Title XXV, Business and Financial Institutions

ownership -- Contracts for services of agency's examiners. (1) (a) The commissioner shall appoint a sufficient number of examiners and assistant examiners to examine all institutions coming under the supervision of the department. (b) A salary schedule for examiners and assistant…

All fees collected and paid into the State Treasury under the provisions of this chapter and KRS Chapter 292, or any other statute administered by the department, shall be: (1) Credited to a revolving trust or agency fund account, as provided in KRS 45.253, for the department; (2…

This subtitle may be cited as the Kentucky Money Transmitters Act of 2006.

As used in this subtitle, unless the context requires otherwise: (1) "Affiliate" means any person who directly or indirectly through one (1) or more intermediaries controls, is controlled by, or is under common control with, another person; (2) "Agent" means a person authorized b…

Prohibition against transfer or assignment of license. (1) On or after October 1, 2006, no person shall engage in the business of money transmission in this state without a license, or without being an agent of a licensee, as provided in this subtitle. (2) A person is deemed to b…

This subtitle does not apply to: (1) The United States or any department, agency, or instrumentality thereof; (2) The United States Post Office or a contractor acting on behalf of the United States Post Office; (3) A state or any agency, department, or political subdivision of a …

corporate applicants -- Power of commissioner to waive requirements. (1) Each application for a license under this subtitle shall be made in writing and in a form and medium prescribed by regulation by the commissioner. The application shall state or contain the following: (a) Th…

Each licensee under this subtitle shall at all times have a net worth of not less than five hundred thousand dollars ($500,000), calculated in accordance with generally accepted accounting principles.

(1) Each application shall be accompanied by a surety bond or other similar security acceptable to the commissioner, in the amount of at least five hundred thousand dollars ($500,000). The commissioner may increase the amount of the surety bond, or other similar security, to a ma…

investments -- All permissible investments deemed to be held in trust for benefit of purchasers and holders. (1) Every licensee shall, at all times, maintain permissible investments that have a market value that is computed in accordance with generally accepted accounting princip…

Each application shall be accompanied by a nonrefundable application fee in the amount of five hundred dollars ($500) and a nonrefundable license fee of five hundred dollars ($500) if application is made on or before March 31, or the next business day if March 31 falls on a weeke…

licenses -- Procedure for hearing and appeal upon denial of license -- Reapplication after denial. (1) Upon the filing of a complete application, the commissioner shall investigate the competence, experience, character, financial condition, and responsibility of the applicant. Th…

of license. (1) A licensee under this subtitle shall pay an annual renewal fee of five hundred dollars ($500) no later than September 20 of each year. (2) The renewal fee shall be accompanied by a written renewal report, in a form prescribed by the commissioner, which shall inclu…

A licensee shall file a written report with the commissioner within fifteen (15) business days of its knowledge of the occurrence of any one (1) of the events listed below. In the written report, the licensee shall describe the event and its expected impact on the licensee's acti…

(1) A licensee shall give the commissioner written notice of a proposed change of control within fifteen (15) days after learning of the proposed change of control and at least thirty (30) days prior to the proposed change of control. (2) A licensee shall file a written request f…

(1) The commissioner may conduct an examination or investigation of a licensee or any of its agents, as it relates to the business of money transmission. (2) The commissioner may conduct an examination or investigation in conjunction with representatives of other agencies of this…

(1) Each licensee shall make, keep, and preserve the following books, accounts, and other records for a period of five (5) years, and these records shall be open to inspection by the commissioner: (a) A record or records of each payment instrument sold; (b) A general ledger conta…

governing money laundering. (1) Every licensee and its agent shall file with the commissioner all reports by federal currency reporting, recordkeeping, and suspicious transaction reporting requirements as set forth in the Bank Secrecy Act, 31 U.S.C. secs. 5311 to 5332, 31 C.F.R. …

filings to the registry, its parent or affiliate, and other agencies or authorities -- Power to establish relationships or contracts with governmental agencies and the registry or its affiliates -- Report of violations, enforcement actions, and other relevant information -- Proce…

(1) Documents, materials, reports, or other information in the possession or control of the commissioner that is provided according to this subtitle shall be confidential by law and privileged, and shall not be subject to the Kentucky Open Records Act, KRS 61.870 to 61.884. These…

Licensees desiring to conduct licensed activities through agents shall authorize each agent to operate pursuant to an express written contract, which shall include the following provisions: (1) That the licensee designates the person as its agent with authority to engage in money…

