Financial Code — Part 17 | FIN — United States — California law | Esheria

Financial Code

Part 17 of 17 · provisions 3,201–3,273

This section says the act may be cited as the Financial Code.

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The commissioner must let certain debt collectors keep operating if they applied before January 1, 2023, and may issue a conditional license while an application is pending. Local governments in this state may not require a debt collector to be licensed or to register as a debt collector. This division is named the Debt Collection Licensing Act and may be cited by that name. A person may not do debt collection business in this state without first getting a license, and the license is tied to the principal place of business and cannot be transferred or assigned. This section defines key terms used in the Debt Collection Licensing Act.

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Provisions of Financial Code

Showing 73 of 3,273

  1. 8034.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    A new domestic association formed during a fiscal year must have its initial assessment calculated on the specified basis, based on assets at the time its certificate of authority is issued, and the assessment is due in full on that issuance date.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8034. (a) If a new domestic association is formed during a fiscal year, the initial assessment provided for by this article shall be computed on the same basis as if such new association had been an association and assessed on or before the 20th day of June in the fiscal year preceding the initial assessment except that the initial assessment shall be based on the assets of the new association at the time of issuance of its certificate of authority and, except as provided in subdivision (b), the assessment shall be reduced, if the certificate of authority is not issued in July, by one-twelfth for each full month of the fiscal year which has expired at the time of issuance of the certificate of authority and shall be payable in full on the date of issuance. (b) In the levy and collection of an assessment under this article, no association shall be assessed for, or be permitted to pay less than five hundred dollars ($500) for the unexpired portion of the fiscal year in which the domestic association is formed. (Amended by Stats. 1984, Ch. 868, Sec. 15.5.)
  2. 8035.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    If a domestic association plans to acquire assets from a federal association or a state or national bank, the initial assessment is calculated on specified prior-year basis rules and adjusted if the certificate of authority is issued after July.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8035. If any domestic association proposes to acquire the assets of any federal association or any state or national bank by transfer, conversion, or otherwise, the initial assessment provided for by this article shall be computed on the same basis as if the federal association or state or national bank had been an association and assessed on or before the 20th day of June in the fiscal year preceding the initial assessment, except that the initial assessment shall be based on the assets of the federal association or of the state or national bank, as shown by the institution’s report to the Office of Thrift Supervision, the commissioner, or the Comptroller of the Currency, respectively, next preceding the 20th day of June in the fiscal year preceding the initial assessment and the assessment shall be reduced, if the certificate of authority is not issued in July, by one-twelfth for each full month of the fiscal year which has expired at the time of the issuance of the certificate of authority and shall be payable in full on the date of issuance. (Amended by Stats. 1996, Ch. 1064, Sec. 563. Effective January 1, 1997. Operative July 1, 1997.)
  3. 8035.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    The Savings Association Special Regulatory Fund is converted into the Savings and Loan Account, and its money, assets, and liabilities must be transferred to that account.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8035.5. As of the operative date of this section: (a) The Savings Association Special Regulatory Fund is converted into a separate account in the Financial Institutions Fund and designated as the Savings and Loan Account. (b) All moneys and other assets and all liabilities of the Savings Association Special Regulatory Fund shall be transferred to the Savings and Loan Account. (Added by Stats. 1996, Ch. 1064, Sec. 563.5. Effective January 1, 1997. Operative July 1, 1997.)
  4. 8036.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    The commissioner must deposit money collected or received under this division or related savings association laws with the State Treasurer to the credit of the Savings and Loan Account, except certain money belonging to associations in the commissioner’s possession.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8036. All money collected or received by the commissioner under this division or any other law relating to savings associations or the savings association business, except money belonging to associations whose business property and assets are in the possession of the commissioner, shall be deposited with the State Treasurer to the credit of the Savings and Loan Account in the Financial Institutions Fund. (Amended by Stats. 1996, Ch. 1064, Sec. 564. Effective January 1, 1997. Operative July 1, 1997.)
  5. 8037.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    The Savings and Loan Account must be used only to pay the department’s expenses for administering the division and related savings-association laws, except as otherwise provided in Sections 276 and 277.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8037. All expenses of the department in administering the division and other laws relating to savings associations or to the savings association business shall be paid by the Savings and Loan Account; and, except as otherwise provided in Section 276 or 277, and the Savings and Loan Account shall be used only for such purposes. (Repealed and added by Stats. 1996, Ch. 1064, Sec. 565.5. Effective January 1, 1997. Operative July 1, 1997.)
  6. 804.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section concerns stock of a federal reserve bank or a federal home loan bank, to the extent authorized by Section 1325.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 804. Stock of a federal reserve bank or of a federal home loan bank to the extent authorized by Section 1325. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  7. 805.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section concerns bonds and other interest-bearing notes and obligations of the United States.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 805. Bonds or other interest-bearing notes and obligations of the United States and those for which the faith and credit of the United States are pledged for the payment of principal and interest. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  8. 8050.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. )

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    The commissioner has general supervision over covered savings-association-related entities and must enforce the division’s purposes, including through court action if needed.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. ) ## 8050. (a) The commissioner shall have general supervision over all (1) associations, (2) savings and loan holding companies, (3) service corporations, (4) finance subsidiaries, and (5) other persons that are subject to the provisions of this division. (b) The commissioner shall enforce the purposes of this division by use of the powers conferred by it and by an action in any court of competent jurisdiction if required. (Amended by Stats. 1990, Ch. 1118, Sec. 46.7.)
  9. 8051.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. )

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    Decisions, orders, and instructions must be put in writing, signed by the commissioner or deputy commissioner, and mailed to the appropriate association or person.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. ) ## 8051. Each decision, order, or instruction shall be in writing signed by the commissioner or a deputy commissioner and shall be sent by registered or first-class mail, addressed to the home office of the appropriate association or person. (Amended by Stats. 1986, Ch. 361, Sec. 10.)
  10. 8053.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. )

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    The commissioner may issue, change, or cancel needed rules and may waive a rule requirement when the commissioner thinks it is not needed for the public interest or public protection.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. ) ## 8053. The commissioner may from time to time issue, amend and rescind any rules, regulations, forms, and orders that are necessary to carry out the provisions of this division, including rules and regulations governing the administration of any association, savings and loan holding company and their subsidiaries, and defining any terms whether or not used in the law insofar as the definitions are not inconsistent with the provisions of this division. The commissioner may waive any requirement of any rule or regulation in situations where, in the commissioner’s opinion, the requirement is not necessary in the public interest or for the protection of the public. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  11. 8054.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. )

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    The commissioner may by regulation extend certain rights, powers, privileges, or duties to state associations, and any regulation made under this section expires at noon on December 31 of the following year.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. ) ## 8054. (a) Notwithstanding any other provision of law, whenever by statute or regulation there is extended to federal associations doing business in this state any right, power, privilege, or duty not authorized for state associations, the commissioner may by regulation extend to state associations that right, power, privilege, or duty. (b) Any regulation adopted under this section shall expire at 12 p.m. on December 31 of the year following the calendar year in which it is promulgated. (c) For the purposes of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code regulations adopted under this section are subject only to the provisions of Sections 11343.4, 11346.1, and 11349.6 of the Government Code. (d) The provisions of this section shall not apply to any federal statute or regulation promulgated prior to January 1, 1984. (Amended by Stats. 1995, Ch. 938, Sec. 9.2. Effective January 1, 1996.)
  12. 8055.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. )

