Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S750 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 2518 FILED ON: 1/17/2025
3	3	SENATE . . . . . . . . . . . . . . No. 750
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Paul R. Feeney
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing uniform enforcement and confidentiality provisions relative to certain
13	13	licensees under the jurisdiction of the division of banks.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and Norfolk 1 of 40
17	17	SENATE DOCKET, NO. 2518 FILED ON: 1/17/2025
18	18	SENATE . . . . . . . . . . . . . . No. 750
19	19	By Mr. Feeney, a petition (accompanied by bill, Senate, No. 750) of Paul R. Feeney for
20	20	legislation to establish uniform enforcement and confidentiality provisions relative to certain
21	21	licensees under the jurisdiction of the division of banks by enforcing fines and penalties for
22	22	violations. Financial Services.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act establishing uniform enforcement and confidentiality provisions relative to certain
29	29	licensees under the jurisdiction of the division of banks.
30	30	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
31	31	of the same, as follows:
32	32	1 SECTION 1. Section 24D of chapter 93 of the General Laws, as appearing in the 2022
33	33	2Official Edition, is hereby amended by inserting after the word "licensee” in lines 13, 17 and 31,
34	34	3the following words:- or registrant.
35	35	4 SECTION 2. Said section 24D of said chapter 93, as so appearing, is hereby further
36	36	5amended by inserting after the word "licensees” in line 36, the following words:- or registrants.
37	37	6 SECTION 3. Said chapter 93, as so appearing, is hereby amended by striking out section
38	38	724F and inserting in place thereof the following section:-
39	39	8 Section 24F. The commissioner, or the commissioner’s examiners or other assistants as
40	40	9the commissioner may designate, may summon a licensee or registrant, or any of its agents or
41	41	10employees, and other witnesses as necessary, and examine them relative to their transactions, 2 of 40
42	42	11may require the production of books and papers and, for those purposes may administer oaths.
43	43	12Whoever, without justifiable cause, fails or refuses to appear and testify or to produce books and
44	44	13papers when so required, or obstructs the commissioner or the commissioner’s representatives
45	45	14making the examination in the performance of their duties, shall be punished by a fine of not
46	46	15more than $1,000 or by imprisonment for not more than 6 months, or both. Each day a violation
47	47	16occurs or continues shall be considered a separate offense. The penalty provision of this section
48	48	17shall be in addition to, and not in lieu of, any other provision of law applicable to a licensee or
49	49	18other person for violating section 24A or any rule or regulation made thereunder.
50	50	19 SECTION 4. Said chapter 93, is hereby amended by adding after section 24K the
51	51	20following two sections:-
52	52	21 Section 24L. (a) Whenever the commissioner finds that any licensee or exempt person
53	53	22under section 24A of this chapter has violated any provision of this chapter or any rule or
54	54	23regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
55	55	24of the business of a debt collector or a third party loan servicer, the commissioner may, by order,
56	56	25in addition to any other action authorized under this chapter or any rule or regulation made
57	57	26thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
58	58	27up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
59	59	28may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
60	60	29rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
61	61	30section 24A of this chapter, plus the costs of investigation.
62	62	31 (b) Nothing in this section shall limit the right of any individual or entity who has been
63	63	32injured as a result of any violation of this chapter by a licensee, or any person other than a 3 of 40
64	64	33licensee or exempt person under section 24A of this chapter, to bring an action to recover
65	65	34damages or restitution in a court of competent jurisdiction.
66	66	35 (c) Any findings or order issued by the commissioner pursuant to this section shall be
67	67	36subject to review as provided in chapter 30A.
68	68	37 Section 24M. (a) Whenever the commissioner determines that any person has, directly or
69	69	38indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
70	70	39applicable to the conduct of the business of a debt collector or a third party loan servicer; or any
71	71	40order issued by the commissioner under this chapter or any written agreement entered between
72	72	41the licensee and the commissioner; the commissioner may serve upon the person a written notice
73	73	42of intention:
74	74	43 (1) to prohibit the person from performing in the capacity of a principal employee on
75	75	44behalf of any licensee for a period of time that the commissioner deems necessary;
76	76	45 (2) to prohibit the person from applying for or obtaining a license from the commissioner
77	77	46for a period up to 36 months following the effective date of an order issued under subsection (b)
78	78	47or (c); or
79	79	48 (3) to prohibit the person from any further participation, in any manner, in the conduct of
80	80	49the affairs of a debt collector or a third party loan servicer in Massachusetts or to prohibit the
81	81	50person from being employed by, an agent of, or operating on behalf of a licensee under this
82	82	51chapter or any other business which requires a license from the commissioner.
83	83	52 (b) A written notice issued under subsection (a) shall contain a written statement of the
84	84	53facts that support the prohibition and shall give notice of an opportunity for a hearing to be held 4 of 40
85	85	54thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
86	86	55the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
87	87	56within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
88	88	57by a duly authorized representative, the party shall be deemed to have consented to the issuance
89	89	58of an order of prohibition in accordance with the notice.
90	90	59 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
91	91	60finds that any of the grounds specified in the notice have been established, the commissioner
92	92	61may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
93	93	62appropriate.
94	94	63 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
95	95	64person. The commissioner shall also serve a copy of the order upon the licensee of which the
96	96	65person is an employee or on whose behalf the person is performing. The order shall remain in
97	97	66effect and enforceable until it is modified, terminated, suspended, or set aside by the
98	98	67commissioner or a court of competent jurisdiction.
99	99	68 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
100	100	69an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
101	101	70part in the conduct of the affairs of a debt collector or a third party loan servicer in Massachusetts
102	102	71may not, while the order is in effect, continue or commence to perform in the capacity of a
103	103	72principal employee, or otherwise participate in any manner, if so prohibited by order of the
104	104	73commissioner, in the conduct of the affairs of:
105	105	74 (1) any licensee or registrant under this chapter;
106	106	75 (2) any other business which requires a license from the commissioner; and 5 of 40
107	107	76 (3) any bank, as defined under section 1 of chapter 167 or any subsidiary thereof.
108	108	77 SECTION 5. Section 99 of chapter 140 of the General Laws, as so appearing, is hereby
109	109	78amended by striking out section 99 and inserting in place thereof the following section:-
110	110	79 Section 99. A licensee shall, when directed by the commissioner, permit the
111	111	80commissioner or the commissioner’s duly authorized representative to inspect its records and
112	112	81evidence of compliance with this chapter or any rule and regulation issued thereunder and with
113	113	82any other law, rule and regulation applicable to the conduct of its business. The commissioner
114	114	83shall preserve a full record of each examination of a licensee including a statement of its
115	115	84condition. All records of investigations and reports of examinations by the commissioner,
116	116	85including workpapers, information derived from the reports or responses to the reports, and any
117	117	86copies thereof in the possession of any licensee under the supervision of the commissioner, shall
118	118	87be confidential and privileged communications, shall not be subject to subpoena and shall not be
119	119	88a public record under clause twenty-sixth of section 7 of chapter 4. For the purpose of this
120	120	89paragraph, records of investigation and reports of examinations shall include records of
121	121	90investigation and reports of examinations conducted by a financial regulatory agency of the
122	122	91federal government and any other state, and of any foreign government which are considered
123	123	92confidential by the agency or foreign government and which are in possession of the
124	124	93commissioner. In any proceeding before a court, the court may issue a protective order to seal the
125	125	94record protecting the confidentiality of any such record, and other than any such record on file
126	126	95with the court or filed in connection with the court proceeding, and the court may exclude the
127	127	96public from any portion of a proceeding at which any such record may be disclosed. Copies of
128	128	97reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
129	129	98to any other person, organization or agency without prior written approval by the commissioner. 6 of 40
130	130	99The commissioner may, in the commissioner’s discretion, furnish to regulatory agencies of the
131	131	100federal government, of other states, or of foreign countries, and any law enforcement agency, the
132	132	101information, reports, inspections and statements relating to the licensees under the
133	133	102commissioner’s supervision.
