Kentucky Statutes 286.11-041 – Suspension or revocation of designation of an agent — Factors to be considered by commissioner — Procedure for hearing and appeal upon revocation of designation — Limitations upon future designation of agent after re…
Current as of: 2024 | Check for updates
|
Other versions
(1) The commissioner may issue a written order suspending or revoking the designation of an agent if the commissioner finds that:
(a) The agent violates this subtitle or a rule adopted or an order issued under this subtitle;
(b) The agent does not cooperate with an examination, investigation, or subpoena issued by the commissioner;
(c) The agent has engaged in fraud, intentional misrepresentation, or gross negligence;
(d) The agent has been convicted of a felony;
(e) The agent has been convicted of a misdemeanor related to the business of money transmission;
(f) The agent has been convicted of a misdemeanor involving theft, fraud, or breach of trust;
(g) The competence, experience, character, or general fitness of the agent or a person in control of the agent indicates that it is not in the public interest to permit the agent to be engaged in the business of money transmission;
(h) The agent is engaged in or is engaging in an unsafe or unsound practice;
(i) The agent is engaged in, or is engaging in, an unfair and deceptive act or practice as that act or practice relates to the business of money transmission;
(j) The agent is insolvent;
(k) The agent 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; or
(l) The agent fails to timely remit all money legally due to its licensee as required by this subtitle; or
(m) The agent, any executive officer, or other person in control of the agent is listed or become listed on the specially designated nationals and blocked persons list prepared by the United States Department of the Treasury or United States Department of State under Presidential Executive Order No.
13224 as a potential threat to commit terrorist acts or to finance terrorist acts. (2) In determining whether an agent is engaging in an unsafe or unsound practice under
subsection (1)(h) of this section, the commissioner may consider the size and
condition of the agent’s provision of money transmissions, the magnitude of the loss, the gravity of the violation of this subtitle, the administrative regulation adopted, or order issued under this subtitle, any action taken by another state or federal government against the agent, or the previous conduct of the agent.
(3) Any person who has his or her designation as an agent revoked or suspended by the commissioner may file a written application for an administrative hearing in
accordance with KRS Chapter 13B.
(4) An agent is deemed to have received a copy of the written order of revocation or suspension within three (3) days of its mailing.
(5) A written application for an appeal shall be made with the commissioner within twenty (20) days of the date of the order of suspension or revocation in good faith and shall briefly state the reason or reasons the agent is aggrieved, together with the grounds to be relied upon.
(6) The commissioner shall not designate a person as an agent again under this subtitle where the designation of an agent has been revoked, until after three (3) years after the date of revocation, and thereafter, not until the person again qualifies under the applicable provisions of this subtitle. Any person whose designation as an agent has been revoked twice by the commissioner shall be deemed permanently revoked and shall not again be eligible for designation as an agent under this subtitle.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 849, effective July 15, 2010. — Created
2006 Ky. Acts ch. 247, sec. 21, effective April 24, 2006.
Legislative Research Commission Note (7/12/2006). This section was created in 2006
Ky. Acts ch. 247 as a new section of KRS Chapter 366A. Sec. 38 of that same bill also required that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be renumbered as sections of a single KRS chapter entitled the “Kentucky Financial Services Code.” Therefore, the Statute Reviser, acting under KRS § 7.136(1), has codified this section as a new section of KRS Chapter 286.
(a) The agent violates this subtitle or a rule adopted or an order issued under this subtitle;
Terms Used In Kentucky Statutes 286.11-041
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Agent: means a person authorized by written agreement and designated by the licensee to act on behalf of a licensee under the provisions of this subtitle. See Kentucky Statutes 286.11-003
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Commissioner: means the commissioner of the Department of Financial
Institutions. See Kentucky Statutes 286.1-010 - Control: means :
(a) Ownership of, or the power to vote, directly or indirectly, twenty-five percent (25%) or more of a class of voting securities or voting interests of a licensee or applicant, or person in control of a licensee or applicant. See Kentucky Statutes 286.11-003 - Department: means the Kentucky Department of Financial Institutions. See Kentucky Statutes 286.11-003
- Executive officer: means the president, chairperson of the executive committee, responsible individual, chief financial officer, and any other person who performs similar functions. See Kentucky Statutes 286.11-003
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Fraud: Intentional deception resulting in injury to another.
