Financial Code — Part 8 | FIN — United States — California law | Esheria

Financial Code

Part 8 of 17 · provisions 1,401–1,600

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 200 of 3,273

  1. 18564.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )

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    This section defines “premium finance agreement” for this chapter.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18564. As used in this chapter, “premium finance agreement” means a loan contract, note, agreement or obligation by which an insured agrees to pay to a company in installments the principal amount advanced by the company to an insurer or producer in payment of premium on an insurance contract or contracts, plus charges, with the assignment as security therefor of the unearned premiums, accrued dividends or loss payments, the final installment due date of the agreement not to extend beyond the term of the insurance contract included in the agreement having the latest expiration date. (Added by Stats. 1976, Ch. 964.)
  2. 18565.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )

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    In this chapter, “company” means a premium finance agency.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18565. As used in this chapter, “company” means a premium finance agency. (Added by Stats. 1976, Ch. 964.)
  3. 18566.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )

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    This section defines “principal balance” for this chapter.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18566. As used in this chapter, “principal balance” means the difference between the amount of the premium and fees charged by the insurer or producer and the downpayment on the premium. (Amended by Stats. 1985, Ch. 297, Sec. 3.)
  4. 18567.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )

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    This section defines “finance charge” for this chapter.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18567. As used in this chapter, “finance charge” means any amount which the insured agrees to pay the company in excess of the premium and fees charged by the insurer or producer, and exclusive of the cost of credit life insurance and attorney fees. (Added by Stats. 1976, Ch. 964.)
  5. 1857.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A corporation may not buy, own, or hold stock or ownership certificates in certain competing corporations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1857. No corporation shall purchase, own, or hold stock or certificates of ownership in any other corporation organized under this article or under the laws of any state which is in substantial competition therewith, or which holds stock or certificates of ownership in corporations which are in substantial competition with the purchasing corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  6. 1858.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Corporations may buy and hold stock only when needed to avoid a loss on a debt made in good faith, but any such stock must be sold or disposed of within six months unless the commissioner extends the time.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1858. Nothing contained in this article shall prevent corporations from purchasing and holding stock in any corporation where such purchase shall be necessary to prevent a loss upon a debt previously contracted in good faith; and stock so purchased or acquired in corporations shall within six months from such purchase be sold or disposed of at public or private sale unless the time to so dispose of same is extended by the commissioner. (Amended by Stats. 2013, Ch. 334, Sec. 45. (SB 537) Effective January 1, 2014.)
  7. 18580.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A premium finance agency that wants the full authority available under this division must amend its articles of incorporation and satisfy the division’s requirements as if filing an original application to organize under it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18580. A premium finance agency desiring the full authority which may be conferred by this division, shall, in respect to any lending operations other than insurance premium financing, be required to amend its articles of incorporation and meet the requirements of this division as if it were making an original application for authority to organize under this division. (Added by Stats. 1976, Ch. 964.)
  8. 18581.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A corporation organized under this division as a premium finance agency must state that fact in its articles of incorporation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18581. The articles of incorporation of any corporation organized under this division as a premium finance agency shall include reference to that fact. (Added by Stats. 1976, Ch. 964.)
  9. 18582.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A premium finance agency must keep capital stock at least $75,000 and does not have to exceed that amount.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18582. Capital stock of any premium finance agency shall not be less than seventy-five thousand dollars ($75,000) and need not exceed that sum regardless of the number of branch offices or business locations which may be authorized under the provisions of this division. (Added by Stats. 1976, Ch. 964.)
  10. 18583.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A premium finance agency must pay cash equal to 100% of the minimum capital stock required under this chapter before starting business or opening a branch office or place of business.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18583. Before a premium finance agency commences business or opens a branch office or place of business, there must be paid in cash, for the benefit of the agency, 100 percent of the amount of the minimum capital stock required under this chapter. (Added by Stats. 1976, Ch. 964.)
  11. 18584.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    An insurance premium finance agreement may be prepared in a licensed insurance producer’s office and sent to a premium finance agency for acceptance, and that office is not treated as the company’s place of business for that reason.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18584. An insurance premium finance agreement, as defined in Section 18564, may be prepared in the office of an insurance producer licensed by the Department of Insurance, and mailed or otherwise delivered to a premium finance agency for acceptance without the office of the producer thereby being constituted a place of business of the company. A producer at whose office a premium finance agreement is so prepared shall not be considered to be a broker of the company as that term is used in this division. (Added by Stats. 1976, Ch. 964.)
  12. 18585.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    If this chapter conflicts with another chapter in the division, this chapter controls for premium finance agencies and insurance premium financing.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18585. In the event of any conflict in the provisions of this chapter with the provisions of any other chapter in this division, the provisions of this chapter shall control with regard to a premium finance agency or to insurance premium financing. (Added by Stats. 1976, Ch. 964.)
  13. 18586.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    Several listed sections do not apply to a premium finance agency.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18586. The provisions of Sections 18023, 18024, 18120, 18205, 18268, 18269, 18271, 18272, 18274, and 18455 shall not apply to a premium finance agency. (Amended by Stats. 2001, Ch. 159, Sec. 95. Effective January 1, 2002.)
  14. 18587.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    Sections 18607, 18625, and 18626 do not apply to certain bona fide loans of $2,500 or more, or to a premium finance agency connected with those loans, if the section is not being used to evade the division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18587. The provisions of Sections 18607, 18625, and 18626 shall not apply to any bona fide loan with a principal amount of two thousand five hundred dollars ($2,500) or more or to a premium finance agency in connection with such loans if the provisions of this section are not used for the purpose of evading this division. (Amended by Stats. 1986, Ch. 598, Sec. 1.)
  15. 18588.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    If the insured pays the last known assignee before getting notice of an assignment, that payment binds later assignees. An assignment also does not eliminate the insured’s defenses, and the chapter’s rights and obligations apply to the assignee.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18588. Unless the insured has notice of the assignment of a premium finance agreement, payment thereunder by him to the last known assignee of the agreement shall be binding upon all subsequent assignees. Assignment of the premium finance agreement shall not cut off any defenses which the insured would have against the company or an assignee of the agreement arising from obligations imposed by this division. The obligations and rights of a premium finance agency, under this chapter, shall also apply to the assignee of a premium finance agreement. (Added by Stats. 1976, Ch. 964.)
  16. 18589.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    On written request, the company must provide the insured a written statement of payment dates, amounts, and any unpaid balance, within the stated time limit.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18589. At any time during the term of the premium finance agreement, but not later than one year after the last payment thereunder, the company shall upon written request of the insured, give or mail to him a written statement of the dates and amounts of payment, and the total amount, if any, unpaid thereunder. Such a statement shall be supplied once each year without charge; if any additional statement is requested, the company shall supply such statement at a charge not exceeding one dollar ($1) for each additional statement so supplied. (Added by Stats. 1976, Ch. 964.)
  17. 1859.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A corporation may do only incidental foreign/international business in the United States, and it may not exercise the article’s powers until the commissioner authorizes it to begin business.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1859. No corporation shall carry on any part of its business in the United States except such as, in the judgment of the commissioner, shall be incidental to its international or foreign business. Except such as is incidental and preliminary to its organization no corporation shall exercise any of the powers conferred by this article until it has been duly authorized by the commissioner to commence business under the provisions of this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  18. 18590.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    If a loan is paid in full, the company must return the premium finance agreement marked “Paid” to the insured when requested.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18590. Upon payment of a loan in full the company upon request shall return the premium finance agreement marked “Paid” to the insured. (Added by Stats. 1976, Ch. 964.)
  19. 18591.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    No filing is needed to perfect the validity of a premium finance agreement as a secured transaction against the insured’s creditors and other later claimants.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18591. No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrances, successors or assigns of the insured. (Added by Stats. 1976, Ch. 964.)
  20. 18592.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A financing company must hold certain downpayments in trust and pay them to the insurer within the stated deadline, and must give the commissioner disclosure authorization on request.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18592. Any downpayment which is made and which is received by the company from the insured, or from the insurance producer on behalf of the insured, shall be held by the company in trust for and in transit to the insurer, and shall be paid to the insurer, together with the balance of the premium payable pursuant to the terms of the premium finance agreement within 30 days from the effective date of the policy, or within 30 days after the receipt of a proper premium finance agreement by the company, or within 15 days after the company has mailed to the insured notice of a revised finance agreement pursuant to Section 18606, whichever is later. In the event that the premium is paid to the insurance agent or broker of record, such agent or broker of record shall not be deemed the agent of the company by reason of such payment. Upon request of the commissioner, the company shall furnish an authorization for disclosure to the commissioner of financial records of such trust accounts pursuant to Section 7473 of the Government Code. (Amended by Stats. 1977, Ch. 487.)
  21. 18593.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    The company may keep certain downpayments in trust or use specified financial instruments instead, but the protected amount must be at least the average downpayments being held and held for the insureds’ benefit.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18593. The downpayments received by the company under the provisions of Section 18592, may be held by the company in trust in a separate bank account or depository, or in lieu thereof, the company may maintain a time deposit with a bank, savings and loan association, or comparable institution, or obtain a certificate or certificates of deposit or a clean and irrevocable letter or letters of credit from a bank, in an amount at least equal to the average amount of such downpayments being held at any given time by the company as ascertained by the commissioner, and which are payable to the insurer pursuant to the terms of the premium finance agreement. Such deposits, certificates, or a clean and irrevocable letter or letters of credit shall be held in trust for the benefit of the insureds, as their relative interests in such downpayments may exist at any given time, and in the event of the insolvency of a company, such funds on deposit under the provisions of this section or as represented by a certificate or certificates of deposit or a clean and irrevocable letter or letters of credit shall be first applied to remitting the amount of the downpayment to the insureds on all premium finance agreements upon which the company has not then forwarded in full the downpayments collected from and then being held for insureds, and, if insufficient to pay all such amounts in full, then such funds shall be applied for such purposes pro rata. (Amended by Stats. 1983, Ch. 356, Sec. 1.)
  22. 18594.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    Certain industrial loan companies must conduct insurance premium financing under this chapter and are treated as subject to all provisions of the chapter for that business.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18594. Any corporation organized as an industrial loan company other than a premium finance agency shall conduct any insurance premium financing business under the authority of this chapter and it shall be subject to all of the provisions of this chapter in respect to such business, as if it were a premium finance agency. (Amended by Stats. 1998, Ch. 827, Sec. 17. Effective January 1, 1999.)
  23. 18595.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agency must not use the words “industrial loan company” in its corporate name, loan forms, or advertising.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18595. A premium finance agency shall not incorporate the words “industrial loan company” in its corporate name, on its loan forms, or in its advertising. (Added by Stats. 1976, Ch. 964.)
  24. 18596.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A premium finance company may issue or sell investment certificates, but only to customers tied to premium financing or to certain investors and entities designated by rule.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18580 - 18596] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18596. A premium finance company may issue or sell investment certificates only (a) to its customers directly in connection with the financing of premiums for those customers, provided that the aggregate finance charges, including interest paid or not paid on those investment certificates, do not exceed those charges permitted under Section 18626 and (b) to any institutional investors, governmental agency, or instrumentality as the Commissioner of Financial Protection and Innovation may designate by rule. (Amended by Stats. 2022, Ch. 452, Sec. 131. (SB 1498) Effective January 1, 2023.)
  25. 186.

    ## 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. )

    Verify source ↗

    This section defines “majority-owned subsidiary” by referring to the meaning of “subsidiary” in Corporations Code section 189(a).

    ## 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. ) ## 186. “Majority-owned subsidiary” has the meaning set forth for “subsidiary” in subdivision (a) of Section 189 of the Corporations Code. (Added by Stats. 2013, Ch. 334, Sec. 13. (SB 537) Effective January 1, 2014.)
  26. 1860.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Corporations may not trade in commodities or control commodity prices unless this article specifically allows it.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1860. No corporation shall engage in commerce or trade in commodities except as specifically provided in this article, nor shall it either directly or indirectly control or fix or attempt to control or fix the price of any such commodities. The license of any corporation violating this section shall be subject to forfeiture as provided in this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  27. 18605.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agreement must be written, use at least eight-point type for the printed portion, and include specified information about the insured, the insurance, the financing terms, and prepayment rights.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18605. A premium finance agreement shall be in writing and the printed portion thereof shall be in at least eight-point type. The agreement shall set forth: 1. The names and addresses of the insured and the company, and the date of the agreement. 2. A description of the insurance contracts for which the premiums are advanced including the total amount of the premiums and fees and a specific breakdown thereof by policies and a general description of coverages. 3. The amount of the downpayment. 4. The cost, if any, for credit life insurance. 5. The principal balance. 6. The finance charges. 7. The unpaid balance. 8. The due date of the first installment. 9. The number, amount and frequency of payment of the installments. 10. A statement that the insured may prepay the full amount due and receive a refund credit of the unearned finance charge, in the manner provided by Section 18629. (Repealed and added by Stats. 1976, Ch. 964.)
  28. 18606.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