-- Agent's duty to report to licensee. (1) An agent shall not make any fraudulent statements or misrepresentations to a licensee or to the commissioner. (2) All money transmissions, or sale, or issuance of payment instrument activities conducted by agents shall be strictly in acc…

upon suspension or revocation -- Limitations upon reissue of license -- Factors to be considered by commissioner. (1) The commissioner may issue a written order to suspend or revoke a license issued under this subtitle if the commissioner finds that: (a) The licensee no longer me…

considered by commissioner -- Procedure for hearing and appeal upon revocation of designation -- Limitations upon future designation of agent after revocation. (1) The commissioner may issue a written order suspending or revoking the designation of an agent if the commissioner fi…

temporary or permanent injunction. (1) If the commissioner has reason to believe or determines that a violation of this subtitle, regulation adopted, or an order issued under this subtitle, by any person, licensee, or agent has occurred or will occur, then the commissioner may is…

license or designation of agent -- Appeal from emergency order. (1) If the commissioner has reason to believe or determines that a violation of this subtitle or of a regulation adopted, or an order issued under this subtitle, by a licensee or agent will cause immediate or irrepar…

The commissioner may levy a civil penalty against a person that violates any provision of or administrative regulation promulgated under this subtitle or order issued by the commissioner under this subtitle. The civil penalty shall be not less than one thousand dollars ($1,000) n…

The commissioner may enter into a consent order with another person at any time, in order to resolve a matter arising under this subtitle. A consent order shall be signed by the person to whom it is issued or by the person's authorized representative and shall indicate agreement …

administrative remedies. The commissioner may stay, suspend, or postpone the effective date of an order issued under this subtitle, pending the administrative proceeding and the issuance of a final order resulting from the proceeding, upon written request by the affected person, …

from final order to Franklin Circuit Court. (1) Any person aggrieved by the entry of an order by the commissioner under this subtitle may file written application for an administrative hearing. (2) The written application for a hearing under this subtitle shall be made in good fa…

- Commissioner's power to investigate and resolve complaints -- Suspension of license for noncompliance with subpoena -- Petition to court for enforcement. (1) Any person aggrieved by the conduct of a licensee or agent under this subtitle in connection with the licensee's or agen…

(1) A person that intentionally or knowingly makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this subtitle or that intentionally or knowingly makes a false entry or omits a material entry in such a record is …

All administrative proceedings under this subtitle shall be conducted in accordance with KRS Chapter 13B.

regulation, supervision, and licensing of money transmitters. (1) The department shall exercise all administrative functions of the state in relation to the regulation, supervision, and licensing of money transmitters. (2) The commissioner may promulgate, amend, and repeal any ad…

laws. In addition to the requirements contained in this subtitle, every licensee and agent shall comply with all applicable federal and state laws.

in force. A license issued under the provisions of KRS Chapter 366 that is in effect immediately prior to April 24, 2006, shall remain in force as a license under this subtitle until midnight on September 30, 2006, and the licensee shall be governed by the provisions of this subt…

transmission in the Commonwealth. It is the intent of the General Assembly to establish a state system of licensure and regulation to ensure the safe and sound operation of money transmission to ensure that this business is not used for criminal purposes, to promote confidence in…

The General Assembly finds and declares that: (1) Student education loans in Kentucky affect a significant portion of citizens; (2) For student education loan borrowers, and the countless others who are making student education loan payments, student education loan financial issu…

As used in this subtitle, unless the context requires otherwise: (1) "Affiliate" means any person who directly, or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person; (2) "Applicant" means a person filing …

servicing federal loans. (1) As used in this section, "federal student education loan" means any: (a) Student education loan issued pursuant to the William D. Ford Federal Direct Loan Program established under 20 U.S.C. sec. 1087a et seq., as amended; (b) Student education loan i…

application -- License not transferable. (1) As used in this section, "substantial stockholder" means a person owning or controlling, directly or indirectly, ten percent (10%) or more of the total outstanding stock of a corporation. (2) A person applying for a license as a studen…

Commissioner's determination and approval. (1) As used in this section: (a) "Control": 1. Means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a licensee, whether through the ownership of the licensee's voting s…

Each student education loan servicer shall: (1) Keep all records for a minimum of three (3) years after satisfaction of a loan; and (2) Use in its business such books, accounts, correspondence with borrowers, and records as will enable the commissioner to determine whether the se…

(1) Each licensee shall annually file a report with the commissioner, providing information as the commissioner may require concerning the licensee's business operations during the preceding calendar year. (2) The commissioner may require additional regular or special reports fro…

(1) As used in this section, "wholly owned subsidiary" means a subsidiary that is entirely owned or controlled by another person. (2) (a) A licensee shall pay an annual assessment fee no later than December 1 of each year. (b) The assessment fee required under this section shall:…

(1) As used in this section, "consumer reporting agency" means a consumer reporting agency that compiles and maintains files on a nationwide basis as defined in the Fair Credit Reporting Act, 15 U.S.C. sec. 1681a(p). (2) A student education loan servicer shall not engage in abusi…