A state regulator asks a licensee for 18 loan files and the licensee says a subpoena is needed first. Under the stipulated state examination law permitting direct access to licensee records, is a subpoena a prerequisite to this routine examination?
Correct Answer
B) The regulator may examine the 18 files and records without a subpoena
B. Under the stipulated examination authority, the records must be made available upon request. Read the legal premise supplied by the stem: direct examination access is authorized. Minnesota provides an example of this arrangement: records must be made available on request, while subpoena powers are also provided separately. Scope and exceptions: Minnesota is the supporting example, not proof that every state has identical procedures. Verify the actual jurisdiction for real compliance decisions. Source: Minnesota Statutes 58A.15, subdivisions 3–4 (2025 edition) — https://www.revisor.mn.gov/statutes/cite/58A.15
Why This Is the Correct Answer
B. Under the stipulated examination authority, the records must be made available upon request. Read the legal premise supplied by the stem: direct examination access is authorized. Minnesota provides an example of this arrangement: records must be made available on request, while subpoena powers are also provided separately. Scope and exceptions: Minnesota is the supporting example, not proof that every state has identical procedures. Verify the actual jurisdiction for real compliance decisions.
Why the Other Options Are Wrong
Option A: The regulator may see only the 3 files a consumer has complained about
The stated examination is not restricted to complaint-linked files.
Option C: The regulator must give 30 days notice before examining any records
No 30-day prerequisite is established by the stipulated rule.
Option D: The regulator must obtain a subpoena before seeing any of the 18 files
This adds a subpoena prerequisite that conflicts with the supplied direct-access authority.
Exam Tip
An agency’s subpoena power does not mean every routine records request requires a subpoena.
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