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    A premium finance agreement generally cannot be signed if it still has blank spaces, but some specified blanks may be left open in limited circumstances. The company must mail the insured a notice of revised terms when additional financing changes the agreement, and the insured may disaffirm within 10 days.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18606. A premium finance agreement shall not be executed by or on behalf of the insured when it contains any blank space to be filled in thereafter; however, if any insurance contract, premiums for which are advanced or to be advanced under the agreement, has not been issued at the time of execution and the premium finance agreement so provides, the name of the insurer, the policy number and the due date of the first installment may be left blank and inserted later. In connection with the financing of an additional premium or policies, upon the completion of the computations necessary to determine the amount of the revised unpaid balance and the number and amount of future installment payments, the company shall mail notice of the changes to the insured at his address shown in the agreement. The notice of the revised finance agreement shall set forth: (a) The unpaid balance, as adjusted. (b) The number and frequency of each installment under the revised finance agreement. (c) The amount of each installment. (d) A statement to the insured that he may disaffirm the revised finance agreement by mailing, to the company’s office, notice of his intention to do so within 10 days of the company’s mailing of the notice of the revised finance agreement. (e) A statement to the insured that the company may, in the event he disaffirms, cancel his insurance contract or contracts as provided in Section 18608, except that the 10-day period required by that section shall be deemed to commence with the mailing of the notice of the revised finance agreement. (Repealed and added by Stats. 1976, Ch. 964.)
  29. 18607.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The company must promptly send the insured either a rejection notice or a copy of the premium finance agreement; if a blank was later filled in, it must send the completed copy. The insured then has 10 days to disaffirm by written notice to the producer and the company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18607. Upon receipt of the loan form the company shall promptly mail to the insured at the address shown in the agreement, or deliver to the insured personally, either a notice to the effect that the application for a loan is rejected or a copy of the agreement, thereby signifying acceptance by the company, or if the agreement contained any blank space when it was executed by or on behalf of the insured and such blank space was subsequently filled in, a copy of the agreement as so filled in and the insured shall in such event have 10 days in which to disaffirm his obligation under the premium finance agreement by giving written notice thereof to the producer and the company. In the event the agreement is not disaffirmed by the insured, the agreement shall be as binding an obligation of the insured as if the agreement were complete on its face when it was executed. (Repealed and added by Stats. 1976, Ch. 964.)
  30. 18608.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agreement may let the company cancel covered insurance after default, but the company must give the insured at least 10 days’ notice before cancellation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18608. (a) A premium finance agreement may contain a power of attorney or other authority enabling the company to cancel the insurance contract or contracts listed in the agreement in the event of default in the terms thereof. (b) Upon the exercise of such a right to cancel, the company shall mail to the insured, to his or her last known address or to the address shown on the premium finance agreement at least 10 days prior to cancellation, a notice of its intent to cancel the insurance contract or contracts. (c) The liability of a company to any person or corporation upon the exercise of such a right or authority of cancellation shall be limited to the amount of the principal balance, except in the event of willful failure by the company to mail the notice required by this section. (Amended by Stats. 1999, Ch. 428, Sec. 2. Effective January 1, 2000.)
  31. 18609.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    If the company starts cancelling the insurance contract, the insurer must send the required notice and calculate the cancellation date from when it receives the company’s request, but not earlier than the company’s date.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18609. All statutory, regulatory and contractual restrictions providing that the insured or the insurer shall not cancel the insurance contract unless the insured or the insurer first satisfies such restrictions by giving a prescribed notice of cancellation to a governmental agency, the insurer, the insured, the holder of a security interest in the subject of the insurance, or other prescribed party, shall not be affected by the provisions of this division. However, any cancellation notice period required by such statutory, regulatory or contractual restriction shall not be cumulative to the period required by Section 18606 or 18608. If cancellation of the insurance contract is initiated by the company under the terms of this division, the insurer shall (in accordance with the requirement for a prescribed notice), on behalf of itself or the insured, give such notice to the governmental agency, the holder of a security interest in the subject of the insurance or other prescribed party; and the insurer shall determine and calculate the effective date of cancellation (in accordance with the terms of that prescribed notice) from the date it receives the notice of request for cancellation from the company. In no instance shall the effective date of cancellation be prior to that established by the company. (Repealed and added by Stats. 1976, Ch. 964.)
  32. 1861.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Corporate directors, officers, agents, and employees must not use company credit, funds, or power to fix or control commodity prices.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1861. It shall be unlawful for any director, officer, agent, or employee of any corporation to use or to conspire to use the credit, the funds, or the power of the corporation to fix or control the price of any commodities, and any person violating this section shall be punished by a fine of not less than two thousand dollars ($2,000) nor more than ten thousand dollars ($10,000), imprisonment in a county jail for not more than one year, imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment, in the discretion of the court. (Added by Stats. 2011, Ch. 243, Sec. 13. (SB 664) Effective January 1, 2012.)
  33. 18610.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    After cancellation, the insurer must return payable unearned premiums or accrued dividends within a reasonable time; if the company receives more than it is owed, it must promptly remit the excess to the insured or the insured’s order.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18610. The insurer within a reasonable time after the effective date of cancellation shall return whatever gross unearned premiums or accrued dividends are payable under the insurance contract to the company, which financed the insurance contract, for the benefit of the insured. Whenever any funds are received by the company which are in excess of the amount due to the company, such an excess shall be remitted promptly to the insured or to his order or to the insurance agent for the account of the insured. (Amended by Stats. 1983, Ch. 356, Sec. 2.)
  34. 18611.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    When mailing certain notices, the company’s mailing employee must prepare and sign an affidavit listing specified mailing details.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Provisions of Premium Finance Agreements [18605 - 18611] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18611. At the time of mailing the notice required by Section 18606 or 18608, the employee of the company who is doing the mailing shall prepare and sign an affidavit setting forth the following: (a) The name and address of the employee doing the mailing. (b) That the employee is over 18 years of age. (c) The date and place of deposit in the mail. (d) The addressee’s name and address as shown on the envelope mailed. (e) That the envelope weas sealed and deposited in the mail with the postage thereon fully paid. An affidavit of mailing, prepared as prescribed in this section, shall raise a rebuttable presumption that the notice was mailed to the addressee stated in the affidavit. (Repealed and added by Stats. 1976, Ch. 964.)
  35. 1862.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A corporation may not be organized unless it has adequate shareholders’ equity.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1862. No corporation shall be organized without adequate shareholders’ equity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  36. 18625.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agency may not charge, take, reserve, or receive a finance charge above the amount allowed by this article, except as otherwise provided by law.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18625. A premium finance agency shall not, except as otherwise provided by law, impose, take, receive, reserve or charge a finance charge which in the aggregate is greater than that which is permitted by this article. (Repealed and added by Stats. 1976, Ch. 964.)
  37. 18626.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agency may charge finance charges in a premium finance agreement, but the charges are capped by this section.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18626. A premium finance agency may, in a premium finance agreement, contract for, charge, receive, and collect a finance charge which shall not exceed in the aggregate: (a) Two percent per month on that part of the unpaid principal balance of any loan up to, including, but not in excess of, one thousand dollars ($1,000). (b) One percent per month on any remainder of such unpaid principal balance in excess of one thousand dollars ($1,000). As used in this article “consumer insurance premium finance loan” shall mean an insurance premium finance loan where the insurance policies which are security for the loan are for personal, family or household use. (c) As an alternative to the charges authorized by subdivisions (a) and (b), a premium finance agency may contract for and receive charges at a rate not exceeding 1.6 percent per month on the unpaid principal balance. (Amended by Stats. 1983, Ch. 356, Sec. 3.)
  38. 18627.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    If the finance charge under Section 18626 is under $25, a minimum finance charge of $25 may be imposed.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18627. If the finance charge computed under Section 18626 is less than twenty-five dollars ($25), a minimum finance charge of twenty-five dollars ($25) may be imposed. (Amended by Stats. 1979, Ch. 984.)
  39. 18628.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A company may compute the finance charge from the insurance coverage effective date if it pays the insurer within the specified time limits.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18628. The finance charge may be computed from the effective date of the insurance coverage, provided that the company shall pay the premium due the insurer, either: (a) Within 30 days from the effective date of the insurance coverage; or (b) Within 30 days after the receipt by the company of a proper premium finance agreement; or (c) Within 15 days after the company has mailed to the insured, notice of a revised finance agreement pursuant to Section 18606 whichever is later. If the conditions of subdivision (a), (b), or (c) are not met the finance charge shall be computed from the date the proceeds of the loan are forwarded to the insurer. In the event the company receives a proper premium finance agreement later than 60 days from the effective date of the policy financed, a proportioned adjustment of the finance charge shall be made after such 60-day period. (Added by Stats. 1976, Ch. 964.)
  40. 18629.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An insured may pay a premium finance obligation in full before the last installment matures and, if so, is entitled to a refund credit of unearned finance charges, subject to a $1 minimum refund exception and a minimum-charge retention rule for the company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18629. Notwithstanding the provisions of any premium finance agreement to the contrary, any insured may pay the obligation in full at any time before maturity of the final installment. If he does so, he shall receive a refund credit of the unearned finance charge computed in accordance with Section 18635 or 18637, except where the amount of the refund credit is less than one dollar ($1) no refund need be made, and except that where the earned finance charge amounts to less than the minimum finance charge permitted by Section 18627, the company may retain as an earned finance charge a sum equal to the minimum permitted by Section 18627 or the maximum prescribed by Section 18627, whichever is applicable. (Amended by Stats. 1979, Ch. 270.)
  41. 1863.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Rules that apply to banks under Chapter 5 also apply to corporations, except Section 1121.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1863. The provisions of Chapter 5 (commencing with Section 1100) (except the provisions of Section 1121) applicable to, or with respect to, banks shall apply to, or with respect to, as the case may be, corporations. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  42. 18630.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    If the insurance policy is canceled by the insured or insurer, the insured is entitled to a refund credit for the unearned finance charge.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18630. In the event that the insurance policy or policies which are the subject of a premium finance agreement are canceled by the insured or by the insurer, for any cause, the insured shall be entitled to receive a refund credit of the unearned finance charge. This refund credit shall be calculated in the same manner as prescribed in Section 18629, and shall be paid to the insured within a reasonable time. (Added by Stats. 1976, Ch. 964.)
  43. 18631.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A premium finance agreement may charge a small default fee after a delinquency lasts at least 10 days, and may also charge up to $15 for processing a dishonored check.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Limitation on Finance Charges [18625 - 18631] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18631. (a) A premium finance agreement may provide for the payment of a default charge of one dollar ($1) to a maximum of 5 percent of the delinquent installment, in the event of a default for a period of not less than 10 days in the payment of any scheduled installment under the terms of a premium finance agreement. That charge may not be collected more than once for the same default and may be collected at the time of the default or at any time thereafter. If the default charge is deducted from any payment received after default occurs, and the deduction results in the default of a subsequent installment, no charge may be made for the resulting default. (b) A premium finance agreement may provide for the payment of a dishonored check fee not to exceed fifteen dollars ($15) for actual expenses incurred in the processing of a dishonored check. (Amended by Stats. 2000, Ch. 101, Sec. 1. Effective January 1, 2001.)
  44. 18634.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    This article applies only to premium finance agencies.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18634. This article is applicable only to premium finance agencies. (Added by Stats. 1979, Ch. 270.)
  45. 18635.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    If charges are too high because of early repayment or refinancing, the excess must be rebated or credited to the borrower, and the company must accept a payoff amount equal to the unpaid balance minus the rebate.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18635. Whenever the interest or charges, or interest and charges deducted in advance exceed the maximum provided by this division, by reason of subsequent repayment of the loan, a new loan, refinancing, or otherwise, or any portion thereof prior to maturity, such excess shall be rebated to the borrower or credited on any balance owing by the borrower to the company. The rebate shall be the difference between the total of the precomputed charge, any charge for extending the first due date, plus any default or deferment charges and the charges at the contract rate computed on unpaid principal balances for the number of days actually elapsed by applying each payment first to charges and the remainder to principal. The tender, by the borrower or at his request, of an amount equal to the unpaid balance less the required rebate must be accepted by the company in full payment of the loan contract. (Added by Stats. 1979, Ch. 270.)
  46. 18636.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    A company may use a precomputed-charge method for certain monthly installment loans and may apply payments to principal plus those charges.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18636. (a) As an alternative to the provisions of Section 18635, if a loan is repayable in substantially equal and consecutive monthly installments of principal and charges combined, the first of which is due not less than 15 days nor more than one month and 15 days from the date the loan is made, a company may precompute charges and apply payments as provided in this article. (b) The total charges which would be earned if the loan contract were repaid exactly according to its terms, at the monthly rate stated in the loan contract, may be precomputed when the loan is made and added to the principal of the loan. Every payment may be applied to the combined total of principal and precomputed charges until the loan contract is fully paid. (c) The portion of the precomputed charge applicable to any particular monthly installment period shall bear the same ratio to the total precomputed charge, excluding any adjustment made for a first period of more or less than one month, as the balance scheduled to be outstanding during that monthly period bears to the sum of all monthly balances scheduled originally by the loan contract. (Added by Stats. 1979, Ch. 270.)
  47. 18637.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    If a qualifying loan is prepaid early, the borrower gets a rebate, and the company must accept payment equal to the unpaid balance minus that rebate.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18637. If a loan contract made under Section 18636 is prepaid in full by cash, a new loan, refinancing or otherwise before the final installment date, the borrower shall receive a rebate of the portion of the precomputed charge applicable to the full installment periods following the installment date nearest the date of such prepayment; provided, however, that if prepayment in full occurs on or before the third installment date the rebate shall be the difference between the total precomputed charge and the charges at the contract rate computed on unpaid principal balances by applying each payment first to charges and the remainder to principal. After the third installment date, any prepayment made on or before the 15th day following an installment date shall be deemed to have been made on the installment date preceding such prepayment. The tender, by the borrower or at his request, of an amount equal to the unpaid balance less the required rebate must be accepted by the company in full payment of the loan contract. (Added by Stats. 1979, Ch. 270.)
  48. 18638.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    If three or more, but not all, installments are prepaid in full on a loan under Section 18636, a special rebate of precomputed charges must be calculated and applied at loan termination.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18638. A special rebate of precomputed charges shall be made if three or more, but not all, installments are prepaid in full at any one time either in one transaction or over a period of time on a loan made under Section 18636. The special rebate shall be equal to the portion of precomputed charge applicable to the last installment period multiplied by the total number of full installment periods such installments and any subsequent installments are prepaid. Such special rebate shall be computed and made at the termination of the loan contract and shall be an addition to any required rebate for prepayment in full. (Added by Stats. 1979, Ch. 270.)
  49. 1864.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Any bank may invest in shares of corporations organized under this article, but its total stock holdings in the covered corporations may not exceed 10% of the subscribing bank’s shareholders’ equity.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1864. Any bank may invest in the shares of any corporation organized under the provisions of this article, but the aggregate amount of stock held in all corporations engaged in business of the kind described in this chapter shall not exceed 10 percent of the subscribing bank’s shareholders’ equity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  50. 18640.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    A deferment charge may be charged and collected on certain loans if installments are deferred for at least one full month and the contract allows it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18640. A deferment charge may be charged and collected on a loan made under Section 18636 if the payment date of all wholly unpaid installments on which no default charge has been collected is deferred one or more full months and the loan contract so provides. Such deferment charge shall not exceed the portion of precomputed charge applicable, prior to deferment, to the first deferred monthly installment period multiplied by the number of months the maturity of the contract is deferred. Such number of months shall not exceed the number of full installments which are in default on the date of deferment or which may become due within 15 days of such date. When a deferment charge is made, no portion of the precomputed charge shall apply to the installment periods in which no installment payment is required by reason of the deferment. In computing any default charge or required rebate, the portion of the precomputed charge applicable to each deferred balance and installment period following the deferment period and prior to the deferred maturity shall remain the same as that applicable to such balances and periods under the original contract of loan. Such charge may be collected at the time of deferment or at any time thereafter. Any payment received at the time of deferment may be applied first to the deferment charge and the remainder, if any, applied to the unpaid balance of the loan contract; provided, however, if such payment is sufficient to pay, in addition to the appropriate deferment charge, any installment which is in default and the applicable default charge, it shall be first so applied and any such installment shall not be deferred nor subject to the deferment charge. (Added by Stats. 1979, Ch. 270.)
  51. 18642.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    If a loan’s maturity is accelerated, the company must give the same refund or credit as if the loan had been paid in full on the acceleration date.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18642. If the maturity of a loan made under Section 18636 is accelerated for any reason, the company shall make the same refund or credit as would be required if the loan contract was paid in full on the date of acceleration and the unpaid balance shall be treated as the unpaid principal balance and thereafter the unpaid balance of the loan contract shall bear charges at the agreed rate of charge if the loan contract so provides. (Added by Stats. 1979, Ch. 270.)
  52. 18643.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. )

    Verify source ↗

    For precomputed loans, premium finance agencies may rely only on authority from this article.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Charges on Scheduled Balances [18634 - 18643] ( Article 5 added by Stats. 1979, Ch. 270. ) ## 18643. Notwithstanding any other provision of law not within this article, with respect to precomputed loans, premium finance agencies derive authority only from this article. (Added by Stats. 1979, Ch. 270.)
  53. 1865.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Most corporations must keep a majority of their shares in U.S.-qualifying hands, but foreign banks and related institutions may own 50% or more with commissioner approval.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1865. (a) In this section, “foreign bank” means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate, organized under such laws, of any such company. “Foreign bank” includes, without limitation, foreign commercial banks, foreign merchant banks, and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating. (b) Except as otherwise provided in subdivision (c), a majority of the shares of the capital stock of any corporation shall at all times be held and owned by citizens of the United States, by corporations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a state of the United States, or by firms or companies, the controlling interest in which is owned by citizens of the United States. (c) Notwithstanding the provisions of subdivision (b), one or more foreign banks, institutions organized under the laws of foreign countries which own or control foreign banks, or banks organized under the laws of the United States, the states of the United States, or the District of Columbia, the controlling interests in which are owned by any such foreign banks or institutions, may, with the approval of the commissioner and upon such terms and conditions and subject to such rules and regulations as the commissioner may prescribe, own and hold 50 percent or more of the shares of the capital stock of any corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  54. 18650.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. )

    Verify source ↗

    This chapter does not apply to certain acquisitions or sales/mergers that need commissioner approval.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. ) ## 18650. This chapter does not apply to any of the following transactions: (a) An acquisition of control of a California industrial loan company that requires the approval of the commissioner under Section 18138. (b) A sale or merger that requires the approval of the commissioner under Division 1.5 (commencing with Section 4800). (Added by Stats. 1995, Ch. 479, Sec. 6. Effective October 2, 1995.)
  55. 18651.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. )

    Verify source ↗

    Applications filed with the commissioner for approval under this chapter must be in the required form, include the required information, and be signed as required; the commissioner may also require verification by rule or order.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. ) ## 18651. Each application filed with the commissioner for an approval under this chapter shall be in the form, shall contain the information, shall be signed in the manner, and shall, if the commissioner requires by rule or order, be verified in the manner that the commissioner may by rule or order require. (Added by Stats. 1995, Ch. 479, Sec. 6. Effective October 2, 1995.)
  56. 18652.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. )

    Verify source ↗

    A filing fee of $400 is required for an application for approval under this chapter when filed with the commissioner.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. ) ## 18652. The fee for filing with the commissioner an application for an approval under this chapter is four hundred dollars ($400). (Added by Stats. 1995, Ch. 479, Sec. 6. Effective October 2, 1995.)
  57. 18653.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. )

    Verify source ↗

    This section adopts certain Federal Deposit Insurance Act definitions, limits when the section applies, and lets the commissioner approve some interstate merger transactions if the public convenience and advantage in the state is met.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. ) ## 18653. (a) The definitions that are set forth in or are applicable to Section 44 of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u) apply to this section. (b) This section does not apply unless each bank involved in an interstate merger transaction (including each insured depository institution that is an affiliate of the surviving, resulting, or purchasing bank) that is organized under the laws of this state or maintains a branch office in this state, is an industrial loan company (as defined in Section 4805.10). (c) The commissioner may approve an interstate merger transaction that is subject to Section 44(b)(2)(B) and (D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u(b)(2)(B) and (D)(ii)) if the commissioner finds that the transaction is consistent with the public convenience and advantage in this state. (Amended by Stats. 1996, Ch. 887, Sec. 53. Effective September 25, 1996.)
  58. 18654.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. )

    Verify source ↗

    The commissioner may adopt rules to carry out this chapter.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 9. Interstate Acquisitions [18650 - 18654] ( Chapter 9 added by Stats. 1995, Ch. 479, Sec. 6. ) ## 18654. The commissioner is authorized to adopt rules to implement this chapter similar to regulations adopted under similar provisions of law contained in Chapter 21.5 (commencing with Section 3750) of Division 1, and for the same or similar reasons. The authority granted to the commissioner by this section is in addition to the authority granted to the commissioner under Section 18347. (Amended by Stats. 1996, Ch. 1064, Sec. 615. Effective January 1, 1997. Operative July 1, 1997.)
  59. 1866.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The commissioner may immediately take possession of a corporation’s property and business if certain problems are found, such as legal violations, unsafe operations, impaired capital, refusal to cooperate with inspection or examination, suspension of obligations, unsafe condition, or failure to follow specified orders.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1866. Whenever it shall appear to the commissioner that any corporation has violated the provisions of its articles of incorporation or any law of this state, or is conducting its business in an unsafe or unauthorized manner, or if the contributed capital of any such corporation is impaired, or if the corporation shall refuse to submit its books, papers and concerns to the inspection of any examiner of the department or if any officer thereof shall refuse to be examined upon oath touching the concerns of the corporation or if the corporation shall suspend payment of its obligations, or if from any examination or report provided for by this article the commissioner shall have reason to conclude that the corporation is in an unsound or unsafe condition to transact the business for which it is organized, or that it is unsafe and inexpedient for it to continue business, or if any corporation shall neglect or refuse to observe any order of the commissioner specified in Section 580 or 581, the commissioner may forthwith take possession of the property and business of such corporation and retain such possession until such corporation shall resume business, or its affairs be finally liquidated as provided by this code for the liquidation of banks. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  60. 18660.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    This section defines terms used in the chapter on foreign industrial loan companies’ agency activities.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18660. In this chapter, unless the context otherwise requires: (a) “Authorized agency activities” means issuing investment certificates, renewing certificates of deposits, as defined in Section 18003.6, closing loans, servicing loans, and receiving payments on loans and other obligations. “Authorized agency activities” includes ministerial functions such as providing loan applications, assembling documents, providing a location for returning documents necessary for making a loan, providing loan account information, receiving payments, disbursing loan funds, evaluating loan applications, and other activities that the commissioner may specify by rule or order. However, “authorized agency activities” does not include any other activities that the commissioner may specify by rule or order. (b) “Branch business unit” means all or substantially all of the business of a branch office of an industrial loan company. (c) “California”: (1) When used with respect to an industrial loan company, means a corporation of the type described in Section 18003 organized and licensed under the laws of this state. (2) When used with respect to an office of an industrial loan company, means an office which is located in this state. (3) When used with respect to a bank or an office of a bank, has the meaning set forth in subdivision (a) or (b) of Section 126.5. (d) “Core business” means the business of issuing investment certificates, making loans, and other activities that the commissioner may specify by rule or order. (e) “Depository institution affiliate” means a depository institution affiliate within the meaning of Section 18(r) of the Federal Deposit Insurance Act (18 U.S.C. Sec. 1828(r)). (f) “Facility,” when used with respect to a foreign (other state) industrial loan company, means an office in this state at which the industrial loan company engages in noncore business but at which it does not engage in core business. (g) “Foreign (other state) industrial loan company” means a corporation of the type described in Section 18003 organized under the laws of any state of the United States, as defined in Section 146.7, other than this state. (h) “Insured”: (1) When used with respect to an industrial loan company, means an industrial loan company, the investment certificates of which are insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (2) When used with respect to an investment certificate or deposit, means an investment certificate or deposit that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (i) “Law of the domicile,” when used with respect to an industrial loan company, means the law of the state of the United States, as defined in Section 146.7, under which the industrial loan company is organized. (j) “Noncore business” means all activities permissible for an industrial loan company, except core business, and except those activities prohibited by law or determined by the commissioner by rule or order not to be noncore business. (k) “Whole business unit” means all or substantially all of the business of an industrial loan company. (Amended by Stats. 1996, Ch. 887, Sec. 54. Effective September 25, 1996.)
  61. 18661.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    Applications filed with the commissioner under this chapter must follow the required form, include required information, be signed properly, and may need verification if the commissioner requires it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18661. Each application filed with the commissioner under this chapter or under any rule or order issued under this chapter shall be in the form, shall contain the information, shall be signed in the manner, and shall (if the commissioner requires by rule or order) be verified in the manner that the commissioner may by rule or order require. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  62. 18662.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    Certain foreign industrial loan companies with a facility or California branch must file commissioner-required reports, and those reports must follow any form, content, signature, and verification requirements the commissioner sets by rule or order.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18662. (a) Each foreign (other state) industrial loan company that maintains a facility or a California branch office shall file with the commissioner such reports as and when the commissioner may by rule or order require. (b) Each report filed with the commissioner under this chapter or under any rule or order issued under this chapter shall be in the form, shall contain the information, shall be signed in the manner, and shall (if the commissioner so requires by rule or order) be verified in the manner that the commissioner may by rule or order require. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  63. 18663.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    A foreign industrial loan company with a facility or California branch office must keep and preserve its office records, and the commissioner may approve another storage place and set the form, manner, and timing by rule or order.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18663. Each foreign (other state) industrial loan company that maintains a facility or a California branch office shall make, keep, and preserve at the facility or branch office or at another place that the commissioner may by rule or order approve, the books, accounts, and other records relating to the business of the office, in the form, in the manner, and for the time that the commissioner may by rule or order provide. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  64. 18664.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    Foreign industrial loan companies must pay specified fees to the commissioner for certain branch-office, facility, and examination situations.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18664. Fees shall be paid to, and collected by, the commissioner as follows: (a) Each foreign (other state) industrial loan company that on July 1 of any year maintains a California branch office shall pay, on or before December 20 of that year, the assessment levied under Section 18351. (b) Each foreign (other state) industrial loan company that on June 1 of any year maintains a facility but no California branch office shall pay, on or before the following July 1, a fee of two hundred fifty dollars ($250) for each facility. (c) If the commissioner makes an examination of a foreign (other state) industrial loan company that maintains a California branch office, the industrial loan company shall pay a fee for the examination in the sum of fifty dollars ($50) per hour for each examiner engaged in the examination plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  65. 18665.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    Foreign (other state) industrial loan companies are exempt from certain California constitutional interest-rate restrictions, but they still must follow other applicable laws and regulations.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18665. (a) Any foreign (other state) industrial loan company is exempted from the restrictions of Section 1 of Article XV of the California Constitution relating to rates of interest upon the loan or forbearance of any money, goods, or things in action or on accounts after demand. (b) This section does not exempt a foreign (other state) industrial loan company or any subsidiary, as defined in Section 189 of the Corporations Code, from complying with all other laws and regulations governing the business in which the industrial loan company or subsidiary is engaged. (c) This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  66. 18666.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. )

