{"data":{"id":"us-ky/krs-286.4-490","jurisdiction":"us-ky","citation":"KRS 286.4-490","heading":"Reasons for adverse action or cease -and-desist order -- Locations at","body":"which adverse action applies -- Eligibility if license revoked -- Effect of adverse\naction -- Complaint -- Relief -- Civil penalty.\n(1) For the purposes of this section, \"ad verse action\" means the suspension of,\nrevocation of, conditioning or restricting of, or refusal to issue or renew a license or\nacceptance of the surrender of a license in lieu of a revocation or suspension.\n(2) The commissioner may take adverse action aga inst a licensee, applicant, or person\nin control of a licensee or applicant, or issue a cease-and-desist order to one of those\npersons, if the commissioner finds, after a thorough investigation, that the person:\n(a) Has failed to open an office within one hundred twenty (120) days from the\ndate a license is granted unless good cause is shown;\n(b) Has committed fraud or made a misrepresentation of material fact;\n(c) Does not meet, has failed to comply with, or has violated any provisions of\nthis subtitle, or  any administrative regulation or order of the commissioner\nissued under the subtitle;\n(d) Has made a false statement of material fact in the application for a license or\nfailed to give a truthful reply to a question in the application;\n(e) Has demonstrated incompetence or untrustworthiness to act as a licensee;\n(f) Is unfit, through lack of financial responsibility or experience, to conduct the\nbusiness of a licensee;\n(g) Does not conduct business in accordance with the law or conducts business by\na method that includes activities that are illegal where performed;\n(h) Is insolvent;\n(i) Is the subject of an active administrative cease -and-desist order or similar\norder, or a permanent or temporary injunction of any court of competent\njurisdiction entered unde r any other federal or state law applicable to the\nfinancial services industry;\n(j) Has made or caused to be made to the commissioner a false representation of\nmaterial fact or has suppressed or withheld from the commissioner\ninformation that the applicant  or licensee possesses and which, if submitted,\nwould have rendered the applicant or licensee ineligible to be licensed under\nthis subtitle;\n(k) Has refused to permit a lawful examination or investigation by the\ncommissioner, or has refused or failed, with in a reasonable time, to furnish to\nthe commissioner any information or records, or make any report, that may be\nrequired under this subtitle;\n(l) Has been convicted of a felony;\n(m) Has been convicted of any misdemeanor o f which an essential element is\nfraud, breach of trust, or dishonesty;\n(n) Has had any license, registration, or claim of exemption related to the\nfinancial services industry denied, revoked, suspended, conditioned, restricted,\nor probated under the laws o f this state, or has surrendered, withdrawn, or\nterminated any license, registration, or claim of exemption issued or\nregistration granted by this state under threat of administrative action;\n(o) Has knowingly employed or contracted with a person who has f ailed to obtain\nany necessary license or registration related to the financial services industry\nor has had a license, registration, or claim of exemption related to the financial\nservices industry denied, revoked, suspended, conditioned, restricted, or\nprobated in this state or another jurisdiction;\n(p) Has failed to pay any fee required under this subtitle;\n(q) Has failed to comply with an administrative or court order imposing child\nsupport obligations;\n(r) Has failed to pay state income taxes or comply with any administrative or\ncourt order directing the payment of state income tax;\n(s) Has filed for an adjudication of bankruptcy, reorganization, arrangement, or\nother relief under the United States Bankruptcy Code, 11 U.S.C. secs. 101 to\n110, within the last ten (10) years;\n(t) Has suspended payment of its obligations or has made an assignment for the\nbenefit of its creditors;\n(u) Has violated any of the recordkeeping and reporting requirements of the\nUnited States government, including 31 U.S.C. secs. 5311 to 5332; or\n(v) No longer meets the requirements of this subtitle to hold a license.\n(3) If the reason for adverse action taken by the commissioner at any one location is\ngenerally applicable to all locations operated by a licensee, the commissioner may\napply the adverse action to all licenses issued to a licensee.\n(4) Any person, or person in control of a licensee, who has had a license revoked by the\ncommissioner shall not be eligible to apply for a license under this subtitle or to\nserve as a person in control of a licensee until after expiration of two (2) years from\nthe date a final order of revocation is entered by the commissioner. A person whose\nlicense has been revoked twice shall be deemed permanently revoked and shall not\nbe eligible for a lice nse, or to serve as a person in control of a licensee, under this\nsubtitle.\n(5) A person, or person in control of a licensee, against whose license adverse action\nhas been taken under this section shall not:\n(a) Participate in any business for which a lice nse is required under this subtitle;\nor\n(b) Engage in any business activity on the premises where a licensee is\nconducting its business without prior written approval of the commissioner.\n(6) (a) Adverse action taken against a license, or the expiration of  a license, shall not\nabrogate or modify:\n1. The civil or criminal liability of a licensee for acts committed prior to\nthe surrender or expiration; or\n2. The obligation of any preexisting contract between a licensee and a\ncustomer.\n(b) The surrender or exp iration of a license shall not affect a proceeding to\nsuspend or revoke a license.\n(7) (a) If the commissioner has reason to believe from evidence satisfactory to the\ncommissioner that a person has violated, or is about to violate, a provision in\nthis subt itle, the commissioner may file a complaint in the Franklin Circuit\nCourt, or any court of competent jurisdiction, for temporary or permanent\nrelief against any person.\n(b) The court shall have jurisdiction over the proceeding and shall have the power\nto enter an order or judgment awarding preliminary or final injunctive relief\nand any other relief that the court deems proper.\n(c) Any person who violates a temporary restraining order or injunction issued by\nthe court, in addition to being held in contempt o f court, may be assessed a\ncivil penalty under KRS 286.4-990 by the court.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48941","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:11Z","sha256":"57afebc7b99255039365c28881a4e4dc7a3745f487b06d4868370706d5aa001b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.4-480","next":"us-ky/krs-286.4-495"},"notice":"GroundRules: Original legal text. Not legal advice."}