reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 2 - Ownership as Between Parties and Others. › Section 5-24-15 - Rights of Creditors and Others.

Section 5-24-15
Rights of creditors and others.
(a) If other assets of the estate are insufficient, a transfer resulting from a right of survivorship or POD designation under this chapter is not effective against the estate of a deceased party to the extent needed to pay claims against the estate and statutory allowances to the surviving spouse and children.
(b) A surviving party or beneficiary who receives payment from an account after death of a party is liable to account to the personal representative of the decedent for a proportionate share of the amount received to which the decedent, immediately before death, was beneficially entitled under Section 5-24-11, to the extent necessary to discharge the claims and allowances described in subsection (a) remaining unpaid after application of the decedent's estate. A proceeding to assert the liability may not be commenced unless the personal representative has received a written demand by the surviving spouse, a creditor, a child, or a person acting for a child of the decedent. The proceeding must be commenced within one year after death of the decedent.
(c) A surviving party or beneficiary against whom a proceeding to account is brought may join as a party to the proceeding a surviving party or beneficiary of any other account of the decedent.
(d) Sums recovered by the personal representative must be administered as part of the decedent's estate. This section does not affect the protection from claims of the personal representative or estate of a deceased party provided in Section 5-24-26 for a financial institution that makes payment in accordance with the terms of the account.
(e) In this section:
(1) CHILD includes any individual entitled to take as a child by intestate succession from the parent whose relationship is involved and excludes any person who is only a stepchild, a foster child, a grandchild, or any more remote descendant.
(2) CLAIMS, in respect to the estate of a decedent, includes liabilities of the decedent whether arising in contract, tort, or otherwise, and liabilities of the estate which arise at or after the death of the decedent, including funeral expenses and expenses of administration. The term does not include estate or inheritance taxes, or demands or disputes regarding title of a decedent to specific assets alleged to be included in the estate.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-21 - Authority of Financial Institution.

Section 5-24-21
Authority of financial institution.
A financial institution may enter into a contract of deposit for a multiple-party account to the same extent it may enter into a contract of deposit for a single-party account, and may provide for a POD designation and an agency designation in either a single-party account or a multiple-party account. A financial institution need not inquire as to the source of a deposit to an account or as to the proposed application of a payment from an account. A financial institution may answer "indebted", or a similar answer, for the entire amount of an account upon receipt of a garnishment, levy, or similar process involving a party and pay the entire amount in the account pursuant to the process even though the process is issued in the name of fewer than all parties. The parties on the account may assert their claims to ownership of the account in the proceedings out of which the process arose or was issued.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-22 - Payment on Multiple-Party Account.

Section 5-24-22
Payment on multiple-party account.
A financial institution, on request, may pay sums on deposit in a multiple-party account to:
(1) One or more of the parties, whether or not another party is disabled, incapacitated, or deceased when payment is requested and whether or not the party making the request survives another party; or
(2) The personal representative, if any, of a deceased party if proof of death is presented to the financial institution showing that the deceased party was the survivor of all other persons named on the account either as a party or beneficiary, unless the account is without right of survivorship under Section 5-24-12; or
(3) The persons named in Section 5-5A-38, in accordance with the procedures set forth in Sections 5-5A-38 and 5-5A-39.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-23 - Payment on Pod Designation.

Section 5-24-23
Payment on POD designation.
A financial institution, on request, may pay sums on deposit in an account with a POD designation to:
(1) One or more of the parties, whether or not another party is disabled, incapacitated, or deceased when the payment is requested and whether or not a party survives another party;
(2) The beneficiary or beneficiaries, if proof of death is presented to the financial institution showing that the beneficiary or beneficiaries survived all persons named as parties; or
(3) The personal representative, if any, if proof of death is presented to the financial institution showing that the deceased party was the survivor of all other persons named on the account either as a party or beneficiary; or
(4) The persons named in Section 5-5A-38, in accordance with the procedures in Sections 5-5A-38 and 5-5A-39.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-24 - Payment to Designated Agent.