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    The commissioner may adopt rules to implement this chapter.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 1. General Provisions [18660 - 18666] ( Article 1 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18666. The commissioner is authorized to adopt rules to implement this chapter similar to regulations adopted by the Superintendent of Banks under similar provisions of law contained in Division 1 (commencing with Section 99), and for the same or similar reasons regulations are adopted by the Superintendent of Banks. The authority granted to the commissioner by this section is in addition to the authority granted to the commissioner under Section 18347. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  67. 1867.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A corporation may not deposit its funds with another moneyed corporation unless that corporation is designated as a depositary by the board and approved by the commissioner, with an ownership-based exception.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1867. No corporation shall deposit any of its funds with any other moneyed corporation unless the other corporation has been nominated and designated as a depositary for the funds of the depositing corporation by the vote of a majority of the directors of the depositing corporation and has been approved by the commissioner as a depositary. The commissioner may in his or her discretion revoke his or her approval of any such depositary. This limitation shall not apply to the deposit of funds by a corporation with another moneyed corporation, that owns all or a majority of the capital stock of the corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  68. 18670.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    This article does not apply to an insured foreign (other state) industrial loan company that maintains a California branch office.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18670. No provision of this article applies to an insured foreign (other state) industrial loan company that maintains a California branch office. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  69. 18671.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    A foreign industrial loan company may not open or keep an office in California for noncore business unless it complies with this article and Article 1. A person may not keep an office in California as a representative of an insured foreign industrial loan company unless the company complies with those requirements.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18671. (a) No foreign (other state) industrial loan company may establish or maintain an office in this state at which it engages in noncore industrial loan company business unless the industrial loan company complies with this article and applicable provisions of Article 1 (commencing with Section 18660). (b) (1) No person may establish or maintain an office in this state as representative of an insured foreign (other state) industrial loan company unless the industrial loan company complies with this article and applicable provisions of Article 1 (commencing with Section 18660). (2) For purposes of this article, if any person establishes or maintains an office in this state as representative of an insured foreign (other state) industrial loan company, the insured foreign (other state) industrial loan company is deemed to establish and maintain the office as a facility. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  70. 18672.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    An insured foreign (other state) industrial loan company must file a report and the Section 18673 appointment with the commissioner at least 30 days before establishing a facility.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18672. Not less than 30 days before an insured foreign (other state) industrial loan company establishes a facility, it shall file with the commissioner a report and the appointment called for in Section 18673. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  71. 18673.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    An insured foreign industrial loan company must file an appointment with the commissioner at least 30 days before establishing a facility. If it does not file, it is treated as having appointed the commissioner for service of process. Service is only effective if notice, a copy of the process, and an affidavit of compliance are handled as specified.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18673. (a) Not less than 30 days before establishing a facility, an insured foreign (other state) industrial loan company shall file with the commissioner, in the form that the commissioner may by rule or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the industrial loan company’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the industrial loan company or any of its successors that arises out of the activities in this state of the facility after the appointment has been filed, with the same force and validity as if served personally on the industrial loan company or its successors, as the case may be. (b) Any insured foreign (other state) industrial loan company that maintains a facility and that has not filed with the commissioner an appointment pursuant to subdivision (a) is deemed by the maintenance of the facility to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the industrial loan company or any of its successors that arises out of the activities in this state of the facility, with the same force and validity as if served personally on the industrial loan company or its successor, as the case may be. (c) Service may be made on an insured foreign (other state) industrial loan company that has appointed or is deemed to have appointed the commissioner as its attorney for service of process by leaving a copy of the process at any office of the commissioner. However, the service is not effective unless (1) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the industrial loan company served at the last address on file with the commissioner for any of the industrial loan company’s offices in this state or at its head office, and (2) an affidavit of compliance with this subdivision by the party making the service is filed in the case on or before the return date, if any, or within any further time that the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  72. 18674.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    An insured foreign (other state) industrial loan company must file a report with the commissioner at least 30 days before relocating a facility.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18674. Not less than 30 days before an insured foreign (other state) industrial loan company relocates a facility, it shall file a report with the commissioner. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  73. 18675.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. )

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    An insured foreign (other state) industrial loan company must file a report with the commissioner at least 30 days before closing a facility.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies [18670 - 18675] ( Article 2 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18675. Not less than 30 days before an insured foreign (other state) industrial loan company closes a facility, it shall file a report with the commissioner. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  74. 1868.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A corporation generally may not hold shares of its own capital stock, except when the stock was taken in good faith to prevent loss on a previously contracted debt. If it does acquire such stock, it must sell or otherwise dispose of it within six months.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1868. No corporation shall be the holder of any shares of its own capital stock unless such stock shall have been taken to prevent loss upon a debt previously contracted in good faith, and stock so acquired shall, within six months from the time of its acquisition, be sold or disposed of at public or private sale. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  75. 18680.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

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    A foreign (other state) industrial loan company may not transact core business in this state unless it does so at a branch office that complies with federal law and the law of the company’s domicile.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18680. No foreign (other state) industrial loan company may transact core business in this state except at a branch office established in accordance with federal law and the law of the domicile of the industrial loan company. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  76. 18681.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

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    This section says Section 18680 does not stop certain foreign industrial loan companies from doing three things.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18681. Section 18680 does not prohibit: (a) Any foreign (other state) industrial loan company which does not maintain a California branch office from carrying on the activities described in subdivision (d) of Section 191 of the Corporations Code. (b) Any foreign (other state) industrial loan company which does not maintain a California branch office from making in this state loans secured by liens on real property located in this state. (c) Any foreign (other state) industrial loan company from having a California industrial loan company as its agent pursuant to Article 5 (commencing with Section 18700). (Amended by Stats. 1996, Ch. 887, Sec. 55. Effective September 25, 1996.)
  77. 18682.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A foreign (other state) industrial loan company may not establish or keep a California branch office unless it is qualified to do intrastate business in California.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18682. No foreign (other state) industrial loan company may establish or maintain a California branch office unless it is qualified to transact intrastate business in this state under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  78. 18683.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A foreign (other state) industrial loan company may not establish or keep a California branch office unless it is insured.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18683. No foreign (other state) industrial loan company may establish or maintain a California branch office unless the industrial loan company is insured. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  79. 18684.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    Foreign (other state) industrial loan companies are generally barred from merging, buying a whole California business unit, or setting up or maintaining a California branch office, with stated exceptions for insured companies and specified legal compliance.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18684. (a) (1) No foreign (other state) industrial loan company may merge as the surviving corporation (Section 148) with a California industrial loan company or California bank except that an insured foreign (other state) industrial loan company may do so in accordance with federal law, the law of the domicile of the foreign (other state) industrial loan company, this chapter, and Division 1.5 (commencing with Section 4800). (2) No foreign (other state) industrial loan company may purchase the whole business unit of a California industrial loan company or California bank except that an insured foreign (other state) industrial loan company may do so in accordance with federal law, the law of the domicile of the foreign (other state) industrial loan company, this chapter and Division 1.5 (commencing with Section 4800). (3) No foreign (other state) industrial loan company that does not already maintain a California branch office may establish or maintain a California branch office except in the manner described in paragraph (1) or (2) and in accordance with federal law, the law of the domicile of the foreign (other state) industrial loan company and this chapter. (b) This section constitutes: (1) An election to permit early interstate merger transactions pursuant to Section 44(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u(a)(3)). (2) An express prohibition against interstate branching through the acquisition of a branch business unit located in this state of a California industrial loan company or California bank (without acquisition of the whole business unit of the California industrial loan company or California bank) pursuant to Section 44(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u(a)(4)). (3) An express prohibition against interstate branching through de novo establishment of California branch offices pursuant to Section 5155 of the Revised Statutes (12 U.S.C. Sec. 36) or Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(d)). (Amended by Stats. 1996, Ch. 887, Sec. 56. Effective September 25, 1996.)
  80. 18685.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A foreign industrial loan company without a California branch office may not merge with, or buy the whole business unit of, a California industrial loan company or bank unless that California company or bank has been in existence for at least five years.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18685. (a) No foreign (other state) industrial loan company that does not already maintain a California branch office may: (1) Merge as the surviving corporation (Section 148) with a California industrial loan company or California bank pursuant to paragraph (1) of subdivision (a) of Section 18684 unless the California industrial loan company or California bank has been in existence for at least five years. (2) Purchase the whole business unit, of a California industrial loan company or California bank pursuant to paragraph (2) of subdivision (a) of Section 18684 unless the California industrial loan company or California bank has been in existence for at least five years. (b) For purposes of this section, a California industrial loan company or California bank that is established solely for the purpose of, and does not open for business prior to, acquiring the whole business unit of a second California industrial loan company or California bank through a merger or purchase is deemed to have been in existence for the same period of time as the second California industrial loan company or California bank. (Amended by Stats. 1996, Ch. 887, Sec. 57. Effective September 25, 1996.)
  81. 18687.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A foreign industrial loan company with a California branch office may not do at that branch any business it is not allowed to do, or that is prohibited, under either its home-state law or the comparable California rules for state-licensed industrial loan companies.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 3. California Branch Offices [18680 - 18687] ( Article 3 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18687. (a) No foreign (other state) industrial loan company that maintains a California branch office may transact at the branch office any business that it is not authorized to transact or is prohibited from transacting under the law of its domicile or that industrial loan companies organized and licensed under the laws of this state are not authorized to transact or are prohibited from transacting. (b) Whenever any provision of this chapter or of any rule or order issued under this chapter which is applicable to or with respect to a foreign (other state) industrial loan company that maintains a California branch office is inconsistent with any provision of any other chapter of this division, the former provision applies, and the latter provision does not apply. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)
  82. 1869.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A corporation must not make a discount to help someone pay for or hold shares of its stock.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1869. No corporation shall, either directly or indirectly, make any discount to any person for the purpose of enabling him to pay for or hold shares of its stock either subscribed for or purchased by him. Any corporation making any such discount shall forfeit to the people of the state twice the amount of such discount. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  83. 18690.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company may use an insured depository institution as its agent for authorized agency activities, but only with the commissioner’s prior approval and subject to any rules the commissioner prescribes.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18690. Notwithstanding the provisions of Sections 18147 and 18165, a California industrial loan company may, with the prior approval of the commissioner and subject to any rules that the commissioner may prescribe, have an insured depository institution engage in authorized agency activities as its agent. (Amended by Stats. 1996, Ch. 887, Sec. 59. Effective September 25, 1996.)
  84. 18691.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company’s application for approval must be in the required form, include the required information, be signed as required, and be verified if the commissioner requires it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18691. An application by a California industrial loan company for approval to have an insured depository institution engage in authorized agency activities as its agent shall be in the form, shall contain the information, shall be signed in the manner, and shall, if the commissioner requires by rule or order, be verified in the manner that the commissioner may, by rule or order, require. (Amended by Stats. 1996, Ch. 887, Sec. 60. Effective September 25, 1996.)
  85. 18692.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company must include a $250 filing fee with an application for approval to have an insured depository institution act as its agent for authorized agency activities.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18692. An application by a California industrial loan company for approval to have an insured depository institution engage in authorized agency activities as its agent shall be accompanied by a filing fee of two hundred fifty dollars ($250). (Amended by Stats. 1996, Ch. 887, Sec. 61. Effective September 25, 1996.)
  86. 18693.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    When deciding whether to approve or deny a California industrial loan company’s application, the commissioner must consider the company’s safe-and-sound operation and any other relevant factors.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18693. In determining whether to approve or deny an application by a California industrial loan company for approval to have an insured depository institution engage in authorized agency activities as its agent, the commissioner shall consider both of the following: (a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California industrial loan company. (b) Any other factors that the commissioner deems relevant. (Amended by Stats. 1996, Ch. 887, Sec. 62. Effective September 25, 1996.)
  87. 18694.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company may not use an insured depository institution as its agent to do anything the company itself is not allowed to do.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18694. No California industrial loan company may have an insured depository institution conduct as its agent any activity that the California industrial loan company is prohibited from conducting itself. (Amended by Stats. 1996, Ch. 887, Sec. 63. Effective September 25, 1996.)
  88. 18695.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    An insured depository institution’s office acting as agent for a California industrial loan company is not treated as an office of that industrial loan company just because of that agency activity.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18695. No office of an insured depository institution that is performing authorized agency activities as agent for a California industrial loan company in accordance with this article shall, on that account, be deemed to be an office of the California industrial loan company. (Amended by Stats. 1996, Ch. 887, Sec. 64. Effective September 25, 1996.)
  89. 18696.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    If the commissioner finds certain problems with an agency activity or arrangement, the commissioner may order the California industrial loan company to end the arrangement.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18696. If the commissioner finds that any activity performed by an insured depository institution as agent for a California industrial loan company is not an authorized agency activity or that the agency arrangement is inconsistent with safe and sound practices, the commissioner may order the California industrial loan company to terminate the agency arrangement. (Amended by Stats. 1996, Ch. 887, Sec. 65. Effective September 25, 1996.)
  90. 18697.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    This article does not apply in one specific agency-activities situation involving a California industrial loan company and an insured depository institution.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 4. California Industrial Loan Company as Principal [18690 - 18697] ( Article 4 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18697. This article does not apply to a California industrial loan company’s having an insured depository institution engage in authorized agency activities as its agent in any case other than a case where, but for Section 18695, an office of the insured depository institution affiliate would for regulatory purposes be considered to be an office of the California industrial loan company. (Amended by Stats. 1996, Ch. 887, Sec. 66. Effective September 25, 1996.)
  91. 187.

    ## 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. )

    Verify source ↗

    This section defines “member of the public” and excludes certain department personnel and certain licensee-related professionals in specified circumstances.

    ## 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. ) ## 187. “Member of the public” means any person, except an agent, officer, or employee of the department acting within the scope of his or her agency, office, or employment. Member of the public does not include a director, officer, employee, attorney, accountant, or consultant of a licensee, provided that the confidential information in question only pertains to the licensee that employs or utilizes the director, officer, employee, attorney, accountant, or consultant. (Repealed and added by Stats. 2013, Ch. 334, Sec. 15. (SB 537) Effective January 1, 2014.)
  92. 1870.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A corporation must not record its assets on its books under another person’s name or under a misleading description.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1870. No corporation shall by any system of accounting or any device of bookkeeping, directly or indirectly enter any of its assets upon its books in the name of any other person, or under any title or designation that is not truly descriptive thereof. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  93. 18700.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company may do authorized agency activities as an agent for an insured depository institution if the commissioner gives prior approval and any commissioner rules are followed.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18700. Notwithstanding the provisions of Sections 18147 and 18165, a California industrial loan company may, with the prior approval of the commissioner and subject to any rules that the commissioner may prescribe, engage in authorized agency activities as agent for an insured depository institution. (Amended by Stats. 1996, Ch. 887, Sec. 67. Effective September 25, 1996.)
  94. 18701.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company must file an application for approval to act as agent for an insured depository institution in the required form, with the required information and signature, and it may need to be verified if the commissioner requires it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18701. An application by a California industrial loan company for approval to engage in authorized agency activities as agent for an insured depository institution shall be in the form, shall contain the information, shall be signed in the manner, and shall, if the commissioner requires by rule or order, be verified in the manner that the commissioner may, by rule or order, require. (Amended by Stats. 1996, Ch. 887, Sec. 68. Effective September 25, 1996.)
  95. 18702.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company must include a $250 filing fee with an application for approval to act as agent for an insured depository institution.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18702. An application by a California industrial loan company for approval to engage in authorized agency activities as agent for an insured depository institution shall be accompanied by a filing fee of two hundred fifty dollars ($250). (Amended by Stats. 1996, Ch. 887, Sec. 69. Effective September 25, 1996.)
  96. 18703.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    When deciding whether to approve or deny a California industrial loan company’s application for agency activities, the commissioner must consider the company’s safe and sound operation and any other relevant factors.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18703. In determining whether to approve or deny an application by a California industrial loan company for approval to engage in authorized agency activities as agent for an insured depository institution, the commissioner shall consider both of the following factors: (a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California industrial loan company. (b) Any other factors that the commissioner deems relevant. (Amended by Stats. 1996, Ch. 887, Sec. 70. Effective September 25, 1996.)
  97. 18704.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company may not act as an agent for an insured depository institution if it would be forbidden to do that activity as a principal.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18704. No California industrial loan company may conduct any activity as an agent for an insured depository institution that the California industrial loan company would be prohibited from conducting as a principal. (Amended by Stats. 1996, Ch. 887, Sec. 71. Effective September 25, 1996.)
  98. 18705.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    A California industrial loan company’s authorized agency activities do not, by themselves, make its office count as the insured depository institution’s office.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18705. (a) No office of a California industrial loan company that conducts authorized agency activities as agent for an insured depository institution in accordance with this article shall, on that account, be deemed to be an office of the insured depository institution. (b) For purposes of this division, no insured depository institution that has a California industrial loan company engaged in authorized agency activities as its agent shall on that account be deemed to be transacting business in this state. (Amended by Stats. 1996, Ch. 887, Sec. 72. Effective September 25, 1996.)
  99. 18706.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    If the commissioner finds the arrangement is unauthorized or unsafe, the commissioner may order the California industrial loan company to end the agency arrangement.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18706. If the commissioner finds that any activities performed by a California industrial loan company as agent for an insured depository institution are not authorized agency activities or that the agency arrangement is inconsistent with safe and sound practices, the commissioner may order the California industrial loan company to terminate the agency arrangement. (Amended by Stats. 1996, Ch. 887, Sec. 73. Effective September 25, 1996.)
  100. 18707.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. )

