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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
085
:
LOAN SERVICERS
§
2917. Examinations, investigations; examination fees
(a) In addition
to any authority allowed under this chapter or elsewhere, and for the purpose
of examination or discovering or investigating violations or complaints of or
arising under this chapter or any other section of applicable law, or any rule,
order, directive, or regulation lawfully made thereunder, or securing any
information required or useful thereunder, and for purposes of initial
licensing, license renewal, license suspension, license conditioning, license
revocation or termination, or general or specific inquiry or investigation, the
Commissioner or his or her duly designated representative shall have the
authority to:
(1) conduct
investigations and examinations.
(2) access,
receive, and use any books, accounts, records, files, documents, information,
or evidence, including:
(A) criminal,
civil, and administrative history information, including nonconviction data;
(B) personal
history and experience information, including independent credit reports
obtained from a consumer reporting agency described in Section 603(p) of the
Fair Credit Reporting Act;.
(C) any other
documents, information, or evidence the Commissioner deems relevant to the
inquiry or investigation regardless of the location, possession, control, or
custody of such documents, information, or evidence.
(b) The
Commissioner may review, investigate, or examine any licensee, individual, or
person regardless of whether such individual or person has obtained a license
under this chapter as often as necessary in order to carry out the purposes of
this chapter. The Commissioner may direct, subpoena, or order the attendance of
and examine under oath all persons whose testimony may be required about the
loans or the business or subject matter of any such examination or
investigation, and may direct, subpoena, or order such person to produce books,
accounts, records, files, and any other documents the Commissioner deems
relevant to the inquiry.
(c) Each
licensee, individual, or person subject to this chapter shall make available to
the Commissioner upon request the books and records relating to the operations
of such licensee, individual, or person. The Commissioner shall have access to
such books and records and to interview the officers, principals, control
persons, employees, independent contractors, agents, and customers of the
licensee, individual, or person concerning the business.
(d) Each
licensee, individual, or person subject to this chapter shall make or compile
reports or prepare other information as directed by the Commissioner in order
to carry out the purposes of this section, including:
(1) accounting
compilations;
(2) information
lists and data concerning loans in a format prescribed by the Commissioner;
(3) such other
information as the Commissioner deems necessary to carry out the purposes of
this chapter.
(e) In making
any examination or investigation authorized by this chapter, the Commissioner
may control access to any documents and records of the licensee or person under
examination or investigation. The Commissioner may take possession of the
documents and records or place a person in exclusive charge of the documents
and records in the place where they are usually kept. During the period of
control, no individual or person shall remove or attempt to remove any of the
documents and records except pursuant to a court order or with the consent of
the Commissioner. Unless the Commissioner has reasonable grounds to believe the
documents or records of the licensee have been or are at risk of being altered
or destroyed for purposes of concealing a violation of this chapter, the
licensee or owner of the documents and records shall have access to the
documents and records as necessary to conduct its ordinary business affairs.
(f) In order to
carry out the purposes of this chapter, the Commissioner may:
(1) retain
attorneys, accountants, or other professionals and specialists as examiners,
auditors, or investigators to conduct or assist in the conduct of examinations
or investigations;
(2) enter into
agreements or relationships with other government officials or regulatory
associations in order to improve efficiencies and reduce regulatory burden by
sharing resources, standardized or uniform methods or procedures, and
documents, records, information, or evidence obtained under this section;
(3) use,
contract for, or employ public or privately available analytical systems,
methods, or software to examine or investigate the licensee, individual, or
person subject to this chapter;
(4) accept and
rely on examination or investigation reports made by other government officials
within or without this State; or
(5) accept audit
reports made by an independent certified public accountant for the licensee,
individual, or person subject to this chapter in the course of that part of the
examination covering the same general subject matter as the audit and may
incorporate the audit report in the report of the examination, report of
investigation, or other writing of the Commissioner.
(g) The authority
of this section shall remain in effect whether such licensee, individual, or
person acts or claims to act under any licensing or registration law of this
State, acts without such authority, or surrenders such licensee's license.
(h) No licensee,
individual, or person subject to investigation or examination under this
section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete
any books, records, computer records, or other information.
(i) The
Commissioner shall make an examination of the affairs, business, and records of
each licensee at least once every three years. The Commissioner may, in the
case of those licensees who do not maintain a Vermont office, accept reports of
examinations prepared by another state or federal regulatory agency as
substitutes if such reports are available to the Commissioner and are
determined to be adequate in exercising his or her powers and discharging his
or her responsibilities under this chapter.
(j) Each
licensee shall pay to the Department all fees, costs, and expenses of any
examination, review, and investigation as prescribed by section 18 of this
title, which fees, costs, and expenses shall be billed when they are incurred.
In addition to the powers set forth in section 2910 of this chapter, the Commissioner
may maintain an action for the recovery of examination, review and
investigation fees, costs, and expenses as prescribed in section 18 of this
title in any court of competent jurisdiction. (Added 2009, No. 96 (Adj. Sess.),
§ 1, eff. Jan. 1, 2011.)