6-973

6-973. Licensing commercial mortgage bankers
required; qualifications

A. A person shall not act as a commercial mortgage banker without a license issued
under this article.

B. A person who engages in commercial mortgage banking need not be licensed under
article 1 or 2 of this chapter or chapter 7 of this title if the person is licensed under
this article.

C. The superintendent shall not grant a commercial mortgage banker's license to a
person, other than a natural person, who is not registered to do business in this state
on the date the license is granted. The superintendent shall not issue to or renew a
commercial mortgage banker's license of an applicant unless the applicant meets all of
the requirements prescribed in subsection D of this section. The superintendent shall
determine whether the applicant meets the requirements based on the application, and
evidence presented at a hearing, if any, or any other evidence that the superintendent
may have regarding the applicant's qualifications.

D. In order to qualify for a commercial mortgage banker's license or a renewal of
such a license an applicant shall:

1. Have at least three years' experience in the commercial mortgage business or
equivalent experience in a related business. If the applicant is not a natural person,
the responsible individual shall meet this requirement.

2. Have made in the past or intend to make or negotiate or offer to make or
negotiate commercial mortgage loans.

3. Provide the superintendent with a current audited financial statement or that of
its parent company prepared by an independent certified public accountant according to
generally accepted accounting principles including:

(a) The certified public accountant's opinion as to the fairness of the
presentation according to generally accepted accounting principles.

(b) A balance sheet prepared within the immediately preceding six months and
certified by the licensee. The superintendent may require a more recent balance sheet.

(c) If the applicant has begun operations, a statement of operations and retained
earnings and a statement of changes in financial position.

(d) Notes to the financial statement if applicable.

4. Have and maintain at all times a net worth of at least one hundred thousand
dollars.

E. Notwithstanding subsection D, paragraph 3 of this section, licensees and
applicants whose own resources are derived exclusively from correspondent contracts with
institutional investors shall provide the superintendent with a current financial
statement or that of its parent company prepared according to generally accepted
accounting principles including:

1. A balance sheet prepared within the immediately preceding six months and
certified by the licensee. The superintendent may require a more recent balance sheet.

2. If the applicant has begun operations, a statement of operations and retained
earnings and a statement of changes in financial position.

3. Notes to the financial statement if applicable.