    Verify source ↗

    This article generally does not apply to certain authorized agency activities by a California industrial loan company for an insured depository institution.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities [18660 - 18707] ( Chapter 10 added by Stats. 1995, Ch. 479, Sec. 7. ) ## ARTICLE 5. California Industrial Loan Company as Agent [18700 - 18707] ( Article 5 added by Stats. 1995, Ch. 479, Sec. 7. ) ## 18707. This article does not apply to a California industrial loan company’s engaging in authorized agency activities as agent for an insured depository institution in any case other than a case where, but for Section 18705, an office of the California industrial loan company would for regulatory purposes be considered to be an office of the insured depository institution. (Amended by Stats. 1996, Ch. 887, Sec. 74. Effective September 25, 1996.)
  101. 1871.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Corporations must follow the commissioner’s orders on how they keep books and records.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1871. Every corporation shall conform its methods of keeping its books and records to such orders in respect thereto as have been made and promulgated by the commissioner. Any corporation that refuses or neglects to obey such order shall be subject to a penalty of one hundred dollars ($100) for each day it so refuses or neglects. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  102. 1872.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    An officer who receives certain commissioner communications must submit them to the board at the next meeting and make sure they are noted in the minutes.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1872. Each official communication directed by the commissioner to a corporation or to any officer thereof, relating to an examination or investigation conducted by the department or containing suggestions or recommendations as to the conduct of the business of such corporation, shall be submitted, by the officer receiving it, to the board at the next meeting of such board, and duly noted in the minutes of the meetings of such board. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  103. 1873.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Covered corporations must file an annual written report with the commissioner by February 1, and the report must be verified by the oaths of two principal officers.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1873. On or before the first day of February in each year, each corporation and every foreign corporation licensed by the commissioner to transact the business of such a corporation in this state, shall make a written report to the commissioner which shall contain a statement of its condition on the morning of the first day of January in that year and shall be in the form and contain the matters prescribed by the commissioner. The commissioner may, however, in his or her discretion, accept from a corporation, which has branches in a foreign country or countries, a report containing a statement of its condition as of a date not later than the first day of January and not earlier than the first day of November in the preceding year. Every report shall be verified by the oaths of the two principal officers in charge of the affairs of the corporation or foreign corporation at the time of the verification, which shall state that the report is true and correct in all respects to the best of the knowledge and belief of the persons verifying it, and that the usual business of the corporation or foreign corporation has been transacted at the location required by this article and not elsewhere. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  104. 1874.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Corporations and foreign corporations must file additional special reports with the commissioner when required, in the form and by the date the commissioner prescribes.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1874. Every corporation and foreign corporation shall also make such other special reports to the commissioner as he or she may from time to time require, which shall be in such form and filed at such date as may be prescribed by the commissioner and shall, if required by the commissioner, be verified in such manner as he or she may prescribe. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  105. 1875.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Corporations and foreign corporations must file required reports on time and include commissioner-required information, unless the commissioner extends the deadline.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1875. If any corporation or foreign corporation shall fail to make any report required by this article on or before the day designated for the making thereof, or shall fail to include therein any matter required by the commissioner, it shall forfeit to the people of the state the sum of one hundred dollars ($100) for every day that such report shall be delayed or withheld, and for every day that it shall fail to report any such omitted matter, unless the time therefor shall have been extended by the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  106. 1876.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Every corporation must hold an annual stockholders’ meeting on a date set in its bylaws.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1876. Every corporation shall hold a meeting of its stockholders annually upon a date fixed in its bylaws at its main office, or if its main office is to be located outside of this state, at its branch or other office in this state. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  107. 1877.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Every corporation must keep specified books and reports at its main office, or at a California branch or other office if its main office is outside the state.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1877. Every corporation shall keep at its main office, or if its main office is to be located outside of this state, at its branch or other office in this state, books containing the names of all stockholders thereof, and the names and addresses of the members of its board of directors, together with copies of all reports made by it to the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  108. 1878.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Every corporation must file reports as the commissioner requires, submit to examinations, and pay the examination cost set by the commissioner.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1878. Every corporation shall make reports to the commissioner at such times and in such form as the commissioner may require and is subject to examination by examiners appointed by the commissioner, to the extent and whenever and as often as the commissioner shall deem it advisable, but in no case less than once every two calendar years. The cost of such examinations shall be fixed by the commissioner and be paid by the corporation examined. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  109. 1879.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Certain corporate officers, employees, and managers may not personally discount or loan on debt instruments that were offered to their corporation and refused.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1879. No officer, director, clerk or other employee of any corporation, and no person in any way interested or concerned in the management of its affairs, shall as individuals discount, or directly or indirectly, make any loan upon any note or other evidence of debt, which he shall know to have been offered for discount to such corporation, and to have been refused. Every person violating the provisions of this section, shall, for each offense, forfeit to the people of the state twice the amount of the loan which he shall have made. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  110. 188.

    ## 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 defines “money transmitter” as a person authorized under the referenced chapter to engage in money transmission.

    ## 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. ) ## 188. “Money transmitter” means a person authorized pursuant to Chapter 3 (commencing with Section 2030) of Division 1.2 to engage in the business of money transmission. (Added by Stats. 2013, Ch. 334, Sec. 16. (SB 537) Effective January 1, 2014.)
  111. 1880.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Certain corporate officers, employees, receivers, and helpers are barred from stealing, misusing, or falsifying corporate assets or records; violations can lead to prison and a fine.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1880. Every officer, director, clerk, employee, or agent of any corporation who embezzles, abstracts, or willfully misapplies any of the moneys, funds, credits, securities, evidence of indebtedness or assets of any character of such corporation, or who, without authority from the directors, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, debenture, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry in any book, report, or statement of such corporation with intent, in either case, to injure or defraud such corporation or any other company, body politic or corporate, or any individual person, or to deceive any officer of such corporation, the commissioner, or any agent or examiner appointed to examine the affairs of any such corporation; and every receiver of any corporation and every clerk or employee of such receiver who shall embezzle, abstract, or willfully misapply or wrongfully convert to his or her own use any moneys, funds, credits, or assets of any character which may come into his or her possession or under his or her control in the execution of his or her trust or the performance of the duties of his or her employment; and every such receiver or clerk or employee of such receiver who shall, with intent to injure or defraud any person, body politic or corporate, or to deceive or mislead the commissioner or any agent or examiner appointed to examine the affairs of such receiver, shall make any false entry in any book, report, or record of any matter connected with the duties of such receiver; and every person who with like intent aids or abets any officer, director, clerk, employee, or agent of any corporation, or receiver or clerk or employee of such receiver as aforesaid in any violation of this article shall upon conviction thereof be imprisoned for two, three, or four years, and may also be fined not more than five thousand dollars ($5,000), in the discretion of the court. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  112. 1881.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    People connected with a corporation must not claim that California is liable for the corporation’s bonds, obligations, or related acts or omissions.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1881. Whoever being connected in any capacity with any corporation represents in any way that the State of California is liable for the payment of any bond or other obligation, or the interest thereon, issued or incurred by any corporation, or that the State of California incurs any liability in respect of any act or omission of the corporation, shall be punished by a fine of not more than ten thousand dollars ($10,000) and by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code. (Added by Stats. 2011, Ch. 243, Sec. 14. (SB 664) Effective January 1, 2012.)
  113. 1882.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A person may not act in this state as a representative of a foreign corporation for the article’s business unless the corporation has complied with this article.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1882. No person shall act in this state as the representative of any foreign corporation in transacting the business described in this article as the business of a corporation unless such corporation shall have complied with the provisions of this article relating to such corporations. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  114. 1883.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A foreign corporation must file a duplicate application certificate with the commissioner before it can be licensed to do business in the state.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1883. Every foreign corporation before being licensed by the commissioner to transact in this state the business of a corporation, or any part thereof, shall subscribe and acknowledge and submit to the commissioner at his or her office, an application certificate in duplicate, which shall specifically state: (a) The name of such foreign corporation. (b) The place where its business is to be transacted in this state. (c) The amount of its capital stock actually paid in cash and the amount subscribed for and unpaid. (d) A complete and detailed statement of its financial condition as of a date within 60 days prior to the date of such application certificate. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  115. 1884.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    When the application certificate is first submitted to the commissioner, the corporation must also submit a duly authenticated copy of its charter or articles and its bylaws.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1884. At the time the application certificate is first submitted to the commissioner, such corporation shall also submit a duly authenticated copy of its charter, or articles, and its bylaws. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  116. 1885.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign corporation may not do the article’s business in this state unless it meets the listed authorization, deposit, service-of-process, and licensing requirements.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1885. No foreign corporation shall transact in this state the business defined in this article or any part thereof, unless such corporation shall have: (a) Been authorized by its charter to carry on such business and shall have complied with the laws of the state or country under which it is incorporated. (b) Made the deposit with the State Treasurer required by this article. (c) Designated the commissioner, by an instrument in writing duly executed, its true and lawful attorney upon whom all process in any action or proceeding by any resident of this state against it may be served with the same effect as if it were a domestic corporation and had been lawfully served with process within this state. (d) Received a license duly issued to it by the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  117. 1886.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign corporation may carry on the authorized business at the licensed location after the commissioner issues it a license.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1886. When the commissioner shall have issued a license to any foreign corporation, it may engage in the business of a corporation of the kind authorized by this article at the location specified in the license. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  118. 1887.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Before a foreign corporation gets a license to do business in California, it must deposit $100,000 in approved money or securities with the State Treasurer, with commissioner authorization.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1887. Every foreign corporation, before receiving a license to transact business in this state, shall deposit with the State Treasurer of the State of California upon authorization of the commissioner, in trust as security for the depositors with and creditors of such corporation in this state, lawful money of the United States or securities of the kind and character described in Article 3 (commencing at Section 1570) of Chapter 16, of the value of one hundred thousand dollars ($100,000). Such foreign corporation so long as it shall continue solvent and comply with the laws of this state, may be permitted by the commissioner to collect the interest on the securities so deposited and from time to time to exchange such securities for others, and examine and compare such securities, as provided by said article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  119. 1888.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign corporation must pay a $500 license fee.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1888. The foreign corporation shall pay a license fee of five hundred dollars ($500). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  120. 1889.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Licensed foreign corporations must file an officer-verified statement with the commissioner within 30 days, and must file an amended statement if they later hire an in-state person not already listed.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1889. Every foreign corporation, duly licensed by the commissioner to transact in this state the business defined and authorized in this article, or any part thereof, shall within 30 days after the date of such license, submit to the commissioner a statement verified by two of its principal officers, which shall contain the full name and business address of every individual, partnership or unincorporated association, who is acting or whom it proposes to have act as its agent or representative in this state. Whenever any such corporation shall engage any person to act for it in this state and the name and address of such person is not contained in such verified statement submitted to the commissioner, such foreign corporation shall forthwith submit to the commissioner an amended statement verified in the same manner as the original. A violation of this provision shall subject such foreign corporation to a forfeiture of one thousand dollars ($1,000) for each offense. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  121. 189.

    ## 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. )

    Verify source ↗

    This section defines “national bank” and “national banking association,” and says a national bank is treated as a corporation for purposes of the Financial Institutions Law.

    ## 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. ) ## 189. (a) “National bank” or “national banking association” means a national banking association organized under the National Bank Act. (b) For purposes of the Financial Institutions Law, a national bank is deemed to be a corporation. (Amended by Stats. 2013, Ch. 334, Sec. 17. (SB 537) Effective January 1, 2014.)
  122. 1890.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    If the commissioner revokes a foreign corporation’s license and makes that revocation effective, the corporation’s right to do business in the state ends immediately.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1890. Whenever the commissioner shall have revoked the license of any such foreign corporation and shall have taken the action to make such revocation effective, all the rights and privileges of the foreign corporation to transact business in this state shall forthwith cease and determine. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  123. 1891.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A state international or foreign banking or financing corporation may convert into a U.S.-organized international or foreign banking or financing corporation if it complies with the applicable U.S. laws.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1891. Nothing in this division restricts the right of a state international or foreign banking or financing corporation to convert into an international or foreign banking or financing corporation organized under the laws of the United States upon compliance with such laws. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  124. 1892.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A U.S.-organized international or foreign banking or financing corporation may convert into a state corporation only with the commissioner’s approval.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1892. An international or foreign banking or financing corporation organized under the laws of the United States may convert into a state international or foreign banking or financing corporation with the approval of the commissioner which he or she shall not grant unless he or she is satisfied that such international or foreign banking or financing corporation organized under the laws of the United States meets all of the requirements set forth in this article for the establishment of a state international or foreign banking or financing corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  125. 1893.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    State international or foreign banking or financing corporations are allowed to merge or consolidate with U.S.-organized international or foreign banking or financing corporations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1893. Nothing in this division restricts the right of any one or more state international or foreign banking or financing corporations to merge into or consolidate with one or more international or foreign banking or financing corporations organized under the laws of the United States. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  126. 1894.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    U.S.-organized international or foreign banking or financing corporations are not restricted by this division from merging into state, international, or foreign banking or financing corporations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1894. Nothing in this division restricts one or more international or foreign banking or financing corporations organized under the laws of the United States from merging into one or more state, international or foreign banking or financing corporations. For the purpose of effecting any such merger any such international or foreign banking or financing corporation shall be deemed a “foreign corporation” as that term is used in Section 1108 of the Corporations Code and the laws of Congress shall be deemed the “laws of the state” in which such international or foreign banking or financing corporation is formed. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  127. 1895.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A merger of certain state international or foreign banking or financing corporations becomes effective only after the required filings and commissioner approval are completed.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1895. Whenever a state international or foreign banking or financing corporation survives the merger of one or more international or foreign banking or financing corporations and the agreement for merger has been filed with the Secretary of State with the approval of the commissioner endorsed thereon, a copy thereof, certified by the Secretary of State, shall immediately be filed with the commissioner and upon, but not until, such filing the merger shall be and become effective for all purposes. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  128. 1896.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    After certain banking or financing corporations merge or consolidate, the surviving corporation takes the constituent corporations’ rights and property and becomes responsible for their debts and liabilities.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1896. Whenever one or more state international or foreign banking or financing corporations and one or more international or foreign banking or financing corporations organized under the laws of the United States have been merged or consolidated, the surviving or resulting international or foreign banking or financing corporation succeeds without other transfer to all the rights and property of each constituent international or foreign banking or financing corporation and is subject to all the debts and liabilities of each such constituent corporation in the same manner as if the surviving or resulting international or foreign banking or financing corporation had incurred them. All rights of creditors of each constituent international or foreign banking or financing corporation are preserved unimpaired, limited in lien to the property affected by such liens immediately prior to the time of the consolidation or merger. Any action or proceeding pending by or against any one of the constituent international or foreign banking or financing corporations may be prosecuted through judgment, which binds the resulting or surviving international or foreign banking or financing corporation; or such consolidated or surviving corporation may be proceeded against or substituted in the place of any such constituent corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  129. 1897.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section says certain banking or financing corporations that convert, merge, or consolidate are treated as the same corporate entity after the change.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1897. Whenever an international or foreign banking or financing corporation organized under the laws of the United States converts into a state international or foreign banking or financing corporation, or whenever such state corporation converts into such corporation organized under the laws of the United States, or if any such state corporation merges or consolidates with any such corporation organized under the laws of the United States, the surviving or resulting corporation shall be deemed to be the same corporate entity as the converting or constituent corporation and any reference to the converting corporation or to any constituent corporation, whether executed or taking effect before or after the conversion, merger or consolidation, shall be deemed a reference to the surviving or resulting corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  130. 19.

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

    Verify source ↗

    If part of this code is held invalid, the rest still remains effective.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 19. If any provision of this code, or its application to any person or circumstance, is held invalid, the remainder of the code, or the application of the provision to other persons or circumstances is not affected. (Enacted by Stats. 1951, Ch. 364.)
  131. 190.

    ## 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. )

    Verify source ↗

    This section defines “officer” for corporations and certain other non-natural persons.

    ## 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. ) ## 190. “Officer” means: (a) When used with respect to a corporation, any person appointed or designated as an officer of the corporation by or pursuant to applicable law or the articles of incorporation or bylaws of the corporation or any person who performs with respect to the corporation functions usually performed by an officer of a corporation. (b) When used with respect to a specified person other than a natural person or a corporation, any person who performs with respect to the specified person, functions usually performed by an officer of a corporation with respect to the corporation. (Added by Stats. 2013, Ch. 334, Sec. 18. (SB 537) Effective January 1, 2014.)
  132. 1900.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may invest in qualifying U.S.-organized corporations for international or foreign banking or financial operations, but only with the commissioner’s consent and subject to the commissioner’s conditions and regulations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1900. Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, invest in the stock of one or more corporations organized under the laws of the United States for the purpose of engaging in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in dependencies or insular possessions of the United States and to act when required by the Secretary of the Treasury of the United States as fiscal agents of the United States; provided, however, that the aggregate amount of stock held in all corporations engaged in business of the kind described in this chapter shall not exceed 10 percent of the subscribing bank’s shareholders’ equity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  133. 1901.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks covered by this section must give the commissioner information about the condition of the corporation they invest in when asked, and the commissioner may order special examinations of that corporation.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1901. Every bank investing in the capital stock of any corporation described in Section 1900 shall be required to furnish information concerning the condition of such corporation to the commissioner upon demand, and the commissioner may order special examinations of said corporation at such time or times as he or she may deem appropriate. The cost of such special examinations shall be paid by said corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  134. 1902.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may buy stock in a Section 1900 corporation only if that corporation agrees with the commissioner to restrict its business as the commissioner prescribes.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States [1900 - 1902] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1902. Before any bank shall be permitted to purchase stock in any corporation described in Section 1900 the said corporation shall enter into an agreement or undertaking with the commissioner to restrict its operations or conduct of its business in such manner or under such limitations and restrictions as the said commissioner may prescribe for the place or places wherein such business is to be conducted. If at any time the commissioner shall ascertain that the regulations prescribed by him or her are not being complied with, said commissioner is hereby authorized and shall have power to institute an investigation of the matter and to send for persons and papers, subpoena witnesses and administer oaths in order to satisfy himself or herself as to the actual nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation in question, or any bank which may be a stockholder therein, to comply with the regulations laid down by the said commissioner, said bank may be required to dispose of its stockholding in the said corporation upon reasonable notice. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  135. 1905.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Bank Investments in International or Foreign Banking or Financing Corporations Organized Under the Laws of any State of the United States [1905- 1905.] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may invest in certain stock only with the commissioner’s consent and subject to the commissioner’s conditions and regulations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Bank Investments in International or Foreign Banking or Financing Corporations Organized Under the Laws of any State of the United States [1905- 1905.] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1905. Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, invest in the stock of one or more corporations organized under the laws of any state of the United States (other than a corporation organized under the laws of this state for the purposes of transacting business under the provisions of Article 1 (commencing with Section 1850) and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership, or control of local institutions in foreign countries, or in dependencies or insular possessions of the United States; provided, however, that the stock at the time of the acquisition would constitute a permissible investment for a national bank; and provided, further, that the aggregate amount of stock held in all corporations engaged in business of the kind described in this chapter shall not exceed 10 percent of the subscribing bank’s shareholders’ equity. Nothing in this section shall be construed in any way to limit the powers conferred by Section 1864. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  136. 191.

