D.C. Mun. Regs. tit. 26, r. 26-A2109

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A2109 - REVOCATION OR MODIFICATION OF APPROVAL OF SINKING FUNDS

2109.1

The Commissioner may revoke or modify prior approval of a sinking fund which has failed to comply with any provision of this chapter, or which:

(a) Is impaired in net worth;

(b) Is in such condition that its further transaction of business in the District would be hazardous to its participants, claimants, or the public;

(c) Has refused, neglected, or failed to pay a valid judgment against such fund within thirty (30) days after such judgment has become final;

(d) Has violated any law of the District;

(e) Has refused to submit its books, papers, accounts, records, or affairs to the reasonable inspection or examination of the Commissioner;

(f) Has made, circulated, or caused to be made any statement of any sort misrepresenting its status, or the benefits and advantages promised thereby; or

(g) The trustee(s) are found to be, by their conduct or otherwise, untrustworthy, incompetent, or have failed to carry out their responsibilities.

2109.2

The Commissioner may, in lieu of revoking or modifying prior approval of a sinking fund, impose a fine as set forth in section 2114.1.

2109.3

The Commissioner shall not revoke or modify prior approval of a sinking fund until the management of the fund has been given not less than thirty (30) days notice of the proposed action, the grounds therefore, and an opportunity for a hearing. Based upon the findings after a hearing, the Commissioner may impose any reasonable and necessary requirement that will assure the financial integrity of the fund or revoke prior approval and require that the management file a bond or policy of insurance.

2109.4

Hearings held pursuant to Section 2109.3 shall be conducted in accordance with the requirements of Section 10 of the D.C. Administrative Procedures Act, D.C. Code, Section 1-1509 (1987).

D.C. Mun. Regs. tit. 26, r. 26-A2109

Final Rulemaking published at 36 DCR 5113 (July 21, 1989)