(1) The administrator may deny an
application for a license or take disciplinary action against a person licensed to
make supervised loans if the administrator finds that:
(a) The applicant or licensee has violated this code or any rule or order
lawfully made pursuant thereto;
(b) Facts or conditions exist that would clearly have justified the
administrator in refusing to grant a license had these facts or conditions been
known to exist at the time the application for the license was made;
(c) The applicant has failed to complete an application for licensure;
(d) The applicant or licensee has failed to provide information required by
the administrator within a reasonable time as fixed by the administrator;
(e) The applicant or licensee has failed to provide or maintain proof of
financial responsibility;
(f) The applicant or licensee is insolvent;
(g) The applicant or licensee has made, in any document or statement filed
with the administrator, a false representation of a material fact or has omitted to
state a material fact;
(h) The applicant, licensee, or its owners, partners, members, officers, or
directors have been convicted of or entered a plea of guilty or nolo contendere to a
crime specified in part 4 of article 4 of title 18, C.R.S., or in part 1, 2, 3, 5, or 7 of
article 5 of title 18, C.R.S., to a crime involving fraud or deceit, or to any similar
crime under the jurisdiction of any federal court or court of another state;
(i) The applicant or licensee has failed to make, maintain, or produce records
which comply with section 5-2-304 and any regulation adopted by the
administrator;
(j) The applicant or licensee has been the subject of any disciplinary action
by any state or federal agency;
(k) A final judgment has been entered against the applicant or licensee for
violations of this code, any state or federal law concerning consumer finance,
banking, or mortgage brokers or lenders, or any state or federal law prohibiting
deceptive or unfair trade or business practices; or
(l) The applicant or licensee has failed to, in a timely manner as fixed by the
administrator, take or provide proof of the corrective action required by the
administrator subsequent to an examination or investigation pursuant to section 5-2-305 or 5-6-106.
(2) The administrator may summarily suspend a license as provided in
section 24-4-104, C.R.S.
(3) Whenever the administrator denies a license application or takes
disciplinary action pursuant to this section, the administrator shall enter an order to
that effect and notify the licensee or applicant of the denial or disciplinary action.
The notification required by this subsection (3) shall be given by personal service or
by mail to the last-known address of the licensee or applicant as shown on the
application, license, or as subsequently furnished in writing to the administrator.
(4) Any person holding a license to make supervised loans may relinquish the
license by notifying the administrator in writing of its relinquishment. The
revocation, suspension, expiration, or relinquishment of a license shall not affect
the licensee's liability for acts previously committed nor impair the administrator's
ability to issue a final agency order or impose discipline against the licensee.
(5) No revocation, suspension, or relinquishment of a license shall impair or
affect the obligation of any preexisting lawful contract between the licensee and
any consumer.
(6) 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 that clearly would have justified the administrator in
refusing to grant a license.
(7) After a finding of one or more of the conditions stated in subsection (1) of
this section, the administrator may take any or all of the following actions:
(a) Deny an application for licensure including an application for a branch
office license;
(b) Revoke the license;
(c) Suspend the license for a period of time;
(d) Issue an order to the licensee to cease and desist from such acts;
(e) Order the licensee to make refunds to consumers of excess charges
under this code;
(f) Impose penalties of up to a maximum of one thousand dollars for each
violation all or part of which may be specifically designated for consumer and
creditor educational expenses;
(g) Bar the person from applying for or holding a license for a period of five
years following revocation of his or her license;
(h) Issue a letter of admonition; or
(i) Impose a penalty of two hundred dollars per day for failure to make,
produce, or retain records required to be maintained under this code within forty-eight hours after the administrator's written demand. If the administrator has
provided advance written notice of forty-eight hours or more to a licensee prior to
conducting an examination pursuant to section 5-2-305, the penalty may be
imposed without allowing additional time.
(8) The discipline stated in paragraphs (h) and (i) of subsection (7) of this
section may be imposed without a hearing, but the licensee may, within thirty days
thereafter, file with the administrator a written notice requesting a hearing. If such
request is timely made, the letter of admonition shall be deemed vacated and a
hearing shall be held. If, after such hearing, there is a finding that one or more of
the grounds for discipline exist, any or all of the forms of discipline listed in this
section may be imposed.