§ 13-10-12 — Enforcement authorities, violations, and penalties

1. To ensure the effective supervision and enforcement of this chapter the commissioner
may:
a. Deny, suspend, revoke, condition, or decline to renew a license for a violation of
this chapter, rules or regulations issued under this chapter or order or directive
entered under this chapter.
b. Deny, suspend, revoke, condition, or decline to renew a license if an applicant or
licensee fails at any time to meet the requirements of section 13-10-05 or
13-10-08, or withholds information or makes a material misstatement in an
application for a license or renewal of a license.
c. Order restitution against persons subject to this chapter for violations of this
chapter.
d. Impose fines on persons subject to this chapter pursuant to subsections 2, 3, and
4.
e. Issue orders or directives under this chapter as follows:
(1) Order or direct persons subject to this chapter to cease and desist from
conducting business, including immediate temporary orders to cease and
desist.
(2) Order or direct persons subject to this chapter to cease any harmful
activities or violations of this chapter, including immediate temporary orders
to cease and desist.
(3) Enter immediate temporary orders to cease business under a license or
interim license issued pursuant to the authority granted under subsection 5
of section 13-10-03 if the commissioner determines that such license was
erroneously granted or the licensee is currently in violation of this chapter.
(4) Order or direct such other affirmative action as the commissioner deems
necessary.
2. The commissioner may impose a civil penalty on a mortgage loan originator or person
subject to this chapter, if the commissioner finds, on the record after notice and
opportunity for hearing, that such mortgage loan originator or person subject to this
chapter has violated or failed to comply with any requirement of this chapter or any
regulation prescribed by the commissioner under this chapter or order issued under
authority of this chapter.
3. The maximum amount of penalty for each act or omission described in subsection 2 is
twenty-five thousand dollars.
4. Each violation or failure to comply with any directive or order of the commissioner is a
separate and distinct violation or failure.
13-10-13. Surety bond and minimum net worth requirements - Surety bond required.
1. Each mortgage loan originator must be covered by a surety bond in accordance with
this section. If the mortgage loan originator is an employee or exclusive agent of a
person subject to this chapter, the surety bond of such person subject to this chapter
may be used in lieu of the mortgage loan originator's surety bond requirement.
a. The surety bond shall provide coverage for each mortgage loan originator in an
amount as prescribed in subsection 2.
b. The surety bond must be in a form as prescribed by the commissioner.
c. The commissioner may promulgate rules or regulations with respect to the
requirements for such surety bonds as are necessary to accomplish the purposes
of this chapter.

2. The licensee shall maintain a surety bond in the amount as determined by the
commissioner by rule. The amount must be reflective of the dollar amount of loans
originated as of the previous yearend. However, the commissioner may increase the
amount of the surety bond if the commissioner determines that such an increase is
necessary to protect the public interests.
3. When an action is commenced on a licensee's bond, the commissioner may require
the filing of a new bond.
4. Immediately upon recovery upon any action on the bond, the licensee shall file a new
bond.