Section 5-24-24
Payment to designated agent.
A financial institution, on request of an agent under an agency designation for an account, may pay to the agent sums on deposit in the account, whether or not a party is disabled, incompetent, incapacitated, or deceased when the request is made or received, and whether or not the authority of the agent terminates on the death, disability, incompetency, or incapacity of a party.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-25 - Payment to Minor.

Section 5-24-25
Payment to minor.
If a financial institution is required or permitted to make payment pursuant to this chapter to a minor designated as a beneficiary, payment may be made pursuant to the Uniform Transfers to Minors Act.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-26 - Discharge.

Section 5-24-26
Discharge.
(a) Payment made pursuant to this chapter in accordance with the type of account discharges the financial institution from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors. Payment may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, received, or made.
(b) Protection of a financial institution under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of sums on deposit in accounts or payments made from accounts.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 3 - Protection of Financial Institutions. › Section 5-24-27 - Set-Off.

Section 5-24-27
Set-off.
Without qualifying any other statutory right to set-off or lien and subject to any contractual provision between a party and a financial institution, if any party is indebted to a financial institution, the financial institution has a right to set-off against the entire amount of the account without regard to the net contribution of the parties to the account.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 4 - Short Title, Construction, Transitional Provisions. › Section 5-24-31 - Short Title.

Section 5-24-31
Short title.
This chapter may be cited as the Uniform Multiple-Person Accounts Act.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 4 - Short Title, Construction, Transitional Provisions. › Section 5-24-32 - Uniformity of Application and Construction.

Section 5-24-32
Uniformity of application and construction.
This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 4 - Short Title, Construction, Transitional Provisions. › Section 5-24-33 - Supplementary General Principles of Law Applicable.

Section 5-24-33
Supplementary general principles of law applicable.
Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 24 - Uniform Multiple-Person Accounts Act. › Article 4 - Short Title, Construction, Transitional Provisions. › Section 5-24-34 - Transitional Provisions.

Section 5-24-34
Transitional provisions.
On March 1, 1998:
(1) An act done before March 1, 1998, and any accrued right is not impaired by this chapter. If a right is acquired, extinguished, or barred on the expiration of a prescribed period of time that has commenced to run by the provisions of any statute before March 1, 1998, the provisions shall remain in force with respect to that right.
(2) Any rule of construction or presumption provided in this chapter applies to accounts established before March 1, 1998, unless there is a clear indication of a contrary intent.
(Acts 1997, No. 97-644, p. 1177, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-3 - Persons Excluded.

Section 5-25-3
Persons excluded.
The following persons are not subject to the provisions of this chapter:
(1) Any depository institution as defined in Section 3 of the Federal Deposit Insurance Act, any subsidiary institution that is owned and controlled by a depository institution, and employees of any of the foregoing. Bank holding companies and subsidiaries of bank holding companies, thrift holding companies and subsidiaries of thrift holding companies, trust companies, savings or building and loan associations, savings banks and other thrift institutions, credit unions, and all other affiliates of each of the above persons if more than 50 percent of the affiliate's shares or other ownership interests are owned or controlled by such person, and federally or state constituted agencies and employees of any of the foregoing.
(2) Any person licensed under Section 5-19-22.
(3) An attorney licensed to practice law in Alabama who is not principally engaged in negotiating mortgage loans when the attorney renders services in the course of his or her practice as an attorney.
(4) Any person performing any act relating to mortgage loans under order of any court.
(5) A natural person:
a. Who is employed by a licensed mortgage broker or any person exempted from the licensing requirements of this chapter when acting within the scope of employment with the licensee or exempted person; however, mortgage loan originators must be licensed or registered in accordance with the Alabama Secure and Fair Enforcement for Mortgage Licensing Act; or
b. Who solicits mortgage loans exclusively on behalf of a licensed mortgage broker or any person exempted from the licensing requirements of this chapter when the natural person is acting within the scope of the agency of the licensee or exempted person; however, independent contractors that originate, process, or underwrite mortgage loans shall not originate, process, or underwrite mortgage loans unless they are licensed or registered in accordance with the Alabama Secure and Fair Enforcement for Mortgage Licensing Act.
(6) Any licensed real estate salesperson or broker who provides mortgage loan assistance in the course of doing business unless the real estate salesperson or broker is compensated for providing mortgage loan assistance.
(Act 2001-692, p. 1439, §3; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-4 - License to Transact Business as a Mortgage Broker.