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    The commissioner’s final decisions are subject to judicial review, and any judicial review action or proceeding must be started within 60 days after the final decision is issued.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. General Supervisory Powers and Duties of Commissioner [8050 - 8055] ( Heading of Article 3 renumbered from Article 2 by Stats. 1984, Ch. 287, Sec. 37. ) ## 8055. Every final decision of the commissioner is subject to judicial review in accordance with law. An action or proceeding for judicial review pursuant to this section shall be commenced within 60 days after issuance of the final decision. (Added by Stats. 1986, Ch. 361, Sec. 12.)
  13. 806.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section concerns legal investments for nonbank licensees and refers to California state bonds, bonds backed by the faith and credit of California, and registered warrants of California.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 806. Bonds of the State of California and those for which the faith and credit of the State of California are pledged for the payment of principal and interest and in registered warrants of the State of California. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  14. 807.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section lists certain public-corporation bonds that are eligible for investment, but the commissioner may make particular bonds ineligible by regulation.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 807. Bonds of any flood control and water conservation districts, or any zone thereof, having an assessed valuation on taxable real property of not less than one million dollars ($1,000,000), county, city and county, city, metropolitan water district, municipal utility district, special districts established by and within any municipal utility district, transit district, rapid transit district including sales tax revenue bonds of the district, metropolitan transit authority, flood control district, or school district of the State of California (herein referred to generally as public corporation) except the bonds of any particular such public corporation which may be declared ineligible for investment by savings banks by regulations of the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  15. 808.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section describes California public-entity bonds that may be backed by taxing power, subject to a debt-cap condition.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 808. Bonds of any other political subdivision, public corporation, or district of the State of California (herein referred to generally as public corporations) having the power, without limit as to rate or amount; to levy taxes to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation by such public corporation, provided the net direct debt of such public corporation together with its net overlapping debt does not exceed 25 percent of the assessed valuation of the taxable property within its boundaries according to the last official equalized county assessment roll. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  16. 809.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Nonbank licensees may invest in certain foreign and out-of-state government bonds and similar debt instruments if the listed financial and default conditions are met.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 809. (a) Any of the following subject to the conditions set forth in subdivision (b) to (d), inclusive. (1) Bonds or other evidences of indebtedness of, or which are unconditionally guaranteed by the Dominion of Canada, the State of Israel, the United States of Mexico, the Commonwealth of Puerto Rico, or any state of the United States other than California, for the payment of both principal and interest of which in United States dollars, the faith and credit of the entity is pledged. (2) Limited obligations of any state of the United States, other than California, or the Commonwealth of Puerto Rico, payable only from special taxes that are pledged to the payment of principal and interest of the limited obligations. (3) Bonds or other evidences of indebtedness of any city, county, political subdivision, public corporation, or district (herein referred to generally as public corporations) of any state of the United States, other than California, or of the Dominion of Canada, or of the State of Israel, or of the United States of Mexico or of the Commonwealth of Puerto Rico, having the power without limit as to rate or amount to levy taxes to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation by the public corporation. (b) In the case of bonds constituting general obligations of any such state, commonwealth, dominion, or country, such state, commonwealth, dominion, or country has not within 10 years prior to the investment defaulted for a period of more than 90 days in the payment of any part of either principal or interest of any of its debts. (c) In the case of limited obligations of any state, or commonwealth, all of the following conditions are met: (1) The state or commonwealth has not, within 10 years prior to the date of the investment, defaulted for a period of more than 90 days in the payment of either principal or interest of any of its debts. (2) The special taxes pledged for the payment of the limited obligations shall have been collected for five years and shall have averaged at least one and one-half times the debt service requirements, including those for principal, interest, and sinking fund, on all special obligations existing at the time. (3) The special taxes for each of the five fiscal years shall have equaled at least the amount of all the debt service requirements on the special obligations. (d) In the case of bonds or other evidences of indebtedness of any public corporation of any state other than California, or of any commonwealth, all of the following conditions are met: (1) The public corporation has had a corporate existence or been otherwise established and functioning for at least 10 years prior to the time of the investment. (2) The public corporation has a population of at least 50,000 inhabitants according to the last federal or state census. (3) The public corporation for a period of at least 10 years prior to the investment has not defaulted in the payment of any part of the principal or interest of any of its debts for a period of more than 90 days. (4) The net direct debt together with the net overlapping debt of the public corporation does not exceed 10 percent of the assessed valuation of the property subject to taxation by the public corporation according to the last official equalized assessment roll or list upon the basis of which taxes for debt service are based. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  17. 810.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Nonbank licensees may treat certain California district bonds as legal investments if specified qualifying conditions are met.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 810. Bonds of any irrigation district, water storage district, water conservation district, county water district, reclamation district, drainage district, and any district the primary function of which is the irrigation, reclamation or drainage of land within its boundaries, located in California, other than bonds referred to in Section 807, provided either of the following conditions are met: (a) The bonds qualify under Section 808. (b) The bonds have been certified as legal securities for savings banks pursuant to Chapter 1 (commencing with Section 20000) of Division 10 of the Water Code and the certification remains unrevoked and the total outstanding bonded indebtedness of the district including bonds authorized but not issued, but excluding bonds payable solely from revenues and not directly or indirectly from assessments, does not exceed 50 percent of the aggregate of the assessed value of the lands, exclusive of improvements, subject to assessment by the district, and the value of the property owned by the district or to be acquired or constructed with the proceeds of the bonds under consideration. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  18. 811.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section lists the kinds of securities and obligations that nonbank licensees may invest in.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 811. (a) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate credit banks established under the Federal Farm Loan Act, as amended, and the Farm Credit Act of 1971. (b) Debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933, as amended, and the Farm Credit Act of 1971. (c) Bonds or debentures of the Federal Home Loan Bank Board established under the Federal Home Loan Bank Act. (d) Bonds of any federal home loan bank established under the Federal Home Loan Bank Act. (e) Stocks, bonds, debentures, participations and other obligations of or issued by the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association and the Federal Home Loan Mortgage Corporation. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  19. 812.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section identifies certain bonds, notes, or other obligations as legal investments for nonbank licensees.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 812. Bonds, notes or other obligations issued by the Federal Financing Bank, the United States Postal Service, or issued or assumed by the International Bank for Reconstruction and Development, the Tennessee Valley Authority, the Inter-American Development Bank, the Government Development Bank for Puerto Rico, the Asian Development Bank, the International Finance Corporation, or the African Development Bank. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  20. 813.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Notes and grant anticipation notes covered by this section must meet maturity and percentage limits.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 813. (a) Notes with a maturity not exceeding 15 months after the date of issue, issued in anticipation of uncollected taxes, income, revenue, cash receipts, and other moneys of the State of California or any city, county, city and county, or school district thereof; provided the notes and warrants and the interest thereon shall be a first lien and charge against, and shall be payable from, the first moneys received by the local agency from such pledged moneys; provided the total amount of the notes issued at any one time or during any specified period does not exceed 85 percent of the receipts or revenues. (b) Grant anticipation notes issued by the agencies and payable not later than 36 months after the date of issue, provided that the total amount of the notes and interest payable thereon issued at any one time or during any specified period does not exceed 80 percent of the grant funds stated in writing by the granting authority as committed or appropriated, and shall be paid on a specified date or dates within a 36-month period from the dating of the notes. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  21. 814.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Revenue securities qualify as legal investments only if the listed financial and default conditions are met.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 814. Revenue securities of any state of the United States, or of the Commonwealth of Puerto Rico, and of any city, county, city and county, political subdivision, public corporation, or district (herein referred to generally as public corporations) of any state or commonwealth and of any department, board, agency, or authority of any state or commonwealth or of any public corporation, if the following conditions are met: (a) The revenue securities constitute obligations payable out of the revenues from a revenue-producing property owned, controlled, or operated by a state, commonwealth, public corporation, or by a department, board, agency, or authority thereof and are secured by the revenues. (b) Either of the following paragraphs apply: (1) (A) The net income from the property available for the payment of the securities for the five fiscal years next preceding any such investment, shall have averaged at least one and one-tenth times all debt service requirements for principal, interest, and sinking fund of all revenue securities payable only out of the revenues from that property during each of those fiscal years, and for each of the five fiscal years shall have equaled at least all debt service requirements for principal, interest, and sinking fund of the securities, and for the last fiscal year shall have amounted to at least the maximum annual debt service requirement for any fiscal year thereafter on all such securities that were outstanding during such last fiscal year and which will be outstanding in any fiscal year thereafter. (B) The gross income from the property, the net income from which is pledged for the payment of the securities, in the last fiscal year prior to the investment was not less than one million dollars ($1,000,000) if located in California, and was not less than five million dollars ($5,000,000) if located elsewhere. (C) The issuer is obligated to maintain rates at least sufficient to meet debt service requirements and such obligation is legally enforceable. (2) (A) The issuer of the securities is entitled to receive under a legally enforceable contract with a corporation any of the securities of which are a legal investment for savings banks under this chapter annual payments averaging not less than nine hundred thousand dollars ($900,000) a year commencing with the completion of a project or projects as fixed in the construction contract therefor and continuing during the maximum term for which said revenue securities are to mature. (B) The issuer of the securities is obligated to maintain rates to produce revenue, or will receive contract payments, either or both of which will be sufficient to meet debt service requirements and such obligation or contract is legally enforceable. (c) The public corporation or any department, board, agency, or authority thereof which issues the securities, if existing elsewhere than in California, has not within 10 years prior to such investment defaulted for a period of more than 90 days in the payment of principal or interest on any of its debts. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  22. 815.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Bonds of a local public housing agency qualify if they are secured by either a repayment agreement with the Public Housing Administration or a pledge of annual contributions meeting the stated conditions.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 815. Bonds of any local public housing agency (as defined in the United States Housing Act of 1937, as amended) that are secured by either of the following: (a) An agreement between the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of the obligations (which obligations shall have a maturity of not more than 18 months), moneys in an amount that (together with any other moneys irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of the obligations with interest to maturity thereon, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity. (b) A pledge of annual contributions under an annual contributions contract between such public housing agency and the Public Housing Administration if the contract shall contain the covenant by the Public Housing Administration that is authorized by subsection (b) of Section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to that subsection 22(b) shall not be less than the annual amount and the period for payment that are requisite to provide for the payment when due of all installments of principal and interest on the obligations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  23. 8150.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    Certain associations, savings and loan holding companies, and some subsidiaries must file an annual written report with the commissioner by the end of January or within 30 days after the fiscal year ends, and the report must be verified by an authorized officer.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8150. (a) On or before the last day of January in each year, or within 30 days following the end of the fiscal year, each association, savings and loan holding company, and those subsidiaries of an association or savings and loan holding company that the commissioner may require, shall make an annual written report to the commissioner, in a format to be prescribed by the commissioner. (b) Each report shall be verified by an authorized officer. (Amended by Stats. 1984, Ch. 868, Sec. 16.)
  24. 8151.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    Covered associations, holding companies, and certain subsidiaries must file any additional reports the commissioner requires, in the prescribed format and by the prescribed date, and may have to verify them like the annual report.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8151. Each association, savings and loan holding company and subsidiary of any association or savings and loan holding company that is required to file an annual report under Section 8150 also shall make any other reports that the commissioner may from time to time require, which shall be in a format and filed on a date that the commissioner may prescribe and shall, if required by the commissioner, be verified in the same manner as the annual report. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  25. 8152.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner may examine, or cause an examination of, the affairs of each association and related offices or holding-company entities without giving prior notice.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8152. From time to time the commissioner may, without previous notice, examine or cause an examination to be made into the affairs of each association, and any office of the association within or outside this state, savings and loan holding company and subsidiary of any association or savings and loan holding company subject to this division. (Amended by Stats. 2003, Ch. 404, Sec. 15. Effective January 1, 2004.)
  26. 8153.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner may accept certain outside reports or examinations instead of one required under Sections 8150 or 8152, and may conduct an examination with a federal authority.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8153. (a) In lieu of a report or an examination under Section 8150 or 8152, the commissioner may accept any report made to, or examination made by, a federal or state authority that supervises financial institutions, or by a certified or other public accountant or firm of certified or other public accountants selected by the association and approved by the commissioner. (b) An examination under Section 8152 may be conducted in conjunction with an examination by a federal authority that supervises financial institutions. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  27. 8154.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    If the commissioner thinks extra examination or audit is necessary or expedient, the commissioner must conduct it or may appoint a certified public accountant or expert to do it. The specially examined association, holding company, or subsidiary may have to pay the actual expenses for those extra services.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8154. (a) Whenever, in the judgment of the commissioner, the condition of any association, savings and loan holding company, or any of their subsidiaries renders it necessary or expedient to make an extra examination or audit or to devote any extraordinary attention to its affairs, the commissioner shall do so or may appoint a certified public accountant or any expert to do so. (b) The association, savings and loan holding company, or subsidiary specially examined under this section may be required to pay the actual expenses incurred by the commissioner for all extra services rendered by the commissioner, by the appointed accountant, or any expert. (Amended by Stats. 1988, Ch. 718, Sec. 18.)
  28. 8155.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner may require appraisals during examinations or audits, and the association or subsidiary must pay the appraisal cost and receive the report within 60 days.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8155. (a) The commissioner is authorized in connection with any examination or audit of any association or any subsidiary to cause to be made appraisals of real estate or other property held by it or securing its assets. (b) Unless otherwise ordered by the commissioner, appraisal of real estate or other property in connection with any examination or audit pursuant to this article shall be made by a department appraiser or by an independent professional appraiser employed or selected by the commissioner, and the cost of the appraisal promptly shall be paid by the association or subsidiary to the commissioner or directly to the appraiser upon receipt by it of a statement of cost bearing the written approval of the commissioner. (c) A copy of the report of each appraisal caused to be made by the commissioner pursuant to this section shall be furnished to the association or subsidiary within a reasonable time, not to exceed 60 days, following the completion of the appraisals. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  29. 8156.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    Savings associations must arrange an annual audit of books and accounts, get the audit date and period approved by the commissioner, and give auditors specified reports and agreements.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8156. (a) Each association shall at least annually cause its books and accounts to be audited at its own expense by a certified public accountant or firm of certified public accountants selected by the association and approved by the commissioner. (b) The annual audit date and audit period shall be approved in writing by the commissioner prior to commencement of the audit. (c) Each savings association which engages certified public accountant services for any audit shall transmit to the accountant or accountants copies of the most recent report of condition made by the association pursuant to state or federal law and a copy of the most recent report of examination received by the savings association. (d) In addition to the copies of the reports required to be provided pursuant to subdivision (c), each savings association shall provide the auditing accountant or accountants with all of the following: (1) A copy of any supervisory memorandum of understanding with the association and any written agreement between the association and any federal financial regulatory agency or the commissioner which is in effect during the period covered by the audit. (2) A report of any action initiated or taken pursuant to subdivisions (a), (b), (c), (e), (g), (i), or (s) of Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), and a report of any action taken by the commissioner pursuant to Section 8200 or 8201, or any other civil monetary penalty assessed under any provision of law with respect to the savings association or any institution-affiliated party. (Amended by Stats. 1990, Ch. 1118, Sec. 47.)
  30. 8157.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner may set the scope of the annual audit and ask the auditor for extra information. Each association must file five copies of its financial statements annually with the commissioner within 90 days after the audit period ends, with a signed auditor report, and the statements must be certified by the auditor.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8157. (a) The commissioner may prescribe the scope of the annual audit and may require the auditor to furnish information in addition to that contained in the audit report. (b) Each association shall furnish the commissioner annually, within 90 days after the end of the period covered by the audit, five copies of the financial statements, which shall be accompanied by a report signed by the auditor, prepared and containing the information prescribed in regulations of the commissioner. The financial statements shall be certified by the auditor. (Amended by Stats. 1986, Ch. 361, Sec. 13.5.)
  31. 8158.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner, or an authorized department employee, may inspect relevant books and records, summon witnesses, administer oaths or affirmations, and obtain documents by court order if they are not voluntarily produced.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8158. (a) The commissioner, or any department employee authorized by the commissioner, shall have free access to all books and records of an association, savings and loan holding company, and any of their subsidiaries that relate to the business of the association, holding company, or subsidiary, and to the books and records kept by any officer, agent, or employee that relate to the business of the association, holding company, or subsidiary. (b) The commissioner, or any department employee authorized by the commissioner, may summon witnesses and administer oaths or affirmations in the examination of the directors, officers, agents, or employees of any association, savings and loan holding company, any of their subsidiaries, or any other person, in relation to their affairs, transactions, and conditions, and may require and compel the production of records, books, papers, contracts, or other documents by court order, if not voluntarily produced. (c) This section applies to all parties designated in subdivisions (a) and (b) when an association is placed in conservatorship or receivership. (Amended by Stats. 1987, Ch. 730, Sec. 19.)
  32. 8159.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    For department examinations or appraisals made outside the state, the examined association, savings and loan holding company, or subsidiary must pay the department a reasonable fee and the actual traveling expenses.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8159. For each department examination or appraisal made outside this state, a reasonable fee and the actual traveling expenses incurred shall be paid to the department by the association, savings and loan holding company, or subsidiary so examined. (Amended by Stats. 1988, Ch. 718, Sec. 19.)
  33. 816.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section is titled “Bonds secured by an insurance commitment of the Federal Housing Administration.”

