§ 59-3114. Examination of locations, loans, records, etc. - Assessments - Investigation of possible violations - Orders compelling compliance.

A.  At such times as the Administrator of Consumer Credit shall deem necessary, the Administrator or a duly authorized representative shall make an examination of all licensed locations of each licensee and shall inquire into and examine the loans, transactions, books, accounts, papers, correspondence and records of the licensee insofar as they pertain to the business regulated by this act.  In the course of the examination, the Administrator or a duly authorized representative shall have free access to the office, place of business, files, safes and vaults of the licensee, and shall have the right to make copies of the books, accounts, papers, correspondence and records.  The Administrator or a duly authorized representative may, during the course of the examination, administer oaths and examine any person under oath on any subject pertinent to any matter about which the Administrator is authorized or required by this act to consider, investigate or secure information.  Any licensee who shall fail or refuse to let the Administrator or a duly authorized representative examine or make copies of the books, or other relevant documents shall be deemed in violation of this act and the failure or refusal shall constitute grounds for administrative action against the licensee.  The information obtained in the course of the examination shall be confidential.  Each licensee shall pay to the Administrator an amount assessed by the Administrator to cover the direct and indirect cost of the examination and a proportionate share of general administrative expense, not to exceed Three Hundred Dollars ($300.00) for each location; provided, however, that for any examination which lasts in excess of eight (8) hours, the Administrator shall charge an additional fee of Fifty Dollars ($50.00) per hour for each examiner required to complete the examination; provided, further, that the Administrator may waive the examination fee for any examination which takes one (1) hour or less.  If an examination fee is due and is not paid on completion of an examination, the Administrator shall bill the licensee, and there shall be a late fee of Fifty Dollars ($50.00) if the amount due is not received within thirty (30) days of the invoice date.

B.  For the purpose of discovering violations of this act or of securing information required under this act, the Administrator or a duly authorized representative may investigate the books, accounts, papers, correspondence and records of any licensee or other person whom the Administrator has reasonable cause to believe is in violation of any provision of this act whether or not that person shall claim to be within the authority or scope of this act.  For the purpose of this subsection, any person who advertises for, solicits or otherwise communicates a willingness to make deferred payment loans shall be presumed to be engaged in the business of making deferred deposit loans.

C.  Every licensee shall maintain on file with the Administrator a written appointment of a resident of this state as the agent for service of all judicial or other process or legal notice, unless the licensee has appointed an agent under another statute of this state.  In case of noncompliance, such service may be made on the Administrator.

D.  Each licensee shall keep or make available in this state the books and records relating to loans made under this act as are necessary to enable the Administrator to determine whether the licensee is complying with this act.  The books and records shall be maintained in a manner consistent with accepted accounting practices.

E.  Each licensee shall preserve or make available its books and records in the state relating to each of its loans for four (4) years from the date of the loan, or two (2) years from the date of the final entry made thereon, whichever is later.  Each licensee’s system of records shall be accepted if it discloses its information as may be reasonably required under this act.  All deferred deposit loan agreements and notices of cancellation signed by debtors shall be kept at an office in this state designated by the licensee, except when transferred under an agreement which gives the Administrator access to the agreements.

F.  Each lender shall, annually on or before the first day of May, file a report with the Administrator setting forth such relevant information as the Administrator may reasonably require concerning the business and operations during the preceding calendar year for each place of business conducted by such lender.  Such report shall be made under oath and shall be in the form prescribed by the Administrator, who shall make and publish annually a consolidated analysis and recapitulation of such reports, but the individual reports and their contents shall be held confidential.  There shall be a late fee of Twenty-five Dollars ($25.00) for any annual report received after May 1.

G.  Any transcript of any hearing held by the Administrator or an independent hearing examiner under this act shall be a public record and open to inspection at all reasonable times.

H.  On failure without lawful excuse to obey a subpoena or to give testimony and on reasonable notice to all persons affected, the Administrator or a representative may apply to a court for an order compelling compliance, as provided by the Administrative Procedures Act.

Added by Laws 2003, c. 240, § 14, eff. Sept. 1, 2003.