(1)At such
intervals as the commissioner determines to be necessary or desirable in order to
ascertain that each association is conducting its business in a safe and authorized
manner, the commissioner or the commissioner's deputy or employee shall visit the
home office and branch offices that the commissioner deems necessary and
examine the affairs of every domestic association doing business in this state. The
commissioner's deputy or employee, before making such an examination, shall
produce a document that includes the signature and seal of the commissioner and a
statement concerning the commissioner's authority to make the examination. The
commissioner or the commissioner's deputy may administer oaths and examine
under oath any director, officer, employee, or agent of any a
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(1) At such
intervals as the commissioner determines to be necessary or desirable in order to
ascertain that each association is conducting its business in a safe and authorized
manner, the commissioner or the commissioner's deputy or employee shall visit the
home office and branch offices that the commissioner deems necessary and
examine the affairs of every domestic association doing business in this state. The
commissioner's deputy or employee, before making such an examination, shall
produce a document that includes the signature and seal of the commissioner and a
statement concerning the commissioner's authority to make the examination. The
commissioner or the commissioner's deputy may administer oaths and examine
under oath any director, officer, employee, or agent of any association concerning
the business and affairs of the association. If the association has neither been
audited by a registered or certified public accountant, in the manner and by
auditors satisfactory to the commissioner, within the twelve-month period
immediately preceding the date of the examination or within the period that has
elapsed since the last examination, whichever is greater, nor adopted and
maintained an internal audit program acceptable to the federal deposit insurance
corporation or its successor and the division, the examination by the division must
include an audit. The cost, as computed by the division, of the audit shall be paid by
the association audited; except that the division shall not charge for making an
audit when the audit has been made by reason of collaboration as provided in
section 11-41-117.
(1.5) In lieu of making the commissioner's own examination, the
commissioner may accept the examination report prepared by an appropriate
federal regulatory authority.
(2) When, in the judgment of the commissioner, the condition of an
association renders it necessary or expedient to make an extra examination or
devote any extraordinary attention to the association's affairs, the commissioner
may make any extra examinations and devote any necessary extra attention to the
conduct of the association's affairs and may cause a registered or certified public
accountant, appointed by the commissioner, to make an audit or examination of the
association's business and affairs. In any such case, the association shall pay a
reasonable fee based on actual cost to be affixed by the commissioner for all extra
services rendered by the division or by the accountant. A copy of the
commissioner's report on each examination must be furnished to the association
examined, and each director must note on the report that the director has read the
report.
(3) The commissioner or the commissioner's deputy shall annually examine
the affairs of every foreign association doing business in this state, and for every
such examination made outside this state, a reasonable expense and the actual
traveling expenses incurred shall be paid by the association examined. If the
commissioner deems it necessary, the commissioner may cause a public
accountant, appointed by the commissioner, to make an audit or examination of the
association's business and affairs, and, in any such case, the association shall pay a
reasonable price to be fixed by the commissioner for the extra services rendered by
the accountant. If a foreign association fails to pay the costs incurred in the
examination, the costs shall be paid by the state treasurer upon the order of the
commissioner, and the amount paid becomes a first lien upon all the assets and
property of the association and may be recovered by suit by the attorney general on
behalf of the state and restored to the fund from which the costs were paid.
(4) For the purpose of the examinations provided for in this section, the
commissioner and the commissioner's deputy or any other person authorized by the
commissioner to make the examination:
(a) Has free access to all books and papers of the association that relate to
its business and to the books and papers kept by any officer, agent, or employee
relating to the association or upon which any record of its business is kept;
(b) May summon witnesses and administer oaths or affirmations in the
examination of the directors, officers, agents, or employees of any association or
any other person in relation to an association's affairs, transactions, and conditions;
and
(c) May require and compel the production of records, books, papers,
contracts, or other documents by court action if necessary.
(5) Any person who knowingly or willfully testifies falsely in reference to any
matter material to said examination is guilty of perjury in the second degree and,
upon conviction thereof, shall be punished accordingly; and any person who
willfully refuses or fails to attend, answer, or produce books or papers, or who
refuses to give said commissioner or the commissioner's deputy or the person
authorized by the commissioner full and truthful information and answer in writing
to any inquiry or question made in writing by said commissioner or deputy or the
person authorized by the commissioner in regard to the business carried on by such
association or other matters under investigation, or who refuses or willfully fails to
appear and testify under oath before the commissioner, the commissioner's deputy,
or the person authorized by the commissioner commits a class 2 misdemeanor.
(6) Any director, officer, agent, or employee of any association who
knowingly or willfully makes any false certificate, entry, or memorandum upon any
of the books or the papers of any association or upon any statement filed or offered
to be filed in the division of financial services of this state or used in the course of
any examination, inquiry, or investigation, with the intent to deceive the
commissioner, the commissioner's deputy, or any person employed or appointed by
the commissioner to make such examination, inquiry, or investigation commits a
class 2 misdemeanor.