    ## 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. )

    Verify source ↗

    This section defines “Officers’ certificate” by cross-referencing Section 173 of the Corporations Code.

    ## 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. ) ## 191. “Officers’ certificate” has the meaning set forth in Section 173 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  137. 1910.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Bank Investments in Foreign Banks [1910- 1910.] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A bank may invest in foreign banks only with the commissioner’s consent and under the commissioner’s conditions, and the total covered investment must stay within a 25% shareholders’ equity cap.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Bank Investments in Foreign Banks [1910- 1910.] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1910. Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, acquire and hold, directly or indirectly, the stock or other evidences of ownership in one or more banks organized under the laws of a foreign country or a dependency or insular possession of the United States and not engaged, directly or indirectly, in any activity in the United States except as, in the judgment of the commissioner, shall be incidental to the international or foreign business of the bank. An application for consent shall be in such form and contain such information as the commissioner may require, and be accompanied by a fee of five hundred dollars ($500). The aggregate amount invested by any bank in the stock or other evidences of ownership shall not in any way be subject to, or included in, the limitations prescribed in Sections 1864, 1900, and 1905, but the aggregate amount invested directly or indirectly (other than through a corporation organized under the laws of this state for the purpose of transacting business under Article 1 (commencing with Section 1850) or operating under Article 2 (commencing with Section 1900) or Article 3 (commencing with Section 1905) in the stock or other evidences of ownership of all foreign banks, taken together with investments by the subscribing bank in the shares of corporations organized under the laws of this state for the purpose of transacting business under Article 1 (commencing with Section 1850) or operating under Article 2 (commencing with Section 1900) or Article 3 (commencing with Section 1905), shall not at any one time exceed 25 percent of the subscribing bank’s shareholders’ equity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  138. 193.

    ## 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 defines “resulting” for a corporation as the corporation created by a consolidation or the corporation into which a conversion changes the corporation.

    ## 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. ) ## 193. “Resulting,” when used with respect to a corporation, means: (a) In the case of a consolidation, the corporation into which the constituent corporations are consolidated. (b) In the case of a conversion, the corporation into which the converting corporation is converted. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  139. 195.

    ## 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 defines “ROCA supervisory rating” by reference to federal regulations.

    ## 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. ) ## 195. “ROCA supervisory rating” shall have the meaning set forth in Section 327.8(k) of Title 12 of the Code of Federal Regulations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  140. 197.

    ## 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. )

    Verify source ↗

    This section defines “savings association” to include a savings association, a savings and loan association, and a savings bank, but excludes certain savings banks defined by federal law.

    ## 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. ) ## 197. “Savings association” includes a savings association, a savings and loan association, and a savings bank. However, “savings association” does not include any savings bank of the type defined in Section 3(g) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(g)). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  141. 199.

    ## 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 defines “Series” for shares by referring to Section 183 of the Corporations Code.

    ## 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. ) ## 199. “Series,” when used with respect to shares, has the meaning set forth in Section 183 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  142. 2.

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

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    Provisions in this code that are substantially the same as existing laws on the same subject are to be treated as restatements and continuations, not as new laws.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 2. The provisions of this code insofar as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations, and not as new enactments. (Enacted by Stats. 1951, Ch. 364.)
  143. 20.

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

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    Corporations already formed or existing when this code takes effect keep their existence unchanged.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 20. The existence of corporations formed or existing on the date this code takes effect is not affected by the enactment of this code nor by any change in the requirements for the formation of corporations, nor by the amendment or repeal of the laws under which they were formed or created. (Enacted by Stats. 1951, Ch. 364.)
  144. 2000.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This division is known as the Money Transmission Act and may be cited by that name.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2000. This division shall be known and may be cited as the Money Transmission Act. (Amended by Stats. 2012, Ch. 356, Sec. 2. (SB 979) Effective January 1, 2013.)
  145. 2001.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The Legislature states that money transmission businesses are important in the state and should be regulated to protect consumers and public welfare.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2001. The Legislature finds and declares all of the following: (a) Money transmission businesses conduct a significant amount of business in this state and technological advances are occurring in the provision of money transmission services, which have expanded money transmission to include the use of mobile applications, alternative point of sale systems, and other consumer payment systems. (b) Persons who use money transmission businesses in this state use those businesses for, among other purposes, paying for the necessities of life and transmitting money to family members. (c) The failure of money transmission businesses to fulfill their obligations would cause loss to consumers, disrupt the payments mechanism in this state, undermine public confidence in financial institutions doing business in this state, and adversely affect the health, safety, and general welfare of persons in this state. (d) To protect the interests of consumers of money transmission businesses in this state, to maintain public confidence in financial institutions doing business in this state, and to preserve the health, safety, and general welfare of the people of this state, it is necessary to regulate money transmission businesses in this state. (Amended by Stats. 2014, Ch. 499, Sec. 1. (AB 2209) Effective January 1, 2015.)
  146. 2002.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This section states the Legislature’s intent for the Money Transmission Act and lists its goals.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2002. It is the intent of the Legislature that the provisions of this act accomplish all of the following: (a) Protect the interests of persons in this state who use money transmission services. (b) Provide for the safe and sound conduct of the business of licensees. (c) Maintain public confidence in licensees. (d) Ensure states can coordinate in all areas of regulation, licensing, and supervision to eliminate unnecessary regulatory burden and more effectively utilize regulator resources. (e) Standardize the types of activities that are subject to licensing or exempt from licensing. (f) Authorize the utilization of Nationwide Multistate Licensing System and Registry forms, processes, and functionalities in accordance with this act. (Amended by Stats. 2023, Ch. 463, Sec. 1. (AB 1116) Effective January 1, 2024.)
  147. 2003.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This section defines key terms used in the Money Transmission Act and says only a licensee may issue stored value or payment instruments.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 1. General Provisions [2000 - 2003] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2003. For purposes of this division: (a) “Affiliate,” when used with respect to a specified person, means any person controlling, controlled by, or under common control with, that specified person, directly or indirectly through one or more intermediaries. For purposes of subdivisions (s) and (x), a specified person is affiliated with another person if that person controls, is controlled by, or under common control through the ownership directly or indirectly of shares or equity securities possessing more than 50 percent of the voting power of that specified person. (b) “Agent” means a person that is not itself licensed as a money transmitter in California and provides money transmission in California on behalf of the licensee, provided that the licensee becomes liable for the money transmission from the time money or monetary value is received by that person. However, “agent” does not include any officer or employee of the licensee when acting as such at an office of a licensee. (c) “Applicant” means a person that files an application for a license or for acquisition of control of a licensee under this division. (d) “Average daily outstanding” means the amount of outstanding money transmission obligations in California at the end of each day in a given period of time, added together, and divided by the total number of days in that period of time. (e) “Branch office” means any office in this state of a licensee or agent at which the licensee receives money or monetary value to provide money transmission, either directly or through an agent. (f) “Business day” means one of the following: (1) When used with respect to any act to be performed in this state, any day other than Saturday, Sunday, or any other day that is provided for as a holiday in the Government Code. (2) When used with respect to any act to be performed in any jurisdiction other than this state, any day other than a day that is a legal holiday under the laws of that jurisdiction. (g) “Commissioner” means the Commissioner of Financial Protection and Innovation. (h) “Control” has the meaning set forth in Section 1250. (i) “Day” means calendar day. (j) “E-commerce” means any transaction where the payment for goods or services is initiated via a mobile application or an internet website. (k) (1) “In California” or “in this state” means physically located in California. (2) For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is in this state by relying on other information provided by the person regarding the location of the individual’s residential address or a business entity’s principal place of business or other physical address location and any records associated with the person that the provider of money transmission may have that indicate that location, including, but not limited to, an address associated with an account. (l) “Issue” and “issuer” mean, with regard to a payment instrument, the entity that is the maker or drawer of the instrument in accordance with the California Commercial Code and is liable for payment. With regard to stored value, “issue” and “issuer” mean the entity that is liable to the holder of stored value and has undertaken or is obligated to pay the stored value. Only a licensee may issue stored value or payment instruments. (m) “Key individual” means a natural person ultimately responsible for establishing or directing policies and procedures of the licensee, including an executive officer, manager, director, or trustee. (n) “Licensee” means a corporation or limited liability company licensed under this division. (o) “Material litigation” means litigation that according to United States generally accepted accounting principles is significant to an applicant’s or a licensee’s financial health and would be required to be disclosed in the applicant’s or licensee’s annual audited financial statements, report to shareholders, or similar records. (p) “Monetary value” means a medium of exchange, whether or not redeemable in money. (q) “Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments. (r) “Money transmission” means any of the following: (1) Selling or issuing payment instruments to a person located in this state. (2) Selling or issuing stored value to a person located in this state. (3) Receiving money for transmission from a person located in this state. (s) “Multistate licensing process” means an agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals. (t) “NMLS” means the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries. (u) “Outstanding,” with respect to payment instruments and stored value, means issued or sold by the licensee in the United States and not yet paid or refunded by the licensee, or issued or sold on behalf of the licensee in the United States by its agent and reported as sold, but not yet paid or refunded by the licensee. “Outstanding,” with respect to receiving money for transmission means all money or monetary value received in the United States for transmission by the licensee or its agents but not yet paid to the beneficiaries or refunded to the person from whom the money or monetary value was received. All outstanding money transmission of a licensee is and shall remain a liability of the licensee until it is no longer outstanding. (v) (1) “Payment instrument” means a check, draft, money order, traveler’s check, or other instrument for the transmission or payment of money or monetary value, whether or not negotiable. (2) “Payment instrument” does not include any of the following: (A) A credit card voucher or letter of credit. (B) An instrument that is redeemable by the issuer for goods or services provided by the issuer, an affiliate of the issuer, or a franchisee of the issuer. (C) An instrument that is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program. (w) “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, provided, however, that “person,” when used with respect to acquiring control of or controlling a specified person, includes any combination of two or more persons acting in concert. (x) “Receiving money for transmission” or “money received for transmission” means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means. The term does not include sale or issuance of payment instruments and stored value. (y) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (z) “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. (aa) (1) “Stored value” means monetary value representing a claim against the issuer that is stored on an electronic or digital medium and evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services. (2) “Stored value” does not include either of the following: (A) A credit card voucher, letter of credit, or any stored value that is redeemable only by the issuer for goods or services provided by the issuer, an affiliate of the issuer, or a franchisee of the issuer, except to the extent required by applicable law to be redeemable for cash for its cash value. (B) Stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program. (bb) “Traveler’s check” means an instrument that meets all of the following: (1) Is designated on its face by the term “traveler’s check” or by any substantially similar term or is commonly known and marketed as a traveler’s check. (2) Contains a provision for a specimen signature of the purchaser to be completed at the time of purchase. (3) Contains a provision for a countersignature of the purchaser to be completed at the time of negotiation. (Amended by Stats. 2023, Ch. 463, Sec. 2. (AB 1116) Effective January 1, 2024.)
  148. 201.

    ## 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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    “Shares” is defined by reference to Section 184 of the Corporations Code.

    ## 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. ) ## 201. “Shares” has the meaning set forth in Section 184 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  149. 2010.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 2. Exemptions [2010 - 2011] ( Chapter 2 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This section says the Money Transmission Act does not apply to listed government entities, certain banks and credit unions, some payment and settlement providers, and other specified transactions or intermediaries.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 2. Exemptions [2010 - 2011] ( Chapter 2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2010. This division does not apply to any of the following: (a) The United States or a department, agency, or instrumentality thereof, including any federal reserve bank and any federal home loan bank. (b) Money transmission by the United States Postal Service or by a contractor on behalf of the United States Postal Service. (c) A state, county, city, or any other governmental agency or governmental subdivision of a state. (d) A commercial bank or industrial bank, the deposits of which are insured by the Federal Deposit Insurance Corporation or its successor, or any foreign (other nation) bank that is licensed under Chapter 20 (commencing with Section 1750) or that is authorized under federal law to maintain a federal agency or federal branch office in this state; a trust company licensed pursuant to Section 1042 or a national association authorized under federal law to engage in a trust banking business; an association or federal association, as defined in Section 5102, the deposits of which are insured by the Federal Deposit Insurance Corporation or its successor; and any federally or state chartered credit union, with an office in California, the member accounts of which are insured or guaranteed as provided in Section 14858. (e) Electronic funds transfer of governmental benefits for a federal, state, county, or local governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or a state or governmental subdivision, agency, or instrumentality thereof. (f) A board of trade designated as a contract market under the federal Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.) or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board. (g) A person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from registration granted under the federal securities laws to the extent of its operation as such a provider. (h) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearing house transfers, or similar funds transfers, to the extent of its operation as such a provider. (i) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer. (j) A person that delivers wages or salaries on behalf of employers to employees or facilitates the payment of payroll taxes to state and federal agencies, makes payments relating to employee benefit plans, makes distribution of other authorized deductions from employees’ wages or salaries, or transmits other funds on behalf of an employer in connection with transactions related to employees. Notwithstanding this subdivision, a person described herein that offers money transmission services or provides stored value cards directly to individual customers shall comply with this division to the extent of that activity. (k) A person listed under subdivision (d) is exempted from all the provisions of this division, except Sections 2062 and 2063. (l) A transaction in which the recipient of the money or other monetary value is an agent of the payee pursuant to a preexisting written contract and delivery of the money or other monetary value to the agent satisfies the payor’s obligation to the payee. (1) For purposes of this subdivision, “agent” has the same meaning as that term is defined in Section 2295 of the Civil Code. (2) For purposes of this subdivision, “payee” means the provider of goods or services, who is owed payment of money or other monetary value from the payor for the goods or services. (3) For purposes of this subdivision, “payor” means the recipient of goods or services, who owes payment of money or monetary value to the payee for the goods or services. (m) A person that acts as an intermediary by processing money transmission between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender’s designated recipient, if the entity meets all of the following criteria: (1) The entity is properly licensed or exempt from licensing requirements under this division. (2) The entity provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction. (3) The entity bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient. (n) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant. (Amended by Stats. 2024, Ch. 80, Sec. 44. (SB 1525) Effective January 1, 2025.)
  150. 2011.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 2. Exemptions [2010 - 2011] ( Chapter 2 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may exempt people or transactions from all or part of this division if it is in the public interest and regulation is not needed, and must post exempted parties on the website and adopt implementing regulations.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 2. Exemptions [2010 - 2011] ( Chapter 2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2011. (a) The commissioner may, by regulation or order, either unconditionally or upon specified terms and conditions or for specified periods, exempt from all or part of this division any person or transaction or class of persons or transactions, if the commissioner finds such action to be in the public interest and that the regulation of such persons or transactions is not necessary for the purposes of this division. The commissioner shall post on the commissioner’s Internet Web site a list of all persons, transactions, or classes of person or transactions exempt pursuant to this section, and the part or parts of this division from which they are exempt. (b) The commissioner shall adopt regulations to carry out and implement this section. (Amended by Stats. 2013, Ch. 533, Sec. 3. (AB 786) Effective January 1, 2014.)
  151. 203.

    ## 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. )

    Verify source ↗

    This section defines “Shareholder” by reference to Section 185 of the Corporations Code.

    ## 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. ) ## 203. “Shareholder” has the meaning set forth in Section 185 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  152. 2030.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

    Verify source ↗

    A person may not do money transmission business in this state, or advertise or hold out as providing it, unless licensed, exempt, or acting as an agent of a licensed or exempt person.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2030. (a) A person shall not engage in the business of money transmission in this state, or advertise, solicit, or hold itself out as providing money transmission in this state, unless the person is licensed or exempt from licensure under this division or is an agent of a person licensed or exempt from licensure under this division. (b) A license under this division is not transferable or assignable. (Amended by Stats. 2012, Ch. 356, Sec. 6. (SB 979) Effective January 1, 2013.)
  153. 2031.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