Section 5-25-4
License to transact business as a mortgage broker.
(a) On and after January 1, 2002, no person shall transact business in this state directly or indirectly as a mortgage broker unless he or she is licensed as a mortgage broker by the department, or is a person exempted from the licensing requirements pursuant to Section 5-25-3.
(b) A licensee shall obtain a license for each location where the business of the mortgage broker is transacted.
(c) On or after January 1, 2002, every person who directly or indirectly controls a person who violates subsection (a), including a general partner, executive officer, joint venturer, or director of the person, violates subsection (a) with and to the same extent as the person, unless the person whose violation arises under this subsection sustains the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the existence of the facts by reason of which the original violation is alleged to exist.
(d) A violation of subsection (a), (b), or (c) does not affect the obligation of the borrower under the terms of the mortgage loan, or the enforceability of the mortgage loan documents. No private cause of action exists against a mortgage broker, licensee, or any person who controls a mortgage broker for any violation of subsection (a), (b), or (c). The department shall provide for the distribution or availability of information regarding approved or revoked licenses.
(Act 2001-692, p. 1439, §4.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-6 - Issuance of License.

Section 5-25-6
Issuance of license.
(a) Upon receipt of a completed application for a license together with all items set forth in subsection (c) of Section 5-25-5, the department shall conduct such an investigation as it deems necessary to determine that the applicant and its officers, directors, and principals are of good character and ethical reputation and will operate honestly and fairly within the purposes of this chapter; and that the applicant demonstrates reasonable financial responsibility.
(b) The department may not license any applicant unless it is satisfied that the applicant may be expected to operate its mortgage brokerage activities in compliance with the laws of this state.
(c) The department may not issue a license if it finds that the applicant, or any person who is a director, executive officer, partner, or principal of the applicant, has been convicted of a felony or offense which involves breach of trust, fraud, or dishonesty in any jurisdiction. For the purposes of this chapter, a person shall be deemed to have been convicted if the person has pled guilty to a crime before a domestic, foreign, or military court or federal magistrate, or has been found guilty of a crime by the decision or judgment of a domestic, foreign, or military court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension of a sentence.
(d) The department may deny a license or otherwise restrict a license if it finds that the applicant, or any person who is a director, executive officer, partner, or principal of the applicant, has had a license or registration to conduct mortgage related activity denied, revoked, or suspended in any jurisdiction.
(e) Within 90 days after receipt of a completed application together with all items set forth in subsection (c) of Section 5-25-5, the department shall either grant or deny the request for license.
(Act 2001-692, p. 1439, §6; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-7 - Expiration and Renewal.

Section 5-25-7
Expiration and renewal.
(a) All licenses issued pursuant to this chapter shall expire on December 31 of each year. Application for renewal shall be made annually on or before December 1 of each year to be effective for the following year.
(b) Any licensee making proper application, including all supporting documents and all applicable fees required by this chapter and any regulations promulgated by the department, for a license renewal to operate during the following calendar year, and filing the application December 1, shall be permitted to continue to operate pending final approval or disapproval of the application for the license renewal for the following year if final approval or disapproval is not granted prior to February 1.
(c) Each renewal application shall be accompanied by a five hundred dollar ($500) annual license application fee, which fee will not be refunded or prorated.
(d) Any person holding a license pursuant to this chapter who fails to file a proper application for a license renewal for the following year, including the proper fee accompanying the application, on or before February 1, and who files an application after February 1, may be required to pay, in addition to the license fee, a penalty of 10 percent for each month or part thereof that the licensee is delinquent in the payment of such license fee.
(e) The department may require a licensee to renew a license through the Nationwide Mortgage Licensing System and Registry.
(Act 2001-692, p. 1439, §7; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-8 - License Requirements.