134	134	103 The commissioner may summon licensees, companies or associations, or any of their
135	135	104agents or employees, and other witnesses as necessary, and examine them relative to their
136	136	105transactions and to the condition of their business, and for that purpose may administer oaths.
137	137	106Whoever without justifiable cause refuses to appear and testify when so required, or obstructs the
138	138	107commissioner or the commissioner’s representatives in the performance of their duties, shall be
139	139	108punished by a fine of not more than $1,000 or by imprisonment for not more than 6 months, or
140	140	109both. The penalty provision of this section shall be in addition to, and not in lieu of, any other
141	141	110provision of law applicable to a licensee or other person for violating section 96 or any rule or
142	142	111regulation made thereunder.
143	143	112 SECTION 6. Section 103 of said chapter 140 is hereby amended by striking out section
144	144	113103, and inserting in place thereof the following three sections:-
145	145	114 Section 103. The commissioner may suspend or revoke any license issued pursuant to
146	146	115section 96 if the commissioner finds that:
147	147	116 (i) the licensee has violated any provision of sections 96 to 114, inclusive, or any rule or
148	148	117regulation made by the commissioner under any provision of sections 96 to 114, inclusive, or
149	149	118any other law applicable to the conduct of the business; or 7 of 40
150	150	119 (ii) any fact or condition exists which, if it had existed at the time of the original
151	151	120application for the license, would have warranted the commissioner in refusing to issue the
152	152	121license.
153	153	122 Except as provided in section 103A, no license shall be revoked or suspended except
154	154	123after notice and a hearing thereon pursuant to chapter 30A.
155	155	124 A licensee may surrender a license by delivering to the commissioner written notice that
156	156	125it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
157	157	126the licensee for acts committed before the surrender.
158	158	127 No revocation, suspension or surrender of any license shall impair or affect the obligation
159	159	128of any pre-existing lawful contract between the licensee and any person.
160	160	129 The penalty provision of this section shall be in addition to, and not in lieu of, any other
161	161	130provision of law applicable to a licensee or other person for violating section 96, 97, 98, 100,
162	162	131101, 102, 104, 106, and 109 or any rule or regulation made thereunder.
163	163	132 Section 103A. (a) If the commissioner determines, after giving notice of an opportunity
164	164	133for a hearing, that a licensee has engaged or is about to engage in an act or practice constituting a
165	165	134violation of a provision of sections 97, 98, 100, 101, 102, 104 or 109, or any rule or regulation
166	166	135made by the commissioner under section 97 or 106, or any other law applicable to the conduct of
167	167	136the business, the commissioner may order the licensee to cease and desist from the unlawful act
168	168	137or practice and take affirmative action as in the commissioner’s judgment will effect the purpose
169	169	138of sections 97, 98, 100, 101, 102, 104 or 109, or any rule or regulation made by the
170	170	139commissioner under section 97 or 106, or any other law applicable to the conduct of the
171	171	140business. 8 of 40
172	172	141 (b) If the commissioner makes written findings of fact that the public interest will be
173	173	142irreparably harmed by delay in issuing an order under section (a) the commissioner may issue a
174	174	143temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
175	175	144commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
176	176	145been so entered, the reasons therefor, and that within 20 days after receipt of a written request
177	177	146from the licensee, the matter will be scheduled for a hearing to determine whether or not the
178	178	147temporary order shall become permanent and final. If no hearing is requested and none is
179	179	148ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
180	180	149the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
181	181	150and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
182	182	151and conclusions of law, vacate, modify or make permanent the order.
183	183	152 (c) No order under this section, except an order issued pursuant to subsection (b), may be
184	184	153entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
185	185	154modify an order under this section upon finding that the conditions which required the an order
186	186	155have changed and that it is in the public interest to so vacate or modify.
187	187	156 Any order issued pursuant to this section shall be subject to review as provided in chapter
188	188	15730A.
189	189	158 Section 103B. The commissioner may enforce the provisions of section 96 through 114A,
190	190	159or restrain any violations thereof, by filing a civil action in any court of competent jurisdiction.
191	191	160 SECTION 7. Said chapter 140 is hereby amended by adding after section 113 the
192	192	161following two sections:- 9 of 40
193	193	162 Section 113A. (a) Whenever the commissioner finds that any licensee or exempt person
194	194	163under section 96 of this chapter has violated any provision of this chapter or any rule or
195	195	164regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
196	196	165of the business of making small loans, the commissioner may, by order, in addition to any other
197	197	166action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
198	198	167upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
199	199	168for the violation plus the costs of investigation. The commissioner may impose a penalty which
200	200	169shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
201	201	170thereunder, by a person other than a licensee or exempt person under section 96 of this chapter,
202	202	171plus the costs of investigation.
203	203	172 (b) In addition to any other action authorized under this chapter or any rule of regulation
204	204	173made thereunder, a licensee who violates the provisions of section 100 may also be punished by
205	205	174imprisonment for not more than 1 year. Each day the violation occurs or continues shall be
206	206	175deemed a separate offense. Any loan made by any person so licensed in violation of section
207	207	176100may be declared void by the supreme judicial or superior court in equity upon petition by the
208	208	177person to whom the loan was made.
209	209	178 (c) Nothing in this section shall limit the right of any individual or entity who has been
210	210	179injured as a result of any violation of this chapter by a licensee, or any person other than a
211	211	180licensee or exempt person under section 96 of this chapter, to bring an action to recover damages
212	212	181or restitution in a court of competent jurisdiction.
213	213	182 (d) Any findings or order issued by the commissioner pursuant to this section shall be
214	214	183subject to review as provided in chapter 30A. 10 of 40
215	215	184 Section 113B. (a) Whenever the commissioner determines that any person has, directly or
216	216	185indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
217	217	186applicable to the conduct of the business of making small loans; or any order issued by the
218	218	187commissioner under this chapter or any written agreement entered between the licensee and the
219	219	188commissioner; the commissioner may serve upon the person a written notice of intention:
220	220	189 (1) to prohibit the person from performing in the capacity of a principal employee on
221	221	190behalf of any licensee for a period of time that the commissioner deems necessary;
222	222	191 (2) to prohibit the person from applying for or obtaining a license from the commissioner
223	223	192for a period up to 36 months following the effective date of an order issued under subsection (b)
224	224	193or (c); or
225	225	194 (3) to prohibit the person from any further participation, in any manner, in the conduct of
226	226	195the affairs of a business making small loans in Massachusetts or to prohibit the person from
227	227	196being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
228	228	197other business which requires a license from the commissioner.
