§ 722 — Examinations

§ 722. Examinations. 1. The superintendent may at any time, and as\noften as he or she may determine, either personally or by a person duly\ndesignated by the superintendent, investigate the business and examine\nthe books, accounts, records, and files used therein of every student\nloan servicer. For that purpose the superintendent and his or her duly\ndesignated representative shall have free access to the offices and\nplaces of business, books, accounts, papers, records, files, safes and\nvaults of all such servicers. The superintendent and any person duly\ndesignated by him or her shall have authority to require the attendance\nof and to examine under oath all persons whose testimony he or she may\nrequire relative to such business.\n 2. No person subject to investigation or examination under this\nsection may knowingly withhold, abstract, remove, mutilate, destroy or\nsecrete any books, records, computer records or other information.\n 3. The expenses incurred in making any examination pursuant to this\nsection shall be assessed against and paid by the student loan servicer\nso examined, except that travelling and subsistence expenses so incurred\nshall be charged against and paid by servicers in such proportions as\nthe superintendent shall deem just and reasonable, and such\nproportionate charges shall be added to the assessment of the other\nexpenses incurred upon each examination. Upon written notice by the\nsuperintendent of the total amount of such assessment, the servicer\nshall become liable for and shall pay such assessment to the\nsuperintendent.\n 4. In any hearing in which a department employee acting under\nauthority of this chapter is available for cross-examination, any\nofficial written report, worksheet, other related papers, or duly\ncertified copy thereof, compiled, prepared, drafted, or otherwise made\nby said department employee, after being duly authenticated by said\nemployee, may be admitted as competent evidence upon the oath of said\nemployee that said worksheet, investigative report, or other related\ndocuments were prepared as a result of an examination of the books and\nrecords of a servicer or other person, conducted pursuant to the\nauthority of this chapter.\n 5. Unless it is an exempt organization, affiliates of a student loan\nservicer are subject to examination by the superintendent on the same\nterms as the servicer, but only when reports from, or examination of, a\nservicer provides evidence of unlawful activity between a servicer and\naffiliate benefitting, affecting, or arising from the activities\nregulated by this article.\n 6. This section shall not apply to exempt organizations. To the extent\nthe superintendent is authorized by any other law to make an examination\ninto the affairs of any exempt organization, this subdivision shall not\nbe construed to limit in any way the superintendent's authority,\nregarding the subjects of such an examination, or otherwise.\n