Section 5-25-8
License requirements.
(a) Each license issued under this chapter shall state the address of the licensee's principal place of business and the name of the licensee.
(b) A licensee shall post the license in a conspicuous place in each place of business of the licensee.
(c) A license may not be transferred or assigned.
(d) No licensee shall transact business under any name other than that designated in the license.
(e) Each licensee shall notify the department in writing of any change in the address of its principal place of business or of any change in the address of any licensed location 15 days prior to such change, and any change of officers, directors, or principal of the licensee, not later than 30 business days after the change is effective.
(f) Within 15 days of the occurrence of any one of the following events, a licensee shall file a written report with the supervisor describing the event and its expected impact on the activities of the licensee in this state:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings against the licensee by any state or governmental authority.
(3) Any felony indictment of the licensee or any of its directors, executive officers, or principals.
(4) Any felony conviction of the licensee or any of its directors, executive officers, or principals.
(Act 2001-692, p. 1439, §8; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-10 - Annual Report.

Section 5-25-10
Annual report.
(a) Each licensee shall annually, on or before May 1, file a written report with the department containing that information the department may require concerning the licensee's business and operations during the preceding calendar year, including financial statements.
(b) Reports shall be made under oath and shall be in the form prescribed by the department. Any licensee who fails to prepare and file with the department by May 1 the report required by this section shall pay the department a late penalty of one hundred dollars ($100) for each day after May 1. The department may, in its discretion, relieve any licensee from the payment of any penalty, in whole or in part, if good cause is shown. If a licensee fails to pay a penalty from which it has not been relieved, the department may, through the Attorney General, maintain an action at law to recover the penalty.
(Act 2001-692, p. 1439, §10.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-11 - Principal Place of Business; Branch Office.

Section 5-25-11
Principal place of business; branch office.
A licensee may transact business from both a principal place of business and one or more branch offices provided each is licensed under this chapter. A principal place of business or branch office shall consist of at least one enclosed room or building of stationary construction in which negotiations of mortgage loan transactions may be conducted and carried on in privacy and in which all of the books, records, and files pertaining to mortgage loan transactions are maintained. Each principal place of business and branch office shall also be in compliance with local zoning ordinances and have posted any occupational licenses required by local government agencies. It is the responsibility of the licensee to meet local zoning ordinances and obtain the required occupational licenses; however, zoning for the principal place of business or the branch office shall not be residential.
(Act 2001-692, p. 1439, §11; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-12 - Disclosure by Licensee; Prohibited Activities.

Section 5-25-12
Disclosure by licensee; prohibited activities.
(a) Licensees shall:
(1) Prior to the collection of a mortgage broker fee from a borrower, disclose to the borrower in writing the nature of the mortgage broker's relationship to the borrower and the method by which the mortgage broker will be compensated for services.
(2) Comply with applicable federal and state laws, rules, and regulations.
(b) Licensees shall not:
(1) Intentionally misrepresent or conceal a material fact, term, or condition of the transaction to which he or she is a party, pertinent to an application for a mortgage loan or a borrower.
(2) Fail to use due diligence and make reasonable efforts to procure a mortgage loan on behalf of the borrower.
(3) Fail to disburse funds in accordance with a written commitment to make a mortgage loan.
(4) Delay closing of a mortgage loan for the purpose of increasing interest rate, costs, fees, or other charges payable by the borrower.
(5) Collect any mortgage broker fees before a conditional commitment is obtained from the lender by the mortgage broker.
(Act 2001-692, p. 1439, §12; Act 2009-624, p. 1891, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-14 - Denial, Suspension, or Revocation of License.