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 816. Bonds secured by an insurance commitment of the Federal Housing Administration. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  34. 8160.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. )

    Verify source ↗

    The commissioner may impose civil penalties on associations, savings and loan holding companies, and their subsidiaries for failing to report required information or for submitting false or misleading reports.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Reports and Examinations [8150 - 8160] ( Heading of Article 4 renumbered from Article 3 by Stats. 1984, Ch. 287, Sec. 38. ) ## 8160. If an association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company fails to report to the commissioner as required by this article, the commissioner may impose penalties in accordance with the following: (a) Any association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company which (1) maintains procedures reasonably adapted to avoid any inadvertent error and, unintentionally and as a result of such an error (A) fails to make, obtain, transmit, or publish any report or information required by the commissioner by the due date set forth in this article or, if no due date is set forth in this article, the date specified by the commissioner, or (B) submits or publishes any false or misleading report or information or (2) inadvertently transmits or publishes any report which is minimally late, shall be subject to a civil penalty of not more than two thousand dollars ($2,000) for each day during which the failure continues or the false or misleading information is not corrected. The association, savings and loan holding company, or subsidiary of an association or savings and loan holding company shall have the burden of proving that an error was inadvertent and that a report was inadvertently transmitted or published late. (b) Any association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company which (1) fails to make, obtain, transmit, or publish any report or information required by the commissioner by the due date set forth in this article or, if no due date is set forth in this article, the date specified by the commissioner or (2) submits or publishes any false or misleading report or information, in a manner not described in subdivision (a) shall be subject to a civil penalty of not more than twenty thousand dollars ($20,000) for each day during which the failure continues or the false and misleading information is not corrected. (c) Any association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company which knowingly or with reckless disregard for the accuracy of any information or report subject to this section submits or publishes any false or misleading report or information, shall be subject to a civil penalty of not more than one million dollars ($1,000,000) or 1 percent of total assets of the savings institution, whichever is less, per day for each day during which the false or misleading information is not corrected. (d) Any penalty imposed under subdivisions (a), (b), or (c) shall be assessed and collected by the commissioner in the same manner as provided in Section 5330. (Repealed and added by Stats. 1990, Ch. 1118, Sec. 49.)
  35. 817.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section sets financial conditions for certain evidences of indebtedness to qualify as legal investments for nonbank licensees.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 817. Evidences of indebtedness of companies incorporated in the United States and, directly or indirectly, engaged in manufacturing, extraction, merchandising, or commercial financing and in bonds of authorities established pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500) of the Government Code), to which these companies are obligated with respect to payment subject to the following conditions: (a) Any unsecured evidences of indebtedness shall be issued by a company substantially all of whose property is free of mortgage and shall carry a covenant by the obligor that they will be secured equally with any mortgage bond, except a purchase money mortgage, which may be later issued. (b) The company is of a size as to attract at least statewide interest in its publicly held securities and its gross income shall have averaged not less than ten million dollars ($10,000,000) and its net income shall have averaged not less than one million dollars ($1,000,000) for the five fiscal years preceding the investment and its gross income was not less than ten million dollars ($10,000,000) and its net income not less than one million dollars ($1,000,000) for at least three of these five fiscal years. (c) Working capital, as measured by consolidated current assets less consolidated current liabilities as shown in the latest published balance sheet, shall exceed 150 percent of the total of consolidated debt due in longer than one year and “minority interest.” For that purpose, “minority interest” means any outstanding interest in a subsidiary having a prior claim on the earnings of the subsidiary. However, the foregoing ratio requirement shall not apply in the case of evidences of indebtedness of any corporation whose consolidated gross assets less any valuation reserves exceed five hundred million dollars ($500,000,000) and whose consolidated current assets exceed consolidated current liabilities by at least one hundred million dollars ($100,000,000) as shown by the latest published balance sheet. When new financing is involved, the changes in gross assets, capital structure and working capital shall be considered and reliance may be placed on the representations made in the official prospectus prepared under the rules of the Securities and Exchange Commission as to the application of the proceeds of the financing. (d) The total consolidated debt of the company including current liabilities and “minority interest,” as shown on the latest published balance sheet, does not exceed 331/3 percent of its gross assets less valuation reserves. (e) The consolidated annual net income for the five fiscal years next preceding the investment, before deduction of state and federal taxes imposed on or measured by income or profits but after deducting all charges, including reserves, regularly recurring charges for amortization of discount, and expense allocable to funded debt (1) shall have averaged not less than six times the annual consolidated interest charges existing at the time the investment is made; (2) in at least three of the five fiscal years shall have been at least four times the annual consolidated interest charges for the same year; and (3) for the fiscal year next preceding the investment shall have been not less than six times the consolidated interest charges for that year and not less than six times the annual consolidated charges on the funded debt outstanding at the time of the investment. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  36. 818.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section sets conditions for when certain railroad bonds and railroad equipment trust certificates qualify as legal investments.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 818. Fixed interest railroad bonds meeting the requirements of subdivisions (a) and (b); bonds secured by a mortgage on jointly operated railroad facilities meeting the requirements of subdivision (c); and railroad equipment trust certificates meeting the requirements of subdivision (d). (a) The railroad bonds are issued by or are assumed, guaranteed, or provision made unconditionally for the payment of principal and interest on specified dates, by a solvent railroad company that meets all of the following conditions: (1) Operates at least 500 miles of standard gauge road within the continental United States and which has had average annual operating revenues of at least ten million dollars ($10,000,000) during the five years next preceding the investment. (2) Has an average annual balance of income available for fixed charges for the last 15 years for which the necessary statistical data are available, when divided by an amount equal to its fixed charges for the last fiscal year, shall produce a quotient which is at least 15 percent higher than the quotient obtained by dividing the average annual balance of income available for fixed charges of all class 1 railroads for the same one 5-year period by an amount equal to the fixed charges of all class 1 railroads for the last year in the period. (3) Has an average “balance of net income” (computed by deducting the sum of its fixed charges and contingent interest charges for the latest fiscal year from the average annual balance available for fixed charges for the latest 15 years for which the necessary statistical data are available) when divided by its average annual railroad operating income for the same 15-year period, shall produce a quotient at least 15 percent greater than the quotient obtained by dividing the average balance of income of all class 1 railroads, computed in the same manner, by the average annual railway operating income of all class 1 railroads for the same 15-year period. (4) Has an average balance of income available for fixed charges for the last three fiscal years preceding the investment that has not been less than one and one-half times its fixed charges for the last fiscal year. (b) The railroad bonds are secured by any of the following: (1) A mortgage, either direct or collateral, which shall be a first mortgage on not less than 75 percent of the mileage subject to the mortgage. (2) A first mortgage on terminal properties comprising the company’s principal freight or passenger terminal in a city of not less than 250,000 population according to the latest federal or state census. (3) A refunding mortgage on not less than 75 percent of the railroad mileage owned or operated by the issuing company under which bonds may be issued for retirement or refunding of all debts secured by prior liens on all or any part of the property (other than liens on equipment) subject to the mortgage; provided, that the amount of debt senior to the refunding mortgage is not more than 50 percent of the sum of all senior debt and the refunding mortgage, or that underlying mortgage bonds in an amount equal to at least 50 percent of the debt outstanding under the refunding mortgage are pledged as security under the refunding mortgage. (4) A first mortgage on railroad property leased to and operated by the company where the lease extends beyond the maturity date of the bonds and the company has guaranteed, assumed, or committed itself under the terms of the lease to pay principal and interest on the bonds. (c) Bonds secured by a mortgage on jointly operated railroad facilities must be secured by a first mortgage on a terminal, depot, tunnel, or bridge used by or leased to two or more railroads which have jointly and severally agreed unconditionally to pay the interest and principal of the bonds or have unconditionally guaranteed or assumed the payment, one of which railroads must meet the requirements set forth in subdivision (a). (d) Railroad equipment trust certificates must be issued by a solvent class 1 railroad whose average balance of income available for fixed charges for the last three fiscal years preceding the investment shall be not less than one and one-half times its fixed charges for the last fiscal year. The certificates must be issued to provide funds for the construction or acquisition of new standard gauge railroad equipment made with the approval of the federal Surface Transportation Board and be secured by equipment trust, lease, conditional sales contract, or first lien on equipment. The aggregate principal amount of those obligations shall not exceed 80 percent of the purchase price of the equipment and the certificates shall mature within 15 years from the date of issuance in equal annual, semiannual, or monthly installments, beginning not later than one year after the date of issuance. (e) As used in this section, the terms “balance of income available for fixed charges,” “fixed charges,” “contingent interest,” and “railway operating income” shall have the same meaning as in the accounting reports filed by common carriers by rail pursuant to regulations of the federal Surface Transportation Board except that “balance of income available for payment of fixed charges” shall be computed before deduction of federal income or excess profits taxes, and “fixed charges” and “contingent interest” of the railroad shall be charges existing as of the time the computation is made excluding charges with respect to debt which has been retired or will be retired within six months and for the payment of which funds have been or are contemporaneously being set aside in trust but including charges with respect to new debt issued or in the process of being issued. (Amended by Stats. 2019, Ch. 143, Sec. 55. (SB 251) Effective January 1, 2020.)
  37. 819.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section describes when certain bonds and debentures of gas, electric, telephone, and water companies qualify as legal investments for nonbank licensees.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 819. Bonds and debentures of gas, electric, or gas and electric companies meeting the requirements of subdivision (a); bonds and debentures of telephone companies meeting the requirements of subdivision (b); and bonds and debentures of water companies meeting the requirements of subdivision (c). (a) Bonds or debentures of a gas, electric, or gas and electric company shall be of an issue that originally amounted to not less than one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of its physical property, and, if debentures, shall be issued by a company substantially all of whose physical property is free of mortgage and must carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a public utility corporation that meets all of the following conditions: (1) Derives more than 50 percent of its gross operating revenue from the business of supplying electricity, artificial gas, or natural gas or all or any of them, and at least 80 percent of its gross operating revenue from all or any of the public utility businesses enumerated in this section. (2) Shall have had a gross operating revenue of not less than seven million five hundred thousand dollars ($7,500,000) for its most recent fiscal year. (3) Has a funded debt not exceeding two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves for depreciation, retirement, or amortization of that physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (4) Shall have had earnings including earnings of subsidiaries mentioned in paragraph (3), available for interest payments, before deduction of state and federal taxes imposed on or measured by income or profits, during four of the five most recent fiscal years and during the most recent fiscal year equal to at least twice the existing annual interest charges on the corporation’s total funded debt during those respective fiscal years. (b) Bonds or debentures of telephone companies shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of the physical property of the company, and if debentures shall be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company that meets all of the following conditions: (1) During its last fiscal year had gross revenues of at least seven million five hundred thousand dollars ($7,500,000), more than 50 percent of which was derived from owned properties used in furnishing telephone and other communication services and at least 80 percent of its gross revenues from all or any of the public utility businesses enumerated in this section. (2) Whose funded debt does not exceed two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves shown on the statement for depreciation, retirement or amortization of such physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (3) Which for four of the five most recent fiscal years and for the last fiscal year had earnings including earnings of subsidiaries mentioned in paragraph (2) available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, at least equal to twice the interest charges on the company’s total funded debt during such respective fiscal years. (c) Water company bonds or debentures shall be of an issue originally amounting to at least one million dollars ($1,000,000) and if bonds, be secured by a first mortgage on the company’s property, and if debentures, shall be issued by a company substantially all of whose property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company that meets all of the following conditions: (1) Is the supplier of substantially all water for domestic use in a community or communities having a population of not less than 25,000. (2) Whose funded debt does not exceed two-thirds of the value of its physical property as shown by the published statement of the company for its next preceding fiscal period, less the amount of any reserves shown for depreciation, retirement or amortization of such physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (3) Which for four out of the five most recent fiscal years and for the most recent fiscal year shall have had earnings including those of subsidiaries mentioned in paragraph (2) available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, of at least one and one-half times the interest charges on the company’s total funded debt during the respective fiscal years. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  38. 8200.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. )