    Verify source ↗

    Only certain corporations and limited liability companies may apply for or receive a license; an LLC organized outside the United States may not be issued one.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2031. Only the following persons may apply for or be issued a license: (a) A corporation or limited liability company organized under the laws of this state. (b) A corporation, other than a corporation organized under the laws of this state, that is qualified to transact intrastate business in this state under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code. (c) A limited liability company, other than a limited liability company organized under the laws of this state, that is qualified to transact intrastate business in this state under Article 8 (commencing with Section 17708.01) of the Corporations Code, except a limited liability company that is organized outside the United States shall not be issued a license. (Amended by Stats. 2014, Ch. 499, Sec. 4. (AB 2209) Effective January 1, 2015.)
  154. 2032.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Applicants for a money transmission license must pay a $5,000 nonrefundable fee and submit the application in the form and medium the commissioner prescribes.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2032. (a) An applicant for licensure under this division shall pay to the commissioner a nonrefundable fee of five thousand dollars ($5,000). (b) An applicant for a license under this division shall do so in a form and in a medium prescribed by the commissioner by order or regulation. The application shall state or contain all of the following: (1) The legal name and residential business address of the applicant and any fictitious or trade name used by the applicant in conducting its business. (2) A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period next preceding the submission of the application. (3) A description of any money transmission services previously provided by the applicant and the money transmission services that the applicant seeks to provide in this state. (4) A list of the applicant’s proposed agents and the locations in this state where the applicant and its agents propose to engage in money transmission. (5) A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state. (6) Information concerning any bankruptcy or receivership proceedings affecting the licensee. (7) A sample form of payment instrument or instrument upon which stored value is recorded, if applicable. (8) A sample form of receipt for transactions that involve money received for transmission. (9) The name and address of any bank through which the applicant’s payment instruments and stored value will be paid. (10) A description of the source of money and credit to be used by the applicant to provide money transmission services. (11) The date of the applicant’s incorporation or formation and the state or country of incorporation or formation. (12) A certificate of good standing from the state or country in which the applicant is incorporated or formed. (13) A description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded. (14) The legal name, any fictitious or trade name, all business and residential addresses, and the employment, in the 10-year period next preceding the submission of the application, of each executive officer, manager, director, or person that has control, of the applicant, and the educational background for each person. (15) A list of any criminal convictions and material litigation in which any executive officer, manager, director, or person in control, of the applicant has been involved in the 10-year period next preceding the submission of the application. (16) A copy of the applicant’s audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the application. (17) A copy of the applicant’s unconsolidated financial statements for the current fiscal year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application. (18) If the applicant is publicly traded, a copy of the most recent report filed with the United States Securities and Exchange Commission under Section 13 of the federal Securities Exchange Act of 1934 (15 U.S.C. Sec. 78m). (19) If the applicant is a wholly owned subsidiary of: (A) A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation’s most recent report filed under Section 13 of the federal Securities Exchange Act of 1934 (15 U.S.C. Sec. 78m) and, if available, for the two-year period next preceding the submission of the application. (B) A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation’s domicile outside the United States. (20) The name and address of the applicant’s registered agent in this state. (21) The applicant’s plan for engaging in money transmission business, including without limitation three years of pro forma financial statements. (22) Any other information the commissioner requires with respect to the applicant. (c) The commissioner may waive any of the information required under subdivision (b) or permit an applicant to submit other information instead of the required information. (Amended by Stats. 2014, Ch. 499, Sec. 5. (AB 2209) Effective January 1, 2015.)
  155. 2033.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may examine a license applicant, and the applicant must pay the reasonable cost of that examination.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2033. (a) The commissioner may conduct an examination of the applicant and the applicant shall pay the reasonable cost of the examination. (b) If the commissioner finds all of the following with respect to an application for a license, the commissioner shall approve the application: (1) The applicant has adequate tangible shareholders’ equity, as specified in Section 2040 to engage in the business of money transmission and the financial condition of the applicant is otherwise such that it will be safe and sound for the applicant to engage in the business of money transmission. (2) The applicant, the directors and officers of the applicant, any person that controls the applicant, and the directors and officers of any person that controls the applicant are of good character and sound financial standing. (3) The applicant is competent to engage in the business of money transmission. (4) The applicant’s plan for engaging in the business of money transmission affords reasonable promise of successful operation. (5) It is reasonable to believe that the applicant, if licensed, will engage in the business of money transmission and will comply with all applicable provisions of this division and of any regulation or order issued under this division. (c) The commissioner shall deny an application for a license if he or she finds, after notice and a hearing, that the requirements of subdivision (b) have not been satisfied. (Amended by Stats. 2012, Ch. 356, Sec. 8. (SB 979) Effective January 1, 2013.)
  156. 2034.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Before a corporation or LLC can get a license, it must file an appointment naming the commissioner to receive service of process. If service is made at the commissioner’s office, notice by registered or certified mail and an affidavit of compliance are also required for effective service.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2034. (a) Before any corporation or limited liability company is issued a license, the corporation or limited liability company shall file with the commissioner, in such form as the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner to be the corporation’s or limited liability company’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the corporation or limited liability company, or any of its successors, that arises under this division or under any regulation or order issued under this division after such appointment has been filed, with the same force and validity as if served personally on the corporation or limited liability company or its successor, as the case may be. (b) Service may be made by leaving a copy of the process at any office of the commissioner, but that service is not effective unless (1) the party making that service, who may be the commissioner, sends notice of service and a copy of the process by registered or certified mail to the party served at its last address on file with the commissioner, and (2) an affidavit of compliance with this section by the party making service is filed in the case on or before the return date, if any, or within such further time as the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows. (c) The provisions of this section are in addition to, and not in limitation of, other provisions of law relating to service of process. (Amended by Stats. 2012, Ch. 356, Sec. 9. (SB 979) Effective January 1, 2013.)
  157. 2035.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A person may not acquire control of a licensee unless the commissioner first approves it in writing.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2035. (a) No person shall, directly or indirectly, acquire control of a licensee unless the commissioner has first approved, in writing, the acquisition of control. An application to acquire control of a licensee shall be in writing, under oath, and in a form prescribed by the commissioner. The application shall contain that information which the commissioner may require. (b) The commissioner shall not approve the application unless the commissioner finds all of the following: (1) The applicant and all of the officers and directors of the applicant are of good character and sound financial standing. (2) The applicant is competent to engage in the business of money transmission. (3) It is reasonable to believe that, if the applicant acquires control of the licensee, the applicant and the licensee will comply with all applicable provisions of this division and any regulation or order issued under this division. (4) The applicant’s plans, if any, to make any major change in the business, corporate structure, or management of the licensee are not detrimental to the safety and soundness of the licensee. (c) For the purposes of subdivision (b), the commissioner may find an applicant’s plan to make major changes in the management of a licensee is detrimental to the licensee if the plan provides for a person who is not of good character to become a director or officer of the licensee. The grounds specified in this subdivision shall not be deemed to be the only grounds upon which the commissioner may find, for the purposes of subdivision (b), that an applicant’s plan to make a major change in the management of a licensee is detrimental to the licensee. (d) If it appears to the commissioner that any person is violating or failing to comply with this section, the commissioner may direct the person to comply with this section by an order issued over the commissioner’s official seal. (e) Whenever it appears to the commissioner that any person has committed or is about to commit a violation of any provision of this section or of any regulation or order of the commissioner issued pursuant to this section, the commissioner may apply to the superior court for an order enjoining the person from violating or continuing to violate this section or that regulation or order, and for other equitable relief as the nature of the case or interests of the licensee, the controlling person, the creditors or shareholders of the licensee or controlling person or the public may require. (f) The commissioner may, for good cause, amend, alter, suspend, or revoke any approval of a proposal to acquire control of a licensee issued pursuant to this section. (g) There shall be exempted from the provisions of this section any transaction which the commissioner by regulation or order exempts as not being comprehended within the purposes of this section and the regulation of which he or she finds is not necessary or appropriate in the public interest or for the protection of a licensee or the customers of a licensee. (h) The commissioner may conduct an examination of the applicant and the applicant shall pay the reasonable cost of the examination. (Amended by Stats. 2012, Ch. 356, Sec. 10. (SB 979) Effective January 1, 2013.)
  158. 2036.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may add conditions to authorizations, approvals, licenses, or orders under this division when needed for licensee safety and soundness or for consumer protection.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2036. The commissioner may impose on any authorization, approval, license, or order issued pursuant to this division any conditions that are necessary for the safety and soundness of the licensee, or reasonable or necessary to maintain or enhance consumer protection. (Amended by Stats. 2014, Ch. 499, Sec. 6. (AB 2209) Effective January 1, 2015.)
  159. 2037.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees must keep cash, securities, or a surety bond on deposit with the Treasurer or commissioner in specified amounts, and the commissioner controls approval and some substitutions or reductions.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2037. (a) As security, each licensee shall deposit and thereafter maintain on deposit with the Treasurer cash in an amount not less than, or securities having a market value not less than, such amount as the commissioner may find and order from time to time as necessary to secure the faithful performance of the obligations of the licensee with respect to money transmission in California. These securities shall be subject to the approval of the commissioner and shall consist of interest-bearing bonds, notes, or other obligations of the United States or any agency or instrumentality thereof, or of the State of California, or of any city, county, or city and county, political subdivision or district of the State of California, or that are guaranteed by the United States or the State of California. (b) So long as a licensee that maintains securities on deposit with the Treasurer pursuant to this section is solvent, that licensee shall be entitled to receive any interest paid on the securities. (c) In lieu of the deposit of cash or securities pursuant to subdivision (a), a licensee may deliver to the commissioner the bond of a surety company, in form and written by a company satisfactory to the commissioner, in an amount not less than the amount of the deposit of cash or securities required of the licensee, conditioned upon the faithful performance of the obligations of the licensee with respect to money transmission in California. The commissioner shall deposit such bond with the Treasurer. (d) A licensee that sells or issues payment instruments or stored value shall maintain securities on deposit or a bond of a surety company in an amount of no less than five hundred thousand dollars ($500,000) or 50 percent of the average daily outstanding payment instrument and stored value obligations in California, whichever is greater; provided that such amount shall not be more than two million dollars ($2,000,000). (e) A licensee that engages in receiving money for transmission shall maintain securities on deposit or a bond of a surety company in an amount greater than the average daily outstanding obligations for money received for transmission in California, provided that such amount shall not be less than two hundred fifty thousand dollars ($250,000) nor more than seven million dollars ($7,000,000). (f) The amount of securities on deposit or a bond of a surety company required to be maintained by subdivisions (d) and (e) are cumulative. (g) The money and securities deposited with the Treasurer pursuant to this section and the proceeds of any bond held by the Treasurer pursuant to this section shall constitute a trust fund for the benefit of persons in California who purchased payment instruments or stored value from the licensee or its agent, or persons in California who delivered to any licensee or its agent money or monetary value for money transmission. Suit to recover on any bond may be brought by any party aggrieved in a court of competent jurisdiction of any county in which the licensee has an agent. (h) Securities on deposit or a bond shall cover claims for so long as the commissioner specifies, but for at least four years after the licensee ceases to provide services under this division in this state. However, the commissioner may permit the amount of the security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee’s payment instruments or stored value obligations outstanding, or outstanding money or monetary value received for money transmission, is less than the deposit or bond. The commissioner may permit a licensee to substitute another form of security acceptable to the commissioner for the security effective at the time the licensee ceases to provide money transmissions in this state. (Amended by Stats. 2012, Ch. 356, Sec. 12. (SB 979) Effective January 1, 2013.)
  160. 2038.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This section sets fee amounts for license applications, control-acquisition applications, annual licensee fees, branch-office fees, and examination fees, and says application fees are nonrefundable.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2038. Fees shall be paid to, and collected by, the commissioner, as follows: (a) The fee for filing an application for a license is five thousand dollars ($5,000), as provided in subdivision (a) of Section 2032. (b) The fee for filing an application for approval to acquire control of a licensee is three thousand five hundred dollars ($3,500). (c) A licensee shall pay annually on or before July 1, a licensee fee of two thousand five hundred dollars ($2,500). (d) A licensee shall pay annually on or before July 1, one hundred twenty-five dollars ($125) for each licensee branch office in this state. (e) A licensee shall pay annually on or before July 1, twenty-five dollars ($25) for each agent branch office in this state. (f) Whenever the commissioner examines a licensee or any agent of a licensee, the licensee shall pay, within 10 days after receipt of a statement from the commissioner, a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (g) Whenever the commissioner examines an applicant, the applicant shall pay, within 10 days after receipt of a statement from the commissioner, a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (h) Each fee for filing an application shall be paid at the time the application is filed with the commissioner. No fee for filing an application shall be refundable, regardless of whether the application is approved, denied, or withdrawn. (Amended by Stats. 2025, Ch. 20, Sec. 10. (AB 137) Effective June 30, 2025.)
  161. 2039.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees must file annual audit reports and quarterly reports with the commissioner, and the commissioner may grant exemptions or extend filing times.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2039. (a) The commissioner may, by order or regulation, grant exemptions from this section in cases in which the commissioner finds that the requirements of this section are not necessary or may be duplicative. (b) In addition to any other reports as may be required pursuant to Sections 453, 454, and 455, each licensee shall, within 90 days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner an audit report for the fiscal year that shall comply with all of the following provisions: (1) The audit report shall contain audited financial statements of the licensee for or as of the end of the fiscal year prepared in accordance with United States generally accepted accounting principles and any other information as the commissioner may require. (2) The audit report shall be based upon an audit of the licensee conducted in accordance with United States generally accepted auditing standards and any other requirements as the commissioner prescribes. (3) The audit report shall be prepared by an independent certified public accountant or independent public accountant who is not unsatisfactory to the commissioner. (4) The audit report shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the licensee to take any action as the commissioner finds necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification. (c) Each licensee shall, not more than 45 days after the end of each calendar year quarter, or within a longer period as the commissioner, by regulation or order, specifies, file with the commissioner a report containing all of the following: (1) Financial statements, including balance sheet, income statement, statement of changes in shareholders’ equity, and statement of cashflows, for, or as of the end of, that calendar year quarter, verified by two of the licensee’s principal officers. The verification shall state that each of the officers making the verification has a personal knowledge of the matters in the report and that each of them believes that each statement on the report is true. (2) For issuers and sellers of payment instruments and stored value, a schedule of eligible securities owned by the licensee pursuant to Section 2081. (3) Other information as the commissioner, by regulation or order, requires. (d) Each licensee, not more than 45 days after the end of each calendar year quarter, shall file through the NMLS a report containing all of the following: (1) The current address of each branch office of the licensee in this state. If a branch office was opened or closed during the calendar year quarter, the date it was opened or closed. If a branch office was relocated during the calendar year quarter, the addresses of the old and new locations and the date of relocation. (2) All of the following information related to each agent who acted, in this state, as an agent of the licensee during the calendar year quarter: (A) The agent’s name, telephone number, and email address. (B) The agent’s taxpayer employer identification number. (C) The agent’s principal provider identifier. (D) The agent’s physical address. (E) The agent’s mailing address. (F) Any business conducted in other states by the agent on behalf of the licensee. (G) Any fictitious or trade name used by the agent. (H) The date of appointment or termination of the agent in the calendar year, if applicable. (I) The addresses for the old and new locations and the date of relocation of any agent that relocated during the calendar year quarter, if applicable. (3) The total volume of activities, number of transactions conducted, and outstanding money transmission obligations in California under this division and in the United States in the calendar year quarter categorized by type of money transmission, and, if feasible whether the transmission was conducted via a mobile application or an internet website. For money received for transmission, a report of the average daily outstanding transmission liabilities in California, and, if applicable, a schedule of each foreign country to which money was sent, along with the total amount of money sent to that foreign country in that calendar year quarter. For payment instruments and stored value, a report of the average daily outstanding payment instruments and stored value liabilities in California in that calendar year quarter. (4) Other information as the commissioner, by regulation or order, requires. (e) Each licensee shall file with the commissioner other reports as and when the commissioner, by regulation or order, requires. (Amended by Stats. 2023, Ch. 463, Sec. 4. (AB 1116) Effective January 1, 2024.)
  162. 2040.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A money transmission licensee must keep minimum tangible net worth levels, and the commissioner can exempt a licensee or applicant from those requirements in whole or in part.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2040. (a) Subject to subdivision (b), a licensee shall maintain at all times a tangible net worth of the greater of one hundred thousand dollars ($100,000) or 3 percent of total assets for the first one hundred million dollars ($100,000,000), 2 percent of additional assets for one hundred million dollars ($100,000,000) to one billion dollars ($1,000,000,000), and one-half of 1 percent of additional assets for over one billion dollars ($1,000,000,000). (b) (1) The commissioner shall, pursuant to paragraph (2), have the authority to exempt, in part or in whole, an applicant or licensee from the requirements of this section. (2) The commissioner, in determining whether to exempt, in part or in whole, an applicant or licensee from the requirements of this section, shall consider all of the following factors: (A) Whether the applicant or licensee is licensed to engage in money transmission in other states and whether the applicant or licensee has been subject to any disciplinary actions, including license revocations or suspensions. (B) Whether the applicant or licensee is licensed to engage in money transmission in other states and the tangible net worth requirements in those other states, if applicable. (C) The nature and magnitude of short-term fluctuations in the total assets and money transmitter liabilities of the applicant or licensee, the risks associated with those fluctuations, and how those fluctuations affect the net worth requirements of this section. (D) Any factors that suggest that the money transmission activities of the applicant or licensee function in such a manner that a waived or modified tangible net worth requirement would not compromise the interest of persons in this state who use money transmission services, including, but not limited to, both of the following: (i) The manner in which the applicant or licensee holds actual possession of funds from persons in this state who use money transmission services. (ii) Whether the applicant or licensee transmits funds described in clause (i) to the intended recipient as soon as practicable following receipt. (E) Any other factors as the commissioner deems appropriate. (c) If a licensee is subject to an order issued under Section 580 or 581, the commissioner may require a licensee to maintain tangible net worth greater than the amount required by subdivision (a) of this section. (Repealed and added by Stats. 2023, Ch. 463, Sec. 6. (AB 1116) Effective January 1, 2024.)
  163. 2041.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee must conduct money transmission in California under its true name, unless an exception or notice condition in the section is met.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2041. (a) A licensee shall conduct money transmission in California under its true name unless it has complied with Chapter 5 (commencing with Section 17900) of Part 3 of Division 7 of the Business and Professions Code. (b) A licensee may only conduct money transmission in California under its true name unless it has provided 30-day advance written notice to the commissioner. A licensee may also use a trade name or logo, so long as there is reasonable disclosure of its true name. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  164. 2042.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner must levy annual assessments on certain money transmission licensees, and licensees must pay the amount within 20 days of notice.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2042. (a) In addition to the fees provided in Section 2038, the commissioner shall levy an assessment each fiscal year, on a pro rata basis, on those licensees that at any time during the preceding calendar year engaged in the business of money transmission in California in an amount that is, in his or her judgment, sufficient to meet the commissioner’s expenses in administering the provisions of this division and to provide a reasonable reserve for contingencies. (b) For licensees that sell or issue payment instruments or stored value, the amount of the annual assessment on any licensee shall not exceed the sum of the products determined by multiplying (1) increments of the aggregate face amount of payment instruments and stored value issued or sold in California by the licensee, directly or indirectly through agents, in the calendar year next preceding the date of such assessment, by (2) percentages of the base assessment rate, according to the following table:Aggregate face amount of payment instruments and stored value sold (in millions) Percentage of base assessment rate First $1 ........................ 100.0 Next $9 ........................ 25.0 Next $40 ........................ 12.5 Next $50 ........................ 6.0 Next $400 ........................ 3 Next $500 ........................ 2 Excess over $1,000 ........................ 1 The base assessment rate shall be fixed from time to time by the commissioner but shall not exceed one dollar ($1) per one thousand dollars ($1,000) face amount of payment instruments and stored value sold. (c) For licensees receiving money for transmission, the basis of the apportionment of the assessment among the licensees assessed shall be the proportion that the total amount of money received for transmission by the licensee in California bears in relation to the total amount of money received for transmission by all licensees in California, as shown by the reports of licensees to the commissioner for the preceding calendar year. The assessment rate shall be fixed from time to time by the commissioner but shall not exceed one dollar ($1) per one thousand dollars ($1,000) of money received for transmission in California by the licensee. (d) The commissioner shall notify each licensee by mail of the amount levied against it. The licensee shall pay the amount levied within 20 days. If payment is not made to the commissioner within that time, the commissioner shall assess and collect, in addition to the annual assessment, a penalty of 5 percent of the assessment for each month or part thereof that the payment is delinquent. (Amended by Stats. 2012, Ch. 356, Sec. 15. (SB 979) Effective January 1, 2013.)
  165. 2043.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees must give their contracted agents training materials on elder/dependent adult financial abuse and related fraud response, and must give the same materials to newly appointed agents within one month. Some licensees are excluded.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 3. Licenses [2030 - 2043] ( Chapter 3 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2043. (a) On or before April 1, 2013, and annually thereafter, each licensee shall provide its agents under contract with training materials on recognizing elder or dependent adult financial abuse, and how to appropriately respond if the agent suspects that he or she is being asked to engage in money transmission for a fraudulent transaction involving an elder or dependent adult. (b) To ensure that agents that are newly appointed by licensees pursuant to Section 2060 receive the training materials described in subdivision (a) in a timely manner, each licensee shall provide those materials to any newly appointed agent no later than one month following the appointment of that agent. (c) This section shall not apply to licensees that are engaged solely in selling or issuing stored value pursuant to paragraph (2) of subdivision (q) of Section 2003. Licensees that engage in money transmission activities pursuant to paragraph (1) or (3) of that subdivision, shall be subject to this section only with respect to their agents under contract for activities described in those paragraphs. Additionally, this section shall not apply to licensees who exclusively offer their services via an Internet Web site, a mobile application, or both. (Amended by Stats. 2014, Ch. 499, Sec. 9. (AB 2209) Effective January 1, 2015.)
  166. 205.

