Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
286.9-010,
286.9-020,
286.9-030,
286.9-040,
286.9-050,
286.9-060,
286.9-070,
286.9-071,
286.9-073,
286.9-080,
286.9-104
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
286.9-090(1) authorizes the
commissioner to adopt reasonable administrative regulations for the enforcement
of KRS Chapter 286.9.
KRS
286.9-050 and
286.9-060
authorize the commissioner to prescribe the form and materials required to
apply for a license under KRS Chapter 286.9.
KRS
286.9-070 requires licensees to file a
written request for a change of control and to pay the cost incurred by the
commissioner in investigating the change of control request. This
administrative regulation establishes the required filing procedures for change
of control by check cashing licensees.
Section
1. Pursuant to the moratorium on the deferred deposit service
business license in
KRS
286.9-071, a license issued prior to July 2,
2009, shall be a deferred deposit service business license.
Section 2. Interpretation of
KRS
286.9-030(3). A person shall
be deemed principally engaged in the business of cashing checks and not
principally engaged in the retail sale of goods or services at any particular
location if the location's gross annual check cashing receipts exceed more than
fifty (50) percent of the location's annual revenue.
Section 3. Change of Control. A licensee
requesting a change of control pursuant to
KRS
286.9-070(5) shall submit:
(1) A completed Change of Control form,
available online at
http://mortgage.nationwidelicensingsystem.org;
(2) A nonrefundable investigation fee of
$500, if the person obtaining control of the licensee is not a
licensee;
(3) If the person
obtaining control of the licensee has a license, registration, or claim of
exemption related to the financial services industry in any other state, a Form
COMB-1, State License Confirmation Form for Check Cashing License or Deferred
Deposit Service Business License for the person obtaining control of the
licensee;
(4) An audited financial
statement for the person obtaining control of the licensee prepared by a
certified public accountant in accordance with generally accepted accounting
principles as of the previous year end that includes:
(a) A balance sheet;
(b) Income statement;
(c) Statement of cash flows; and
(d) All notes.
(5) If the person obtaining control of the
licensee is a startup company or new entity, an initial statement of condition
and a proforma income statement shall be submitted instead of the income
statement and statement of cash flows;
(6) Evidence that the person obtaining
control of the licensee has complied or will comply with all workers'
compensation and unemployment compensation laws of Kentucky; and
(7) One (1) of the following, which shall be
deposited with and made payable to the commissioner:
(a) An irrevocable letter of credit in an
amount required by
KRS
286.9-040(1)(a);
(b) An Electronic Surety Bond available
online at
http://mortgage.nationwidelicensingsystem.org.
The name of the principal insured on the bond shall match exactly the full
legal name of the person obtaining control of the licensee;
(c) Evidence that the person obtaining
control of the licensee has established an account in a federally insured
financial institution in Kentucky and has deposited money of the United States
in an amount required by
KRS
286.9-040(1)(c), with an
escrow agreement submitted on Form COMB-3, Escrow Agreement for Check Cashing
License or Deferred Deposit Service Business License; or
(d) A savings certificate of a federally
insured financial institution in Kentucky established by the person obtaining
control of the licensee that is not available for withdrawal except by direct
order of the commissioner in an amount required by
KRS
286.9-040(1)(d), with an
escrow agreement submitted on Form COMB-3, Escrow Agreement for Check Cashing
License or Deferred Deposit Service Business License.
Section 4. Incorporation by
Reference.
(1) The following material is
incorporated by reference:
(a) Form COMB-1,
"State License Confirmation Form for Check Cashing License or Deferred Deposit
Services Business License", December, 2019; and
(b) Form COMB-3, "Escrow Agreement for Check
Cashing License or Deferred Deposit Services Business License", December,
2019;
(2) This material
may be inspected, copied, or obtained, subject to applicable copyright law, at
the Kentucky Department of Financial Institutions, 500 Mero St 2SW19,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This
material may also be obtained from the department's Web site at
http://www.kfi.ky.gov.
STATUTORY AUTHORITY:
KRS
286.9-050,
286.9-060,
286.9-070,
286.9-090(1),
286.9-104