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    The commissioner may issue cease and desist orders and require related corrective action; affected parties may seek a hearing and request a stay within 10 days after service.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. ) ## 8200. The commissioner may issue cease and desist orders which may order affirmative action in accordance with the following: (a) If the commissioner, as a result of any examination or from any report, finds or has reasonable cause to believe (1) that any savings association, savings and loan holding company or any of their subsidiaries, or an institution-affiliated party, (A) is violating or has violated any provision of this division or the laws of this state or of the United States or any order, regulation, or any condition imposed in writing by the commissioner in connection with the granting of any application of an association or any written agreement entered into with the commissioner or (B) is engaging or has engaged in an unsafe or unsound business practice, or (2) that an association, savings and loan holding company, or any of their subsidiaries are maintaining books and records that are so incomplete and inaccurate that the commissioner is unable, through the normal supervisory process, to determine their financial condition or the details or purpose of any transaction that may have a material effect on their financial condition, the commissioner may issue a formal written order to be served by delivery to the home office of the association or to the person named in the order. The order shall state the alleged violation or practice and state the facts in support of the allegation, and shall order discontinuance of the violation or practice and order conformance with all requirements of law. The commissioner may require the association or other named person to take affirmative action (A) to prevent the insolvency or dissipation of assets of the association, or (B) to restore the books and records to a complete and accurate state. (b) The authority of the commissioner to issue orders to correct any conditions resulting from any violation or practice includes the authority to require the person named in the order to do any of the following: (1) Make restitution or provide reimbursement, indemnification, or guarantee against loss if (A) the person named in the order was unjustly enriched in connection with the violation or practice or (B) the violation or practice involved a reckless disregard for any state or federal statute or applicable regulations or prior order of the commissioner. (2) Restrict the growth of the association. (3) Dispose of any loan or asset involved. (4) Rescind agreements or contracts. (5) Employ qualified officers or employees (who may be subject to prior approval of the commissioner at his or her direction). (6) Take such other action as the commissioner determines to be appropriate. (c) The authority to issue orders includes the authority to place limitations on the activities or functions of the person named in the order. (d) The order shall specify an effective date, which may be immediate or may be at a later date, and shall remain in effect until withdrawn by the commissioner or until terminated by a court order. (e) Any association or person affected by an order of the commissioner may apply within 10 days after service of the order to a court having jurisdiction for an immediate hearing and may request a stay of the order until the hearing has been completed. The hearing shall be held as provided in a notice to the commissioner by the court. (f) The commissioner may, on or after the effective date of the order, apply for enforcement of the order to the superior court in the county in which the home office of the association or the person is located. The order shall be enforced ex parte and without notice by the court. The proceedings shall be given precedence over other cases pending in court, and shall in every way be expedited. (g) Whether upon application by the commissioner or by the person named in the order, the court shall have jurisdiction, shall adjudicate the question, and shall enter and enforce the proper order or orders. (Repealed and added by Stats. 1990, Ch. 1118, Sec. 51.)
  39. 8201.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. )

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    The commissioner may start removal or prohibition proceedings against certain savings association insiders, and may suspend them in some cases.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. ) ## 8201. (a) Whenever the commissioner determines that any institution-affiliated party or any director, officer, or employee of a savings and loan holding company or affiliate thereof has committed any of the following violations, engaged or participated in any of the following unsafe or unsound practices, or committed any of the following breaches of fiduciary duty that meet the additional criteria of subdivision (b), the commissioner may serve upon that person a written notice of the commissioner’s intent to order the removal of the person from his or her office or employment or to prohibit any further participation (in any manner) in the conduct of the affairs of any savings association, or both: (1) Violation of any statute or regulation, any cease and desist order which has become final, any condition imposed in writing by the commissioner in connection with the grant of any application or other request by the savings association or any written agreement between the savings institution and the commissioner. (2) Engaging or participating in any unsafe or unsound practice in connection with any savings association. (3) Committing or engaging in any act, omission, or practice which constitutes a breach of the person’s fiduciary duty. (b) A violation, practice, or breach specified in subdivision (a) is subject to the commissioner’s authority under this section if the commissioner finds both of the following: (1) By reason of the violation, practice, or breach (A) the savings association has suffered or will probably suffer financial loss or other damage (B) the interests of the savings association’s depositors have been or could be prejudiced, or (C) the institution-affiliated party or other person specified in subdivision (a) has received financial gain or other benefit by reason of the violation, practice, or breach. (2) The violation, practice, or breach (A) involves personal dishonesty on the part of the institution-affiliated party or other person specified in subdivision (a) or (B) demonstrates willful or continuing disregard by the institution-affiliated party or other person for the safety or soundness of the savings institution. (c) The written notice shall contain a full statement of the alleged violations, practices, or breaches of fiduciary duty, shall state the facts alleged in support of the violation, practice or breach, and shall state the commissioner’s intention to enter a removal or prohibition order, or both. The notice shall be delivered to the board of directors of the association, savings and loan holding company, or subsidiary, and to the institution-affiliated party or other director, officer, or employee concerned. If a hearing on the matter is requested within 10 days after service of the written notice, the commissioner shall hold a public hearing at which any pertinent evidence relating to the matters set forth in the written notice may be presented. After the hearing, the commissioner, on the basis of the evidence presented at the hearing, may proceed to enter (1) an order for the immediate removal of the institution-affiliated party or director, officer, or employee affected, (2) an order prohibiting further participation by the person, in any manner, in the conduct of the affairs of any savings association, (3) a reprimand of the individuals and entities or other persons concerned, or (4) a dismissal of the entire matter. (d) If no hearing is requested within the time specified, the commissioner may proceed to issue orders of removal, prohibition, or both on the basis of the facts set forth in the written notice. (e) No institution-affiliated party or director, officer, or employee who has been removed from his or her position pursuant to a removal order that has become final, shall thereafter participate in any manner in the conduct of the affairs of the savings association from or with respect to which that director, officer, or employee was removed, or without prior written approval of the commissioner, serve as a director, officer, or employee of any other savings association. No institution-affiliated party, including an officer, director, or employee, who is subject to an order of prohibition which has become final shall thereafter participate, in any manner, in the conduct of the affairs of any savings association. (f) In respect to any officer, director, or employee of a savings association, savings and loan holding company or subsidiary thereof who is the subject of a written notice served by the commissioner pursuant to subdivision (a), the commissioner may, if the commissioner deems it necessary for the protection of the savings association or the interests of the association’s depositors, by written notice to that effect served upon the officer, director, employee, suspend him or her from office or prohibit him or her from further participation in any manner in the conduct of the affairs of the savings association or related entity, or take both these actions. The suspension or prohibition shall become effective upon service of the notice and, unless stayed by the court in proceedings authorized by subdivision (g), shall remain in effect pending completion of the proceedings pursuant to the written notice served under subdivision (a) and until the effective date of an order entered by the commissioner under subdivision (c) or (d). Copies of the notice shall also be served upon the savings association, savings and loan holding company, or subsidiary of which the person is a director, officer, or employee. (g) Within 10 days after any director, officer, or employee has been suspended from office or prohibited from participation in the conduct of the affairs of a savings association, savings and loan holding company, or subsidiary thereof under subdivision (f), the director, officer, or employee may apply to a court having jurisdiction for a stay of the suspension or prohibition pending completion of the proceedings pursuant to subdivision (c), and the court shall have power to stay the suspension or prohibition. (Repealed and added by Stats. 1990, Ch. 1118, Sec. 53.)
  40. 8202.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. )

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    The commissioner must publish certain final enforcement orders and related changes, but may delay publication for a reasonable time if written findings show publication would seriously threaten a savings association’s safety or soundness.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Enforcement [8200 - 8202] ( Heading of Article 5 renumbered from Article 4 by Stats. 1984, Ch. 287, Sec. 40. ) ## 8202. (a) The commissioner shall publish and make the following available to the public: (1) Any final order issued with respect to any administrative enforcement proceeding initiated by the commissioner pursuant to this division or any other provision of law. (2) Any modification to, or termination of, any final order specified in paragraph (1). (b) If the commissioner makes a determination in writing that the publication of any final order pursuant to subdivision (a) would seriously threaten the safety or soundness of a savings association, the commissioner may delay the publication of the order for a reasonable time. (Added by Stats. 1990, Ch. 1118, Sec. 54.)
  41. 8250.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. )

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    If the commissioner finds an association is impaired, threatened with impairment, or violating an order or injunction, the commissioner may appoint a receiver, and the receiver must immediately take possession of the association’s books, records, and assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. ) ## 8250. (a) If the commissioner finds that any association (1) is in an impaired condition, (2) is engaging in practices that threaten to result in an impaired condition, or (3) is in violation of an order or injunction issued pursuant to this division, the commissioner may appoint a receiver for the association. (b) The receiver may be the commissioner, deputy commissioner or any other person. (c) The receiver shall, upon appointment, immediately take possession of the books, records, and assets of every description of the association. (Amended by Stats. 1988, Ch. 718, Sec. 22.)
  42. 8251.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. )

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    For an insured association, the commissioner’s appointment of a receiver counts as an official state determination for liquidation purposes. The receiver has the powers of a conservator, plus power to liquidate and any additional court-ordered powers.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. ) ## 8251. (a) In the case of an insured association, the appointment by the commissioner of a receiver under this article shall constitute an official determination of a public authority of this state pursuant to which a receiver is appointed for the purpose of liquidation as contemplated by and within the meaning of subdivision (d) of Section 401 of the National Housing Act of 1934 (12 U.S.C. Sec. 1701 et seq.), as amended. (b) A receiver shall have all the powers and authority of a conservator plus the power to liquidate, and shall have any other powers and authority that are expressed in an order of a court. (Amended by Stats. 1988, Ch. 718, Sec. 23.)
  43. 8252.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. )

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    If the commissioner or a department employee is appointed receiver, no extra compensation is paid. If another person is appointed, the court-determined receiver compensation is paid from the association’s assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. ) ## 8252. If the commissioner or a department employee is appointed receiver, no additional compensation shall be paid, but if another person is appointed, then the compensation of the receiver, as determined by the court, shall be paid from the assets of the association. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  44. 8253.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. )

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    If the association is FDIC-insured, the FDIC must be offered appointment as receiver or coreceiver. If the FDIC accepts, it may make loans or buy the association’s assets, but only with court approval.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. ) ## 8253. If the association is an institution insured by the Federal Deposit Insurance Corporation, the Federal Deposit Insurance Corporation shall be tendered appointment as receiver or coreceiver. If it accepts the appointment, it may, nevertheless, make loans on the security of or purchase at public or private sale any part or all of the assets of the association of which it is receiver or coreceiver, provided the loan or purchase is approved by the court. (Amended by Stats. 1990, Ch. 1118, Sec. 55.)
  45. 8254.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. )

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    If a receiver takes over an association’s property and business, the association may ask the superior court within 10 days to stop further proceedings.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Receivership [8250 - 8254] ( Heading of Article 7 renumbered from Article 6 by Stats. 1984, Ch. 287, Sec. 42. ) ## 8254. Whenever a receiver has taken possession of the property and business of any association pursuant to this article, that association, within 10 days after the taking, if it deems itself aggrieved thereby, may apply to the superior court in the county in which the home office of the association is located to enjoin further proceedings. The court, after citing the commissioner to show cause why further proceedings should not be enjoined and after hearing and determination of the facts, may dismiss the application or enjoin the commissioner from further proceedings and direct the commissioner to surrender the property and business to that association. (Added by Stats. 1988, Ch. 718, Sec. 24.)
  46. 8500.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 8. Federal Associations [8500 - 8501] ( Chapter 8 repealed and added by Stats. 1987, Ch. 1162, Sec. 16. )