    ## 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 defines “State” for corporations and foreign bank offices.

    ## 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. ) ## 205. “State”: (a) When used with respect to a corporation, means a corporation that is organized under the laws of a state of the United States. (b) When used with respect to an office of a foreign (other nation) bank, means an office that the bank is authorized to maintain under the laws of a state of the United States. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  167. 2060.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Agents and licensees handling money transmission must use a written contract, remit funds on time, keep required records, and avoid unauthorized subagents or activity outside the contract.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2060. (a) In this section, “remit” means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee. (b) No licensee shall appoint or continue any person as agent, unless the licensee and the person have made a written contract. A written contract between a licensee and an agent shall require the agent to operate in full compliance with this division. (c) The written contract shall contain each of the following provisions: (1) That the licensee appoints the person as its agent with authority to conduct money transmission on behalf of the licensee. (2) That the agent shall make and keep accounts, correspondence, memoranda, papers, books, and other records as the commissioner by regulation or order requires and preserve the records for the time specified by the regulation or order. (3) That all money or monetary value, less fees due agents provided for and expressly set forth in the written agreement, received by the agent for money transmission on behalf of the licensee shall be trust funds owned by and belonging to the licensee until the time when the money or an equivalent amount are remitted by the agent to the licensee in accordance with this section. (4) That the money must be remitted in accordance with the provisions of this division. (5) Any other provisions that the commissioner may by regulation or order find to be necessary to carry out the provisions and purposes of this division. (d) An agent shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the agent. (e) An agent of a licensee shall remit any money, less fees, received on behalf of the licensee for money transmission as follows: (1) Within three business days of receipt. (2) In case the aggregate face amount of the money, less fees, does not in any calendar week exceed ten thousand dollars ($10,000), within 10 business days of receipt. (3) Within a period longer than three business days of receipt, if the agent has previously deposited with, and during such period maintains on deposit with, an office of an insured bank or of an insured savings and loan association located in the United States in an account that is in the sole and exclusive name of the licensee an amount that, for each day by which such period exceeds three business days, is not less than the aggregate face amount of money received on behalf of the licensee for money transmission that the agent usually sells per day. (4) Within such shorter period as the licensee may provide. (f) An agent may not provide money transmission outside the scope of activity permissible under the contract between the agent and the licensee. All money or monetary value, less fees, received by an agent of a licensee shall, from the time when the money is received by the agent until the time when the money or an equivalent amount is remitted by the agent to the licensee, constitute trust funds owned by and belonging to the licensee. (g) An agent may not use a subagent to conduct money transmissions on behalf of a licensee. (h) Each licensee shall exercise reasonable supervision over its agents to ensure compliance with applicable laws, rules, and regulations with respect to money transmission. (i) No agent of a licensee shall, nor shall any licensee cause or knowingly permit any of its agents to, conduct money transmission on behalf of the licensee without concurrently receiving money, monetary value or its equivalent, credit card, or payment instrument, or a combination of same believed to be valid in an amount not less than the amount of the money transmission being provided. In the case of a sale of payment instruments or stored value to an insured bank, an insured savings and loan association, or an insured credit union, the licensee or agents of the licensee may receive such amounts the next business day after the sale. (j) If any agent of a licensee shall commingle any money or monetary value, less fees, received on behalf of the licensee for money transmission with any other property owned or controlled by the agent, all such property shall be impressed with a trust in favor of the licensee in an amount equal to the aggregate amount of such money so commingled. No money or monetary value, less fees, received by any agent on behalf of the licensee for money transmission, while held by such agent, nor any property impressed with a trust pursuant to this subdivision, shall be subject to attachment, levy of execution, or sequestration by order of any court, except for the benefit of the licensee. (k) Each licensee shall be liable as a principal for the money or monetary value from the time when the money or monetary value is received by the agent. Each licensee shall be liable as the maker or drawer on each payment instrument issued or sold by such licensee. (Amended by Stats. 2012, Ch. 356, Sec. 16. (SB 979) Effective January 1, 2013.)
  168. 2061.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee may appoint an agent only after reviewing the proposed agent’s fitness and confirming good character and sound financial standing, and must keep the review records.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2061. (a) No licensee shall appoint any person as an agent unless it has conducted a review of the proposed agent’s fitness to act as an agent and has determined that the proposed agent and any persons who control the proposed agent are of good character and sound financial standing. (b) A licensee shall maintain records of this review for each agent while the agent is providing money transmission on behalf of the licensee, and for three years after the relationship with the agent has terminated. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  169. 2062.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A person must not provide money transmission on behalf of someone who is not licensed or exempt.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2062. A person may not provide money transmissions on behalf of a person not licensed or not exempt from licensure under this division. A person that engages in that activity provides money transmissions services to the same extent as if the person was a licensee, and shall be jointly and severally liable with the unlicensed or nonexempt person. (Amended by Stats. 2012, Ch. 356, Sec. 17. (SB 979) Effective January 1, 2013.)
  170. 2063.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. )

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    An agent of a licensee must not conduct money transmission on the licensee’s behalf after actual notice of a suspension, revocation, or possession order by the commissioner.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 4. Agents [2060 - 2063] ( Chapter 4 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2063. (a) No agent of a licensee who has actual notice that the commissioner has suspended or revoked the license of the licensee or that the commissioner has issued an order taking possession of the property and business of the licensee shall conduct money transmission on behalf of the licensee. (b) If any agent of a licensee, after first having actual notice that the commissioner has suspended or revoked the license of the licensee or that the commissioner has issued an order taking possession of the property and business of the licensee, conducts money transmission on behalf of the licensee, the agent shall be jointly and severally liable with the licensee for payment of the money transmission. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  171. 207.

    ## 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 defines “State of the United States” for this chapter.

    ## 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. ) ## 207. “State of the United States” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  172. 2081.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee must hold eligible securities at all times in an amount at least equal to its outstanding payment instruments, stored value obligations, and money received for transmission, and must keep a U.S. record of proof of receipt or refund. The commissioner may also order more securities or extra financial guarantees if the licensee’s condition is impaired or unsafe.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2081. (a) A licensee shall at all times own eligible securities having an aggregate market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding payment instruments and stored value obligations issued or sold in the United States and all outstanding money received for transmission in the United States. (b) If the commissioner finds that the financial condition of a licensee is impaired, or that the financial condition of a licensee is such that its business is being conducted in an unsafe and unsound manner, the commissioner, to protect the public interest, may issue an order, subject to the procedures set forth in Section 2148, doing one or both of the following: (1) Increasing the amount of eligible securities that the licensee must maintain. (2) Requiring the licensee to obtain, as security for the payment of outstanding money transmission obligations, additional security in the form of financial guarantees. (c) Eligible securities, even if commingled with other assets of the licensee, are deemed to be held in trust for the benefit of the purchasers and holders of the licensee’s outstanding payment instrument and stored value obligations, and all senders of outstanding money received for transmission, in the event of bankruptcy or receivership of the licensee, or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No eligible securities impressed with a trust pursuant to this subdivision shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust. (d) All outstanding payment instruments and stored value issued or sold by a licensee or its agent, and all outstanding money received for transmission by a licensee or its agent, shall remain a liability of the licensee from the time money or monetary value is received by the licensee or its agent until the licensee receives confirmation that such money or monetary value was received by the beneficiary, or until the outstanding payment instrument or stored value obligation has been paid, or until the money is refunded to the customer. (e) A licensee shall maintain a record in the United States of proof of receipt by the beneficiary or refund to the customer of money received for transmission. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  173. 2082.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    This section defines what counts as an eligible security, including United States currency eligible securities, foreign currency eligible securities, and how “value” is calculated.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2082. (a) “Eligible security” means any United States currency eligible security or foreign currency eligible security. (b) For the purposes of this division, the following are United States currency eligible securities: (1) Cash, cash in transit via armored car, cash in smart safes, and cash in licensee-owned locations. (2) Any deposit in an insured bank, an insured savings and loan association, or an insured credit union, including any deposit in an insured bank, an insured savings and loan association, or an insured credit union that is in an account held for the benefit of the licensee’s customers that is titled “(name of licensee) FBO Its (licensee’s customers or specific group of licensee’s customers).” (3) Any bond, note, or other obligation that is issued or is guaranteed by the United States or any agency of the United States. (4) Any bond, note, or other obligation that is issued or guaranteed by any state of the United States or by any governmental agency of or within any state of the United States and that is assigned an eligible rating by an eligible securities rating service. (5) Any bankers acceptance that is eligible for discount by a federal reserve bank. (6) Any commercial paper that is assigned an eligible rating by an eligible rating securities service. (7) Any bond, note, or other obligation that is assigned an eligible rating by an eligible securities rating service. (8) Any share of an investment company that is an open-end management company, that is registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), that holds itself out to investors as a money market fund, and that operates in accordance with all provisions of the Investment Company Act of 1940, and the regulations of the Securities and Exchange Commission applicable to money market funds, including Section 270.2a-7 of the regulations of the Securities and Exchange Commission (17 C.F.R. 270.2a-7). For purposes of this paragraph and paragraph (9), “investment company,” “management company,” and “open-end” have the meanings set forth in Sections 3, 4, and 5, respectively, of the Investment Company Act of 1940 (15 U.S.C. Secs. 80a-4 and 80a-5, respectively). (9) Any share of an investment company that is an open-end management company, that is registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), and that invests exclusively in securities that constitute eligible securities that comply with the valuation requirements of this division. (10) Any account due to any licensee from any agent in the United States on account of the receipt of money on behalf of the licensee for money transmission by the agent, if the account is current and not past due or otherwise doubtful of collection. (11) Any other security or class of securities that the commissioner has by regulation or order declared to be eligible securities. (12) Any receivable owed by a bank and resulting from a debit card- or credit card-funded transmission, automated clearinghouse items in transit to the licensee, and automated clearinghouse items or international wires in transit to a payee. (13) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven days of presentation of the items required by subparagraph (B). (A) The letter of credit described by this paragraph shall meet all of the following criteria: (i) The letter of credit is issued by an insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in any state, or a foreign bank that is authorized under state law to maintain a branch in a state that bears an eligible rating or whose parent company bears an eligible rating and that is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies. (ii) The letter of credit is irrevocable, unconditional, and indicates that it is not subject to any condition or qualifications outside of the letter of credit. (iii) The letter of credit does not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee. (iv) (I) The letter of credit contains an issue date and expiration date and expressly provides for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days before any expiration date, that the irrevocable letter of credit will not be extended. (II) If the issuer notifies, pursuant to subclause (I), the commissioner that a letter of credit will not be extended, the licensee shall demonstrate to the satisfaction of the commissioner at least 15 days before expiration that the licensee maintains, and will maintain, permissible investments in accordance with Section 2081 upon the expiration of the letter of credit. If the licensee is not able to do so, the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee’s requirements to maintain permissible investments in accordance with Section 2081. Any such draw shall be offset against the licensee’s outstanding money transmission obligations. The drawn funds shall be held in trust by the commissioner or the commissioner’s designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee’s outstanding money transmission obligations. (B) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made, on or before the expiration date of the letter of credit, by the beneficiary to the issuer of both of the following documents: (i) The original letter of credit, including any amendments. (ii) A written statement from the beneficiary stating that any of the following events have occurred: (I) The filing of a petition by or against the licensee under Sections 101 to 110, inclusive, of Title 11 of the United States Code, as amended or recodified from time to time, for bankruptcy or reorganization. (II) The filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization. (III) The seizure of assets of a licensee by a commissioner pursuant to an emergency order issued in accordance with applicable law on the basis of an action, violation, or condition that has caused, or is likely to cause, the insolvency of the licensee. (IV) The beneficiary has received notice of expiration or non-extension of a letter of credit, and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with Section 2081 upon the expiration or non-extension of the letter of credit. (C) (i) The letter of credit shall authorize the commissioner to designate an agent to serve on the commissioner’s behalf as beneficiary to a letter of credit if the agent and letter of credit meet requirements established by the commissioner. (ii) An agent designated pursuant to this subparagraph may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this section are assigned to the commissioner. (c) “Foreign currency eligible security” means any of the following that is denominated in a foreign currency: (1) Cash. (2) Any deposit, made with the prior approval of the commissioner, in an office of a bank that is located in a foreign country, if the licensee has received a satisfactory rating in its most recent examination, and the foreign depository institution meets all of the following criteria: (A) The foreign depository institution has an eligible rating. (B) The foreign depository institution is registered under the federal Foreign Account Tax Compliance Act. (C) The foreign depository institution is not located in a country subject to sanctions from the federal Office of Foreign Asset Control. (D) The foreign depository institution is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force. (3) Any other security or class of securities that the commissioner has by regulation or order declared to be eligible securities pursuant to Section 2086. (d) For the purposes of this division, “value” means the following: (1) When used with respect to an eligible security owned by a licensee of the type described in paragraph (10) of subdivision (b), net carrying value as determined in conformity with United States generally accepted accounting principles. However, in computing the value of the account, any amount that consists of money that has not been remitted to the licensee or refunded within 45 business days of receipt by the agent shall be excluded from the value of the account and shall be excluded from the calculation of eligible securities. (2) Market value when used with respect to any other eligible security owned by a licensee. (Amended by Stats. 2023, Ch. 463, Sec. 7. (AB 1116) Effective January 1, 2024.)
  174. 2083.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    When calculating a licensee’s eligible securities for Section 2082, certain amounts must be excluded if they exceed stated percentage limits, subject to specific exceptions and commissioner approvals.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2083. (a) In computing, for purposes of Section 2082, the aggregate value of eligible securities owned by a licensee, all of the following shall be excluded: (1) The value of any eligible security if and to the extent that the value of the eligible security, when combined with the aggregate value of all other eligible securities owned by the licensee that are issued or guaranteed by the same person or by any affiliate of the same person by whom the eligible security is issued or guaranteed, exceeds 10 percent of the aggregate value of all eligible securities owned by the licensee. (2) (A) Subject to subparagraph (B), the portion of the aggregate value of all eligible securities of the type described in paragraph (10) of subdivision (b) of Section 2082 that exceeds 25 percent of the aggregate value of all eligible securities owned by the licensee; and that portion of the aggregate value of agent receivables from any one person that exceeds 10 percent of the aggregate value of all eligible securities owned by the licensee, or any higher percentage that the commissioner may approve for the licensee, up to a maximum of 20 percent. (B) If the receivable due from an agent is less than seven days old, then that portion of the aggregate value of all eligible securities of the type described in paragraph (10) of subdivision (b) of Section 2082 that exceeds 50 percent of the aggregate value of all eligible securities owned by the licensee. (3) The portion of the aggregate value of all eligible securities of the type described in paragraph (6) of subdivision (b) of Section 2082 that exceeds 20 percent of the aggregate value of all eligible securities owned by the licensee. (4) The portion of the aggregate value of all eligible securities of the type described in paragraph (7) of subdivision (b) of Section 2082 that exceeds 20 percent of the aggregate value of all eligible securities owned by the licensee. (5) (A) The portion of the aggregate value of all eligible securities of the type described in paragraph (8) of subdivision (b) of Section 2082 that exceeds 20 percent of the aggregate value of all eligible securities owned by the licensee. (B) This paragraph does not apply to either of the following: (i) A money market fund that invests exclusively in obligations issued or guaranteed by the United States or any agency of the United States. (ii) A money market fund rated AAA by Standard & Poor’s Corporation or the equivalent rating from any eligible rating service. (6) The portion of the aggregate value of all eligible securities of the type described in paragraphs (6), (7), and (8) of subdivision (b) of Section 2082 that exceeds 50 percent of the aggregate value of all eligible securities owned by the licensee. (7) The portion of the aggregate value of all eligible securities of the type described in paragraph (2) of subdivision (c) of Section 2082 that exceeds 10 percent of the aggregate value of all eligible securities owned by the licensee. (b) Subdivision (a) shall not be deemed to require the exclusion of the value of any of the following eligible securities, and each of the following eligible securities shall be exempted from the limitations of subdivision (a): (1) The following eligible securities: (A) Cash. (B) Any deposit in an insured bank, insured savings and loan association, or insured credit union. (C) Any bond, note, or other obligation for the payment of which the full faith and credit of the United States are pledged. (2) Any eligible security that the commissioner, in view of the financial condition of the obligor or issuer and such other factors as may in the opinion of the commissioner be relevant, finds to be of such quality that exclusion of the value of such eligible security pursuant to subdivision (a) is not necessary for the purposes of this division and which the commissioner by regulation or order exempts, in whole or in part, from the limitations of subdivision (a). (Amended by Stats. 2023, Ch. 463, Sec. 8. (AB 1116) Effective January 1, 2024.)
  175. 2084.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee is treated as owning an eligible security only when specific ownership, transfer, and no-lien conditions are met, with stated exceptions for customer accounts and certain nominee, depository, or pledged holdings.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2084. (a) A licensee shall be deemed to own an eligible security only if the following apply: (1) (A) The licensee owns the eligible security solely and exclusively in its own right, both of record and beneficially. (B) Notwithstanding subparagraph (A), a licensee shall be deemed to own accounts held for the benefit of the licensee’s customers that otherwise meet the requirements of paragraph (2) of subdivision (b) of Section 2082. (2) The eligible security is not subject to any pledge, lien, or security interest. (3) The licensee can freely negotiate, assign, or otherwise transfer the eligible security. (b) Notwithstanding subdivision (a), a licensee shall not be deemed not to own an eligible security solely on account of either of the following facts, provided that, but for that fact, the licensee would be deemed to own the eligible security under the provisions of subdivision (a): (1) The fact that the eligible security is owned of record by a documented nominee of the licensee or by a securities depository. (2) The fact that the licensee has pledged the eligible security with the United States or any state of the United States to secure payment by the licensee of transmission money. (Amended by Stats. 2023, Ch. 463, Sec. 9. (AB 1116) Effective January 1, 2024.)
  176. 2085.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    If the commissioner finds an eligible security lacks sufficient liquidity or quality, the commissioner may declare it ineligible by regulation or order.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2085. If the commissioner finds that any eligible security or class of eligible securities is not of sufficient liquidity or quality to be eligible securities, the commissioner may by regulation or order declare the security or class of securities to be ineligible. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  177. 2086.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may declare a security or class of securities to be eligible securities if it is not already eligible and is sufficiently liquid and high quality.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2086. If the commissioner finds that any security or class of securities that is not an eligible security is of sufficient liquidity and quality to be an eligible security, the commissioner may by regulation or order declare the security or class of securities to be eligible securities. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  178. 2087.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may declare a securities rating to be an eligible rating if the commissioner finds the rating shows the class of securities is of sufficient quality to be eligible securities.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2087. (a) If the commissioner finds that a rating assigned to a class of securities by an eligible securities rating service indicates that the class of securities is of sufficient quality to be eligible securities, the commissioner may by regulation or order declare the rating to be an eligible rating. (b) With respect to this division “eligible rating” means any rating assigned to such security or class of securities by such eligible securities rating service which the commissioner has by regulation or order declared to be an eligible rating. (Amended by Stats. 2012, Ch. 356, Sec. 20. (SB 979) Effective January 1, 2013.)
  179. 2088.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may declare a credit rating agency to be an eligible securities rating service if the agency meets specified experience, competence, and publication conditions.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2088. (a) The commissioner may by regulation or order declare a credit rating agency to be an eligible securities rating service if the commissioner finds the following with respect to the securities rating service: (1) It has been continuously engaged in the business of rating securities for a period of not less than three years. (2) It is competent to rate securities and is nationally recognized for rating securities in a competent manner. (3) It publishes its ratings of securities on a nationwide basis. (b) With respect to this division “eligible securities rating service” means any credit rating agency that the commissioner by regulation or order declared to be an eligible securities ratings service. (Amended by Stats. 2014, Ch. 499, Sec. 11. (AB 2209) Effective January 1, 2015.)
  180. 2089.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee must keep eligible securities that are diversified, mostly matched to its money transmission obligations, and liquid and high quality enough to promptly pay those obligations.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 5. Eligible Securities [2081 - 2089] ( Chapter 5 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2089. A licensee shall maintain eligible securities that are adequately diversified, predominantly of a duration commensurate with the licensee’s outstanding money transmission obligations, and of sufficient liquidity and quality to promptly pay the outstanding money transmission obligations of the licensee. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  181. 209.

