CMP.2.4.040 Denial, Suspension, or Revocation of License

(a) Denial; Suspension, or Revocation. The Authority shall deny a License or suspend or revoke a License if the Authority finds that an Applicant or Licensee:

(1) Failed to notify the Authority within thirty (30) Business Days after the occurrence of any material development, including, but not limited to:

(A) Bankruptcy or other undertaking of insolvency;

(B) Business reorganization due to insolvency;

(C) The filing of a criminal indictment, civil complaint, or administrative or regulatory action against the Licensee or any of its officers, directors; and/or

(D) A felony conviction against the Licensee or any of a Licensee's officers, directors;

(2) Failed to pay initial Application or renewal fees;

(3) Made a material misstatement or omission on the Application or on any document required to be filed with the Authority or failed to update any Application or any document required to be filed with the Authority;

(4) Withheld or provided incomplete or insufficient pertinent information;

(5) Is not a Person of honesty, truthfulness, or good character;

(6) Violated or aided, abetted, or conspired with another Licensee or Person or knowingly caused any Licensee or Person to violate this Code or the rules and regulations of the Authority;

(7) Participated in unauthorized Consumer Financial Services;

(8) Knowingly falsified books or records that relate to a transaction connected with the operation of Consumer Financial Services;

(9) Failed to keep sufficient books and records to substantiate receipts, disbursements, and expenses incurred or paid;

(10) Failed to take reasonable measures to ensure that an agreement with a Consumer is not materially breached;

(11) Has been convicted or has entered a plea of no contest in any jurisdiction of any crime involving breach of trust or dishonesty;

(12) Has had an order entered against it by an administrative agency of any jurisdiction and the order is based on conduct that involved fraud, deceit, or misrepresentation by the Applicant or Licensee;

(13) Has had a financial judgment ordered against it in a civil action based on fraud, deceit, or misrepresentation while it was a Licensee or Licensee Applicant;

(14) Employed any Person whom the Licensee knew or should have known was convicted of fraud, theft, or embezzlement, or would otherwise be precluded from licensure;

(15) Refused to comply with any lawful order, inquiry or directive of the Authority, the Governing Board, or any court or administrative body of competent jurisdiction;

(16) Attempted to bribe or offer something of value to any Person, Governing Board member, or Agent;

(17) Threatened or attempted to coerce any Person, Governing Board Member, or Agent;

(18) Stole or attempted to steal funds or other items of value;

(19) Poses a threat to the public interest or the effective regulation of Consumer Financial Services;

(20) Creates or enhances the danger of unsuitable, unfair, or illegal practices and methods and activities in the conduct of Consumer Financial Services; and/or

(21) Has demonstrated an inability to manage the Applicant's personal or business finances or demonstrates a sufficient indebtedness in relation to income so as to cause concern for the Applicant's ability to fulfill its responsibilities under this Code.

(b) Acts of Controlling Persons. It is sufficient cause for denial, suspension, or revocation of a License if a Controlling Person of the Licensee or Applicant, or natural Person identified on the Application, acted or failed to act in a manner that if the Licensee or Applicant acted or failed to act in that manner would be cause for denial, suspension or revocation of the License.

(c) If a Licensee fails to renew its License and does not voluntarily surrender the License, the Authority may issue a notice of expiration of the License without further revocation proceedings.

(d) Revocation, suspension, cancellation, surrender, or expiration of a License shall not affect civil or criminal liability for acts committed before the revocation, suspension, cancellation, surrender, or expiration. Nothing in this section precludes the Authority from any enforcement.

(e) Procedure for Suspension or Revocation. Upon the Authority's reasonable belief that a violation of this Code has occurred, the Authority may initiate an investigation and/or suspend or revoke a License. Unless exigent circumstances exist, within 10 days of any denial, suspension, or revocation, an Applicant or Licensee may request a hearing contesting any denial, suspension, or revocation of a License according to the procedures outlined in Section CMP.2.9.030