(1) (a) The commissioner may examine the books and records of a licensee using risk-based criteria and considering other available regulatory mechanisms as directed by the banking board; shall make and file in the office of the commissioner a correct report in detail disclosing the results of the examination; and shall mail a copy of the report to the licensee examined. If the licensee's records are located outside this state, the licensee shall, at the option of the licensee, either make them available to the commissioner at a convenient location within this state or pay the reasonable and necessary expenses for the commissioner or the commissioner's representative to examine them at the place where they are maintained. The commissioner may designate representatives, including comparable officials of the state in which the records are located, to inspect them on behalf of the commissioner. For the examination, the commissioner shall charge a fee in an amount set by the banking board pursuant to section 11-102-104 (11). If any licensee refuses to permit the commissioner to make an examination, the licensee shall be subject to such penalty as the commissioner may assess, not in excess of one hundred dollars for each day any such refusal shall continue.
(b) In lieu of any examination required by this section to be made by the commissioner, the commissioner may accept the audit of an independent certified public accountant or an independent registered accountant, but the cost of the audit shall be borne by the licensee.
(2) (a) Every licensee shall file an annual financial statement with the commissioner, audited by an independent certified public accountant or an independent registered accountant, within one hundred fifty days following the close of the licensee's fiscal year. The financial statements shall include a balance sheet, a profit and loss statement, and a statement of retained earnings of the licensee and the licensee's agents and subagents resulting from selling or issuing exchange under this article 110. The financial statements shall be accompanied by copies of the engagement and management letters issued by the independent auditor.
(b) Every licensee shall file with the commissioner:
Not less than three reports during each calendar year according to the form prescribedby the commissioner. Each report must exhibit in detail, as may be required by the commissioner, the resources and liabilities of the licensee at the close of business on the day specified by the commissioner in writing.
A written notification within fifteen days after the occurrence of any of the following:
A change in the licensee's managing official;
The filing of a petition by or against the licensee under the United States bankruptcycode, 11 U.S.C. secs. 101 to 110, as amended, for bankruptcy or reorganization;
The filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;
The commencement of a proceeding to revoke or suspend its license in a state orcountry in which the licensee engages in business or is licensed; or
A felony conviction of the licensee or of a managing official, principal member,principal shareholder, or agent of the licensee.
(c) If any licensee fails to submit any statement or report to the commissioner as required by this subsection (2), the licensee shall pay to the commissioner a penalty of two hundred fifty dollars for each additional day of delinquency as set by the banking board pursuant to section 11-102-104 (11); except that, if in the opinion of the banking board the delay is excusable for good cause shown, no penalty shall be paid.
Source: L. 2017: Entire article added with relocations, (SB 17-226), ch. 159, p. 582, § 2, effective August 9.
Editor's note: This section is similar to former § 12-52-110 as it existed prior to 2017. 11-110-112. Change in control - rule. (1) (a) Except as specified in subsection (1)(b) or (1)(c) of this section, when a licensee proposes a change of control, the licensee shall:
Give the commissioner written notice of the proposed change of control within fifteen days after learning of the proposed change of control;
Request approval of the change of control; and
Submit a nonrefundable fee in an amount established under section 11-102-104 (11) with the notice.
The board, by rule or order, may exempt a person from any of the requirements ofsubsection (1)(a)(II) or (1)(a)(III) of this section if the board finds that it is in the public interest to do so.
This subsection (1) does not apply to a public offering of securities.
After review of a request for approval under subsection (1) of this section, the boardmay require the licensee to provide additional information concerning the persons proposed to control the licensee. The additional information must be limited to the same types required of the licensee or persons in control of the licensee as part of its original license or renewal application.
The board shall approve a request for change of control under subsection (1) of thissection if, after investigation, the board determines that the person or group of persons requesting approval has the competence, experience, character, and general fitness to operate the licensee or person in control of the licensee in a lawful and proper manner and that the public interest will not be jeopardized by the change of control.
When an application for a change of control under this section is complete, the boardshall give written notice to the licensee of the date on which the board determined the request to be complete and the date on which the board will hold a hearing on the application.
Before filing a request for approval to acquire control of a licensee or of a person incontrol of a licensee, a person may file a written request for a determination from the board as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the board determines that the person would not be a person in control of a licensee, the board shall provide to the person written notification to that effect and the proposed person and transaction are not subject to the requirements of subsections (1) to (3) of this section.
Source: L. 2017: Entire article added with relocations, (SB 17-226), ch. 159, p. 583, § 2, effective August 9.
Editor's note: This section is similar to former § 12-52-110.3 as it existed prior to 2017.