Rule 9. Involuntary Cancellation of Registration 

9.1.    The Commission may cancel the registration of any Pre-Need Plan and the Permit To Sell such Pre-Need Plan by issuing an Order to this effect, setting forth its findings in respect thereto, if, after due notice and hearing, it shall appear that the issuer:

a.)    Is insolvent;

b.)    Has violated any of the provisions of the Code, or the rules promulgated pursuant thereto, or any order of the Commission of which the issuer has notice;

c.)    Has been or is engaged or is about to engage in fraudulent transactions;

d.)    Is in any other way dishonest or has made any fraudulent  representation in any circular or other literature that has been distributed concerning the issuer or its Pre-Need Plans;

e.)    Does not conduct its business in accordance with law.

9.2.    The Commission may compel the production of all the books and records of the issuer, may administer oaths to, and examine the officers of such issuer or any other person connected therewith as to its business or affairs, and may require a balance sheet exhibiting the assets and liabilities of such issuer and/or its income or profit statement, certified to by an independent certified public accountant.

9.3.    If the issuer shall refuse to permit an examination to be made by the Commission, its refusal shall give ground for the cancellation of registration.

9.4.    Notice of issuance of an order of cancellation shall be given by mail, personally, by telephone confirmed in writing, or by telegraph, to the issuer and every dealer and broker who shall have notified the Commission of an intention to sell such Pre-Need Plan.

9.5.    The power of the Commission to cancel the registration and/or the Permit To Sell is without prejudice to its power under the Securities Regulation Code to enforce compliance therewith.

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