N.J. Admin. Code § 3:15-6.3 - Location of books, records, accounts and other documents pertaining to a business; records retention

Current through Register Vol. 54, No. 7, April 4, 2022

(a) Each business licensee shall notify the Department of the place of business in which the books, records, accounts and other business documents of its activity as a mortgage lender or mortgage broker are kept. If the licensee moves the books, records, accounts or other business documents, the licensee shall notify the Department prior to the move.
(b) A business licensee may keep its records at:
1. A licensed office in this State;
2. An unlicensed site in or out of this State, provided that the licensee secures the prior approval of the Department pursuant to (c) below; or
3. A licensed office outside of this State, provided that the licensee secures the prior approval of the Department pursuant to (c) below.
(c) The approval of the Department to keep records at a site or office specified in (b)2 and 3 above shall be given only if the licensee enters into an agreement with the Department governing the maintenance and production of records at the site. The provisions of the agreement shall include, but shall not be limited to, the designation of the site where the records will be maintained, the fees and expenses chargeable by the Department for conducting examinations and investigations, if any, and the right of the Department to rescind the agreement.
(d) Business licensees operating more than one licensed office may maintain the general ledger at their principal office. The trial balance or balance sheet and profit and loss statement of the licensed office shall be made available upon request to the examiner or investigator at the office where the general ledger is kept.
(e) The books, accounts and records which pertain to each business activity conducted by a licensee under the Act shall be maintained separate and apart from the books, accounts and records of all non-licensed lines of business conducted by the licensee and shall be maintained so that an examiner or investigator can efficiently examine the various types of licensed activities.
(f) Business licensees shall preserve all books, records, accounts and documents related to the business for at least three years after making the final entry on any application or loan.
(g) The denial or withdrawal of an application shall constitute the final entry for an application which is denied or withdrawn.
(h) The assignment or sale of a loan shall constitute the final entry for a loan which is sold or assigned.
(i) In the case of an open-end loan, the licensee shall preserve the books, accounts and records for at least three years after each entry.
(j) All books, records, accounts and documents may be stored electronically so long as the electronically stored information can be produced in electronic format upon request by the Department or reproduced on paper and delivered to the Department within five days of the business licensee's receipt of a request from the Department to produce the records.
(k) In the case of a business licensee that ceases to do business, the Commissioner may move and store abandoned books, accounts and records in whatever form and make a claim against the bond for costs of moving and storage.

Notes

N.J. Admin. Code § 3:15-6.3
Amended by R.2006 d.235, effective 6/19/2006.
See: 38 N.J.R. 10(a), 38 N.J.R. 2674(a).
Inserted "if any" in the last sentence of (c).
Amended by R.2010 d.129, effective 6/21/2010 (operative July 31, 2010).
See: 41 N.J.R. 2829(a), 42 N.J.R. 1139(b).
Section was "Location of books and records". Rewrote (a); in the introductory paragraph of (b), inserted "business", in (b)1, deleted "principal or branch" following "licensed"; in (b)2, inserted "or"; in (b)3, deleted "branch" following "licensed" and substituted a period for "; or" at the end; deleted (b)4; rewrote (d); and added (f) through (k).

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.