16a-2-302.   (UCCC) License to make supervised loans;registration for residential mortgage loan originator fees.(1) (a) The administrator shall receive and act on all applications forlicenses to make supervised loans and all applications for residentialmortgage loan originator registrations under this act. Applications shallbefiled in the manner prescribed by the administrator and shall containthe information the administrator may require by rule and regulation tomake an evaluationof the financial responsibility, character and fitness of the applicant.

      (b)   Submitted with each application shall be a nonrefundableapplication fee. Application, license and registration fees shall be in suchamounts as are established pursuant to subsection (5) ofK.S.A. 16a-6-104, and amendments thereto.The license year shall be the calendar year.Each license shall be nonrefundable and nonassignable, and shall remainin force untilsurrendered, suspended or revoked.

      (c)   The administrator shall remit all moneys received under K.S.A. 16a-1-101to 16a-6-414, inclusive, and amendments thereto, to the state treasurerin accordance with the provisions of K.S.A. 75-4215,and amendments thereto. Uponreceipt of each such remittance, the state treasurershalldeposit theentire amount in the state treasury. Ofeach deposit 20% shall be credited to the state general fund and thebalance shall be credited to the bankcommissioner fee fund. Allexpenditures from such fund shall be made in accordance withappropriation acts upon warrants of the director of accounts and reportsissued pursuant to vouchers approved by the administrator or by a personor persons designated by the administrator.

      The 20% credit to the state general fund required bythis subsection (c) is to reimburse the state general fund foraccounting, auditing, budgeting, legal, payroll, personnel andpurchasing services, and any and all other state governmental services,which are performed on behalf of the administrator by other stateagencies which receive appropriations from the state general fund toprovide such services.

      (d)   Every licensee and registrant shall, on or before the first day ofJanuary, payto the administrator the license or registration fee prescribed underthis subsection(1) for each license or registration held for the succeeding licenseyear. Failure topay the fee within the time prescribed shall automaticallyrevoke the license or registration.

      (2)   No license or registration shall be issued unless theadministrator, uponinvestigation, finds that the financial responsibility, character andfitness of the applicant, and of the members thereof if the applicant isa copartnership or association and of the officers and directorsthereof, if the applicant is a corporation, are such as to warrantbelief that the business will be operated honestly and fairly within thepurposes of this act.The administrator shall not base a registration denial solely on theapplicant'scredit score.An applicant meets the minimum standard offinancial responsibility for engaging in the business of makingsupervised loans, under subsection (1) of K.S.A. 16a-2-301, and amendmentsthereto, only if:

      (a)   The applicant has filed with theadministrator a proper surety bond of at least $100,000 which has been approvedby the administrator.The bond must provide within its terms that the bond shall not expire fortwo years after the date of the surrender, revocation or expiration of thesubject license, whichever shall first occur.The required surety bond may not be canceled by thelicensee without providing the administrator at least 30 days' prior writtennotice, provided that such cancellationshall not affect the surety's liability for violations of the uniform consumercredit code occurring prior to the effective date of cancellation and principaland surety shall be and remain liable for a period of two years from the dateof any action or inaction of the principal that gives rise to a claim under thebond; and

      (b)   the applicant provides evidence in a form and manner prescribed by theadministrator that establishes the applicant will maintain a satisfactoryminimum net worth, as determined by the administrator, to engage in credittransactions of the nature proposed by the applicant. Such net worthrequirements shall be established by the administrator pursuant to rule andregulation and shall not exceed $500,000 for each applicant or licensee.

      (3)   The administrator may deny any application or renewal for a supervisedloan licenseor a residential mortgage loan originator registration,if the administrator finds:

      (a)   There is a refusal to furnish information required by the administratorwithin a reasonable time as fixed by the administrator; or

      (b)   any of the factors statedas grounds for denial, revocation or suspension of a licensein K.S.A. 16a-2-303 or K.S.A. 2009 Supp. 16a-2-303a, and amendments thereto.

      (4)   Upon written request the applicant is entitled to ahearing onthe question of license qualificationsif: (a) The administrator has notified the applicant inwriting that theapplication has been denied; or (b) the administrator has notissued alicense within 60 days after the application for the license wasfiled. A request for a hearing may not be made more than15 days after the administrator has mailed a writing to the applicantnotifying the applicant that the application has been denied and stating insubstance the administrator's findings supporting denial of theapplication.

      (5)   The administrator shall adopt rules and regulations regarding whethera licensee shall be required to obtain a single license for each place ofbusiness or whether a licensee may obtain a master license for all of itsplaces of business, and in so doing the administrator may differentiate betweenlicensees located in this state and licensees located elsewhere. Each licenseshall remain in full force and effect until surrendered, suspended orrevoked.

      (6)   No licensee shall change the location of any place ofbusinesswithout giving the administrator at least 15 days priorwritten notice.

      (7)   A licensee may conduct the business of makingloans for personal, family or household purposesonly at or from any place of business for which the licensee holds alicense and not under any other name than that in the license. Loansmade pursuant to a lender credit card do not violate this subsection.

      History:   L. 1973, ch. 85, § 19;L. 1976, ch. 98, § 1;L.1981, ch. 95, § 1;L. 1999, ch. 107, § 12;L. 1999, ch. 166, § 9;L. 2000, ch. 27, § 2;L. 2001, ch. 5, § 57;L. 2005, ch. 144, § 9;L. 2009, ch. 29, § 17; July 1.