229	229	198 (b) A written notice issued under subsection (a) shall contain a written statement of the
230	230	199facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
231	231	200thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
232	232	201the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
233	233	202within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
234	234	203by a duly authorized representative, the party shall be deemed to have consented to the issuance
235	235	204of an order of prohibition in accordance with the notice. 11 of 40
236	236	205 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
237	237	206finds that any of the grounds specified in the notice have been established, the commissioner
238	238	207may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
239	239	208appropriate.
240	240	209 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
241	241	210person. The commissioner shall also serve a copy of the order upon the licensee of which the
242	242	211person is an employee or on whose behalf the person is performing. The order shall remain in
243	243	212effect and enforceable until it is modified, terminated, suspended, or set aside by the
244	244	213commissioner or a court of competent jurisdiction.
245	245	214 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
246	246	215an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
247	247	216part in the conduct of the affairs of a business making small loans in Massachusetts may not,
248	248	217while the order is in effect, continue or commence to perform in the capacity of a principal
249	249	218employee, or otherwise participate in any manner, if so prohibited by order of the commissioner,
250	250	219in the conduct of the affairs of:
251	251	220 (1) any licensee under this chapter;
252	252	221 (2) any other business which requires a license from the commissioner; and
253	253	222 (3) any bank, as defined under section 1 of chapter 167, or any subsidiary thereof
254	254	223 SECTION 8. Said chapter 140, as so appearing, is hereby amended by striking section
255	255	224114A and inserting in place thereof the following section:- 12 of 40
256	256	225 Section 114A. A bank as defined in section 1 of chapter 167, a national banking
257	257	226association, a federally chartered credit union, a federal savings and loan association, a federal
258	258	227savings bank, or any subsidiary of the above, or any bank, trust company, savings bank, savings
259	259	228and loan association, or credit union organized under the laws of any other state, or any
260	260	229subsidiary of the above, shall not be subject to the provisions of sections 96 to 114, inclusive;
261	261	230provided, that the institutions may not take, receive, reserve or charge interest, expenses and
262	262	231other considerations for making or securing any loan subject to the provisions of section 96 in
263	263	232excess of those permitted by section 100. Any loan subject to the provisions of section 96 made
264	264	233by any bank as defined in section 1 of chapter 167, a national banking association, a federally-
265	265	234chartered credit union, a federal savings and loan association, a federal savings bank, or any
266	266	235subsidiary of the above, or any bank, trust company, savings bank, savings and loan association,
267	267	236or credit union organized under the laws of any other state on which charges for interest,
268	268	237expenses and other considerations exceed those permitted by section 100 may be declared void
269	269	238by the supreme judicial court or superior court in equity upon petition by the person to whom the
270	270	239loans were made, and any bank as defined section 1 of chapter 167, a national banking
271	271	240association, a federally chartered credit union, a federal savings and loan association, a federal
272	272	241savings bank, or any subsidiary of the above, or any bank, trust company, savings bank, savings
273	273	242and loan association, or credit union organized under the laws of any other state making such a
274	274	243loan shall be subject to a fine of not more than $1,000.
275	275	244 This section shall not be construed as preventing a rate of charge for interest, expenses
276	276	245and other consideration on 1 or more portions of a loan in excess of the permitted maximum rate
277	277	246of charge applicable to the portion or portions, provided, that the composite rate of charge on the
278	278	247whole loan produces an amount equal to or less than that which would be produced were the 13 of 40
279	279	248maximum rate of charge applied to the loan. Extension, default or deferment charges shall not be
280	280	249deemed to be interest, expenses and other considerations in determining the maximum rate of
281	281	250charge that may be taken, received, reserved or charged for the loan.
282	282	251 SECTION 9. Section 2 of chapter 169A of the General Laws, as so appearing, is hereby
283	283	252amended, in line 7, by striking out the word “bank.” and inserting in place thereof the words:-
284	284	253bank or any bank, trust company, savings bank, savings and loan association, or credit union
285	285	254organized under the laws of any other state, or any subsidiary of the above.
286	286	255 SECTION 10. Section 5 of said chapter 169A, as so appearing, is hereby amended by
287	287	256striking out the third and fourth sentences.
288	288	257 SECTION 11. Section 10 of chapter 169A, as so appearing, is hereby amended by adding
289	289	258the following two paragraphs:-
290	290	259 The commissioner shall preserve a full record of each such examination of a licensee
291	291	260including a statement of its condition. All records of investigations and reports of examinations
292	292	261by the commissioner, including workpapers, information derived from such reports or responses
293	293	262to such reports, and any copies thereof in the possession of any licensee under the supervision of
294	294	263the commissioner, shall be confidential and privileged communications, shall not be subject to
295	295	264subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
296	296	265the purpose of this paragraph, records of investigation and reports of examinations shall include
297	297	266records of investigation and reports of examinations conducted by a financial regulatory agency
298	298	267of the federal government and any other state, and of any foreign government which are
299	299	268considered confidential by such agency or foreign government and which are in possession of the
300	300	269commissioner. In any proceeding before a court, the court may issue a protective order to seal the 14 of 40
301	301	270record protecting the confidentiality of any such record, other than any such record on file with
302	302	271the court or filed in connection with the court proceeding, and the court may exclude the public
303	303	272from any portion of the proceeding at which any such record may be disclosed. Copies of such
304	304	273reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
305	305	274to any other person, organization or agency without prior written approval by the commissioner.
306	306	275The commissioner may, in the commissioner’s discretion, furnish to regulatory agencies of the
307	307	276federal government, of other states, or of foreign countries, and any law enforcement agency,
308	308	277such information, reports, inspections and statements relating to the licensees under the
309	309	278commissioner’s supervision.
310	310	279 The commissioner, or the commissioner’s examiners or such other assistants as the
311	311	280commissioner may designate, may summon the directors, officers or agents of a licensee, or any
312	312	281other witnesses, and examine them relative to the affairs, transactions and condition of the
313	313	282licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
314	314	283to appear and testify when so required or obstructs the person making such examination in the
315	315	284performance of their duty, shall be punished by a fine of not more than $1,000 or by
316	316	285imprisonment for not more than 1 year.
317	317	286 SECTION 12. Said chapter 169A, as so appearing, is hereby amended by striking out
318	318	287section 13 and inserting in place thereof the following two sections:-
319	319	288 Section 13. (a) Whenever the commissioner finds that any licensee or exempt person
320	320	289under section 2of this chapter has violated any provision of this chapter or any rule or regulation
321	321	290adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the
322	322	291business of cashing checks, drafts or money orders, the commissioner may, by order, in addition 15 of 40
323	323	292to any other action authorized under this chapter or any rule or regulation made thereunder,
324	324	293impose a penalty upon such person which shall not exceed $5,000 for each violation, up to a
325	325	294maximum of $100,000 for such violation plus the costs of investigation. The commissioner may
326	326	295impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or
327	327	296regulation adopted thereunder, by a person other than a licensee or exempt person under section
328	328	2972 of this chapter, plus the costs of investigation.
