16a-2-304.   Records; annual reports; maintenance ofrecords; security of records; preservation of records.(1) Every licensee and any assignee or servicer of a consumer credittransaction and every person required to file notification shallmaintain records in conformity with generallyaccepted accounting principles and practices in a manner that willenable the administrator and, in the case of a supervised financialorganizationits supervisory official or agency, to determine whether the licensee,assignee, servicer or person required to filenotification is complyingwith the provisions of K.S.A. 16a-1-101 through 16a-9-102, and amendmentsthereto. The record keeping system of alicensee, assignee, servicer or person required to filenotificationshall be sufficient ifthe licensee, assignee, servicer or any person required tofile notification makes the required informationreasonably available. The recordsneed not be kept in the place of business where supervised loans are made,if the administrator or supervisory official or agency is given free accessto the recordswherever located.Every licensee and any assignee or servicer of a consumer credittransaction and every person required to file notification shallprovide the administrator with the name, address, telephone number, contactperson and any other reasonable information regarding the location andavailability of current records of a consumer credit transaction.The records pertaining to any loanshall be kept for the minimum time frames established by the administratorpursuant to rules and regulations.

      (2)   Every licensee and any assignee or servicer of a consumer credittransaction, andevery person required to file notification shall establish, maintain andenforce written policiesand procedures regarding security of records which are reasonably designed toprevent the misuseof a consumer's personal or financial information.

      (3)   Before ceasing to conduct or discontinuing business, a licensee or personrequired tofile notification shall arrange for and be responsible for the preservation ofthe books and recordsrequired to be maintained and preserved under this act and applicable rules andregulations forthe remainder of each period specified.

      (4)   Any records required to be retained may be maintained and preserved bynoneraseable, nonalterable electronic imaging or by photograph on film. If therecords areproduced or reproduced by photographic film, electronic imaging or computerstorage medium,the licensee, assignee or person required to file notification shall meet thefollowing criteria:

      (a)   Arrange the records and index the films, electronic image or computerstorage mediato permit immediate location of any particular record;

      (b)   be ready at all times to promptly provide a facsimile enlargement offilm, a computerprintout or a copy of the electronic images or computer storage medium that theadministratormay request; and

      (c)   with respect to electronic images and records stored on computer storagemedium,maintain procedures for maintenance and preservation of, and access to, recordsin order toreasonably safeguard these records from loss, alteration or destruction.

      (5)   On or before April 15 of each year every licenseeshall file withthe administrator and, in the case of a supervised financial organizationwith its supervisory official or agency, a composite annual report in theform prescribed bythe administrator relating to all loans made by suchlicensee. Theadministrator shall consult with comparable officials in other statesfor the purpose of making the kinds of information required in annualreports uniform among the states. Information contained in annualreports shall be confidential and may be published only in compositeform.

      (6)   No person required to be licensed or file notificationunder this actshall:

      (a)   Alter, destroy, shred, mutilate, conceal, cover up or falsify any recordwith the intent to impede, obstruct or influence any investigation by theadministrator or the administrator's designee; or

      (b)   alter, destroy, shred, mutilate or conceal a record with the intent toimpair the object's integrity or availability for use in a proceeding beforethe administrator or a proceeding brought by the administrator.

      History:   L. 1973, ch. 85, § 21;L. 1980, ch. 76, § 7;L. 1998, ch. 106, § 2;L. 2005, ch. 144, § 11;L. 2009, ch. 29, § 19; July 1.