9-2216.   Retention of records; time period;inspection of records; security of records; preservation of records.(a) A licensee shall keep copies ofall documents or correspondencereceivedor prepared by the licensee or registrant in connection with a loan orloan application and those records and documents required by thecommissioner by rules and regulations adopted pursuant to K.S.A.9-2209, and amendments thereto, for such time frames as are specified in therules and regulations.If the loan is not serviced by a licensee, theretention period commences onthe date the loan is closed or, if the loanis not closed, the date of the loan application. If the loan is serviced by alicensee, the retention period commences on the datethe loan is paid in fullor the date the licensee ceases to service the loan.

      (b)   All books, records and any other documents held by thelicensee shallbe made available for examination and inspection by the commissioner or thecommissioner's designee. Certified copies of all records not kept within thisstate shall be delivered to the commissioner within three business days of thedate such documents are requested.

      (c)   Each licensee shall establish, maintain and enforce written policiesandproceduresregarding security of records which are reasonably designed to prevent themisuse of aconsumer's personal or financial information.

      (d)   Before ceasing to conduct or discontinuing business, a licensee shallarrange for andbe responsible for the preservation of the books and records required to bemaintained andpreserved under this act and applicable regulations for the remainder of eachperiod specified.

      (e)   Any records required to be retained may be maintained and preserved bynoneraseable, nonalterable electronic imaging or by photograph on film. Ifthe records areproduced or reproduced by photographic film, electronic imaging or computerstorage mediumthe licensee shall meet the following criteria:

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

      (2)   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 thatthe commissionermay request; and

      (3)   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.

      (f)   No person required to be licensed or registered underthis act shall:

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

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

      History:   L. 1999, ch. 45, § 15;L. 2001, ch. 88, § 16;L. 2005, ch. 144, § 6;L. 2009, ch. 29, § 12; July 1.