329	329	298 (b) In addition to any other action authorized under this chapter or any rule of regulation
330	330	299made thereunder, whoever violates any provision of section 2 or any rule or regulation made
331	331	300thereunder by the commissioner may be punished by imprisonment for not more than 6 months.
332	332	301Each day a violation continues shall be deemed a separate offense. The penalty provision of this
333	333	302section shall be in addition to, and not in lieu of, any other provision of law applicable to a
334	334	303licensee or other person for violating section 2 or any rule or regulation made thereunder.
335	335	304 (c) Nothing in this section shall limit the right of any individual or entity who has been
336	336	305injured as a result of any violation of this chapter by a licensee, or any person other than a
337	337	306licensee or exempt person under section 2 of this chapter, to bring an action to recover damages
338	338	307or restitution in a court of competent jurisdiction.
339	339	308 (d) Any findings or order issued by the commissioner pursuant to this section shall be
340	340	309subject to review as provided in chapter 30A.
341	341	310 Section 14. (a) Whenever the commissioner determines that any person has, directly or
342	342	311indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
343	343	312applicable to the conduct of the business of cashing checks, drafts or money orders; or any order
344	344	313issued by the commissioner under this chapter or any written agreement entered between such 16 of 40
345	345	314licensee and the commissioner; the commissioner may serve upon such person a written notice of
346	346	315intention:
347	347	316 (1) to prohibit such person from performing in the capacity of a principal employee on
348	348	317behalf of any licensee for a period of time that the commissioner deems necessary;
349	349	318 (2) to prohibit the person from applying for or obtaining a license from the commissioner
350	350	319for a period up to 36 months following the effective date of an order issued under subsection (b)
351	351	320or (c); or
352	352	321 (3) to prohibit such person from any further participation, in any manner, in the conduct
353	353	322of the affairs of person or entity engaged in the cashing of checks, drafts or money orders in
354	354	323Massachusetts or to prohibit such person from being employed by, an agent of, or operating on
355	355	324behalf of a licensee under this chapter or any other business which requires a license from the
356	356	325commissioner.
357	357	326 (b) A written notice issued under subsection (a) shall contain a written statement of the
358	358	327facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
359	359	328thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
360	360	329the commissioner of such request for a hearing. If such person fails to submit a request for a
361	361	330hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
362	362	331person or by a duly authorized representative, such party shall be deemed to have consented to
363	363	332the issuance of an order of such prohibition in accordance with the notice.
364	364	333 (c) In the event of such consent under subsection (b), or if after a hearing the
365	365	334commissioner finds that any of the grounds specified in such notice have been established, the 17 of 40
366	366	335commissioner may issue an order of prohibition in accordance with subsection (a) as the
367	367	336commissioner finds appropriate.
368	368	337 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
369	369	338person. The commissioner shall also serve a copy of the order upon the licensee of which the
370	370	339person is an employee or on whose behalf the person is performing. The order shall remain in
371	371	340effect and enforceable until it is modified, terminated, suspended, or set aside by the
372	372	341commissioner or a court of competent jurisdiction.
373	373	342 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
374	374	343an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
375	375	344part in the conduct of the affairs of a person or entity engaged in the cashing of checks, drafts or
376	376	345money orders in Massachusetts may not, while such order is in effect, continue or commence to
377	377	346perform in the capacity of a principal employee, or otherwise participate in any manner, if so
378	378	347prohibited by order of the commissioner, in the conduct of the affairs of:
379	379	348 (1) any licensee under this chapter;
380	380	349 (2) any other business which requires a license from the commissioner; and
381	381	350 (3) any bank, as defined under section 1 of chapter 167, or any subsidiary thereof.
382	382	351 SECTION 13. Section 1 of chapter 255B of the General Laws, as so appearing, is hereby
383	383	352amended by striking out the definition of “Sales finance company” and inserting in place thereof
384	384	353the following definition:- "Sales finance company", (1) a bank as defined in section 1 of chapter
385	385	354167, a national banking association, federal savings bank, federal savings and loan association,
386	386	355federal credit union, or any bank, trust company, savings bank, savings and loan association or 18 of 40
387	387	356credit union organized under the laws of any other state of the United States, or any subsidiary of
388	388	357the above;
389	389	358 (2) any person engaged, in whole or in part, in the business of purchasing retail
390	390	359installment contracts from 1 or more retail sellers; and
391	391	360 (3) a retail seller engaged, in whole or in part, in the business of holding retail installment
392	392	361contracts acquired from retail buyers. The term "sales finance company" does not include the
393	393	362pledgee of an aggregate number of such contracts to secure a bona fide loan thereon.
394	394	363 SECTION 14. Section 2 of said chapter 255B, as so appearing, is hereby amended by
395	395	364striking out the fourth and fifth sentences.
396	396	365 SECTION 15. Section 3 of said chapter 255B, as so appearing, is hereby amended by
397	397	366inserting after the first paragraph the following two paragraphs:-
398	398	367 The commissioner shall preserve a full record of each such examination of a licensee
399	399	368including a statement of its condition. All records of investigations and reports of examinations
400	400	369by the commissioner, including workpapers, information derived from such reports or responses
401	401	370to such reports, and any copies thereof in the possession of any licensee under the supervision of
402	402	371the commissioner, shall be confidential and privileged communications, shall not be subject to
403	403	372subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
404	404	373the purpose of this paragraph, records of investigation and reports of examinations shall include
405	405	374records of investigation and reports of examinations conducted by a financial regulatory agency
406	406	375of the federal government and any other state, and of any foreign government which are
407	407	376considered confidential by such agency or foreign government and which are in possession of the
408	408	377commissioner. In any proceeding before a court, the court may issue a protective order to seal the 19 of 40
409	409	378record protecting the confidentiality of any such record, other than any such record on file with
410	410	379the court or filed in connection with the court proceeding, and the court may exclude the public
411	411	380from any portion of the proceeding at which any such record may be disclosed. Copies of such
412	412	381reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
413	413	382to any other person, organization or agency without prior written approval by the commissioner.
414	414	383The commissioner may, in the commissioner’s discretion, furnish to regulatory agencies of the
415	415	384federal government, of other states, or of foreign countries, and any law enforcement agency,
416	416	385such information, reports, inspections and statements relating to the licensees under the
417	417	386commissioner’s supervision.
418	418	387 The commissioner, or the commissioner’s examiners, or such other assistants as the
419	419	388commissioner may designate, may summon the directors, officers or agents of a licensee, or any
420	420	389other witnesses, and examine them relative to the affairs, transactions and condition of the
421	421	390licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
422	422	391to appear and testify when so required or obstructs the person making such examination in the
423	423	392performance of their duty, shall be punished by a fine of not more than $1,000 or by
424	424	393imprisonment for not more than 1 year.
425	425	394 SECTION 16. Section 4 of said chapter 255B, as so appearing, is hereby amended by
426	426	395adding the following sentence:- Each day such violation occurs or continues shall be deemed a
427	427	396separate offense.
