6-1209

6-1209. Cease and desist orders;
examinations

A. In addition to his authority under section 6-137, the superintendent may issue
an order to cease and desist against a licensee, requiring the licensee to cease
conducting its business through an authorized delegate and to take appropriate
affirmative action, pursuant to section 6-137, if the superintendent finds that:

1. The authorized delegate has violated, is violating or is about to violate any
applicable law or rule or order of the superintendent.

2. The authorized delegate has failed to cooperate with an examination or
investigation by the superintendent or the attorney general authorized by this title.

3. The competence, experience, integrity or overall moral character of the
authorized delegate or any controlling person of the authorized delegate indicates that
it would not be in the interest of the public to permit that person to participate in the
business regulated under this chapter.

4. The financial condition of the authorized delegate is such that it might
prejudice the interests of the public in the conduct of the business regulated under this
chapter.

5. The authorized delegate has engaged, is engaging or is about to engage in any
unsafe or unsound act, practice or transaction or an act, practice or transaction that
constitutes a violation of this title or of any rule or order of the superintendent.

B. Any business for which a license is required by this chapter conducted by an
authorized delegate outside the scope of authority conferred in the contract between the
authorized delegate and the licensee is unlicensed activity. An authorized delegate of a
licensee holds in trust for the benefit of the licensee all monies received from the sale
or delivery of the licensee's payment instruments or monies received for
transmission. If an authorized delegate commingles any such monies with any monies or
other property owned or controlled by the authorized delegate, a trust against all
commingled proceeds and other monies or property owned or controlled by the authorized
delegate is imposed in favor of the licensee in an amount equal to the amount of the
proceeds due the licensee.

C. An authorized delegate is subject to examination by the superintendent at the
discretion of the superintendent. The licensee is responsible for the payment of an
assessment for the examination of its authorized delegates to the extent that the
examination relates to the activities conducted by the authorized delegate on behalf of
the licensee. That assessment shall be made at the rate set by the superintendent for
examination of an enterprise pursuant to section 6-125, subsection B, and payment of that
assessment shall be made as prescribed by section 6-125.