Idaho State Statutes - Idaho Attorney Directory

ORDER TO REFRAIN FROM OFFERING FINANCIAL ASSISTANCE --
CONDITIONS -- HEARING. (1) The director may issue an order directing a
licensee to refrain from providing any additional financing assistance and
management assistance to business firms if, in the opinion of the director,
the order is necessary to protect the interest of the licensee or the public
interest, and if, after notice and a hearing, the director determines that any
of the following are true:
(a) The licensee or a controlling person, subsidiary, or affiliate of the
licensee has violated the provisions of this chapter or another applicable
law.
(b) The licensee is conducting its business in an unsafe and unsound
manner.
(c) The licensee is in a condition that makes it unsafe or unsound for
the licensee to transact business.
(d) The licensee has ceased to transact business as a business and
industrial development corporation.
(e) The licensee is insolvent.
(f) The licensee has suspended payment of its obligations, has made an
assignment for the benefit of its creditors, or has admitted in writing
its inability to pay its debts as they become due.
(g) The licensee has applied for an adjudication of bankruptcy,
reorganization, arrangement, or other relief under a bankruptcy,
reorganization, insolvency, or moratorium law, or that a person has
applied for such relief under such a law against a licensee and the
licensee has by any affirmative act approved of or consented to the action
or such relief has been granted.
(h) A fact or condition exists which would have been grounds for denying
the application if the fact or condition had existed at the time the
licensee applied for its license.
(2) If the director determines that any of the factors set forth in
subsection (1) of this section are true with respect to a licensee and that it
is necessary for the protection of the interests of the licensee or the public
interest that the director immediately issue an order directing the licensee
to refrain from providing any additional financing assistance and management
assistance to business firms, the director may issue such an order without a
hearing. Within thirty (30) days after an order is issued under this
subsection, the licensee to whom the order is directed may file with the
director a request for a hearing on the order. If the director fails to
commence a hearing within fifteen (15) business days after the request is
filed or within a longer period to which the licensee consents, that order
shall be considered rescinded. Upon the conclusion of the hearing, the
director shall affirm, modify, or rescind the order.
(3) With the consent of the director, a licensee which has been the
subject of an order under subsection (1) or (2) of this section may resume
providing financing assistance and management assistance to business firms
under such conditions as the director may prescribe.
(4) A person to whom an order is directed under subsection (1) or (2) of
this section may apply to the director to modify or rescind the order. The
director shall not grant the application unless the director determines that
it is in the public interest to do so and that it is reasonable to believe
that the person, if and when the order is modified or rescinded, will comply
with this chapter.

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