428	428	397 SECTION 17. Said chapter 255B, as so appearing, is hereby amended by striking out
429	429	398section 7, and inserting in place thereof the following section:- 20 of 40
430	430	399 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
431	431	400chapter if the commissioner finds that:
432	432	401 (i) the licensee has violated any provision of this chapter or any rule or regulation
433	433	402adopted hereunder, or any other law applicable to the conduct of its business; or
434	434	403 (ii) any fact or condition exists which, if it had existed at the time of the original
435	435	404application for such license, would have warranted the commissioner in refusing to issue such
436	436	405license.
437	437	406 Except as provided in section 8, no license shall be revoked or suspended except after
438	438	407notice and a hearing thereon pursuant to 30A.
439	439	408 A licensee may surrender a license by delivering to the commissioner written notice that
440	440	409it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
441	441	410of the licensee for acts committed before such surrender.
442	442	411 No revocation, suspension or surrender of any license shall impair or affect the obligation
443	443	412of any pre-existing lawful contract between the licensee and any person.
444	444	413 SECTION 18. Said chapter 255B, as so appearing, is hereby amended by striking out
445	445	414section 8 and inserting in place thereof the following two sections:-
446	446	415 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
447	447	416hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
448	448	417violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
449	449	418may order such licensee to cease and desist from such unlawful act or practice and take such
450	450	419affirmative action as in the commissioner’s judgment will effect the purposes of this chapter. 21 of 40
451	451	420 (b) If the commissioner makes written findings of fact that the public interest will be
452	452	421irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
453	453	422a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
454	454	423commissioner shall promptly notify, in writing, the licensee affected thereby that such order has
455	455	424been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
456	456	425from such licensee, the matter will be scheduled for a hearing to determine whether or not such
457	457	426temporary order shall become permanent and final. If no such hearing is requested and none is
458	458	427ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
459	459	428the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
460	460	429and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
461	461	430and conclusions of law, vacate, modify or make permanent the order.
462	462	431 (c) No order under this section, except an order issued pursuant to subsection (b), may be
463	463	432entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
464	464	433modify an order under this section upon finding that the conditions which required such an order
465	465	434have changed and that it is in the public interest to so vacate or modify.
466	466	435 Any order issued pursuant to this section shall be subject to review as provided in chapter
467	467	43630A.
468	468	437 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
469	469	438violations thereof, by filing a civil action in any court of competent jurisdiction.
470	470	439 SECTION 19. Said chapter 255B is hereby amended by adding after section 25 the
471	471	440following two sections:- 22 of 40
472	472	441 Section 26. (a) Whenever the commissioner finds that any licensee or exempt person
473	473	442under section 2 of this chapter has violated any provision of this chapter or any rule or regulation
474	474	443adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the
475	475	444business of a sales finance company, the commissioner may, by order, in addition to any other
476	476	445action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
477	477	446upon such person which shall not exceed $5,000 for each violation, up to a maximum of
478	478	447$100,000 for such violation plus the costs of investigation. The commissioner may impose a
479	479	448penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
480	480	449adopted thereunder, by a person other than a licensee or exempt person under section 2 of this
481	481	450chapter, plus the costs of investigation.
482	482	451 (b) In addition to any other action authorized under this chapter or any rule of regulation
483	483	452made thereunder, whoever violates any provision of this chapter or any rule or regulation made
484	484	453thereunder by the commissioner may also be punished by imprisonment for not more than 6
485	485	454months. The penalty provision of this section shall be in addition to, and not in lieu of, any other
486	486	455provision of law applicable to a licensee or other person for violating provision of this chapter or
487	487	456any rule or regulation made thereunder.
488	488	457 (c) Nothing in this section shall limit the right of any individual or entity who has been
489	489	458injured as a result of any violation of this chapter by a licensee, or any person other than a
490	490	459licensee or exempt person under section 2 of this chapter, to bring an action to recover damages
491	491	460or restitution in a court of competent jurisdiction.
492	492	461 (d) Any findings or order issued by the commissioner pursuant to this section shall be
493	493	462subject to review as provided in chapter 30A. 23 of 40
494	494	463 Section 27. (a) Whenever the commissioner determines that any person has, directly or
495	495	464indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
496	496	465applicable to the conduct of the business of a sales finance company; or any order issued by the
497	497	466commissioner under this chapter or any written agreement entered between such licensee and the
498	498	467commissioner; the commissioner may serve upon such person a written notice of intention:
499	499	468 (1) to prohibit such person from performing in the capacity of a principal employee on
500	500	469behalf of any licensee for a period of time that the commissioner deems necessary;
501	501	470 (2) to prohibit the person from applying for or obtaining a license from the commissioner
502	502	471for a period up to 36 months following the effective date of an order issued under subsection (b)
503	503	472or (c); or
504	504	473 (3) to prohibit the person from any further participation, in any manner, in the conduct of
505	505	474the affairs of a sales finance company in Massachusetts or to prohibit the person from being
506	506	475employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
507	507	476business which requires a license from the commissioner.
508	508	477 (b) A written notice issued under subsection (a) shall contain a written statement of the
509	509	478facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
510	510	479thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
511	511	480the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
512	512	481within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
513	513	482by a duly authorized representative, the party shall be deemed to have consented to the issuance
514	514	483of an order of prohibition in accordance with the notice. 24 of 40
515	515	484 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
516	516	485finds that any of the grounds specified in such notice have been established, the commissioner
517	517	486may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
518	518	487appropriate.
519	519	488 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
520	520	489person. The commissioner shall also serve a copy of the order upon the licensee of which the
521	521	490person is an employee or on whose behalf the person is performing. The order shall remain in
522	522	491effect and enforceable until it is modified, terminated, suspended, or set aside by the
523	523	492commissioner or a court of competent jurisdiction.
524	524	493 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
525	525	494an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
526	526	495part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
527	527	496order is in effect, continue or commence to perform in the capacity of a principal employee, or
528	528	497otherwise participate in any manner, if so prohibited by order of the commissioner, in the
529	529	498conduct of the affairs of:
530	530	499 (1) any licensee under this chapter;
531	531	500 (2) any other business which requires a license from the commissioner; and
532	532	501 (3) any bank, as defined under section 1 of chapter 167, or any subsidiary thereof.
533	533	502 SECTION 20. Chapter 255C of the General Laws, as so appearing, is hereby amended by
534	534	503striking out section 2 and inserting in place thereof the following section:- 25 of 40
535	535	504 Section 2. No person, other than a bank as defined in section 1 of chapter 167, a national
536	536	505banking association, a federally-chartered credit union, a federal savings and loan association, a
537	537	506federal savings bank, or any subsidiary of the above, or a bank, a trust company, savings bank,
538	538	507savings and loan association or credit union organized under the laws of any other state, or any
539	539	508subsidiary of the above, a sales finance company, as defined in section 1 of chapter 255B, and a
540	540	509company licensed to carry on the business of making small loans, shall engage in the business of
541	541	510premium finance agency unless licensed by the commissioner, as provided in section 3;
542	542	511provided, however, that no property and casualty insurance agent or broker, including an
543	543	512insurance agent or insurance broker conducting an insurance premium financing agency business
544	544	513under a subsidiary or different company name, who provides premium financing only to their
545	545	514own customers for purposes of financing payment of premiums on contracts of insurance, which
546	546	515contracts of insurance are exclusively limited to commercial insurance policies, shall be required
547	547	516to be licensed pursuant to this section or any other section of this chapter. The commissioner
548	548	517may adopt, amend or repeal rules and regulations, which may include an adequate capitalization
549	549	518requirement for sales finance companies, to aid in the administration and enforcement of this
550	550	519chapter.