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    Federal associations and their account holders get the same rights, powers, privileges, exemptions, and immunities as comparable state-law associations and account holders.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 8. Federal Associations [8500 - 8501] ( Chapter 8 repealed and added by Stats. 1987, Ch. 1162, Sec. 16. ) ## 8500. (a) Every federal association and the holders of stock, shares, share accounts, savings accounts, and certificate accounts issued by any federal association have all the rights, powers, and privileges, and are entitled to the same exemptions and immunities granted, respectively, to associations organized under the laws of this state and to the holders of their stock, membership accounts, and savings accounts. (b) This section is in addition and supplemental to any provision that, by specific reference, is applicable to federal associations and their members or stockholders. (Repealed and added by Stats. 1987, Ch. 1162, Sec. 16. Effective September 26, 1987.)
  47. 8501.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 8. Federal Associations [8500 - 8501] ( Chapter 8 repealed and added by Stats. 1987, Ch. 1162, Sec. 16. )

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    A director of a federal association is generally not liable for monetary damages if the stockholders, or members in a mutual federal association, adopt a resolution limiting liability.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 8. Federal Associations [8500 - 8501] ( Chapter 8 repealed and added by Stats. 1987, Ch. 1162, Sec. 16. ) ## 8501. No director of a federal association shall be liable for monetary damages to the federal association, its stockholders or members, based upon the laws of this state, to the extent that the stockholders, or in case of a mutual federal association the members of the federal association, adopt a resolution limiting liability. The resolution shall not eliminate or limit the liability of directors for any acts or omissions or transactions from which directors of a corporation may not be relieved of liability as set forth in the exception to paragraph (10) of Section 204 of the Corporations Code. (Added by Stats. 1987, Ch. 730, Sec. 21.)
  48. 9.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

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    This section defines “section” and “subdivision” for this code, unless another statute or section is specifically referred to.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 9. “Section” means a section of this code unless some other statute is specifically mentioned, and “subdivision” means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. (Enacted by Stats. 1951, Ch. 364.)
  49. 900.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 11. Financial Abuse of Victims of Domestic Violence [900- 900.] ( Chapter 11 added by Stats. 2024, Ch. 650, Sec. 1. )

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    The department must provide online resources about financial abuse of domestic violence victims, update them yearly, and may use existing online materials to do so.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 11. Financial Abuse of Victims of Domestic Violence [900- 900.] ( Chapter 11 added by Stats. 2024, Ch. 650, Sec. 1. ) ## 900. (a) Commencing on or before January 1, 2027, the department shall make available to financial institutions and the general public online resources related to financial abuse of victims of domestic violence for the purpose of protecting survivors’ assets and resources. (b) The online financial abuse resources shall include, but not be limited to, all of the following: (1) Information on the nexus between domestic violence and financial security. (2) Information on the prevalence and impacts of financial abuse as it relates to domestic violence and a survivor’s employment and credit history. (3) Information regarding the heightened need to protect the privacy and to respect the integrity of each individual survivor customer of a financial institution. (4) Information regarding the heightened need to respect the autonomy and agency of each individual survivor customer, including the survivor customer’s decision whether or not to inform law enforcement of the financial abuse. (c) The department may utilize existing internet websites, links, and other online resources and materials from state government departments, nonprofit organizations, and community groups, as appropriate, in order to meet the requirement described in subdivision (a). (d) This section does not require financial institutions using the information provided online by the department to become mandated reporters of domestic violence. (e) The department shall annually review and update the online resources required to be posted pursuant to subdivision (a). (Added by Stats. 2024, Ch. 650, Sec. 1. (AB 2422) Effective January 1, 2025.)
  50. 9000.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 9. Fees [9000 - 9001] ( Chapter 9 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Associations must pay all fees required by this division to the department.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 9. Fees [9000 - 9001] ( Chapter 9 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 9000. Associations shall pay all fees required by this division to the department. (Amended by Stats. 1996, Ch. 1064, Sec. 566. Effective January 1, 1997. Operative July 1, 1997.)
  51. 90000.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 1. Findings and Purpose [90000- 90000.] ( Chapter 1 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This section says California’s consumer financial law is meant to protect consumers from unfair, deceptive, or abusive financial practices and support fair competition and consumer welfare.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 1. Findings and Purpose [90000- 90000.] ( Chapter 1 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90000. (a) The Legislature finds and declares all of the following: (1) California consumers are vulnerable to abuse if the state lacks a dedicated financial services regulator with broad authority over providers of financial products and services. The lack of such a regulator has left consumers vulnerable to abuse and forced California businesses to compete with unscrupulous providers. The financial victimization of economically vulnerable consumers, including individuals who lack a safety net, not only harms the individual but also has a broader social and economic cost on all of California, and could lead to increased caseloads for social safety net programs. These problems become even more acute in times of crisis, including the global Covid-19 pandemic and economic fallout. Consequently, where feasible, the Legislature should enact statutory measures to protect California residents from financial abuses in the marketplace for financial products and services. (2) Robust consumer protections enable wealth building and promote a vibrant economy. They are especially important among various populations, including, but not limited to, military service members, seniors, students, and new Californians. Unfair, deceptive, or abusive practices in the provision of financial products and services undermine the public confidence that is essential to the continued functioning of the financial system and sound extensions of credit to consumers. (3) Technological innovation offers great promise to the more effective and efficient provision of consumer financial products and services to the population of California and also poses risks to consumers and challenges to law enforcement in addressing those risks. (4) It is the intent of the Legislature to enact the California Consumer Financial Protection Law to strengthen consumer protections by expanding the ability of the Department of Financial Protection and Innovation to improve accountability and transparency in the California financial system, provide consumer financial education, and protect consumers from abusive financial practices, while prioritizing the prevention of unethical businesses from harming the most vulnerable populations including military service members, seniors, students, low- and moderate-income individuals, and new Californians. (b) The purpose of the California Consumer Financial Protection Law shall be to promote consumer welfare, fair competition, and wealth creation in this state by doing all of the following: (1) Promoting nondiscriminatory access to responsible, affordable credit on terms that reasonably reflect consumers’ ability to repay. (2) Promoting nondiscriminatory access to consumer financial products and services that are understandable and not unfair, deceptive, or abusive. (3) Protecting consumers from discrimination and unfair, deceptive, and abusive acts and practices in connection with financial practices and services. (4) Promoting nondiscriminatory consumer-protective innovation in consumer financial products and services. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  52. 90001.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 2. Short Title [90001- 90001.] ( Chapter 2 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This division is known as the “California Consumer Financial Protection Law,” and it may be cited by that name.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 2. Short Title [90001- 90001.] ( Chapter 2 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90001. This division shall be known, and may be cited, as the “California Consumer Financial Protection Law.” (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  53. 90002.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 3. Exemptions [90002- 90002.] ( Chapter 3 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This division does not apply to several licensed or supervised entities when they are acting under the stated license or charter authority, and it still lets the commissioner enforce Section 90003.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 3. Exemptions [90002- 90002.] ( Chapter 3 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90002. (a) This division shall not apply to a licensee, or an employee of a licensee, of any state agency other than the Department of Financial Protection and Innovation to the extent that licensee or employee is acting under the authority of the other state agency’s license. (b) (1) Except as provided by paragraph (2), this division shall not apply to a person or employee of that person to the extent that person or employee is acting under the authority of one of the following licenses, certificates, or charters issued by the Department of Financial Protection and Innovation: (A) Any person licensed as an escrow agent under Division 6 (commencing with Section 17000) of the Financial Code. (B) Any person licensed as a finance lender, broker, program administrator, or mortgage loan originator under Division 9 (commencing with Section 22000) of the Financial Code. (C) Any person licensed as a broker-dealer or investment adviser under Division 1 (commencing with Section 25000) of Title 4 the Corporations Code. (D) Any person licensed as a residential mortgage lender, a mortgage servicer, or a mortgage loan originator under Division 20 (commencing with Section 50000) of the Financial Code. (E) Any person licensed as a check seller, bill payer, or prorater under Division 3 (commencing with Section 12000) of the Financial Code. (F) Any person licensed as a capital access company under Division 3 (commencing with Section 28000) of Title 4 of the Corporations Code. (G) Any person doing business under a license, charter, or certificate issued under the Financial Institutions Law, including Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), and Division 15 (commencing with Section 31000) of the Financial Code. (2) Nothing in this subdivision shall be deemed to prevent the commissioner from using the authority provided by this division to enforce Section 90003. (c) This division shall not apply to a bank, bank holding company, trust company, savings and loan association, savings and loan holding company, credit union, or an organization subject to oversight of the Farm Credit Administration, when acting under the authority of a license, certificate, or charter under federal law or the laws of another state. (d) This division applies to all other covered persons, as defined in subdivision (f) of Section 90005. (Amended by Stats. 2025, Ch. 355, Sec. 1. (SB 825) Effective January 1, 2026.)
  54. 90003.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 4. Prohibited Acts [90003 - 90004] ( Chapter 4 added by Stats. 2020, Ch. 157, Sec. 7. )

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    Covered persons and service providers must not engage in unfair, deceptive, abusive, or otherwise unlawful practices related to consumer financial products or services.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 4. Prohibited Acts [90003 - 90004] ( Chapter 4 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90003. (a) It is unlawful for a covered person or service provider, as defined in subdivision (f) of Section 90005, to do any of the following: (1) Engage, have engaged, or propose to engage in any unlawful, unfair, deceptive, or abusive act or practice with respect to consumer financial products or services. (2) Offer or provide to a consumer any financial product or service not in conformity with any consumer financial law or otherwise commit any act or omission in violation of a consumer financial law. (3) Fail or refuse, as required by a consumer financial law or any rule or order issued by the department thereunder, to do any of the following: (A) Permit the department access to or copying of records. (B) Establish or maintain records. (C) Make reports or provide information to the department. (b) For any person who knowingly or recklessly provides substantial assistance to a covered person or service provider in violation of subdivision (a) or any rule or order issued thereunder, the provider of that substantial assistance shall be deemed to be in violation of that section to the same extent as the person to whom that assistance is provided. (c) Notwithstanding subdivision (b), a person shall not be held to have violated paragraph (1) of subdivision (a) solely by virtue of providing or selling time or space to a covered person or service provider placing an advertisement. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  55. 90004.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 4. Prohibited Acts [90003 - 90004] ( Chapter 4 added by Stats. 2020, Ch. 157, Sec. 7. )