Section 5-25-14
Denial, suspension, or revocation of license.
(a) The department may suspend or revoke a license on any ground on which it might refuse to issue an original license, or for a violation of any provision of this chapter or any rule or regulation issued under this chapter or for failure of the licensee to pay, within 30 days after it becomes final and nonappealable, a judgment recovered in any court within this state by a claimant or creditor in an action arising out of the licensee's business in this state as a mortgage broker. In these actions, the hearing and appeal procedures provided for in those sections shall be the only procedures required under this chapter.
(b) Notice of the department's intention to enter an order denying an application for a license under this chapter or of an order suspending or revoking a license under this chapter shall be given to the applicant or licensee in writing, sent by registered or certified mail addressed to the principal place of business of the applicant or licensee. Within 20 days of the date of the notice of intention to enter an order of denial, suspension, or revocation under this chapter, the applicant or licensee may request in writing a hearing to contest the order. If a hearing is not requested in writing within 20 days of the date of the notice of intention, the department shall enter a final order regarding the denial or suspension. Any final order of the department denying, suspending, or revoking a license shall state the grounds upon which it is based and shall be effective on the date of issuance. A copy of the final order shall be forwarded promptly by registered or certified mail addressed to the principal place of business of the applicant or licensee.
(c) A decision of the department denying, suspending, or revoking a license shall be conclusive, except that a licensee aggrieved by an order of the department under this section may obtain judicial review of the order and the department may obtain an order of the court for enforcement of its order in the circuit court. The proceedings shall be governed by the provisions of Section 5-25-15.
(d) A revocation, suspension, or surrender of a license shall not impair or affect the obligation of a preexisting contract between the licensee and another person entered into prior to the effective date of the license revocation, suspension, or surrender.
(Act 2001-692, p. 1439, §14.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-15 - Appeal.

Section 5-25-15
Appeal.
(a) Any interested party or intervener may appeal an order of the department to the Circuit Court of Montgomery County or to the circuit court of the county in which such party has its principal place of business in Alabama by filing notice of appeal with the department and with the register or clerk of the circuit court within 30 days from the date of said final order. The department's findings shall be prima facie correct, but the circuit court may hear such appeal according to its own rules and procedures, including the taking of additional testimony and staying the order. In the circuit court, the trial shall be de novo. The court may, if it decides that the department has erred to the prejudice of appellant's substantial rights in its application of the law or that the order was based upon findings of fact contrary to the substantial weight of the evidence, remand the proceeding to the department for further action in conformity with the direction of the court or may enter such order as the court deems appropriate.
(b) Either party may appeal from the circuit court to the Supreme Court of Alabama within 42 days from the date of entry of the order of the circuit court.
(Act 2001-692, p. 1439, §15.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-16 - Enforcement and Penalties.

Section 5-25-16
Enforcement and penalties.
(a) Whenever it appears to the supervisor that any person required to be licensed or registered under this chapter has violated any law of this state or any order or regulation of the department, the supervisor after notice and hearing may order such person or an affiliate acting on behalf of such person to cease and desist from the unauthorized practices.
(b) Any person required to be licensed under this chapter or an affiliate of such person who is found by the supervisor after notice and hearing to have violated this chapter or the terms of any order issued pursuant to this section may be ordered by the supervisor to pay a civil penalty of not more than three thousand dollars ($3,000) in the aggregate for all violations of a similar nature or, where violations are knowing violations, not more than fifteen thousand dollars ($15,000), in addition to any other penalties provided by law, including, but not limited to, revocation of any licenses issued under this chapter.
(c) Violations shall be of a similar nature if the violations consist of the same or substantially the same course of action or practice irrespective of the number of times the course of action or practice occurred. All civil penalties collected shall be paid into the special fund provided by Section 5-2A-20, and used in the supervision and examination of licensees. At the hearing, the person or affiliate of a person shall be entitled to be represented by counsel. A person or affiliate of a person aggrieved by an order of the supervisor under this section may obtain judicial review of the order and the supervisor may obtain an order of the court for enforcement of its order in the circuit court. The proceedings shall be governed by the provisions of Section 5-19-26.
(Act 2001-692, p. 1439, §16.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-17 - Violations of Chapter.