551	551	520 The license shall allow the holder to maintain only 1 office from which the business may
552	552	521be conducted, but more than 1 license may be issued to any person. Any change of location of an
553	553	522office of a licensee shall require the prior approval of the commissioner. The request for
554	554	523relocation shall be in writing setting forth the reason or reasons for the request, and shall be
555	555	524accompanied by a relocation investigation fee to be determined annually by the secretary of
556	556	525administration and finance under section 3B of chapter 7. If an applicant has more than 1 office, 26 of 40
557	557	526the applicant may obtain a license for each office from which the applicant intends to conduct the
558	558	527business.
559	559	528 SECTION 21. Section 4 of said chapter 255C, as so appearing, is hereby amended by
560	560	529striking out the second sentence.
561	561	530 SECTION 22. Section 4 of said chapter 255C is hereby further amended by adding the
562	562	531following paragraph:-
563	563	532 If a licensee intends to carry on the business at any place in addition to the address on the
564	564	533license, the licensee shall so notify the commissioner, in writing, at least 30 days prior thereto,
565	565	534and the licensee shall pay a fee for the additional location in an amount to be determined
566	566	535annually by the commissioner of administration under the provision of section 3B of chapter 7.
567	567	536The license shall not be transferable or assignable and shall expire annually on a date determined
568	568	537by the commissioner.
569	569	538 SECTION 23. Said chapter 255C, as so appearing, is hereby amended by striking out
570	570	539section 5, and inserting in place thereof the following three sections:-
571	571	540 Section 5. The commissioner may suspend or revoke any license issued pursuant to this
572	572	541chapter if the commissioner finds that:
573	573	542 (i) the licensee has violated any provision of this chapter or any rule or regulation
574	574	543adopted hereunder, or any other law applicable to the conduct of its business; or
575	575	544 (ii) any fact or condition exists which, if it had existed at the time of the original
576	576	545application for the license, would have warranted the commissioner in refusing to issue the
577	577	546license. 27 of 40
578	578	547 The commissioner shall have sufficient cause to suspend or revoke a license whenever
579	579	548the commissioner learns from the commissioner of insurance or from any other source that the
580	580	549licensee has failed to return the full amount of a return premium to the person whose insurance
581	581	550policy has been cancelled or to the person’s assignee, as required by section 176A of chapter
582	582	551175.
583	583	552 A licensee may surrender a license by delivering to the commissioner written notice that
584	584	553it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
585	585	554the licensee for acts committed before the surrender. A revocation or suspension or surrender of
586	586	555any license shall not impair or affect the obligation of an insured under any lawful premium
587	587	556finance agreement previously acquired or held by the licensee.
588	588	557 No revocation, suspension or surrender of any license shall impair or affect the obligation
589	589	558of any pre-existing lawful contract between the licensee and any person.
590	590	559 Whenever the commissioner revokes or suspends a license, the commissioner shall
591	591	560forthwith execute in duplicate a written order to that effect, and shall file 1 copy of the order in
592	592	561the office of the secretary of state and mail 1 copy to the licensee. A suspension or revocation of
593	593	562a license shall not be subject to the provisions of chapter 30A.
594	594	563 Section 5A. (a) If the commissioner determines, after giving notice of and opportunity for
595	595	564a hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
596	596	565violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
597	597	566may order the licensee to cease and desist from the unlawful act or practice and take affirmative
598	598	567action as in the commissioner’s judgment will effect the purposes of this chapter. 28 of 40
599	599	568 (b) If the commissioner makes written findings of fact that the public interest will be
600	600	569irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
601	601	570a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
602	602	571commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
603	603	572been so entered, the reasons therefor, and that within 2 days after the receipt of a written request
604	604	573from the licensee, the matter will be scheduled for hearing to determine whether or not the
605	605	574temporary order shall become permanent and final. If no hearing is requested and none is ordered
606	606	575by the commissioner, the order shall remain in effect until it is modified or vacated by the
607	607	576commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
608	608	577opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
609	609	578conclusions of law, vacate, modify or make permanent the order.
610	610	579 (c) No order under this section, except an order issued pursuant to subsection (b), may be
611	611	580entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
612	612	581modify an order under this section upon finding that the conditions which required the order
613	613	582have changed and that it is in the public interest to so vacate or modify.
614	614	583 Any order issued pursuant to this section shall be subject to review as provided in chapter
615	615	58430A.
616	616	585 Section 5B. The commissioner may enforce the provisions of this chapter, or restrain any
617	617	586violations thereof, by filing a civil action in any court of competent jurisdiction.
618	618	587 SECTION 24. Section 6 of said chapter 255C, as so appearing, is hereby amended by
619	619	588striking out the second paragraph and inserting in place thereof the following two paragraphs:- 29 of 40
620	620	589 The commissioner shall preserve a full record of each examination of a licensee including
621	621	590a statement of its condition. All records of investigations and reports of examinations by the
622	622	591commissioner, including workpapers, information derived from the reports or responses to the
623	623	592reports, and any copies thereof in the possession of any licensee under the supervision of the
624	624	593commissioner, shall be confidential and privileged communications, shall not be subject to
625	625	594subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
626	626	595the purpose of this paragraph, records of investigation and reports of examinations shall include
627	627	596records of investigation and reports of examinations conducted by a financial regulatory agency
628	628	597of the federal government and any other state, and of any foreign government which are
629	629	598considered confidential by the agency or foreign government and which are in possession of the
630	630	599commissioner. In any proceeding before a court, the court may issue a protective order to seal the
631	631	600record protecting the confidentiality of any such record, other than any such record on file with
632	632	601the court or filed in connection with the court proceeding, and the court may exclude the public
633	633	602from any portion of the proceeding at which any such record may be disclosed. Copies of such
634	634	603reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
635	635	604to any other person, organization or agency without prior written approval by the commissioner.
636	636	605The commissioner may, in the commissioner’s discretion, furnish to regulatory agencies of the
637	637	606federal government, of other states, or of foreign countries, and any law enforcement agency, the
638	638	607information, reports, inspections and statements relating to the licensees under the
639	639	608commissioner’s supervision.
640	640	609 The commissioner, or the commissioner’s examiners or other assistants as the
641	641	610commissioner may designate, may summon the directors, officers or agents of a licensee, or any
642	642	611other witnesses, and examine them relative to the affairs, transactions and condition of the 30 of 40
643	643	612licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
644	644	613to appear and testify when so required or obstructs the person making the examination in the
645	645	614performance of their duty, shall be punished by a fine of not more than $1,000 or by
646	646	615imprisonment for not more than 1 year.
647	647	616 SECTION 25. Section 9 of said chapter 255C of the General Laws, as so appearing, is
648	648	617hereby amended by striking out the first paragraph.