    ## 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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    “Surviving” means a corporation in which one or more other corporations are merged.

    ## 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. ) ## 209. “Surviving,” when used with respect to a corporation, means a corporation in which one or more other corporations are merged. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  182. 21.

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

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    People already holding office under repealed acts keep those offices on their former tenure if the code continues the offices.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 21. All persons who, at the time this code goes into effect, hold office under any of the acts repealed by this code, which offices are continued by this code, continue to hold them according to their former tenure. (Enacted by Stats. 1951, Ch. 364.)
  183. 2100.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees must file certified copies of receipt forms with the commissioner before using them, and new licensees must get approval before using first receipts.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2100. (a) (1) Each licensee shall file with the commissioner a certified copy of every receipt form used by it or by its agent for receiving money for transmission prior to its first use. No licensee or its agent shall use any receipt, a certified copy of which has not been filed with the commissioner, or use a receipt that the commissioner has deemed not to be in compliance pursuant to paragraph (2). (2) If the commissioner determines, within 30 business days of the filing date of a receipt, that the receipt does not comply with the requirements of this section or Sections 2102 and 2103, the commissioner shall notify the licensee in writing that the receipt is not in compliance with those requirements. (b) Notwithstanding subdivision (a), before a new licensee issues its first receipt to a customer, it shall file with the commissioner a certified copy of the receipt forms to be used by it or its agents for receiving money for transmission. The new licensee shall not use the receipt forms until approved by the commissioner. For purposes of this subdivision, a new licensee is a licensee that has not been previously licensed by the commissioner as a money transmitter or has not previously received money for transmission in California. (c) If a receipt is required by this division to be in English and another language, the English version of the receipt shall govern any dispute concerning the terms of the receipt. However, any discrepancies between the English version and any other version due to the translation of the receipt from English to another language including errors or ambiguities shall be construed against the licensee or its agent and the licensee or its agent shall be liable for any damages caused by these discrepancies. (d) Any licensee violating the requirements of this section shall be subject to a fine of fifty dollars ($50) for each violation. This provision is in addition to any other enforcement provisions that may apply to such a violation. (e) If any licensee or its agent uses a receipt form, a certified copy of which has not been filed with the commissioner, the licensee shall be liable for the acts of its agent whether or not the licensee authorized the agent to use that form. (f) The receipt form shall comply with the requirements of Sections 2102 and 2103. (Amended by Stats. 2012, Ch. 356, Sec. 22. (SB 979) Effective January 1, 2013.)
  184. 21000.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. )

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    A person who receives goods, including motor vehicles, in pledge as security for a loan is a pawnbroker under this division.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. ) ## 21000. Every person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan is a pawnbroker within the meaning of this division. (Amended by Stats. 1996, Ch. 923, Sec. 7. Effective January 1, 1997.)
  185. 21000.7.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. )

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    For this division, “receiving goods as security for a loan” does not include a good faith purchase of goods.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. ) ## 21000.7. As used in this division “receiving goods as security for a loan” does not include a good faith purchase of goods. (Added by Stats. 1979, Ch. 1037.)
  186. 21001.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. )

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    This section defines “compensation” to include various charges connected with a loan or forbearance.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. ) ## 21001. “Compensation” includes expenses, interest, disbursements, storage charges, and all other charges of any nature in connection with a loan or forbearance. (Enacted by Stats. 1951, Ch. 364.)
  187. 21002.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. )

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    This section defines “pledged property” and “vested property” for the pawnbroking division.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. ) ## 21002. (a) As used in this division, “pledged property” is property held as security for a loan, the title to which remains with the pledgor and has not passed to the pawnbroker pursuant to Section 21201. (b) “Vested property” is property the title to which has been transferred from the pledgor to the pawnbroker pursuant to Section 21201. Vested property is not pledged property. (Added by Stats. 1983, Ch. 1128, Sec. 1.)
  188. 21003.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. )

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    In this division, “month” means 30 consecutive calendar days.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 1. Definitions [21000 - 21003] ( Article 1 enacted by Stats. 1951, Ch. 364. ) ## 21003. For purposes of this division, the term “month” means a period of time consisting of 30 consecutive calendar days. (Added by Stats. 2011, Ch. 318, Sec. 1. (AB 424) Effective January 1, 2012.)
  189. 2101.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee or its agent must send money received for transmission, or instructions for equivalent money, to the customer’s designated person, usually within 10 days.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2101. Every licensee or its agent shall forward all money received for transmission or give instructions committing equivalent money to the person designated by the customer. Unless the transmission is for the payment of goods or services or unless otherwise ordered by his or her customer, this requirement shall be satisfied within 10 days after receiving that money. (Amended by Stats. 2013, Ch. 533, Sec. 7. (AB 786) Effective January 1, 2014.)
  190. 2102.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee or its agent must refund a customer’s transmission money within 10 days after a written refund request, unless one of the listed exceptions applies.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2102. (a) Every licensee or its agent shall refund to the customer within 10 days of receipt of the customer’s written request for a refund any and all money received for transmission unless any of the following occurs: (1) The money has been forwarded within 10 days of the date of receipt. (2) Instructions have been given committing an equivalent amount of money to the person designated by the customer within 10 days of the date of the receipt of the money from the customer. (3) The customer instructs the licensee to transmit the money at a time beyond 10 days. If the customer gives instructions as to when the money shall be forwarded or transmitted and the moneys have not yet been forwarded or transmitted, the licensee or its agent shall refund the customer’s money within 10 days of receipt of the customer’s written request for a refund. (4) The refund would violate law. (b) If a customer’s instructions as to when the money shall be forwarded or transmitted are not complied with and the money has not yet been forwarded or transmitted, the customer has a right to a refund of his or her money. A cause of action under this section may be brought in small claims court if it does not exceed the jurisdiction of that court, or in any other appropriate court. The customer shall be entitled to recover each of the following: (1) Any and all money received for transmission, plus any fees and charges paid by the customer. (2) A penalty in an amount not to exceed one thousand dollars ($1,000). The court shall award the prevailing party costs and attorney’s fees. (Amended by Stats. 2014, Ch. 499, Sec. 12. (AB 2209) Effective January 1, 2015.)
  191. 2103.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A money transmitter licensee or its agent must give the customer a receipt and include specified disclosure information, plus certain signage and language-disclosure rules apply.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2103. (a) In the case of money received for transmission, the licensee or its agent shall give the customer a receipt at the time of the transaction. (1) The receipt shall contain the following information, as applicable: (A) The name of the sender. (B) The name of the designated recipient. (C) The date of the transaction, which is the day the customer funds the money transmission. (D) The name of the licensee. (E) The amount to be transferred to the designated recipient, in the currency in which the money transmission is funded, using the term “Transfer Amount” or a substantially similar term. (F) Any fees and taxes imposed on the money transmission by the licensee or its agent that are payable or have been paid by the sender, in the currency in which the money transmission is funded, using the terms “transfer fees” for fees and “transfer taxes” for taxes, or substantially similar terms. (G) The total amount of the transaction, which is the sum of subparagraphs (E) and (F), in the currency in which the money transmission is funded, using the term “total” or a substantially similar term. (H) The exchange rate, if any, used by the licensee or its agent for the money transmission, rounded consistently for each currency to no fewer than two decimal places and no more than four decimal places, using the term “exchange rate” or a substantially similar term. (I) For all transmissions, other than transmissions related to e-commerce transactions, the amount that will be received by the designated recipient, in the currency in which the funds will be received, using the term “total to recipient” or a substantially similar term. For transmissions related to e-commerce transactions, the amount that will be received by the designated recipient before any fees, taxes, or other amounts payable by the designated recipient are deducted, using the term “total to recipient” or a substantially similar term. These fees, taxes, or other amounts shall be disclosed to the designated recipient. The disclosure of fees, taxes, or other amounts payable by the designated recipient, which need not be disclosed to the sender, shall be disclosed as part of a separate written agreement between the licensee and the designated recipient. (J) For receipts issued on or after July 1, 2022, a telephone number through which the customer may contact the licensee pursuant to Section 2107. (2) (A) In addition to the disclosures set forth in paragraph (1), the receipt shall either include or have attached a conspicuous statement as follows: “RIGHT TO REFUND You, the customer, are entitled to a refund of the money to be transmitted as the result of this agreement if _____ (name of licensee) does not forward the money received from you within 10 days of the date of its receipt, or does not give instructions committing an equivalent amount of money to the person designated by you within 10 days of the date of the receipt of the funds from you unless otherwise instructed by you. If your instructions as to when the moneys shall be forwarded or transmitted are not complied with and the money has not yet been forwarded or transmitted, you have a right to a refund of your money. If you want a refund, you must mail or deliver your written request to _____ (name of licensee) at _____ (mailing address of licensee). If you do not receive your refund, you may be entitled to your money back plus a penalty of up to $1,000 and attorney’s fees pursuant to Section 2102 of the California Financial Code.” (B) The right to refund statement set forth in subparagraph (A) is not required to be included on receipts involving e-commerce transactions where the customer sends a payment for goods or services. (3) The receipt required by this section shall be made in English and in the language principally used by that licensee or that agent to advertise, solicit, or negotiate, either orally or in writing, at that branch office, if other than English. For transactions that do not occur in a branch office, the receipt shall be made in English and in the language principally used by that licensee or that agent to advertise, solicit, or negotiate money transmission, either orally or in writing. (4) The receipt required by this subdivision may be provided electronically for transactions that are initiated electronically or in which a customer agrees to receive an electronic receipt. (5) Disclosures in the receipt required by this subdivision shall be in a minimum 8-point type, except for receipts provided via mobile phone or text message. (b) If window and exterior signs concerning the rates of exchange for money received for transmission are used, they shall clearly state in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate, either orally or in writing, at that branch office if other than English, the rate of exchange for exchanging the currency of the United States for foreign currency. If an interior sign or any advertising is used that quotes exchange rates, it shall, in addition to clearly stating the rates of exchange for exchanging the currency of the United States for foreign currency, also state all commissions and fees charged on all such transactions. (c) At each branch office, there shall be disclosed the exchange rates, fees, and commissions charged in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate, either orally or in writing, with respect to money received for transmission at that branch office. At each branch office, there shall be signage clearly identifying the name of the licensee as well as any trade names used by the licensee at that branch office. In the event that a licensee or agent conducts money transmission activity via an internet website or mobile application that is not in a branch office, the commissioner may authorize an alternative disclosure meeting the requirements of this section. Any internet website through which a licensee conducts money transmission shall clearly identify the name of the licensee as well as any trade names used by the licensee on the internet website. (d) If the customer does not specify at the time the money is presented to the licensee or its agent the country to which the money is to be transmitted, the rate of exchange for the transaction is not required to be set forth on the receipt. If the customer does specify at the time the money is presented to the licensee or its agent the country to which the money is to be transmitted but the specified country’s laws require the rate of exchange for the transaction to be determined at the time the transaction is paid out to the intended recipient, the rate of exchange for the transaction is not required to be set forth on the receipt. (Amended by Stats. 2022, Ch. 28, Sec. 46. (SB 1380) Effective January 1, 2023.)
  192. 2104.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees or agents must post a clear notice that payment instruments are not insured, and the notice must meet language, size, and placement requirements.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2104. Each licensee or agent shall prominently post on the premises of each branch office that issues or sells payment instruments, and at machines located in this state and operated by the licensee or agent that issues or sells payment instruments, a notice clearly stating that payment instruments are not insured by the federal government, the state government, or any other public or private entity. This notice shall be printed in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate, either orally or in writing, with respect to the purchase of payment instruments. The information required in this notice shall be clear, legible, and in letters not less than one-half inch in height. The notice shall be posted in a conspicuous location in the unobstructed view of the public within the premises. The licensee shall provide to each of its agents the notice required by this section. In those locations operated by an agent, the agent, not the licensee, shall be responsible for the failure to properly post the required notice. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  193. 2105.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    Licensees or agents must post a specified consumer complaint notice at money transmission branch offices and meet formatting and placement requirements.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2105. (a) Each licensee or agent shall prominently post on the premises of each branch office that conducts money transmission a notice stating that:“If you have complaints with respect to any aspect of the money transmission activities conducted at this location, you may contact the California Department of Financial Protection and Innovation at its toll-free telephone number, 1-866-275-2677, by email at consumer.services@dfpi.ca.gov, or by mail at the Department of Financial Protection and Innovation, Consumer Services, 651 Bannon Street, Suite 300, Sacramento, CA 95811.” (b) The commissioner may by order or regulation modify the content of the notice required by this section. This notice shall be printed in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate either orally or in writing, with respect to money transmission at that branch office. The information required in this notice shall be clear, legible, and in letters not less than one-half inch in height. The notice shall be posted in a conspicuous location in the unobstructed view of the public within the premises. The licensee shall provide to each of its agents the notice required by this section. In those locations operated by an agent, the agent, and not the licensee, shall be responsible for the failure to properly post the required notice. (c) In the event that a licensee or agent conducts money transmission activity via an internet website or a mobile application that is not in a branch office, the commissioner may authorize an alternative form of the notice required in subdivision (a). (Amended by Stats. 2025, Ch. 71, Sec. 1. (AB 1507) Effective January 1, 2026.)
  194. 21050.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 2. Exceptions to This Division [21050 - 21051] ( Article 2 enacted by Stats. 1951, Ch. 364. )

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    This section says the pawnbroker division does not apply to three listed categories of organizations and business entities.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 2. Exceptions to This Division [21050 - 21051] ( Article 2 enacted by Stats. 1951, Ch. 364. ) ## 21050. This division does not apply to any of the following: (a) Any corporation organized for the purpose of securing credit from any federal intermediate credit bank organized and existing pursuant to the provisions of an act of Congress entitled “Agricultural Credits Act of 1923.” (b) Any nonprofit cooperative corporation or association with or without capital stock, organized or existing pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code. (c) Any person, corporation, association, syndicate, joint stock company, or partnership, engaged exclusively in the business of marketing agricultural, horticultural, viticultural, dairy, livestock, poultry, and bee products on a cooperative nonprofit basis. (Amended by Stats. 2006, Ch. 538, Sec. 175. Effective January 1, 2007.)
  195. 21051.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 2. Exceptions to This Division [21050 - 21051] ( Article 2 enacted by Stats. 1951, Ch. 364. )

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    Sections on rates and charges do not apply to bona fide loans of $2,500 or more, unless the section is used to evade the division.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 1. General Provisions [21000 - 21051] ( Chapter 1 enacted by Stats. 1951, Ch. 364. ) ## ARTICLE 2. Exceptions to This Division [21050 - 21051] ( Article 2 enacted by Stats. 1951, Ch. 364. ) ## 21051. (a) The limitations with respect to rates and charges set forth in Sections 21200 and 21200.5 do not apply to any loan of a bona fide principal amount of two thousand five hundred dollars ($2,500) or more if this section is not used for the purpose of evading this division. (b) In determining whether a loan is a loan of the principal amount of two thousand five hundred dollars ($2,500), Section 22054 shall apply. (Amended by Stats. 1987, Ch. 576, Sec. 1.)
  196. 2106.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee may not sell or issue a payment instrument in California unless a certified copy has first been filed with the commissioner. The commissioner may also declare a payment instrument prohibited by order or regulation if it is materially misleading or otherwise unlawful.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2106. (a) No licensee shall sell or issue any form of payment instrument in California unless a certified copy of the payment instrument has first been filed with the commissioner. The payment instrument shall clearly identify the licensee as the issuer. (b) The commissioner may by order or regulation declare that a form of payment instrument is prohibited if it is misleading in any material respect or otherwise does not comply with applicable law. (c) A payment instrument that identifies the agent through which the licensee sells the payment instrument shall identify the agent as such and shall identify the licensee at least as conspicuously as it does the agent. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  197. 2107.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. )

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    A licensee must post a toll-free customer-service number on its website, and the line must be available at least 10 hours a day on weekdays except federal holidays.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 6. Consumer Disclosures [2100 - 2107] ( Chapter 6 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2107. (a) A licensee shall prominently display on its internet website a toll-free telephone number through which a customer may contact the licensee for customer service issues and receive live customer assistance. (b) The telephone line shall be operative at least 10 hours per day, Monday through Friday, excluding federal holidays. (c) This section shall become operative on July 1, 2022. (Added by Stats. 2021, Ch. 453, Sec. 2. (AB 1320) Effective January 1, 2022. Operative July 1, 2022, by its own provisions.)
  198. 211.

    ## 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 defines “Uniform Interagency Trust Rating System (UITRS)” by reference to a published policy statement.

    ## 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. ) ## 211. “Uniform Interagency Trust Rating System (UITRS)” shall have the meaning set forth in the policy statement regarding the uniform interagency trust rating system published by the Federal Financial Institutions Examination Council on October 13, 1998 (63 Fed. Reg. 54704). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  199. 2120.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 7. Examinations, Special Reports, and Records [2120 - 2127] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 4. )

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    The commissioner may examine a licensee or agent’s business and offices, and the licensee’s directors, officers, and employees must provide records and help with the examination on request.

    ## Financial Code - FIN ## DIVISION 1.2. MONEY TRANSMISSION ACT [2000 - 2176] ( Division 1.2 added by Stats. 2011, Ch. 243, Sec. 4. ) ## CHAPTER 7. Examinations, Special Reports, and Records [2120 - 2127] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 4. ) ## 2120. (a) The commissioner may at any time and from time to time examine the business and any office, within or outside this state, of any licensee or any agent of a licensee in order to ascertain whether that business is being conducted in a lawful manner and whether all money transmission is properly accounted for. (b) The directors, officers, and employees of any licensee or agent of a licensee being examined by the commissioner shall exhibit to the commissioner, on request, any or all of the licensee’s accounts, books, correspondence, memoranda, papers, and other records and shall otherwise facilitate the examination so far as it may be in their power to do so. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
  200. 21200.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 2. Pawnbroker Regulations [21200 - 21209] ( Chapter 2 enacted by Stats. 1951, Ch. 364. )

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    Pawnbrokers may not charge compensation above the section’s limits, and they may charge one month’s interest for part of a month when pawned property is redeemed.

    ## Financial Code - FIN ## DIVISION 8. PAWNBROKERS [21000 - 21413] ( Division 8 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 2. Pawnbroker Regulations [21200 - 21209] ( Chapter 2 enacted by Stats. 1951, Ch. 364. ) ## 21200. (a) Except as otherwise provided in this chapter, no pawnbroker shall charge or receive compensation at a rate exceeding the sum of the following: (1) Three percent per month on the unpaid principal balance of any loan. (2) A charge not exceeding three dollars ($3) a month on any loan when the monthly charge permitted by paragraph (1) would otherwise be less. (b) One month’s interest may be charged for any part of the month in which pawned property is redeemed. (Amended by Stats. 2015, Ch. 245, Sec. 1. (SB 285) Effective January 1, 2016.)

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