Section 5-25-17
Violations of chapter.
Any person who willfully violates any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punished by imprisonment for not more than one year or by a fine of not more than one thousand dollars ($1,000), or by both fine and imprisonment.
(Act 2001-692, p. 1439, §17.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 25 - Mortgage Brokers Licensing Act. › Section 5-25-18 - Disposition of Funds.

Section 5-25-18
Disposition of funds.
All fees and administrative penalties collected shall be paid into the special fund provided by Section 5-2A-20 and used in the supervision and examination of licensees.
(Act 2001-692, p. 1439, §18.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-1 - Short Title.

Section 5-26-1
Short title.
This chapter may be cited as the Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009 or Alabama S.A.F.E. Mortgage Licensing Act of 2009.
(Act 2009-627, p. 1907, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-2 - Legislative Findings.

Section 5-26-2
Legislative findings.
The activities of mortgage loan originators and the origination or offering of financing for residential real property have a direct, valuable, and immediate impact upon Alabama's consumers, Alabama's economy, the neighborhoods and communities of Alabama, and the housing and real estate industry. The Legislature finds that accessibility to mortgage credit is vital to the state's citizens. The Legislature also finds that it is essential for the protection of the citizens of Alabama and the stability of Alabama's economy that reasonable standards for licensing and regulation of the business practices of mortgage loan originators be imposed. Therefore the Legislature establishes within this chapter:
(a) SYSTEM OF SUPERVISION AND ENFORCEMENT. An effective system of supervision and enforcement of the mortgage lending industry, including:
(i) The authority to issue licenses to conduct business under this chapter, including the authority to write rules or regulations or adopt procedures necessary to the licensing of persons covered under this chapter.
(ii) The authority to deny, suspend, condition, or revoke licenses issued under this chapter.
(iii) The authority to examine, investigate, and conduct enforcement actions as necessary to carry out the intended purposes of this chapter, including the authority to subpoena witnesses and documents, enter orders, including cease and desist orders, order restitution and monetary penalties, and order the removal and ban of individuals from office or employment.
(b) BROAD ADMINISTRATIVE AUTHORITY. That the supervisor shall have the broad administrative authority to administer, interpret, and enforce this chapter, and promulgate rules or regulations implementing this chapter, in order to carry out the intentions of the Legislature.
(Act 2009-627, p. 1907, §2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-6 - Issuance of License.

Section 5-26-6
Issuance of license.
The supervisor shall not issue a mortgage loan originator license unless the Supervisor makes at a minimum the following findings:
(1) NO LICENSE REVOCATION. The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a subsequent formal vacation of such revocation shall not be deemed a revocation.
(2) NO FELONY CONVICTION. The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:
(a) During the seven-year period preceding the date of the application for licensing and registration; or
(b) At any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering;
(c) Provided that any pardon of a conviction shall not be a conviction for purposes of this subsection.
(3) CHARACTER AND FITNESS. The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this chapter. The supervisor shall not base a license denial, in whole or in part, on an applicant's credit score, nor shall the supervisor use a credit report as the sole basis for license denial.
(a) For purposes of this subsection a person has shown that he or she is not financially responsible when he or she has shown a disregard in the management of his or her own financial condition. A determination that an individual has not shown financial responsibility may include, but not be limited to:
(i) Current outstanding judgments, except judgments solely as a result of medical expenses;
(ii) Current outstanding tax liens or other government liens and filings;
(iii) Foreclosures within the past three years;
(iv) A pattern of seriously delinquent accounts within the past three years.
(4) PRE-LICENSING EDUCATION. The applicant has completed the pre-licensing education requirement described in Section 5-26-7.
(5) WRITTEN TEST. The applicant has passed a written test that meets the test requirement described in Section 5-26-8.
(6) NET WORTH, SURETY BOND, OR STATE FUND REQUIREMENT. The applicant has met the surety bond requirement as required pursuant to Section 5-26-14.
(Act 2009-627, p. 1907, §6.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-7 - Pre-Licensing Education of Loan Originators.

