TITLE 28 COMMERCIAL TRANSACTIONS
CHAPTER 46 ADMINISTRATION
PART 3. REGULATED LENDERS — LICENSING AND RELATED PROVISIONS
28-46-301. AUTHORITY TO MAKE REGULATED CONSUMER LOANS — EXEMPTION FROM LICENSING.
(1) The administrator shall receive and act on all applications for licenses to make regulated consumer loans under this act. Applications shall be filed in the manner prescribed by the administrator and shall contain such information as the administrator may reasonably require. Unless a person is exempt under federal law or under this section or has first obtained a license from the administrator authorizing him to make regulated consumer loans, he shall not engage in the business of:
(a) Making regulated consumer loans; or
(b) Taking assignments of and undertaking direct collection of payments from or enforcement of rights against debtors arising from regulated consumer loans.
(2) Any “supervised financial organization,” as defined in section 28-41-301, Idaho Code, or any person organized, chartered, or holding an authorization certificate under the laws of another state to engage in making loans and receiving deposits, including a savings, share, certificate, or deposit account and who is subject to supervision by an official or agency of the other state, shall be exempt from the licensing requirements of this section.
(3) Mortgage lenders licensed under the Idaho residential mortgage practices act, chapter 31, title 26, Idaho Code, shall be exempt from the licensing requirements of this section as to mortgage lending activities defined in chapter 31, title 26, Idaho Code.
(4) Agencies of the United States and agencies of this state and its political subdivisions shall be exempt from the licensing requirements of this section.
History:
[28-46-301, added 1983, ch. 119, sec. 3, p. 307; am. 1995, ch. 99, sec. 27, p. 324; am. 2006, ch. 122, sec. 7, p. 350; am. 2008, ch. 312, sec. 1, p. 861; am. 2013, ch. 54, sec. 3, p. 114.]
28-46-302. LICENSE TO MAKE REGULATED CONSUMER LOANS.
(1) The administrator shall receive and act on all applications for a license to do business as a regulated lender. Applications shall be filed in the manner prescribed by the administrator, shall contain such information as the administrator may reasonably require, shall be updated as necessary to keep the information current, and shall be accompanied by an application fee of three hundred fifty dollars ($350). When an application for licensure is denied or withdrawn, the administrator shall retain all fees paid by the applicant. The administrator may deny an application for a license if the administrator finds that:
(a) The financial responsibility, character, and fitness of the applicant, and of the officers and directors thereof (if the applicant is a corporation) are not such as to warrant belief that the business will be operated honestly and fairly within the purposes of this act;
(b) The applicant does not maintain at least thirty thousand dollars ($30,000) in liquid assets, as determined in accordance with generally accepted accounting principles, available for the purpose of making loans under this chapter;
(c) The applicant has had a license, substantially equivalent to a license under this chapter and issued by any state, denied, revoked or suspended under the law of such state;
(d) The applicant has filed an application for a license which is false or misleading with respect to any material fact;
(e) The application does not contain all of the information required by the administrator; or
(f) The application is not accompanied by an application fee of three hundred fifty dollars ($350).
(2) A licensee under this chapter shall meet the requirements of subsection (1) of this section at all times while licensed pursuant to this chapter. The administrator is empowered to conduct investigations as he may deem necessary, to enable him to determine the existence of the requirements set out in subsection (1) of this section.
(3) Upon written request, the applicant is entitled to a hearing on the question of his qualifications for a license if:
(a) The administrator has notified the applicant in writing that his application has been denied, or objections filed; or
(b) The administrator has not issued a license within sixty (60) days after the application for the license was filed. If a hearing is held, the applicant and those filing objections shall reimburse, pro rata, the administrator for his reasonable and necessary expenses incurred as a result of the hearing. A request for a hearing may not be made more than fifteen (15) days after the administrator has mailed a writing to the applicant notifying him that the application has been denied and stating in substance the administrator’s finding supporting denial of the application or that objections have been filed and the substance thereof.
(4) The administrator may issue additional licenses to the same licensee upon application by the licensee, in the manner prescribed by the administrator, and payment of the required application fee. A separate license shall be required for each place of business. Each license shall remain in full force and effect unless the licensee does not satisfy the renewal requirements of subsection (8) of this section, or the license is relinquished, suspended or revoked.
(5) No licensee shall change the location of any place of business, or consolidate, or close any locations, without giving the administrator at least fifteen (15) days’ prior written notice.
(6) A licensee shall not engage in the business of making regulated consumer loans at any place of business for which he does not hold a license nor shall he engage in business under any other name than that in the license.
(7) A license application shall be deemed withdrawn and void if an applicant submits an incomplete license application and, after receipt of a written notice of the application deficiency, fails to provide the director with information necessary to complete the application within sixty (60) days of receipt of the deficiency notice. A written deficiency notice shall be deemed received by a license applicant when:
(a) Placed in regular U.S. mail by the director or his agent using an address provided by the applicant on the license application; or
(b) E-mailed to the applicant using an e-mail address provided by the applicant on the license application; or
(c) Posted by the director or his agent on the NMLSR if the license application was submitted through the NMLSR.
(8) On or before May 31 of each year, every licensee under this chapter shall pay a nonrefundable annual license renewal fee of one hundred fifty dollars ($150) per licensed location, and shall file with the administrator a renewal form containing such information as the administrator may require. Notwithstanding the provisions of section 67-5254, Idaho Code, a license issued under this part automatically expires if not timely renewed according to the requirements of this section. Notwithstanding the provisions of section 67-5254, Idaho Code, branch licenses issued under this part also expire upon the expiration, relinquishment or revocation of a license issued under this part to a licensee’s designated home office.
