SB 974 — Consumer finance companies; authority of Attorney General to issue civil investigative demand.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2023 SESSION CHAPTER E469 An Act to amend and reenact § 6.2-1537 of the Code of Virginia, relating to financial institutions;

R O [S 974] L Approved March 24, 2023 Be it enacted by the General Assembly of Virginia:

L 1.

E § 6.2-1537.

Whenever the Attorney General has reasonable cause to believe that (i) any person, not licensed under this chapter, is violating, has violated, is threatening to violate or intends to violate any provision of this chapter or any order or regulation lawfully made pursuant to the authority of this chapter and (ii) the facts justify it, the Attorney General shall institute and prosecute a lawsuit for monetary or injunctive court may grant monetary relief or may enjoin and restrain or both any such person from engaging in theor Circuitcontinuing Courtany ofsuch theviolation Cityor offrom Richmond,doing inany theact nameor ofacts thein Commonwealth.furtherance thereof.

TherIn injunctiveany courtsuch maysuit granta monetarydecree relief or order may enjoinbe andentered restrainawarding or both any such personmonetary fromrelief engaging in or continuingpreliminary any such violation or fromfinal doinginjunctive anyrelief actas ormay actsbe indeemed furtheranceproper. thereof.

InB. any such suit a decree or order may be entered awarding such monetary relief or preliminary or final injunctiveSrelief as may be deemed proper.

9In B.addition to all other means provided by law for the enforcement of an award of monetary relief, a temporary restraining order, temporary injunction, or final injunction, the court may impound, and appoint a receiver for, (i) the property and business of the defendant, including books, papers, documents, and records pertaining thereto, (ii) so much thereof as the court deems reasonably necessary to prevent further violation of this chapter through or by means of the use of such property and business, or (iii) so much thereof as is necessary to identify borrowers who have been damaged and the amount of their damages, and to refund the amount of any such damages to the borrowers pursuant to subsection C.

InThe additionreceiver, towhen allappointed other means provided by law for the enforcement of an award of monetar4 and appointqualified, ashall receiverhave for,such (i)powers the property and businessduties of the defendant, including books, papers,und, documents, and records pertaining thereto, (ii) so much thereof as the court deems reasonably necessary to preventcustody, furthercollection, violationadministration, payment of thisdebts chapterand throughliquidation or by means of the use of such property and business,business or (iii) so much thereof as isfrom necessarytime to identifytime borrowersare whoconferred haveupon beenhim damagedby and the amountcourt. of their damages, and to refund the amount of any such damages to the borrowers pursuant to subsection C.

The receiver, when appointed and qualified, shall have such powers and duties as to from time to time are conferred upon him by the court.and liquidation of the property and business as C.

Nothing in this section shall be construed to preclude any person who suffers a loss as a result of a vF.violation of § 6.2-1501 from maintaining an action to recover damages or restitution under § 6.2-1541.

F.

Whenever the Attorney General has reasonable cause to believe that any person not licensed under this chapter has engaged in, is engaging in, or is about to engage in any violation of the provisions of this chapter or any order or regulation lawfully made pursuant to the authority of this chapter, the Attorney General is empowered to issue a civil investigative demand.