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