Section 323.12 - Ownership limitations for State-registered appraisal management companies(a)Appraiser certification or licensing of owners.(1) An AMC subject to State registration pursuant to this section shall not be registered by a State or included on the AMC National Registry if such AMC, in whole or in part, directly or indirectly, is owned by any person who has had an appraiser license or certificate refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any State for a substantive cause, as determined by the appropriate State appraiser certifying and licensing agency.(2) An AMC subject to State registration pursuant to this section is not barred by § 323.11(a)(1) from being registered by a State or included on the AMC National Registry if the license or certificate of the appraiser with an ownership interest was not revoked for a substantive cause and has been reinstated by the State or States in which the appraiser was licensed or certified.(b)Good moral character of owners. An AMC shall not be registered by a State if any person that owns more than 10 percent of the AMC-(1) Is determined by the State appraiser certifying and licensing agency not to have good moral character; or(2) Fails to submit to a background investigation carried out by the State appraiser certifying and licensing agency.