§ 19-14.10-16 - Investigation and examination authority.
SECTION 19-14.10-16
§ 19-14.10-16 Investigation andexamination authority. – In addition to any authority allowed under this chapter the director or thedirector's designee shall have the authority to conduct investigations andexaminations as follows:
(1) For purposes of initial licensing, license renewal,license suspension, license conditioning, license revocation or termination, orgeneral or specific inquiry or investigation to determine compliance with thischapter, the director or the director's designee shall have the authority toaccess, receive and use any books, accounts, records, files, documents,information or evidence including but not limited to:
(i) Criminal, civil and administrative history information,including non-conviction data, or other non-public record as specified insubparagraph 38-2-2(4)(D), specifically, or any other criminal, civil, andadministrative record deemed non-public under § 38-2-1 et seq., generally;and
(ii) Personal history and experience information includingindependent credit reports obtained from a consumer reporting agency describedin § 603(p) of the Federal Fair Credit Reporting Act; and
(iii) Any other documents, information or evidence thedirector or the director's designee deems relevant to the inquiry orinvestigation regardless of the location, possession, control or custody ofsuch documents, information or evidence.
(2) For the purposes of investigating violations orcomplaints arising under this chapter, or for the purposes of examination, thedirector or the director's designee may review, investigate, or examine anylicensee, individual or person subject to this chapter, as often as necessaryin order to carry out the purposes of this chapter. The director or thedirector's designee may direct, subpoena, or order the attendance of andexamine under oath all persons whose testimony may be required about the loansor the business or subject matter of any such examination or investigation, andmay direct, subpoena, or order such person to produce books, accounts, records,files, and any other documents the director or the director's designee deemsrelevant to the inquiry.
(3) Each licensee, individual or person subject to thischapter shall make available to the director or the director's designee uponrequest the books and records relating to the operations of such licensee,individual or person subject to this chapter. The director or the director'sdesignee shall have access to such books and records and interview theofficers, principals, mortgage loan originators, employees, independentcontractors, agents, and customers of the licensee, individual or personsubject to this chapter concerning their business.
(4) Each licensee, individual or person subject to thischapter shall make or compile reports or prepare other information as directedby the director or the director's designee in order to carry out the purposesof this section including but not limited to:
(i) Accounting compilations;
(ii) Information lists and data concerning loan transactionsin a format prescribed by the director or the director's designee; or
(iii) Such other information deemed necessary to carry outthe purposes of this section.
(5) In making any examination or investigation authorized bythis chapter, the director or the director's designee may control access to anydocuments and records of the licensee or person under examination orinvestigation. The director or the director's designee may take possession ofthe documents and records or place a person in exclusive charge of thedocuments and records in the place where they are usually kept. During theperiod of control, no individual or person shall remove or attempt to removeany of the documents and records except pursuant to a court order or with theconsent of the director or the director's designee. Unless the director or thedirector's designee has reasonable grounds to believe the documents or recordsof the licensee have been, or are at risk of being altered or destroyed forpurposes of concealing a violation of this chapter, the licensee or owner ofthe documents and records shall have access to the documents or records asnecessary to conduct its ordinary business affairs.
(6) In order to carry out the purposes of this section, thedirector or the director's designee may:
(i) Retain attorneys, accountants, or other professionals andspecialists as examiners, auditors, or investigators to conduct or assist inthe conduct of examinations or investigations;
(ii) Enter into agreements or relationships with othergovernment officials or regulatory associations in order to improveefficiencies and reduce regulatory burden by sharing resources, standardize oruniform methods or procedures, and documents, records, information or evidenceobtained under this section;
(iii) Use, hire, contract or employ public or privatelyavailable analytical systems, methods or software to examine or investigate thelicensee, individual or person subject to this chapter;
(iv) Accept and rely on examination or investigation reportsmade by other government officials, within or without this state; or
(v) Accept audit reports made by an independent certifiedpublic accountant for the licensee, individual or person subject to thischapter in the course of that part of the examination covering the same generalsubject matter as the audit and may incorporate the audit report in the reportof the examination, report of investigation or other writing of the director orthe director's designee.
(7) The authority of this section shall remain in effect,whether such a licensee, individual or person subject to this chapter acts orclaims to act under any licensing or registration law of this state, or claimsto act without such authority.
(8) No licensee, individual or person subject toinvestigation or examination under this section may knowingly withhold,abstract, remove, mutilate, destroy, or secrete any books, records, computerrecords, or other information.