§2917. Examinations, investigations; examination fees

Link to law: http://legislature.vermont.gov/statutes/section/08/085/02917
Published: 2015


The Vermont Statutes Online



Banking and Insurance






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


(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.)
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