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    Covered persons and service providers may not fire or otherwise discriminate against covered employees or their representatives for protected consumer-financial-law activity.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 4. Prohibited Acts [90003 - 90004] ( Chapter 4 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90004. (a) In addition to the prohibitions contained in Section 1102.5 of the Labor Code, a covered person or service provider shall not terminate or in any other way discriminate against, or cause to be terminated or discriminated against, any covered employee or any authorized representative of covered employees by reason of the fact that the employee or representative, whether at the initiative of the employee or in the ordinary course of the duties of the employee, or any person acting pursuant to a request of the employee, has either: (1) Filed or instituted, or caused to be filed or instituted, any proceeding under any consumer financial law. (2) Objected to, or refused to participate in, any activity, policy, practice, or assigned task that the employee or other such person reasonably believed to be in violation of any law, rule, order, standard, or prohibition, subject to the jurisdiction of, or enforceable by, the department. (b) For the purposes of this section, the term “covered employee” means any individual performing tasks related to the offering or provision of a consumer financial product or service. (c) (1) A person who believes that they have been terminated or otherwise discriminated against by any person in violation of subdivision (a) shall have all remedies available under Section 1102.5 of the Labor Code, subject to the restrictions set forth in that section and the implementing regulations. (2) This subdivision does not restrict the remedies available under this law. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  56. 90005.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 5. Definitions [90005- 90005.] ( Chapter 5 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This section defines key terms used throughout the division, unless another provision or the context says otherwise.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 5. Definitions [90005- 90005.] ( Chapter 5 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90005. The definitions in this section apply throughout this division, except as otherwise provided in this division or if the context clearly indicates otherwise: (a) “Affiliate” means any person that controls, is controlled by, or is under common control with another person. For purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person. (b) “Department” means the Department of Financial Protection and Innovation. (c) “Consumer” means an individual or an agent, trustee, or representative acting on behalf of an individual or the estate, trust, or joint trust of an individual, however denominated. (d) “Consumer financial law” means a federal or California law that directly and specifically regulates the manner, content, or terms and conditions of any financial transaction, or any account, product, or service related thereto, with respect to a consumer. (e) “Consumer financial product or service” means either of the following: (1) A financial product or service that is delivered, offered, or provided for use by consumers primarily for personal, family, or household purposes. (2) A financial product or service as described in paragraph (11) of subdivision (k). (f) “Covered person” means, to the extent not preempted by federal law, any of the following: (1) Any person that engages in offering or providing a consumer financial product or service to a resident of this state. (2) Any affiliate of a person described in this subdivision if the affiliate acts as a service provider to the person. (3) Any service provider to the extent that the person engages in the offering or provision of its own consumer financial product or service. (g) “Credit” means the right granted by a person to another person to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment for those purchases. (h) “Debt” means any obligation of a person to pay another person money regardless of whether the obligation is absolute or contingent, has been reduced to judgment, is fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured and includes any obligation that gives rise to right of an equitable remedy for breach of performance if the breach gives rise to a right to payment. (i) “Deposit-taking activity” means any of the following: (1) The acceptance of deposits, maintenance of deposit accounts, or the provision of services related to the acceptance of deposits or the maintenance of deposit accounts. (2) The acceptance of funds, the provision of other services related to the acceptance of funds, or the maintenance of member share accounts by a credit union. (3) The receipt of funds or the equivalent thereof, as the department may determine by rule or order, received or held by a covered person or an agent for a covered person for the purpose of facilitating a payment or transferring funds or value of funds between a consumer and a third party. (j) “Commissioner” means the Commissioner of Financial Protection and Innovation. (k) “Financial product or service” means: (1) Extending credit and servicing extensions of credit, including acquiring, purchasing, selling, brokering extensions of credit, other than solely extending commercial credit to a person who originates consumer credit transactions. (2) Extending or brokering leases of personal or real property that are the functional equivalent of purchase finance arrangements, if all of the following: (A) The lease is on a nonoperating basis. (B) The initial term of the lease is at least 90 days. (C) In the case of a lease involving real property, at the inception of the initial lease, the transaction is intended to result in ownership of the leased property to be transferred to the lessee, subject to standards prescribed by the department. (3) Providing real estate settlement services. (4) Engaging in deposit-taking activities, transmitting or exchanging funds, or otherwise acting as a custodian of funds or any financial instrument for use by or on behalf of a consumer. (5) Selling, providing, or issuing stored value or payment instruments, except that, in the case of a sale of, or transaction to reload, stored value, only if the seller exercises substantial control over the terms or conditions of the stored value provided to the consumer where, for purposes of this paragraph, both: (A) A seller shall not be found to exercise substantial control over the terms or conditions of the stored value if the seller is not a party to the contract with the consumer for the stored value product, and another person is principally responsible for establishing the terms or conditions of the stored value. (B) Advertising the nonfinancial goods or services of the seller on the stored value card or device is not in itself an exercise of substantial control over the terms or conditions. (6) Providing check cashing, check collection, or check guaranty services. (7) Providing payments or other financial data processing products or services to a consumer by any technological means, including processing or storing financial or banking data for any payment instrument, or through any payment system or networks used for processing payment data, including payments made through an online banking system or mobile telecommunications network, except that a person shall not be deemed to be a covered person with respect to financial data processing solely because the person either: (A) Is a merchant, retailer, or seller of any nonfinancial good or service who engages in financial data processing by transmitting or storing payment data about a consumer exclusively for purpose of initiating payment instructions by the consumer to pay that person for the purchase of, or to complete a commercial transaction for, the nonfinancial good or service sold directly by that person to the consumer. (B) Provides access to a host server to a person for purposes of enabling that person to establish and maintain a website. (8) Providing financial advisory services other than services relating to securities provided by a person regulated by the Securities Exchange Commission or a person regulated by a state securities commission, but only to the extent that such person acts in a regulated capacity, to consumers on individual financial matters or relating to proprietary financial products or services (other than by publishing any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, including publishing market data, news, or data analytics or investment information or recommendations that are not tailored to the individual needs of a particular consumer) including both of the following: (A) Providing credit counseling to any consumer. (B) Providing services to assist a consumer with debt management or debt settlement, modifying the terms of any extension of credit, or avoiding foreclosure. (9) Collecting, analyzing, maintaining, or providing consumer report information or other account information, including information relating to the credit history of consumers, used or expected to be used in connection with any decision regarding the offering or provision of a consumer financial product or service, except to the extent that: (A) A person does any of the following: (i) Collects, analyzes, or maintains information that relates solely to the transactions between a consumer and that person. (ii) Provides information to an affiliate of the person, as described in subdivision (a). (iii) Provides information that is used or expected to be used solely in any decision regarding the offering or provision of a product or service that is not a consumer financial product or service. (B) The information described in clause (i) of subparagraph (A) is not used by the person or affiliate in connection with any decision regarding the offering or provision of a consumer financial product or service to the consumer, other than credit described in subparagraph (A) of paragraph (1) of subdivision (e) of Section 90006. (10) Collecting debt related to any consumer financial product or service. (11) Directly or indirectly brokering the offer or sale of a franchise in this state on behalf of another. (12) Offering another financial product or service as may be defined by the department, by regulation, for purposes of this division, if the department finds that the financial product or service is either: (A) Entered into or conducted as a subterfuge or with a purpose to evade any consumer financial law. (B) Permissible for a bank or for a financial holding company to offer or to provide under any provision of law or regulation applicable to a bank or a financial holding company, and has, or likely will have, a material impact on consumers, excluding, however, solely from the department’s authority to define additional financial products and services under this subparagraph and not the exercise of any other authority it may have, the following activities provided to a covered person: (i) Providing information products or services to a covered person for identity authentication. (ii) Providing information products or services for fraud or identify theft detection, prevention, or investigation. (iii) Providing document retrieval or delivery services. (iv) Providing public records information retrieval. (v) Providing information products or services for anti-money laundering activities. (13) The term “financial product or service” does not include either of the following: (A) Insurance, as defined in Section 22 of the Insurance Code, regulated by the Department of Insurance. (B) The provision, by a person, of electronic data transmission, routing, intermediate or transient storage, or connections to a telecommunications system or network, not including a person that provides those electronic conduit services if, when providing those services, the person does any of the following: (i) Selects or modifies the content of the electronic data. (ii) Transmits, routes, stores, or provides connections for electronic data, including financial data, in a manner that the financial data is differentiated from other types of data of the same form that the person transmits, routes, or stores, or with respect to which, provides connections. (iii) Is a payee, payor, correspondent, or similar party to a payment transaction with a consumer. (l) “Payment instrument” means a check, draft, warrant, money order, traveler’s check, electronic instrument, or other instrument, payment of funds, or monetary value, other than currency. (m) “Person” means an individual, corporation, business trust, estate, trust, partnership, proprietorship, syndicate, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, public corporation or joint stock company, or any other organization or legal or commercial entity. (n) (1) “Service provider” means any person that provides a material service to a covered person in connection with the offering or provision by that covered person of a consumer financial product or service, including a person that either: (A) Participates in designing, operating, or maintaining the consumer financial product or service. (B) Processes transactions relating to the consumer financial product or service, other than unknowingly or incidentally transmitting or processing financial data in a manner that the data is undifferentiated from other types of data of the same form as the person transmits or processes. (2) The term “service provider” does not include a person solely by virtue of that person offering or providing to a covered person either: (A) A support service of a type provided to businesses generally or a similar ministerial service. (B) Time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media. (o) (1) “Stored value” means funds or monetary value represented in any electronic format, whether or not specially encrypted, and stored or capable of storage on electronic media in such a way as to be retrievable and transferred electronically, and includes a prepaid debit card or product, or any other similar product, regardless of whether the amount of the funds or monetary value may be increased or reloaded. (2) Notwithstanding paragraph (1), the term “stored value” does not include a special purpose card or certificate, which shall be defined for purposes of this paragraph as funds or monetary value represented in any electronic format, whether or not specially encrypted, that is all of the following: (A) Issued by a merchant, retailer, or other seller of nonfinancial goods or services. (B) Redeemable only for transactions with the merchant, retailer, or seller of nonfinancial goods or services or with an affiliate of such person, which affiliate itself is a merchant, retailer, or seller of nonfinancial goods or services. (C) Issued in a specified amount that, except in the case of a card or product used solely for telephone services, may not be increased or reloaded. (D) Purchased on a prepaid basis in exchange for payment. (E) Honored upon presentation to the merchant, retailer, or seller of nonfinancial goods or services or an affiliate of such person, which affiliate itself is a merchant, retailer, or seller of nonfinancial goods or services, only for any nonfinancial goods or services (p) These definitions shall be interpreted consistently with the definitions in the Consumer Financial Protection Act of 2010 (12 U.S.C. Sec. 5481). Any inconsistency or ambiguity shall be resolved in favor of greater protections to the consumer and more expansive coverage. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  57. 90006.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department must regulate consumer financial products and services, exercise oversight and enforcement, and establish the Financial Technology Innovation Office.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90006. (a) The department shall regulate the offering and provision of consumer financial products or services under California consumer financial laws and shall exercise nonexclusive oversight and enforcement authority under California consumer financial laws. To the extent permissible under the federal consumer financial laws, the department shall exercise nonexclusive oversight and enforcement under the federal consumer financial laws. (b) In addition to existing functions, powers, and duties, the department shall have all of the following functions, powers, and duties in carrying out its responsibilities under this law: (1) To bring administrative and civil actions, and to prosecute those civil actions before state and federal courts. (2) To hold hearings and issue publications, results of inquiries and research, and reports that may aid in effectuating the purposes of this law. (3) To perform such other functions as may be authorized or required by law. (c) Sections 11040 and 11042 of the Government Code do not apply to this law. (d) (1) The department shall establish the Financial Technology Innovation Office. (2) The commissioner may investigate, research, analyze, and report on markets for consumer financial products or services. (3) The commissioner may develop and implement outreach and education programs to underserved consumers and communities. (4) The commissioner may develop and implement initiatives to promote innovation, competition, and consumer access within financial services. (e) Merchants, retailers, and other sellers of nonfinancial goods and services are excluded from the department’s authority, subject to the following conditions: (1) The department may not exercise authority under this division as to the following: (A) The bona fide extension of credit by a merchant, retailer, or seller of nonfinancial goods and services to a consumer for the acquisition of a nonfinancial good or service, provided that all of the following conditions are met: (i) The credit extended does not significantly exceed the fair market value of the nonfinancial good or service provided. (ii) The merchant, retailer, or seller does not sell or otherwise assign the debt, except as to the sale of delinquent debt for the purposes of collection. (iii) The merchant, retailer, or seller of nonfinancial goods and services does not regularly extend credit, as defined under the federal Truth in Lending Act (15 U.S.C. Sec. 1601 et seq.) and regulations issued thereunder. (B) The collection or sale of delinquent debt arising from credit described in clause (i). (2) Nothing in paragraph (1) shall limit the department’s authority to the extent that the department finds the sale of the nonfinancial good or service is done as a subterfuge, so as to evade or circumvent the provisions of this title. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  58. 90007.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This section directs how funds and fees under the law are handled, lets the department charge an annual registration fee, and says certain examination costs must be paid by the covered person examined.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90007. With respect to funds under this division: (a) All moneys collected or received by the commissioner under this division shall be deposited with the State Treasurer to the credit of the Financial Protection Fund, which is hereby created. All moneys in the Financial Protection Fund shall be available, upon appropriation by the Legislature, to the commissioner for purposes of administering this division. (b) The department may set and collect an annual registration fee for each entity required to register under subdivision (a) of Section 90009, which may be scaled based on the size or market participation of the entity. The annual registration fee shall be limited to the reasonable regulatory costs under this division incident to issuing registrations and performing investigations, inspections, examinations, audits, and supervisory activities; and the administrative enforcement and adjudication of this division with respect to registrants. The regulatory costs for the administrative enforcement of this division are for the purposes of protecting consumers against unfair, deceptive, or abusive acts or practices in connection with any transaction involving the provision of financial products and services in this state; protecting registrants against unfair competition; improving accountability and transparency; and ensuring equitable enforcement of consumer financial laws. (1) The cost of every inspection and examination of a covered person conducted under the authority of this law shall be paid to the department by the covered person examined and the department may maintain an action for recovery of those costs in any court of competent jurisdiction. In determining the cost of any inspection or examination, the department may use the estimated average hourly cost, including overhead, for all persons performing inspections or examinations of licensees or other persons subject to this division for the fiscal year. (2) Nothing in this subdivision shall alter or supersede the requirements for the cost of an examination conducted under the authority of any other law administered by the commissioner. (c) (1) The commissioner shall use funds obtained by the commissioner through the enforcement of any of the laws administered by the commissioner, including moneys received through fines, penalties, settlements, judgements, or otherwise, for the administration of this division, whether those funds were received before or after the enactment of this division. This provision shall not be applicable to fines, penalties, settlements, or judgments received by any other agency unless the settlement, judgment, or an agreement expressly allocates funds for the administration of this division. (2) In addition to funds obtained through the enforcement of any of the laws administered by the commissioner, the commissioner may use funds for the administration of this division that are obtained, awarded, delegated, or otherwise attributed to the department through the enforcement of any other consumer, borrower, or investor protection law, regardless of whether the action is brought directly by the commissioner or by another agency or official. (3) Funds designated as restitution or other ancillary relief to an injured person shall not be subject to this subdivision. (d) The fees and assessments paid pursuant to this section are nonrefundable. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  59. 90008.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department must set rules for timely responses to consumer complaints and inquiries, and covered persons must timely respond to consumer information requests, subject to listed confidentiality and FCRA-related exceptions.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90008. (a) The department shall, by rule, establish reasonable procedures to provide a timely response to consumers, in writing where appropriate, to complaints against, or inquiries concerning, a covered person. (b) The department shall, by rule, require a covered person to provide a timely response, in writing where appropriate, to the department concerning a consumer complaint or inquiry, including all of the following: (1) Steps that have been taken by the covered person to respond to the complaint or inquiry of the consumer. (2) Responses received by the covered person from the consumer. (3) Follow-up actions or planned follow-up actions by the covered person to respond to the complaint or inquiry of the consumer. (c) Subdivisions (a) and (b) shall not apply to a covered person to the extent it is a consumer reporting agency, as defined by the Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(f)). (d) With respect to the provision of information to consumers by covered persons, all of the following shall apply: (1) A covered person shall, in a timely manner, comply with a consumer request for information in the control or possession of that covered person concerning the consumer financial product or service that the consumer obtained from that covered person, including supporting written documentation, concerning the account of the consumer. (2) Notwithstanding paragraph (1), a covered person may not be required by this section to make available to the consumer any of the following information: (A) Confidential commercial information, including an algorithm used to derive credit scores or other risk scores or predictors. (B) Information collected by the covered person for the purpose of preventing fraud or money laundering, or detecting or making any report regarding other unlawful or potentially unlawful conduct. (C) Information required to be kept confidential by any other provision of law. (D) Nonpublic or confidential information, including confidential supervisory information. (E) Information collected, received, maintained, disclosed, sold, or processed pursuant to the Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.), but only to the extent subdivision (b) is inconsistent with any provision of the Fair Credit Reporting Act, and then only to the extent of the inconsistency, or to the extent that subdivision (b) imposes a requirement that is otherwise prohibited under Section 1681t(b) of Title 15 of the United States Code. (3) This subdivision shall not apply to a consumer credit reporting agency subject to Section 1785.10 of the Civil Code. (e) The department shall promulgate regulations to implement subdivisions (a) and (b) before commencing an enforcement action against a covered person or service provider for a violation of those provisions. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  60. 90009.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department may issue rules for registration, oversight, disclosures, reporting, and conduct standards for covered persons and service providers, and it must consult another agency when they share authority.