{"data":{"id":"us-ky/krs-286.8-170","jurisdiction":"us-ky","citation":"KRS 286.8-170","heading":"Places where records required to be kept -- Examination by","body":"commissioner -- Fee -- Access to records -- Reports.\n(1) As used in this section, \"control records\" means all records relating to the operation\nof a branch that are necessary to exercise control and supervision over the branch.\n(2) (a) Every mortgage loan company and mortgage loan broker shall keep at its\nprincipal office correct and complete records of its business transactions,\nbooks of accounts, and minutes of proceedings of its d irectors, principals, or\npartners.\n(b) Complete records of all business transactions at the principal office shall be\nmaintained at the principal office.\n(c) Each branch shall:\n1. Keep detailed records of all transactions at the branch; and\n2. Furnish full control records to the principal office.\n(d) 1. Any record of a mortgage loan company's or mortgage loan broker's\nbusiness transactions, book of accounts, or minutes of proceedings of its\ndirectors, principals, or partners generated prior to the company's  or\nbroker's previous examination may be stored at a third -party secure\nstorage facility.\n2. The mortgage loan company or mortgage loan broker, as applicable,\nshall:\na. Notify the commissioner, in writing, thirty (30) days prior to\nengaging with any third-party secure storage facility; and\nb. Receive approval from the commissioner for use of the third -party\nsecure storage facility.\n(3) No mortgage loan company or mortgage loan broker by any system of accounting or\nany device of bookkeeping shall, either directly or indirectly, enter any of its assets\nupon its books in the name of any person, partnership, association, or corporation or\nunder any title, designation, or value that is not thoroughly descriptive of any assets.\n(4) The affairs of every mortgage loan company, mortgage loan broker, and mortgage\nloan originator, and the records required to be maintained by KRS 286.8 -160, shall\nbe subject at any time or from time to time to such periodic, special, or other\nexaminations by the commissioner or an examiner of the commissioner within or\nwithout this state and with or without notice to the person being examined, as the\ncommissioner deems necessary or appropriate in the public interest. All records of\nthe person being examined shall be subject to the commissioner's inspection.\n(5) The examiner shall:\n(a) Make a thorough examination into the condition, workings, and affairs of the\nperson being examined; and\n(b) Report, as he or she may find, to the commissioner any:\n1. Violation of law;\n2. Unauthorized unsafe practices; or\n3. Failure to keep and have correct any required books and records.\n(6) For the purpose of avoiding unnecessary duplicat ion of examinations, the\ncommissioner, insofar as he or she deems it practicable in administering this\nsection, may:\n(a) Cooperate and exchange information with:\n1. Any agency of the state or federal government;\n2. Other states;\n3. The Nationwide Multistate Licensing System and Registry; or\n4. The federal National Mortgage Association, Government National\nMortgage Association, and Federal Home Loan Mortgage Corporation;\nand\n(b) Accept examinations from the entities described in paragraph (a) of this\nsubsection, in whole or in part, in lieu of an examination by the commissioner.\n(7) The commissioner or the commissioner's examiners or designated representative\nshall have access to all records of a mortgage loan company, mortgage loan broker,\nand mortgage loan originator which relate to their business, and records kept by any\nofficers, agents, or employees, relating to or upon which any record of its business\nis kept.\n(8) (a) A mortgage loan originator shall make available and grant access to the\ncommissioner, or an examiner of the commissioner, the records relating to its\noperations.\n(b) A mortgage loan company or mortgage loan broker shall make available and\ngrant access to all records of its current and former employees and contractors\nrelating to its operations.\n(9) Any person subject to this subtitle shall make or compile reports or prepare other\ninformation as directed by the commissioner or an examiner of the commissioner to\ninclude:\n(a) Accounting compilations;\n(b) Information lists and data concerning loa n transactions in a format prescribed\nby the commissioner or an examiner of the commissioner; and\n(c) Such other information deemed necessary to carry out the purposes of this\nsection.\n(10) No mortgage loan company, mortgage loan broker, or mortgage loan o riginator\nshall impede the commissioner or an examiner of the commissioner from\ninterviewing its officers, principals, members, employees, independent contractors,\nagents, or customers.\n(11) (a) In making any examination or investigation authorized by this  subtitle, the\ncommissioner may control access to any documents and records of the\nlicensee or person under examination or investigation.\n(b) The commissioner may take possession of the documents and records, or\nplace a person in exclusive charge of the documents and records in the place\nwhere they are usually kept.\n(c) During the period of control under this subsection, no individual or person\nshall remove or attempt to remove any of the documents and records except\npursuant to a court order or with the consent of the commissioner.\n(d) Unless the commissioner has reasonable grounds to believe the documents or\nrecords of the licensee have been, o r are at risk of being, altered or destroyed\nfor purposes of concealing a violation of this subtitle, the licensee or owner of\nthe documents and records shall have access to the documents or records as\nnecessary to conduct its ordinary business affairs.\n(12) 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(13) In order to carry out the purposes of this subtitle, the commissioner may:\n(a) Retain attorneys, accountants, or other professionals and specialists as\nexaminers, auditors, or investigators to conduct or assist in the conduct of\nexaminations or investigations;\n(b) Enter into agreements or relationships with ot her government officials or\nregulatory associations in order to improve efficiencies and reduce regulatory\nburden by sharing resources, standardized or uniform methods or procedures,\nand documents, records, information, or evidence obtained under this subt itle;\nand\n(c) Use, hire, contract, or employ public or privately available analytical systems,\nmethods, or software to examine or investigate the persons subject to this\nsubtitle.\n(14) The authority of this section shall remain in effect whether a person a cts, or claims\nto act, under any licensing or registration law of this subtitle, or acts, or claims to\nact, without such authority.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52853","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"7151b210a9b92c90ce76a53f8859c40b2daee22dcf4519d98905907d27fb0e8c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-160","next":"us-ky/krs-286.8-175"},"notice":"GroundRules: Original legal text. Not legal advice."}