of process.\n(3) The commissioner may deny an application for a license as a student education loan\nservicer if:\n(a) A false statement of material fact has been made on the application;\n(b) A material requirement for issuance of the license has not been met;\n(c) The commissioner determines that the applicant has not submitted a\ncompleted application;\n(d) The applicant or any managing officer, director, general partner, or managing\nmember, or substantial stockholder, as may be applicable, of the applicant:\n1. Within the last ten (10) years:\na. To the extent permitted under KRS 335B.020, has  a felony\nconviction; or\nb. Has committed any act involving dishonesty, fraud, or deceit, but\nonly if the act is substantially related to the qualifications,\nfunctions, or duties of a person engaged in business in accordance\nwith this subtitle;\n2. Has violated or is not in material compliance with:\na. Any provision of this subtitle;\nb. An administrative regulation promulgated pursuant to this subtitle;\nc. An order of the commissioner; or\nd. Any similar regulatory scheme of this or a foreign jurisdiction;\n3. Has been held liable within the past seven (7) years by final judgment in\nany civil action or by administrative judgment by any public agency\nrelated to a financial matter;\n4. Has had, or has been, a managing officer, director, partner, managing\nmember, or substantial stockholder of an entity which had a license or\nregistration revoked by the commissioner or any other regulator or\njurisdiction; or\n5. Has otherwise been an agent or employee of an entity which has had a\nlicense or registration revoked by the  commissioner and the person was\nfound by the commissioner to bear responsibility in connection with the\nrevocation; or\n(e) The commissioner is unable to find that the financial responsibility,\nexperience, character, and general fitness of the applicant, together with its\nmanaging officers, directors, general partners, managing members, and\nsubstantial stockholders, as may be a pplicable, command the confidence of\nthe community and warrant belief that the business will be operated fairly,\nhonestly, and efficiently within the purposes of this subtitle.\n(4) The commissioner may deem an application abandoned if an applicant fails to\nprovide or respond to a request for additional information within sixty (60) days of\nthe request.\n(5) Except as provided in KRS 286.12-040, a license issued under this subtitle shall not\nbe transferable.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52727","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"67d676a95ade72ef4be88f578a0868d65c42bde2991ac15090af5c22e1d359b5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.12-020","next":"us-ky/krs-286.12-040"},"notice":"GroundRules: Original legal text. Not legal advice."}