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90009. (a) (1) The department may prescribe rules regarding registration requirements applicable to a covered person engaged in the business of offering or providing a consumer financial product or service, including requiring a filing be made under oath, and requiring the payment of registration fees. The department may require registration through the Nationwide Multistate Licensing System and Registry. (2) Notwithstanding paragraph (1), the department shall not require the registration or the payment of a fee by any of the following: (A) A covered person who is licensed by the department under another law and who is providing a financial product or service within the scope of that license. (B) A covered person who is licensed or registered by another agency unless the covered person is offering or providing a financial product or service that is not regulated by the agency licensing or registering the covered person. (C) A covered person who is licensed by the department or a federal agency who engages in deposit-taking activity unless the covered person is offering or providing a financial product or service that is not regulated by the agency licensing the covered person. (b) The following procedures apply to the oversight of persons required to register under subdivision (a): (1) The department may prescribe rules to facilitate oversight of covered persons and assessment and detection of risks to consumers. (2) The department may require a covered person to generate, provide, or retain records for the purposes of facilitating oversight of those persons and assessing and detecting risks to consumers. (3) The department may prescribe rules regarding a covered person to ensure that such persons are legitimate entities and are able to perform their obligations to consumers. Such requirements may include background checks for principals, officers, directors, or key personnel and bonding or other appropriate financial requirements. (c) The department may prescribe rules applicable to any covered person or service provider identifying as unlawful, unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. Such rules shall consider the relative harm to the consumer, the frequency of the act or practice in question, and whether such act or practice is unintentional or stems from a technical, clerical, or nonmaterial error. Rules under this section may include requirements for the purpose of preventing those acts or practices. (1) The department shall interpret “unfair” and “deceptive” consistent with Section 17200 of the Business and Professions Code and the case law thereunder. (2) The department shall have no authority under this law to declare an act or practice abusive in connection with the provision of a consumer financial product or service, unless the act or practice either: (A) Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service. (B) Takes unreasonable advantage regarding any of the following: (i) A lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service. (ii) The inability of the consumer to protect the interests of the consumer in selecting or using a consumer financial product or service. (iii) The reasonable reliance by the consumer on a covered person to act in the interests of the consumer. (3) The term “abusive” shall be interpreted consistent with Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (12 U.S.C. Sec. 5481). Any inconsistency shall be resolved in favor of greater protections to the consumer and more expansive coverage. (d) The department may prescribe rules applicable to any covered person to ensure that the features of any consumer financial product or service, both initially and over the term of the product or service, are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service, in light of the facts and circumstances. (e) The department, by regulation, may define unfair, deceptive, and abusive acts and practices in connection with the offering or provision of commercial financing, as defined in subdivision (d) of Section 22800, or other offering or provision of financial products and services to small business recipients, nonprofits, and family farms. The rulemaking may also include data collection and reporting on the provision of commercial financing or other financial products and services. (f) (1) In conducting any monitoring, regulatory or assessment activity, the department may gather information from time to time regarding the organization, business conduct, markets, and activities of any covered persons and service providers. (2) The department may require any covered persons and service providers participating in consumer financial services markets to file with the department, under oath or otherwise, in the form and within a reasonable period of time as the department may prescribe by rule or order, annual or special reports, or answers in writing to specific questions, as necessary for the department to fulfill its monitoring, assessment, and reporting responsibilities. (3) To clarify the applicability of state credit cost limitations, including rate and fee caps, to the offering and provision of consumer financial products and services by covered persons, the department may interpret and implement, including to prevent evasion thereof, all California credit cost provisions as to their applicability to consumer financial products and services. Nothing in this paragraph shall be construed to give the department authority to establish a usury limit applicable to an extension of credit offered or made by a covered person to a consumer, except as otherwise provided for by statute. (g) If the department and another agency have joint authority, the department shall consult with that agency before promulgating regulations under such laws. The department shall conduct this consultation a minimum of 30 days before the issuance of a notice of proposed rulemaking and a minimum of 30 days before the issuance of any final rule. The commissioner may not amend or rescind any regulation promulgated by another department or agency. (h) The department shall promulgate regulations to implement subdivisions (a), (b), and (d) before commencing an enforcement action against a covered person or service provider for a violation of these provisions. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  61. 90009.5.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This section requires the department to issue registration rules for covered persons, requires reports to the Legislature, and requires annual legislative hearings and commissioner reporting.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 6. Administration [90006 - 90009.5] ( Chapter 6 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90009.5. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 90009, the department shall promulgate rules regarding registration requirements applicable to a covered person no later than three years following the initiation of its second action to enforce a violation of this division by persons providing the same or substantially similar consumer financial product or service as the covered person. (b) The regulation requiring a covered person to register with the department shall become inoperative on January 1, of the calendar year that is four years following the initial year of required registration unless the Legislature takes action to extend the registration or to incorporate the scope of the activity in which the covered person is authorized to engage into a new or existing licensing law. The Legislature shall conduct public hearings to obtain input on the desirability or feasibility of extending, revising, or terminating the regulation. Failure of the Legislature to take action pursuant to this section shall not impact the department’s enforcement authority under this division. (c) The department shall submit to the appropriate committees of the Legislature on or before December 1 before the year a regulation described in subdivision (b) is set to become inoperative, a complete report of the department’s activities related to the covered persons required to be registered by the regulation covering the entire period since the initial year of required registration. (d) At least once annually, prior to March 15, the commissioner shall appear before and present a report to the appropriate committees of the Legislature reviewing all of the activities conducted to implement this division during the prior year and summarizing, with specificity, all of the activities it intends to conduct during the upcoming year. This report shall include, but not be limited to, all of the following: (1) A summary of all enforcement actions taken to implement this division during the prior year. (2) A review of business models in use among covered persons that it studied during the prior year and a description of which business models in use among covered persons it plans to study during the upcoming year. (3) A review of all regulations it proposed, or finalized, or on which it sought public feedback during the prior year and a description of all regulations it intends to propose, finalize, or on which it intends to seek public feedback during the upcoming year. (4) A review of all of the activities in which it engaged during the prior year using authority contained in paragraph (1) of subdivision (d) of Section 90006 and a description of the activities in which it plans to engage during the upcoming year. (5) A review of all outreach efforts it conducted during the prior year using authority contained in paragraph (2) of subdivision (d) of Section 90006 and a description of subject matter it plans to include and groups to which it plans to outreach during the upcoming year. (6) A review of all activities it conducted during the prior year using authority contained in paragraph (3) of subdivision (d) of Section 90006 and a description of what activities it plans to conduct during the upcoming year. (7) Any other topic deemed relevant by the commissioner or requested to be covered by a chair of the appropriate committee of the Legislature. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  62. 9001.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 9. Fees [9000 - 9001] ( Chapter 9 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    The commissioner must set fee amounts by regulation for fees expressly required in this division, and may set a filing fee up to $100 for applications needing the commissioner’s approval when no fee is otherwise expressly required.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 9. Fees [9000 - 9001] ( Chapter 9 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 9001. (a) Except where otherwise expressly provided, the commissioner shall prescribe by regulation the amount of each fee expressly required by the provisions of this division, including both existing provisions and provisions that are added by future enactments. (b) The commissioner may require, and prescribe by regulation the amount of a fee not to exceed one hundred dollars ($100), for filing any application that requires the commissioner’s approval where a fee is not expressly required by the provisions of this division. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  63. 90010.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 7. Oversight [90010- 90010.] ( Chapter 7 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department may require periodic reports and conduct examinations of covered persons in scope, and the commissioner may also require reports about information a person owns or controls.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 7. Oversight [90010- 90010.] ( Chapter 7 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90010. (a) This section shall apply to any covered person who meets any of the following conditions: (1) Offers or provides origination, brokerage, or servicing of loans secured by real estate for use by consumers primarily for personal, family, or household purposes, or loan modification or foreclosure relief services in connection with those loans. (2) Is a registrant of the department that is required to be registered by statute or by rule. (3) The department has reasonable cause to determine, by order, after notice to the covered person that the covered person is offering or providing financial products or services. (4) Is a service provider to a person described in paragraphs (1) to (3), inclusive. (b) The department may require reports and conduct examinations on a periodic basis of persons described in subdivision (a) for purposes of all of the following: (1) Assessing compliance with the requirements of consumer financial laws. (2) Obtaining information about the activities and compliance systems or procedures of that person. (3) Detecting and assessing risks to consumers, small business, and to markets for consumer financial products and services. (c) This division shall not be construed to limit the authority of the commissioner to require reports from persons described in subdivision (a), as permitted under subdivision (b), regarding information owned or under the control of the person, regardless of whether the information is maintained, stored, or processed by another person. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  64. 90011.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The commissioner and department have investigatory and subpoena powers, and subpoenas may require a person to produce documents or file written reports or answers.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90011. The commissioner and the department shall have all the investigatory and subpoena powers set forth in Sections 11180 to 11191, inclusive, of the Government Code and any subpoena may further require a person to: (a) Produce documentary material for inspection and copying or reproduction in the form or medium requested by the department. (b) File written reports or answers to questions. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  65. 90012.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department can take enforcement action against covered persons or service providers for unfair, deceptive, or abusive practices, and it may assess penalties and other relief.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90012. With respect to the enforcement powers of the commissioner and the department under this division, all of the following apply: (a) The department may take any action authorized by this law against a covered person or service provider who engages, has engaged, or proposes to engage in unfair, deceptive, or abusive practices with respect to consumer financial products or services. (b) Relief under this section may include, but is not limited to, any of the following: (1) Rescission or reformation of contracts. (2) Refund of moneys or return of real property. (3) Restitution. (4) Disgorgement or compensation for unjust enrichment, with any disgorged amounts returned to the affected consumers, to the extent practicable. (5) Payment of damages or other monetary relief. (6) Public notification regarding the violation, including the costs of notification. (7) Limits on the activities or functions of the person. (8) Monetary penalties, as set forth more fully in paragraph (1) of subdivision (c). (c) In any civil or administrative action brought pursuant to this division, the following penalties shall apply: (1) Any person that violates, through any act or omission, any provision of this division shall forfeit and pay a penalty pursuant to this subdivision. (A) The penalty amounts are as follows: (i) For any violation of this division, rule or final order, or condition imposed in writing by the department, a penalty may not exceed the greater of either five thousand dollars ($5,000) for each day during which the violation or failure to pay continues, or two thousand five hundred dollars ($2,500) for each act or omission in violation. (ii) Notwithstanding clause (i), for any reckless violation by a person of this division, rule or final order, or condition imposed by the department, a penalty may not exceed the greater of twenty-five thousand dollars ($25,000) for each day during which the violation continues, or ten thousand dollars ($10,000) for each act or omission in violation. (iii) Notwithstanding clause (i) or (ii), for any knowing violation, by a person of this division, rule or final order, or condition imposed by the department, a penalty may not exceed the lesser of 1 percent of the person’s total assets, one million dollars ($1,000,000) for each day during which the violation continues, or twenty-five thousand dollars ($25,000) for each act or omission in violation. (B) In determining the amount of any penalty assessed under this division, the department shall take into account mitigating factors and the appropriateness of the penalty with respect to all of the following: (i) The amount of financial resources of the person charged. (ii) The good faith of the person charged. (iii) The gravity of the violation. (iv) The severity of the risks to or losses of the consumer, which may take into account the number of products or services sold or provided. (v) The history of previous violations. (vi) Other matters as justice may require. (C) The department may compromise, modify, or remit any penalty that may be assessed or has already been assessed. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  66. 90013.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department may sue to stop violations and enforce compliance, the commissioner may seek ancillary relief and penalties in some cases, and the department may recover costs if it wins.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90013. The department may bring a civil action in accordance with the following: (a) If a person violates any provision of this division, rule or final order, or condition imposed in writing by the department, the department may bring an action in the name of the People of the State of California in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order herein under. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver, monitor, conservator, or other designated fiduciary or officer of the court may be appointed for the defendant or the defendant’s assets, or any other ancillary relief may be granted as appropriate. A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise any or all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court, by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court. (b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, those listed in subdivision (b) of Section 90012 and a claim for penalties as stated in subdivision (c) of Section 90012. The court shall have jurisdiction to award additional relief. (c) In any action brought by the department, the department may recover its costs in connection with prosecuting the action if the department is the prevailing party in the action. (d) This section shall not be construed to authorize the imposition of exemplary or punitive damages. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  67. 90014.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    Most civil actions under this division must be brought within four years after discovery of the violation, unless another law or equity rule permits otherwise.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90014. The following limitations apply to actions brought under this division: (a) Except as otherwise permitted by law or equity, including provisions under any consumer financial law, no civil action may be brought under this division more than four years after the date of discovery of the violation to which an action relates. (b) In any action arising solely under a California or federal consumer financial law, both: (1) The limitations period under that consumer financial law shall apply, and not the period under subdivision (a). (2) The department may commence, defend, or intervene in the action in accordance with the requirements of that provision of law, as applicable. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  68. 90015.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department and commissioner may hold hearings, enforce compliance, assess penalties, and seek court orders; the department may also order a person to stop prohibited conduct and may suspend or revoke a covered person’s license or registration.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90015. (a) The department may conduct hearings and adjudication proceedings with respect to any person in order to ensure or enforce compliance with both of the following: (1) The provisions of this division, including any rule, final order, or condition imposed by the department, under this division. (2) Any other law that the department is authorized to enforce and any regulations or order prescribed thereunder, unless that law specifically limits the department from conducting a hearing or adjudication proceeding and only to the extent of that limitation. (b) All hearings provided for in this division shall be conducted in accordance with the administrative adjudication provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the commissioner shall have all the powers granted therein. (c) After notice and an opportunity to be heard, the commissioner may, by order, assess penalties under subdivision (c) of Section 90012. (d) (1) If, in the opinion of the department, any person engages, has engaged, or proposes to engage in any activity prohibited by Section 90003 or 90004, or an activity, act, practice, or course of business that violates a law, rule, order, or any condition imposed in writing on the person by the department, the department may issue an order directing the person to desist and refrain from engaging in the activity, act, practice, or course of business. (2) If that person fails to file a written request for a hearing within 30 days from the date of service of the order, the order shall be deemed a final order of the commissioner. (e) If any person engages, has engaged, or proposes to engage in any activity prohibited by Section 90003 or 90004, or an activity, act, practice, or course of business that violates a law, rule, order, or any condition imposed in writing on the person by the department, with respect to consumer financial products, the department may include in any administrative action authorized under this section, a claim for ancillary relief as set forth in subdivision (b) of Section 90012. The court shall have jurisdiction to award additional relief. (f) If, in the opinion of the department, any covered person or service provider is engaging, has engaged, or proposes to engage in an activity, act, practice, or course of business that violates a law, rule, order, or any condition imposed in writing on the person by the department, the department may, after notice and an opportunity for a hearing, suspend or revoke the license or registration of the covered person or service provider. (g) After the exhaustion of the review procedures provided for in this section, the commissioner may apply to the appropriate superior court for an order compelling the cited licensee or person to comply with the orders of the commissioner. (1) The application shall include a certified copy of the final order of the commissioner. (2) Upon the filing of the application, the superior court shall set a date for a hearing for an order to show cause why judgment should not be entered, which shall be set not less than 30 calendar days from the date the application is filed. (3) The commissioner shall serve a copy of the application and final order along with notice of the hearing to all entities or persons cited in the order against whom a civil judgment is sought not less than 15 calendar days before the date set for the hearing. Service of the application shall be pursuant to the methods specified by Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure for service of summons. (4) The court shall consider the filing of a certified copy of the final order of the commissioner and the proof of service of the application and notice of the hearing on the persons or entities against whom the judgment is sought, a sufficient prima facie showing to warrant the issuance of the civil judgment and order at the hearing. The respondent bears the burden of showing by affirmative evidence at the hearing why the order of the commissioner is not final, or why the timely notice of application and hearing was not provided to avoid judgment being entered by the superior court. Any method of service authorized by laws under which the final order was issued, including those methods under Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code is considered valid service for the purposes of determining whether the order of the commissioner is final. (5) The respondent shall not be allowed to raise any defenses or present any evidence at the hearing on the application that had been or could have been raised by the respondent at an administrative hearing to challenge the commissioner’s order, or in an appeal or writ from such proceedings. (6) The judgment issued pursuant to paragraph (4) of this subdivision may be for injunctive relief or payment of ancillary relief or penalties. The judgment may be enforced by the court pursuant to the procedures authorized for any other civil judgment. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  69. 90016.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The commissioner may not outsource or delegate enforcement authority under this division to a private attorney.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90016. The commissioner shall not outsource or delegate enforcement authority under this division to a private attorney. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  70. 90017.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The department may make an agreement with the Attorney General, must send criminal-law evidence to the Attorney General, and must notify other affected regulatory agencies.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 8. Enforcement Powers and Duties [90011 - 90017] ( Chapter 8 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90017. In regard to cooperation with the Attorney General, the following provisions apply: (a) The department may enter into an agreement with the Attorney General with respect to civil actions by each agency. (b) A provision of this division, any regulation or order made under the authority of this division, or any agreement under this subdivision shall not do any of the following: (1) Limit the powers or authorities of the Attorney General, including, but not limited to, the Attorney General’s ability to prosecute violations of civil or criminal laws. (2) Limit the rights of any consumer, or the obligations of any covered person or service provider, under the Unfair Competition Law, the False Advertising Law, or any consumer financial law. (c) (1) If the department obtains evidence that a person has engaged in conduct that may constitute a violation of criminal law, the department shall transmit that evidence to the Attorney General. (2) This subdivision shall not affect any other authority of the department to disclose information. (d) (1) This section shall not be construed to limit the authority of the department under this division to cooperate with any regulatory or law enforcement body. (2) The department shall notify other regulatory agencies that will be impacted by the department’s actions under this division. (e) Nothing in this division shall limit the ability of any district attorney or any city attorney lawfully permitted pursuant to Section 17204 of the Business and Professions Code to bring actions or obtain relief pursuant to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code. Remedies sought and obtained by district attorneys and city attorneys pursuant to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code shall be cumulative to remedies set forth in this division. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  71. 90018.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 9. Annual Report [90018- 90018.] ( Chapter 9 added by Stats. 2020, Ch. 157, Sec. 7. )