Section 5-26-7
Pre-licensing education of loan originators.
(1) Minimum educational requirements. In order to meet the pre-licensing education requirement referred to in Section 5-26-6(4) a person shall complete at least 20 hours of education approved in accordance with subsection (2), which shall include at least:
(a) Three hours of federal law and regulations;
(b) Three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and
(c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
(2) Approved educational courses. For purposes of subsection (1), pre-licensing education courses shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. Review and approval of a pre-licensing education course shall include review and approval of the course provider.
(3) Approval of employer and affiliate educational courses. Nothing in this section shall preclude any pre-licensing education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the applicant or an entity which is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of such employer or entity.
(4) Venue of education. Pre-licensing education may be offered either in a classroom, online, or by any other means approved by the Nationwide Mortgage Licensing System and Registry.
(5) Reciprocity of education. The pre-licensing education requirements approved by the Nationwide Mortgage Licensing System and Registry in subsections (1)(a), (b), and (c) for any state shall be accepted as credit towards completion of pre-licensing education requirements in Alabama.
(Act 2009-627, p. 1907, §7.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-8 - Testing of Loan Originators.

Section 5-26-8
Testing of loan originators.
(1) In general. In order to meet the written test requirement referred to in Section 5-26-6(5), an individual shall pass, in accordance with the standards established under this subsection, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.
(2) Qualified test. A written test shall not be treated as a qualified written test for purposes of subsection (1) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:
(a) Ethics;
(b) Federal law and regulation pertaining to mortgage origination;
(c) State law and regulation pertaining to mortgage origination;
(d) Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
(3) Testing location. Nothing in this section shall prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(4) Minimum competence:
(a) PASSING SCORE. An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than 75 percent correct answers to questions.
(b) INITIAL RETESTS. An individual may retake a test three consecutive times with each consecutive taking occurring at least 30 days after the preceding test.
(c) SUBSEQUENT RETESTS. After failing three consecutive tests, an individual shall wait at least six months before taking the test again.
(d) RETEST AFTER LAPSE OF LICENSE. A licensed mortgage loan originator who fails to maintain a valid license for a period of five years or longer shall retake the test, not taking into account any time during which such individual is a registered mortgage loan originator.
(Act 2009-627, p. 1907, §8.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-9 - Standards for License Renewal.

Section 5-26-9
Standards for license renewal.
(1) In general. The minimum standards for license renewal for mortgage loan originators shall include the following:
(a) The mortgage loan originator continues to meet the minimum standards for license issuance under Section 5-26-6(1) to (6), inclusive.
(b) The mortgage loan originator has satisfied the annual continuing education requirements described in Section 5-26-10.
(c) The mortgage loan originator has paid all required fees for renewal of the license. The fee related to the renewal of the license shall be seventy-five dollars ($75). This license renewal fee shall be in addition to the fees required to renew through the Nationwide Mortgage Licensing System and Registry.
(2) Failure to satisfy minimum standards of license renewal. The license of a mortgage loan originator failing to satisfy the minimum standards for license renewal shall expire. The supervisor may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the Nationwide Mortgage Licensing System and Registry.
(Act 2009-627, p. 1907, §9.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-11 - Authority to Require License.