649	649	618 SECTION 26. Said chapter 255C, as so appearing, is hereby amended by adding after
650	650	619section 23 the following two sections:-
651	651	620 Section 24. (a) Whenever the commissioner finds that any licensee or exempt person
652	652	621under section 2 of this chapter has violated any provision of this chapter or any rule or regulation
653	653	622adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the
654	654	623business of a premium finance agency, the commissioner may, by order, in addition to any other
655	655	624action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
656	656	625upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
657	657	626for the violation plus the costs of investigation. The commissioner may impose a penalty which
658	658	627shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
659	659	628thereunder, by a person other than a licensee or exempt person under section 2 of this chapter,
660	660	629plus the costs of investigation.
661	661	630 (b)In addition to any other action authorized under this chapter or any rule of regulation
662	662	631made thereunder, whoever violates any provision of this chapter, or knowingly makes any
663	663	632incorrect statement of a material fact in any application, report or statement filed pursuant to this
664	664	633chapter, or knowingly omits to state any material fact necessary to give the commissioner any 31 of 40
665	665	634information lawfully required, may be punished by imprisonment for not more than 6 months.
666	666	635The penalty provision of this section shall be in addition to, and not in lieu of, any other
667	667	636provision of law applicable to a licensee or other person for violating any provision of this
668	668	637chapter or any rule or regulation made thereunder.
669	669	638 (c) Nothing in this section shall limit the right of any individual or entity who has been
670	670	639injured as a result of any violation of this chapter by a licensee, or any person other than a
671	671	640licensee or exempt person under section 2 of this chapter, to bring an action to recover damages
672	672	641or restitution in a court of competent jurisdiction.
673	673	642 (d) Any findings or order issued by the commissioner pursuant to this section shall be
674	674	643subject to review as provided in chapter 30A.
675	675	644 Section 25. (a) Whenever the commissioner determines that any person has, directly or
676	676	645indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
677	677	646applicable to the conduct of the business of a premium finance agency; or any order issued by
678	678	647the commissioner under this chapter or any written agreement entered between the licensee and
679	679	648the commissioner; the commissioner may serve upon the person a written notice of intention:
680	680	649 (1) to prohibit the person from performing in the capacity of a principal employee on
681	681	650behalf of any licensee for a period of time that the commissioner deems necessary;
682	682	651 (2) to prohibit the person from applying for or obtaining a license from the commissioner
683	683	652for a period up to 36 months following the effective date of an order issued under subsection (b)
684	684	653or (c); or 32 of 40
685	685	654 (3) to prohibit the person from any further participation, in any manner, in the conduct of
686	686	655the affairs of a premium finance agency in Massachusetts or to prohibit the person from being
687	687	656employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
688	688	657business which requires a license from the commissioner.
689	689	658 (b) A written notice issued under subsection (a) shall contain a written statement of the
690	690	659facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
691	691	660thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
692	692	661the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
693	693	662within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
694	694	663by a duly authorized representative, the party shall be deemed to have consented to the issuance
695	695	664of an order of prohibition in accordance with the notice.
696	696	665 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
697	697	666finds that any of the grounds specified in the notice have been established, the commissioner
698	698	667may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
699	699	668appropriate.
700	700	669 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
701	701	670person. The commissioner shall also serve a copy of the order upon the licensee of which the
702	702	671person is an employee or on whose behalf the person is performing. The order shall remain in
703	703	672effect and enforceable until it is modified, terminated, suspended, or set aside by the
704	704	673commissioner or a court of competent jurisdiction.
705	705	674 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
706	706	675an order issued under subsection (b) or (c), has been prohibited from participating in whole or in 33 of 40
707	707	676part in the conduct of the affairs of a premium finance agency in Massachusetts may not, while
708	708	677the order is in effect, continue or commence to perform in the capacity of a principal employee,
709	709	678or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
710	710	679conduct of the affairs of:
711	711	680 (1) any licensee under this chapter;
712	712	681 (2) any other business which requires a license from the commissioner; and
713	713	682 (3) any bank, as defined under section 1 of chapter 167, or any subsidiary thereof.
714	714	683 SECTION 27. Section 1 of chapter 255D of the General Laws, as so appearing, is hereby
715	715	684amended by striking out the definition of “Sales finance company” in lines 98 through 105,
716	716	685inclusive, and inserting in place thereof the following definition:-
717	717	686 "Sales finance company",
718	718	687 (1) a bank as defined in section 1 of chapter 167, or a national banking association or a
719	719	688savings and loan association, federal savings bank, federal savings and loan association, federal
720	720	689credit union, or any bank, trust company, savings bank, savings and loan association or credit
721	721	690union organized under the laws of any other state of the United States, or any subsidiary of the
722	722	691above,
723	723	692 (2) any person other than an installment seller engaged, in whole or in part, in the
724	724	693business of purchasing retail installment sale agreements or revolving credit agreements of 1 or
725	725	694more retail sellers. The term "sales finance company" shall not include the pledgee of an
726	726	695aggregate number of such agreements to secure a bona fide loan thereon. 34 of 40
727	727	696 SECTION 28. The first paragraph of section 2 of said chapter 255D, as so appearing, is
728	728	697hereby amended by striking out the fourth and fifth sentences.
729	729	698 SECTION 29. Said section 2 of said chapter 255D, as so appearing, is hereby further
730	730	699amended by striking out the ninth sentence.
731	731	700 SECTION 30. Section 3 of said chapter 255D, as so appearing, is hereby amended by
732	732	701inserting after the first paragraph the following two paragraphs:-
733	733	702 The commissioner shall preserve a full record of each examination of a licensee including
734	734	703a statement of its condition. All records of investigations and reports of examinations by the
735	735	704commissioner, including workpapers, information derived from the reports or responses to the
736	736	705reports, and any copies thereof in the possession of any licensee under the supervision of the
737	737	706commissioner, shall be confidential and privileged communications, shall not be subject to
738	738	707subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
739	739	708the purpose of this paragraph, records of investigation and reports of examinations shall include
740	740	709records of investigation and reports of examinations conducted by a financial regulatory agency
741	741	710of the federal government and any other state, and of any foreign government which are
742	742	711considered confidential by the agency or foreign government and which are in possession of the
743	743	712commissioner. In any proceeding before a court, the court may issue a protective order to seal the
744	744	713record protecting the confidentiality of any such record, other than any such record on file with
745	745	714the court or filed in connection with the court proceeding, and the court may exclude the public
746	746	715from any portion of the proceeding at which any such record may be disclosed. Copies of such
747	747	716reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
748	748	717to any other person, organization or agency without prior written approval by the commissioner. 35 of 40
749	749	718The commissioner may, in the commissioner’s discretion, furnish to regulatory agencies of the
750	750	719federal government, of other states, or of foreign countries, and any law enforcement agency, the
751	751	720information, reports, inspections and statements relating to the licensees under the
752	752	721commissioner’s supervision.
