1. An appraisal management company applying for, holding, or renewing a registration under this chapter may not be, in whole or in part, directly or indirectly, owned by an individual who has had an appraiser license or certification in this state or in any other state refused, denied, canceled, surrendered in lieu of revocation, or revoked in any jurisdiction for a substantive cause, as determined by the board.

2. Each person that owns more than ten percent of an appraisal management company applying for, holding, or renewing a registration under this chapter: a. Must be of good moral character. b. Shall submit to a criminal background investigation for an initial application or as required by the board.

3. Each appraisal management company applying for a registration or for renewal of a registration under this chapter shall certify to the board on a form prescribed by the board that the company has reviewed each entity that owns the appraisal management company and that no entity that owns the appraisal management company is owned by an individual that has had an appraiser license or certification in this state or any other state refused, denied, canceled, surrendered in lieu of revocation, or revoked in any jurisdiction for a substantive cause, as determined by the board.

4. An appraisal management company is not barred from registration if the license or certificate of the appraiser with an ownership interest was not revoked for a substantive cause and has not been reinstated by the jurisdiction in which the appraiser was licensed or certified.