Section 5-26-11
Authority to require license.
In addition to any other duties imposed upon the supervisor by law, the supervisor shall require mortgage loan originators to be licensed and registered through the Nationwide Mortgage Licensing System and Registry. In order to carry out this requirement the supervisor is authorized to participate in the Nationwide Mortgage Licensing System and Registry. For this purpose, the supervisor may establish by rule/regulation or order requirements as necessary, including but not limited to:
(1) BACKGROUND CHECKS. Background checks for:
(a) Criminal history through fingerprint or other databases;
(b) Civil or administrative records;
(c) Credit history; or
(d) Any other information as deemed necessary by the Nationwide Mortgage Licensing System and Registry.
(2) FEES. The payment of fees to apply for or renew licenses through the Nationwide Mortgage Licensing System and Registry;
(3) SETTING DATES. The setting or resetting as necessary of renewal or reporting dates; and
(4) OTHER. Requirements for amending or surrendering a license or any other such activities as the supervisor deems necessary for participation in the Nationwide Mortgage Licensing System and Registry.
(Act 2009-627, p. 1907, §11.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-12 - Nationwide Mortgage Licensing System and Registry Information Challenge Process.

Section 5-26-12
Nationwide Mortgage Licensing System and Registry information challenge process.
The supervisor shall establish a process whereby mortgage loan originators may challenge information entered into the Nationwide Mortgage Licensing System and Registry.
(Act 2009-627, p. 1907, §12.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-13 - Enforcement Authorities, Violations, and Penalties.

Section 5-26-13
Enforcement authorities, violations, and penalties.
(1) In order to ensure the effective supervision and enforcement of this chapter the supervisor may:
(a) Deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules or regulations issued under this chapter or order or directive entered under this chapter, or for failure to comply with any other state or federal law, including the rules and regulations thereunder, applicable to any business authorized or conducted under this act.
(b) Deny, suspend, revoke, condition, or decline to renew a license if an applicant or licensee fails at any time to meet the requirements of Section 5-26-6 or Section 5-26-9, or withholds information or makes a material misstatement in an application for a license or renewal of a license.
(c) Order restitution against persons subject to this chapter for violations of this chapter.
(d) Impose fines on persons subject to this chapter pursuant to subsections (2), (3), and (4).
(e) Issue orders or directives under this chapter as follows:
(i) Order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist.
(ii) Order or direct persons subject to this chapter to cease any harmful activities or violations of this chapter, including immediate temporary orders to cease and desist.
(iii) Enter immediate temporary orders to cease business under a license or interim license issued pursuant to the authority granted under Section 5-26-4(5) if the supervisor determines that such license was erroneously granted or the licensee is currently in violation of this chapter;
(iv) Order or direct such other affirmative action as the supervisor deems necessary.
(2) The supervisor may impose a civil penalty on a mortgage loan originator or person subject to this chapter, if the supervisor finds, on the record after notice and opportunity for hearing, that such mortgage loan originator or person subject to this chapter has violated or failed to comply with any requirement of this chapter or any regulation prescribed by the supervisor under this chapter or order issued under authority of this chapter.
(3) The maximum amount of penalty for each act or omission described in subsection (2) shall be twenty-five thousand dollars ($25,000).
(4) Each violation or failure to comply with any directive or order of the supervisor is a separate and distinct violation or failure.
(5) A violation of this chapter or any order, rule, regulation, or procedure does not affect the obligation of a borrower or other person under the terms of a mortgage loan or the enforceability of mortgage loan documents. No private cause of action is created by or exists under this chapter.
(Act 2009-627, p. 1907, §13.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 26 - Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009. › Section 5-26-14 - Surety Bond Required.

Section 5-26-14
Surety bond required.
(1) Coverage, form and regulations. Each mortgage loan originator shall be covered by a surety bond in accordance with this section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act, the surety bond of such person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act can be used in lieu of the mortgage loan originator's surety bond requirement.
(a) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subsection (2).
(b) The surety bond shall be in a form as prescribed by the supervisor.
(c) The supervisor may promulgate rules or regulations with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of this chapter.
(2) Penal sum of surety bond. The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated as determined by the supervisor.
(3) Action on bond. When an action is commenced on a licensee's bond the supervisor may require the filing of a new bond.
(4) New bond. Immediately upon recovery upon any action on the bond the licensee shall file a new bond.
(Act 2009-627, p. 1907, §14.)