32-8-202. Charter application -- grounds for denial. (1) To safeguard the interests and the reputation of the state, the board shall deny a charter application if it finds that the applicant planning to operate the depository is not of good character or that the applicant is not financially sound.
     (2) The board may find that the person planning to own, operate, or manage the depository is not of good character or financial integrity if a director, an executive officer, or a controlling person of the applicant has:
     (a) been convicted of or has pleaded guilty or nolo contendere to any crime involving fraud, theft, conspiracy, racketeering, or money laundering;
     (b) had a professional or occupational license suspended or revoked based on conduct involving an act of fraud or dishonesty;
     (c) willfully made or caused to be made false or misleading statements in an application or report to the commissioner or has willfully omitted facts required in the report;
     (d) willfully violated a provision of 32-8-104 or 32-8-201 or aided, abetted, counseled, commanded, induced, or procured the violation by another person of a provision of 32-8-104 or 32-8-201.
     (3) Subsections (1) and (2) are not exclusive of other grounds on which the board may determine that an applicant for a depository charter is not of good character and therefore may not receive a charter.
     (4) The board may authorize the commissioner to conduct or obtain from a private investigative service a background check on any director, executive officer, or controlling person of the depository for the purposes of determining whether an applicant is of good character.
     (5) The board shall adopt rules concerning the method and process for determining whether an applicant for a charter is financially sound.

     History: En. Sec. 9, Ch. 382, L. 1997.