{"data":{"id":"us-ky/krs-286.12-100","jurisdiction":"us-ky","citation":"KRS 286.12-100","heading":"Examinations and investigations by commissioner -- Confidentiality of","body":"information -- Prima facie evidence -- Enforcement of subpoena -- Use of\nspecialists -- Examination of affiliates.\n(1) For purposes of enforcing this subtitle, the commissioner may:\n(a) Conduct routine examinations of the books, accounts, records, and files of:\n1. Any licensee and its affiliates; and\n2. Any other person, to the extent the commissioner is authorized by any\nother law to make an examination into the affairs of that person;\n(b) Conduct investigations of student education loan servicers or additional\npersons within or outside of the state as the commissioner deems necessary to\ndiscover violations of this subtitle or to secure information necessary for its\nproper enforcement;\n(c) Control access to any documents and records of the licensee or other person\nunder examination or investigation; and\n(d) 1. Take possession of the documents and records referenced under\nparagraph (c) of this subsection or place a person i n exclusive charge of\nthose documents and records in the place where they are usually kept.\n2. During the period of control under this paragraph, no person shall\nremove or attempt to remove any of the documents and records except\npursuant to a court order or with the consent of the commissioner.\n3. Unless the commissioner has reasonable grounds to believe that\ndocuments or records of the licensee have been, or are at risk of being,\naltered or destroyed for purposes of concealing a violation of this\nsubtitle, the licensee or owner of the documents or records shall have\naccess to the documents or records as necessary to conduct its ordinary\nbusiness affairs.\n(2) For purposes of conducting examinations and investigations under this section, the\ncommissioner and the commissioner's examiner or designated representative:\n(a) May:\n1. Compel the attendance of any person or obtain any documents by\nsubpoenas;\n2. Administer oaths and affirmations; and\n3. Examine under oath or affirmation all persons whose testimony he or\nshe may require relative to the loans or business of the persons regulated\nunder this subtitle; and\n(b) Shall have free access to the accounts, papers, records, correspondences, files,\nsafes, vaults, offices, and places of business relating to or used in connection\nwith any business regulated under this subtitle, including records kept by any\ncurrent or former officer, agent, contractor, or employee.\n(3) A student education loan servicer shall:\n(a) Not impede the commissioner, or the commissioner's examiner or designated\nrepresentative, from interviewing the servicer's officers, principals, members,\nemployees, independent contractors, agents, or customers; and\n(b) Make available and grant ac cess to the commissioner, or the commissioner's\nexaminer or designated representative, the records and other property\nreferenced under subsection (2)(b) of this section.\n(4) No person subject to investigation or examination under this subtitle shall\nknowingly withhold, abstract, alter, remove, mutilate, destroy, or secrete any books,\nrecords, or other information.\n(5) (a) Subject to paragraphs (b) and (c) of this subsection, an examination report,\ncorrespondence that relates to an examination report, and in formation\nobtained during an examination or investigation shall be confidential.\n(b) No officer or director of a student education loan servicer, employee of the\ndepartment, or employee of a state or federal regulatory authority shall release\nany informati on contained in an examination conducted under this section\nunless:\n1. Required in a proper legal proceeding in which a subpoena and\nprotective order ensuring confidentiality has been issued by a court of\ncompetent jurisdiction; or\n2. The information is re ferred to an appropriate prosecuting attorney for\npossible criminal proceedings.\n(c) The department may furnish information to, and exchange information and\nreports with, officials and examiners of other properly authorized state and\nfederal regulatory authorities and law enforcement agencies.\n(6) Every official report concerning a student education loan servicer and every report\nof examination shall be prima facie evidence of the facts therein stated for all\npurposes in any action in which the department a nd the student education loan\nservicer are parties.\n(7) If any person fails to comply with a subpoena issued by the commissioner under this\nsection, the commissioner may petition the Franklin Circuit Court or any court of\ncompetent jurisdiction for enforcement of the subpoena.\n(8) In order to carry out the purposes of this subtitle, the commissioner may:\n(a) Retain examiners, auditors, investigators, accountants, or other professionals\nand specialists to conduct, or assist in the conduct of, any examination ,\ninvestigation, or enforcement action; and\n(b) Use, hire, contract, or employ public or private analytical systems, methods, or\nsoftware.\n(9) The authority of this section shall remain in effect whether a person acts, or claims\nto act, under any licensing law of this subtitle, or acts, or claims to act, without such\nauthority.\n(10) If a report from, or an examination of, a licensee provides evidence of unlawful\nactivity between a licensee and affiliate benefitting, affecting, or arising from the\nactivities regulated by this subtitle, the affiliate shall be subject to examination by\nthe commissioner on the same terms as the licensee.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52735","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"6997e49751242f1d246b59f247aa9e58967b3385da30dba0d8853acf09d60036","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.12-090","next":"us-ky/krs-286.12-110"},"notice":"GroundRules: Original legal text. Not legal advice."}