16a-2-304. Records; annual reports; maintenance of records; security of records; preservation of records.

641 words·~3 min read·/ks/16a-2-304

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Every licensee and any assignee or servicer of a consumer credit transaction and every consumer credit filer shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the administrator and, in the case of a supervised financial organization its supervisory official or agency, to determine whether the licensee, assignee, servicer or consumer credit filer is complying with the provisions of K.S.A. 16a-1-101 et seq., and amendments thereto. The record keeping system of a licensee, assignee, servicer or consumer credit filer shall be sufficient if the licensee, assignee, servicer or any consumer credit filer makes the required information reasonably available. The records need not be kept in the place of business where supervised loans are made, if the administrator or supervisory official or agency is given free access to the records wherever located. Every licensee and every consumer credit filer shall provide the administrator with the name, address, telephone number, email address, contact person and any other reasonable information regarding the location and availability of current records of a consumer credit transaction. The records pertaining to any loan shall be kept for the minimum time frames established by the administrator pursuant to rules and regulations.

(2)Every licensee and any assignee or servicer of a consumer credit transaction, and every consumer credit filer shall establish, maintain and enforce written policies and procedures regarding security of records which are reasonably designed to prevent the misuse of a consumer's personal or financial information.

(3)Before ceasing to conduct or discontinuing business, a licensee, assignee, servicer or consumer credit filer shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this act and applicable rules and regulations for the remainder of each period specified.

(4)All books, records and any other documents required to be retained may be maintained in a photographic, reproduced or electronic format. If the records are photographed, reproduced or retained in an electronic format, the licensee, assignee or consumer credit filer shall meet the following criteria:

(a)Arrange the records to permit immediate location of any particular record;

(b)with respect to electronic images and records stored on computer storage medium, maintain procedures for maintenance and preservation of, and access to, records in order to reasonably safeguard these records from loss, alteration or destruction; and

(c)all books, records and any other documents shall be made available for examination and inspection by the administrator or the administrator's designee. All records shall be delivered to the administrator within three business days of the date such documents are requested.

(5)In lieu of retention of the original records, any such photograph or reproduction shall have the same force and effect as the original thereof and be admitted in evidence equally with the original.

(6)On or before April 15 of each year every licensee shall file with the administrator and, in the case of a supervised financial organization with its supervisory official or agency, a composite annual report in the form prescribed by the administrator relating to all loans made by such licensee. The administrator shall consult with comparable officials in other states for the purpose of making the kinds of information required in annual reports uniform among the states. Information contained in annual reports shall be confidential and may be published only in composite form.

(7)No person required to be a licensee or a consumer credit filer or an assignee or servicer of a consumer credit transaction under this act shall alter, destroy, shred, mutilate, conceal, cover up or falsify any record with the intent to impede, obstruct or influence any investigation by the administrator or the administrator's designee or any proceeding brought by or before the administrator.