§ 5-2-305 — Examinations and investigations

Colorado § 5-2-305

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Finance Charges and Related Provisions

Text

(1) The administrator shall
examine periodically, at intervals the administrator deems appropriate, the loans,
business, and records of every licensee. In addition, for the purpose of discovering
violations of this code or securing information lawfully required, the administrator
or, in lieu thereof, the official or agency to whose supervision the organization is
subject pursuant to section 5-6-105, may at any time investigate the loans,
business, and records of any supervised lender or any supervised financial
organization. For these purposes the administrator shall have free and reasonable
access to the offices, places of business, and records of the lender.

(2) (a) If the lender's records are located outside this state, the lender shall,
at the lender's option, either make them available to the administrator at a
convenient location within this state or pay the reasonable and necessary expenses
for the administrator or the administrator's representative to examine them at the
place where they are maintained; except that the lender shall make the records
available for examination at the administrator's office or at any other location the
administrator deems appropriate, at the cost of the lender, if the administrator
determines that the examination of the records at the location where the records
are maintained endangers the safety of the administrator's representative or that
there are not adequate facilities at the location where the records are maintained to
conduct the examination. The administrator may designate representatives,
including comparable officials of the state in which the records are located, to
inspect them on the administrator's behalf.

(b) The administrator may require any lender whose records are located
within the state to make its records available for examination at the administrator's
office or at any other location the administrator deems appropriate at the cost of
the lender if the administrator determines that the examination of the records at
the location where the records are maintained endangers the safety of the
administrator's representative or that there are not adequate facilities at the
location where the records are maintained to conduct the examination.

(3) For the purposes of this section, the administrator may administer oaths
or affirmations, and, upon the administrator's own motion or upon request of any
party, may subpoena witnesses, compel their attendance, adduce evidence, and
require the production of any matter that 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, the administrator may apply to the district court in the city and county of
Denver for an order compelling compliance.

(5) After the administrator has examined a licensee pursuant to this section,
the administrator shall provide a report of the examination to the licensee and
request the licensee to take the corrective action required therein. The licensee
shall, within a time and manner as fixed by the administrator, take the corrective
action required in the report and provide proof that the corrective action was taken.
The corrective action required may include refunds of excess charges and
corrections of disclosures required by this code. This subsection (5) does not
require the administrator to allow a licensee to take corrective action prior to the
administrator filing legal or administrative action for repeated or willful violations
of this code.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1211, � 1, effective July 1.