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    The commissioner must publish an annual report on the department’s website about actions taken under this law during the prior year.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 9. Annual Report [90018- 90018.] ( Chapter 9 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90018. (a) The commissioner shall prepare and publish on the department’s internet website an annual report detailing actions taken during the prior year under this law. (b) The report described in subdivision (a) shall include, but not be limited to, information on actions taken with respect to all of the following: (1) Rulemaking, enforcement, oversight, consumer complaints and resolutions, education, and research. (2) The activities of the Financial Technology Innovation Office. (3) The activities of the Office of the Ombuds. (c) The report may include recommendations, including those intended to result in improved oversight, greater transparency, or increased availability of beneficial financial products and services in the marketplace. (Amended by Stats. 2025, Ch. 162, Sec. 1. (AB 665) Effective January 1, 2026.)
  72. 90019.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 10. Miscellaneous [90019- 90019.] ( Chapter 10 added by Stats. 2020, Ch. 157, Sec. 7. )

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    This section says the division should be read broadly, that invalid parts do not defeat the rest, and that preempted provisions do not apply to the extent of federal preemption.

    ## Financial Code - FIN ## DIVISION 24. California Consumer Financial Protection Law [90000 - 90019] ( Division 24 added by Stats. 2020, Ch. 157, Sec. 7. ) ## CHAPTER 10. Miscellaneous [90019- 90019.] ( Chapter 10 added by Stats. 2020, Ch. 157, Sec. 7. ) ## 90019. (a) The provisions of this division shall be liberally construed to effectuate its purposes. (b) The provisions of this act are severable. If any provision of this division, or amendments to it, or regulations promulgated under it, or under such amendments, is held invalid, illegal, or unenforceable, then that invalidity, illegality, or unenforceability shall not affect other provisions, amendments, or regulations that can be given effect without the invalid, illegal, or unenforceable provision, amendment, or regulation. Any invalidity, illegality, or unenforceability shall be construed as narrowly as possible and shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered and to the person or circumstances involved. (c) To the extent that any provision of this division is preempted by federal law, the provision shall not apply and shall not be enforced solely as to the extent of the preemption and not as to other circumstances, persons, or applications. (Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)
  73. 99.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section says the listed divisions are known as the Financial Institutions Law and may be cited by that name.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 99. This division, Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), and Division 15 (commencing with Section 31000) shall be known, and may be cited, as the “Financial Institutions Law.” (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

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