HAR §16-106-8.1. Rejection by the director

(a) The director shall reject a developer, sales agent, or acquistion agent’s application for registration if the director finds that the applicant does not possess a history of honesty, truthfulness, and fair dealing. A rebuttable presumption that the developer, sales agent, or acquisition agent does not possess a history of honesty, truthfulness, or fair dealing shall arise if the applicant has: (1) Been convicted of, or has pleaded nolo contendere to, any crime involving an act of fraud or dishonesty; (2) Consented to or suffered a judgment in any civil or administrative action based upon conduct involving an act of fraud or dishonesty; (3) Consented to or suffered any indictment, formal investigation, examination, or civil or administrative proceedings that resulted in any agreements, undertakings, consents, or orders being issued by any federal or state court; any department, agency, or commission of the United States government; any state or municipality; any self-regulatory trade or professional organization; or any foreign government or governmental entity which involves an act of fraud or dishonesty; (4) Consented to or suffered the suspension or revocation of any professional, occupational, or vocational license based upon conduct involving an act of fraud or dishonesty; (5) Knowingly made or caused to be made in any application or report filed with the director, or in any proceeding before the director, any written or oral statement which was at the time and in light of the circumstances under which it was made false or misleading with respect to material fact; (6) Wilfully omitted to state a material fact with respect to information furnished or requested in connection with an application; (7) Wilfully committed any violation of, or has wilfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of any provision of state law or rule; (8) Been involved in unlicensed activity; (9) Been the subject of a series of complaints in this state or other jurisdictions; or 106-29 (10) Violated bonding requirements in this State or in other jurisdictions. (b) The director shall reject a developer’s application for registration if the director finds that the developer does not possess a history of financial integrity. The director may ask an applicant to describe the factors and circumstances which caused or surrounded any filing by the applicant for bankruptcy. A rebuttable presumption that a developer does not possess a history of financial integrity shall arise if the developer: (1) Has been placed in receivership or conservatorship during the previous ten years; or (2) Is liable for amounts of debt which, in the opinion of the director, create excessive risks of default and pressure on the developer. (c) The director shall reject an application if the director finds that the history of honesty, truthfulness, and fair dealing of the developer, sales agent, or acquisition agent, its officers or directors, or any of its proposed management personnel; or the financial integrity of the developer, indicates that it would not be in the interests of the public to approve the application. (d) Subsections (a), (b), and (c) shall not be deemed an exclusive list of the grounds upon which the director finds that the relevant statutory criteria have not been met. [Eff and comp 3/7/88; am and comp 9/15/90] (Auth: HRS §514E-13) (Imp: SLH 1987, Act 60)