- Insolvent: means that appearing upon examination of any licensee or its agent that its liabilities exceeds its assets or it cannot meet its obligations in the usual and ordinary course of business for any reason. See Kentucky Statutes 286.11-003
- Licensee: means a person licensed under this subtitle. See Kentucky Statutes 286.11-003
- Money: means a medium of exchange that is authorized or adopted by the United States or a foreign government or other recognized medium of exchange, including a monetary unit of account established by an intergovernmental organization or by agreement between two (2) governments. See Kentucky Statutes 286.11-003
- Money transmission: means engaging in the business of receiving money or monetary value to transmit, deliver, or instruct to be transmitted or delivered, money or monetary value to another location inside or outside the United States by any and all means, including but not limited to wire, facsimile, electronic transfer, or issuing stored value. See Kentucky Statutes 286.11-003
- Person: means any individual, corporation, business trust, estate, trust, partnership, limited liability company, association, organization, joint venture, government and any subdivision, agency or instrumentality thereof, or any other legal or commercial
entity. See Kentucky Statutes 286.11-003 - Remit: means either to make direct payment of the funds to the licensee or its representatives authorized to receive those funds, or to deposit the funds in a bank, credit union, or savings and loan association, or other similar financial institution in an account specified by the licensee. See Kentucky Statutes 286.11-003
- State: means a state or commonwealth of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession that is subject to the jurisdiction of the United States. See Kentucky Statutes 286.11-003
- Statute: A law passed by a legislature.
- Subpoena: A command to a witness to appear and give testimony.
- Unsafe or unsound practice: means a practice or conduct by a person licensed to provide money transmission, or an agent of such a person, which creates the likelihood of material loss, insolvency, or dissipation of the licensee's assets, or otherwise materially prejudices the financial condition of the licensee or the interests of its customers. See Kentucky Statutes 286.11-003
(b) The agent does not cooperate with an examination, investigation, or subpoena issued by the commissioner;
(c) The agent has engaged in fraud, intentional misrepresentation, or gross negligence;
(d) The agent has been convicted of a felony;
(e) The agent has been convicted of a misdemeanor related to the business of money transmission;
(f) The agent has been convicted of a misdemeanor involving theft, fraud, or breach of trust;
(g) The competence, experience, character, or general fitness of the agent or a person in control of the agent indicates that it is not in the public interest to permit the agent to be engaged in the business of money transmission;
(h) The agent is engaged in or is engaging in an unsafe or unsound practice;
(i) The agent is engaged in, or is engaging in, an unfair and deceptive act or practice as that act or practice relates to the business of money transmission;
(j) The agent is insolvent;
(k) The agent 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; or
(l) The agent fails to timely remit all money legally due to its licensee as required by this subtitle; or
(m) The agent, any executive officer, or other person in control of the agent is listed or become listed on the specially designated nationals and blocked persons list prepared by the United States Department of the Treasury or United States Department of State under Presidential Executive Order No.
13224 as a potential threat to commit terrorist acts or to finance terrorist acts. (2) In determining whether an agent is engaging in an unsafe or unsound practice under
subsection (1)(h) of this section, the commissioner may consider the size and
condition of the agent’s provision of money transmissions, the magnitude of the loss, the gravity of the violation of this subtitle, the administrative regulation adopted, or order issued under this subtitle, any action taken by another state or federal government against the agent, or the previous conduct of the agent.
(3) Any person who has his or her designation as an agent revoked or suspended by the commissioner may file a written application for an administrative hearing in
accordance with KRS Chapter 13B.
(4) An agent is deemed to have received a copy of the written order of revocation or suspension within three (3) days of its mailing.
(5) A written application for an appeal shall be made with the commissioner within twenty (20) days of the date of the order of suspension or revocation in good faith and shall briefly state the reason or reasons the agent is aggrieved, together with the grounds to be relied upon.
(6) The commissioner shall not designate a person as an agent again under this subtitle where the designation of an agent has been revoked, until after three (3) years after the date of revocation, and thereafter, not until the person again qualifies under the applicable provisions of this subtitle. Any person whose designation as an agent has been revoked twice by the commissioner shall be deemed permanently revoked and shall not again be eligible for designation as an agent under this subtitle.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 849, effective July 15, 2010. — Created
2006 Ky. Acts ch. 247, sec. 21, effective April 24, 2006.
Legislative Research Commission Note (7/12/2006). This section was created in 2006
Ky. Acts ch. 247 as a new section of KRS Chapter 366A. Sec. 38 of that same bill also required that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be renumbered as sections of a single KRS chapter entitled the “Kentucky Financial Services Code.” Therefore, the Statute Reviser, acting under KRS § 7.136(1), has codified this section as a new section of KRS Chapter 286.