N.J. Admin. Code § 3:17-10.1

Current through Register Vol. 56, No. 11, June 3, 2024

Section 3:17-10.1 - Administrative penalties

(a) The Commissioner may refuse to issue and may revoke, suspend or refuse to renew a license, or impose a penalty pursuant to the Act, if the Commissioner finds, after notice and an opportunity for a hearing in accordance with the Administrative Procedure Act, 52:14B-1 et seq., that any person, applicant for or holder of the license has:

1. Violated any of the provisions of the Act or any order, rule or regulation made or issued pursuant to the Act;

2. Failed at any time to meet the requirements for licensure, or withheld information or made a material misstatement in an application for a license;

3. Been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or had a final judgment entered against the person in a civil or administrative action upon grounds of fraud, misrepresentation, or deceit, or failure to maintain books, accounts, records and other documents as required by 17:11C-19 or N.J.A.C. 3:17-5;

4. Become insolvent, or failed to attain or maintain the required net worth;

5. Demonstrated unworthiness, incompetence, bad faith or dishonesty in the transaction of business as a licensee; or

6. Engaged in any other conduct which would be deemed by the Commissioner to be the cause for denial, revocation, suspension, or refusal of the license or license renewal.

(b) A license may be suspended, revoked, or not renewed by the Commissioner if any officer, director, partner, or owner of the licensee has committed any act which would be cause for suspending, revoking or not renewing a license if issued to that person as an individual.

(c) If the license is suspended or revoked pursuant to (b) above, the license shall remain suspended or revoked, unless within the time fixed by the Commissioner, in the case of a partnership, the connection therewith of the offending individual shall be severed and that individual's interest in the partnership and share in its activities brought to an end, or in the case of an association, corporation, or other legal entity, the offending individual shall be discharged and shall have no further participation in the legal entity's activities. In the case of an offending individual who is an officer or director of the corporation or other legal entity, that individual shall be required to fully divest himself or herself of all ownership in the entity including any stock, bonds or other corporate holdings.

(d) The Commissioner may access and examine books, accounts, records and other documents maintained by a consumer lender or sales finance company licensee pursuant to 17:11C-19.

(e) The Commissioner may conduct investigations, which may include the subpoenaing of witnesses and documents, pursuant to 17:11C-42.

(f) Whenever it appears to the Commissioner that any person has engaged, is engaging, or is about to engage, in any practice or transaction prohibited by Act, the Commissioner may, in addition to any other remedy available, bring a summary action in a court of competent jurisdiction against the person, and any other person concerned or in any way participating in or about to participate in a practice or transaction in violation of the Act to enjoin the person from continuing the practice or transaction engaged in, or from engaging in the practice or transaction, or doing any act in furtherance of engaging in the practice or transaction.

(g) The Commissioner may impose a civil penalty not exceeding $ 25,000 on any person for a violation of the Act. Each violation of the Act, including any order, rule or regulation made or issued pursuant to the Act, shall constitute a separate offense. Additionally, each violation which constitutes a knowing violation shall be considered a crime of the third degree.

(h) The Commissioner may order that any person who has been found to have knowingly violated any provision of the Act and has thereby caused financial harm to consumers, be barred for a term not exceeding 10 years from acting as a consumer lender or sales finance company, or a stockholder, or an officer, director, partner or other owner, or an employee of a consumer lender or sales finance company licensee, or acting in any other capacity pursuant to the Act. Pursuant to 17:11C-18, violation of any such final order shall be considered a crime of the third degree.

N.J. Admin. Code § 3:17-10.1