(9) For a period of time not to exceed sixty (60) days following license expiration, the director may reinstate an expired license if he finds that the applicant meets the requirements for licensure under this part and the applicant has submitted to the director:
(a) A complete application for renewal;
(b) The fees required to apply for license renewal unless previously paid for the period for which the license renewal applies; and
(c) A reinstatement fee of two hundred dollars ($200).
History:
[28-46-302, added 1983, ch. 119, sec. 3, p. 307; am. 1984, ch. 47, sec. 14, p. 85; am. 1998, ch. 74, sec. 1, p. 272; am. 1999, ch. 275, sec. 1, p. 689; am. 2006, ch. 122, sec. 8, p. 350; am. 2008, ch. 312, sec. 2, p. 862; am. 2013, ch. 54, sec. 4, p. 115.]
28-46-303. REVOCATION OR SUSPENSION OF LICENSE.
(1) The administrator may issue to a person licensed to make regulated consumer loans an order to show cause why his license should not be revoked or suspended for a period not in excess of six (6) months. The order shall state the place for a hearing and set a time for the hearing that is no less than ten (10) days from the date of the order. After the hearing, the administrator shall revoke or suspend the license if he finds that:
(a) The licensee has repeatedly and willfully violated this act or any rule or order lawfully made pursuant to this act; or
(b) Facts or conditions exist which would clearly have justified the administrator in refusing to grant a license had these facts or conditions existed or been known to exist at the time the application for the license was made.
(2) No revocation or suspension of a license is lawful unless prior to institution of revocation or suspension proceedings by the administrator, notice is given to the licensee of the facts or conduct which warrant the intended action, and the licensee is given an opportunity to show compliance with all lawful requirements for retention of the license.
(3) If the administrator finds that probable cause for revocation of a license exists and that enforcement of this act requires immediate suspension of the license pending investigation, he may, after a hearing upon five (5) days’ written notice, enter an order suspending the license for not more than thirty (30) days.
(4) Whenever the administrator revokes or suspends a license, he shall enter an order to that effect and forthwith notify the licensee of the revocation or suspension. Within five (5) days after the entry of the order, he shall deliver to the licensee a copy of the order and the findings supporting the order.
(5) Any person holding a license to make regulated consumer loans may relinquish the license by notifying the administrator in writing of its relinquishment, but this relinquishment shall not affect his liability for acts previously committed.
(6) No revocation, suspension, or relinquishment of a license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any debtor.
(7) The administrator may reinstate a license, terminate a suspension, or grant a new license to a person whose license has been revoked or suspended if no fact or condition then exists which clearly would have justified the administrator in refusing to grant a license.
History:
[28-46-303, added 1983, ch. 119, sec. 3, p. 308; am. 2006, ch. 122, sec. 9, p. 352.]
28-46-304. RECORDS — ANNUAL REPORTS.
(1) Every regulated lender shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the administrator to determine whether the regulated lender is complying with the provisions of this act. The recordkeeping system of a regulated lender shall be sufficient if he makes the required information reasonably available. The records need not be kept in the place of business where regulated consumer loans are made, if the administrator is given free access to the records wherever located. The records pertaining to any loan need not be preserved for more than two (2) years after making the final entry relating to the loan, but in the case of an open-end account, the two (2) years is measured from the date of each entry.
(2) Concurrent with license renewal, on or before May 31 of each year, every licensee shall file with the administrator a composite annual report for the prior calendar year in the form prescribed by the administrator relating to all regulated consumer loans made by him. Information contained in annual reports shall be subject to disclosure according to chapter 1, title 74, Idaho Code, and may be published only in composite form.
History:
[28-46-304, added 1983, ch. 119, sec. 3, p. 309; am. 1990, ch. 213, sec. 25, p. 504; am. 2006, ch. 122, sec. 10, p. 352; am. 2015, ch. 141, sec. 49, p. 417.]
28-46-305. EXAMINATIONS AND INVESTIGATIONS.
(1) The administrator may examine periodically at intervals he deems appropriate, the loans and business records of every regulated lender. In addition, for the purpose of discovering violations of this act or securing information lawfully required, the administrator may at any time investigate the loans, business, and records of any regulated lender. For these purposes, he shall have free and reasonable access to the offices, places of business, and records of the lender. The administrator, for purposes of examination of licensees herein, shall be paid the cost of examination by the licensee, within thirty (30) days of demand for payment. The administrator shall, on July 1 of each year, fix such per diem examination cost.
(2) If the regulated lender’s records are located outside this state, the regulated lender, at his option, shall make them available to the administrator at a convenient location within this state, or pay the reasonable and necessary expenses for the administrator or his representative to examine them at the place where they are maintained. The administrator may designate representatives, including comparable officials of the state in which the records are located, to inspect them on his behalf.
(3) For the purposes of this section, the administrator may administer oaths or affirmations, and upon his own motion or upon request of any party, may subpoena witnesses, compel their attendance, adduce evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence.
(4) Upon failure without lawful excuse to obey a subpoena or to give testimony and upon reasonable notice to all persons affected thereby, the administrator may apply to the district court for an order compelling compliance.
History:
[28-46-305, added 1983, ch. 119, sec. 3, p. 309; am. 2006, ch. 122, sec. 11, p. 353.]
28-46-306. APPLICATION OF ADMINISTRATIVE PROCEDURE ACT TO PART.
Except as otherwise provided, the state Administrative Procedure Act, chapter 52, title 67, Idaho Code, applies to and governs all administrative action taken by the administrator pursuant to this part.
History:
[28-46-306, added 1983, ch. 119, sec. 3, p. 310.]