6-976. Responsible individual; employees
A. A license entitles the licensee and all officers, directors, members, partners,
trustees and employees of the licensee to engage in commercial mortgage banking if one
officer, director, member, partner, employee or trustee of the person is designated in
the license as the individual responsible for the licensee under this article. If the
natural person is not a resident of this state, an employee of the licensee shall be
designated in the license as the individual responsible for the licensee under this
article. For purposes of this subsection "employee" does not include an independent
contractor.
B. A responsible individual shall be a resident of this state, shall be active in
managing the activities of the licensee governed by this article and shall meet the
qualifications prescribed by section 6-973, subsection D, paragraph 1 for a licensee. A
licensee shall notify the superintendent that its responsible individual will cease to be
active in managing the activities of the licensee within ten days of learning of that
fact. Within ninety days after the notification is received by the superintendent the
licensee shall replace the responsible individual with a qualified replacement and notify
the superintendent. If the license is not placed under active management of a qualified
responsible individual and if notice is not given to the superintendent within the ninety
day period, the license of the licensee expires.
C. A licensee shall not employ any person unless the licensee:
1. Conducts a reasonable investigation of the background, honesty, truthfulness,
integrity and competency of the employee before hiring.
2. Keeps a record of the investigation for at least two years after termination.
D. The licensee is liable for any damages caused by any employee while acting as an
employee of the licensee.
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