753	753	722 The commissioner, or the commissioner’s examiners, or other assistants as the
754	754	723commissioner may designate, may summon the directors, officers or agents of a licensee, or any
755	755	724other witnesses, and examine them relative to the affairs, transactions and condition of the
756	756	725licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
757	757	726to appear and testify when so required or obstructs the person making the examination in the
758	758	727performance of their duty, shall be punished by a fine of not more than $1,000 or by
759	759	728imprisonment for not more than 1 year.
760	760	729 SECTION 31. Said chapter 255D, as so appearing, is hereby amended by striking out
761	761	730section 7 as so appearing, and inserting in place thereof the following section:-
762	762	731 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
763	763	732chapter if the commissioner finds that:
764	764	733 (i) the licensee has violated any provision of this chapter or any rule or regulation
765	765	734adopted hereunder, or any other law applicable to the conduct of its business; or
766	766	735 (ii) any fact or condition exists which, if it had existed at the time of the original
767	767	736application for the license, would have warranted the commissioner in refusing to issue the
768	768	737license. 36 of 40
769	769	738 Except as provided in section 8, no license shall be revoked or suspended except after
770	770	739notice and a hearing thereon pursuant to chapter 30A.
771	771	740 A licensee may surrender a license by delivering to the commissioner written notice that
772	772	741it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
773	773	742the licensee for acts committed before the surrender.
774	774	743 No revocation, suspension or surrender of any license shall impair or affect the obligation
775	775	744of any pre-existing lawful contract between the licensee and any person.
776	776	745 SECTION 32. Said chapter 255D, as so appearing, is hereby further amended by striking
777	777	746out section 8, as so appearing, an inserting in place thereof the following two sections:-
778	778	747 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
779	779	748hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
780	780	749violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
781	781	750may order the licensee to cease and desist from the unlawful act or practice and take affirmative
782	782	751action as in the commissioner’s judgment will effect the purposes of this chapter.
783	783	752 (b) If the commissioner makes written findings of fact that the public interest will be
784	784	753irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
785	785	754a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
786	786	755commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
787	787	756been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
788	788	757from the licensee, the matter will be scheduled for hearing to determine whether or not the
789	789	758temporary order shall become permanent and final. If no hearing is requested and none is ordered
790	790	759by the commissioner, the order shall remain in effect until it is modified or vacated by the 37 of 40
791	791	760commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
792	792	761opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
793	793	762conclusions of law, vacate, modify or make permanent the order.
794	794	763 (c) No order under this section, except an order issued pursuant to subsection (b), may be
795	795	764entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
796	796	765modify an order under this section upon finding that the conditions which required the order
797	797	766have changed and that it is in the public interest to so vacate or modify.
798	798	767 Any order issued pursuant to this section shall be subject to review as provided in chapter
799	799	76830A.
800	800	769 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
801	801	770violations thereof, by filing a civil action in any court of competent jurisdiction.
802	802	771 SECTION 33. Section 30 of said chapter 255D, as so appearing, is hereby repealed.
803	803	772 SECTION 34. Said chapter 255D is hereby amended by adding after section 31 the
804	804	773following two sections:-
805	805	774 Section 32. (a) Whenever the commissioner finds that any licensee or exempt person
806	806	775under section 2 of this chapter has violated any provision of this chapter or any rule or regulation
807	807	776adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the
808	808	777business of a sales finance company, the commissioner may, by order, in addition to any other
809	809	778action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
810	810	779upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
811	811	780for the violation plus the costs of investigation. The commissioner may impose a penalty which 38 of 40
812	812	781shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
813	813	782thereunder, by a person other than a licensee or exempt person under section 2 of this chapter,
814	814	783plus the costs of investigation.
815	815	784 (b) In addition to any other action authorized under this chapter or any rule of regulation
816	816	785made thereunder, whoever violates any provision of this chapter may be punished by
817	817	786imprisonment for not more than 6 months. The penalty provision of this section shall be in
818	818	787addition to, and not in lieu of, any other provision of law applicable to a licensee or other person
819	819	788for violating section 2 or any rule or regulation made thereunder.
820	820	789 (c) Nothing in this section shall limit the right of any individual or entity who has been
821	821	790injured as a result of any violation of this chapter by a licensee, or any person other than a
822	822	791licensee or exempt person under section 2 of this chapter, to bring an action to recover damages
823	823	792or restitution in a court of competent jurisdiction.
824	824	793 (d) Any findings or order issued by the commissioner pursuant to this section shall be
825	825	794subject to review as provided in chapter 30A.
826	826	795 Section 33. (a) Whenever the commissioner determines that any person has, directly or
827	827	796indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
828	828	797applicable to the conduct of the business of a sales finance company; or any order issued by the
829	829	798commissioner under this chapter or any written agreement entered between the licensee and the
830	830	799commissioner; the commissioner may serve upon the person a written notice of intention:
831	831	800 (1) to prohibit the person from performing in the capacity of a principal employee on
832	832	801behalf of any licensee for a period of time that the commissioner deems necessary; 39 of 40
833	833	802 (2) to prohibit the person from applying for or obtaining a license from the commissioner
834	834	803for a period up to 36 months following the effective date of an order issued under subsection (b)
835	835	804or (c); or
836	836	805 (3) to prohibit the person from any further participation, in any manner, in the conduct of
837	837	806the affairs of a sales finance company in Massachusetts or to prohibit the person from being
838	838	807employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
839	839	808business which requires a license from the commissioner.
840	840	809 (b) A written notice issued under subsection (a) shall contain a written statement of the
841	841	810facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
842	842	811thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
843	843	812the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
844	844	813within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
845	845	814by a duly authorized representative, the party shall be deemed to have consented to the issuance
846	846	815of an order of prohibition in accordance with the notice.
847	847	816 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
848	848	817finds that any of the grounds specified in the notice have been established, the commissioner
849	849	818may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
850	850	819appropriate.
851	851	820 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
852	852	821person. The commissioner shall also serve a copy of the order upon the licensee of which the
853	853	822person is an employee or on whose behalf the person is performing. The order shall remain in 40 of 40
854	854	823effect and enforceable until it is modified, terminated, suspended, or set aside by the
855	855	824commissioner or a court of competent jurisdiction.
856	856	825 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
857	857	826an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
858	858	827part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
859	859	828order is in effect, continue or commence to perform in the capacity of a principal employee, or
860	860	829otherwise participate in any manner, if so prohibited by order of the commissioner, in the
861	861	830conduct of the affairs of:
862	862	831 (1) any licensee under this chapter;
863	863	832 (2) any other business which requires a license from the commissioner; and
864	864	833 (3) any bank, as defined under section 1 of chapter 167, or any subsidiary thereof.
865	865	834 SECTION 35. Section 8 of chapter 255E of the General Laws, as so appearing, is hereby
866	866	835amended by adding the following paragraph:-
867	867	836 The commissioner, or the commissioner’s examiners, or other assistants as the
868	868	837commissioner may designate, may summon the directors, officers or agents of a licensee, or any
869	869	838other witnesses, and examine them relative to the affairs, transactions and condition of the
870	870	839licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
871	871	840to appear and testify when so required or obstructs the person making the examination in the
872	872	841performance of their duty, shall be punished by a fine of not more than $1,000 or by
873	873	842imprisonment for not more than 1 year.