reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 1 - General Provisions › Section 552.

552. (a) Within 30 days after an order is issued pursuant to Section 567, 581, 582, 586, or 591, or subdivision (c) of Section 587, the person to whom the order is issued may file with the commissioner an application for a hearing on the order.
(b) If the commissioner fails to commence the hearing within 15 business days after the application is filed with the commissioner or within any longer period to which the person subject to the order consents, the order shall be deemed rescinded.
(c) Within 30 days after the hearing, or within any longer period to which the person consents, the commissioner shall affirm, modify, or rescind the order. If the commissioner fails to affirm, modify, or rescind the order within that time limit, the order shall be deemed rescinded.
(d) The right to petition for judicial review of the order shall not be affected by the failure of the person subject to the order to apply to the commissioner for a hearing on the order pursuant to subdivision (a).
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 1 - General Provisions › Section 553.

553. In addition to any other action or requirement the commissioner deems necessary or advisable, an order issued pursuant to Section 580, 581, 582, 585, 586, or 587 may require the person subject to the order to do any of the following:
(a) Make restitution or provide reimbursement, indemnification, or guarantee against loss, if the subject institution, subject person, or holding company was unjustly enriched by the action or violation or if the action or violation involved a reckless disregard for any provision of this division, of any regulation or order issued under this division, of any other applicable law, or of any agreement with the commissioner.
(b) Restrict the growth of the subject institution.
(c) Dispose of any loan or other asset.
(d) Correct violations of law.
(e) Employ qualified officers or employees, who may be subject to approval of the commissioner.
(f) Limit the activities or functions of the subject institution, subject person, or holding company.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 1 - General Provisions › Section 554.

554. If the commissioner takes possession of a subject institution without a prior notice or hearing, or takes action against a subject person without prior notice or hearing, the commissioner shall, upon taking possession or taking that action, concurrently provide to the subject institution or subject person a written order. The order shall set forth the condition or conditions of the subject institution or action or actions of the subject person that constitute the basis or bases for the commissioner’s action. In any case where the commissioner takes possession of a subject institution, the commissioner shall establish, by clear evidence, the basis for his or her action.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 560.

560. No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall solicit or receive deposits, issue certificates of deposit with or without provision for interest, make payments on checks, or transact business in the way or manner of a bank or trust company.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 561.

561. No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall advertise that it is accepting deposits, and issuing notes or certificates therefore, or make use of any office sign, at the place where its business is transacted, having thereon any artificial or corporate name, or other words indicating that the place or office is the place or office of a bank or trust company, that deposits are received there or payments made on checks, or any other form of banking business is transacted, nor shall any person make use of or circulate any letterheads, billheads, blank notes, blank receipts, certificates, or circulars, or any written or printed paper, whatever, having thereon any artificial or corporate name or other words indicating that the business is the business of a bank or trust company, or transact business in a way or manner as to lead the public to believe that its business is that of a bank or trust company, except to the extent expressly authorized by this division.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 562.

562. No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall transact business under any name or title that contains the word “bank” or “banker” or “banking” or “industrial bank” or “industrial loan company” or “investment and loan” or “savings bank” or “thrift and loan” or “trust” or “trustee” or “trust company” or act or advertise in any manner that indicates that the business is the business of a bank or trust company. Any building and loan association or savings association having in its corporate name words not clearly indicating the nature of its business shall state, on all signs, letterheads, and advertising matter, “This is a building and loan association” or “This is a savings association” or words to that effect.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 563.

563. No provision of Section 560, 561, or 562 prohibits any of the following from transacting any business or performing any activity if it is authorized by applicable law to transact the business or perform the activity and is not prohibited by any applicable law, other than Section 560, 561, or 562, from transacting the business or performing the activity:
(a) Any California state commercial bank, industrial bank, or trust company.
(b) Any national bank.
(c) Any insured foreign (other state) state bank.
(d) Any foreign (other state) state bank that is licensed by the commissioner under Article 3 (commencing with Section 1700) of Chapter 19 of Division 1.1 to maintain a facility, as defined in Section 1670, in this state.
(e) Any foreign (other nation) bank that is licensed by the commissioner under Chapter 20 (commencing with Section 1750) of Division 1.1 to maintain an office in this state.
(f) Any foreign (other nation) bank that maintains a federal agency, as defined in subdivision (g) of Section 1750, or federal branch, as defined in subdivision (h) of Section 1750, in this state.
(g) Any California state corporation that is incorporated for the purpose of engaging in, and that is authorized by the commissioner to engage in, business under Article 1 (commencing with Section 1850) of Chapter 21 of Division 1.1.
(h) Any corporation incorporated under Section 25A of the Federal Reserve Act (12 U.S.C. Sec. 612 et seq.).
(i) Any foreign corporation that is licensed by the commissioner under Article 1 (commencing with Section 1850) of Chapter 21 of Division 1.1 to maintain an office in this state and to transact at that office business under Article 1 (commencing with Section 1850) of Chapter 21 of Division 1.1.
(j) Any industrial bank that is organized under the laws of another state of the United States and is insured by the Federal Deposit Insurance Corporation.
(Amended by Stats. 2013, Ch. 334, Sec. 26. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 564.

564. Any person or any bank violating any provision of the foregoing sections of this article shall be liable to the people of the state in the amount of one hundred dollars ($100) per day or part thereof during which that violation continues.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 565.

565. No person shall represent by advertisement, circular, or otherwise, or in any manner mislead anyone to believe, that any securities are legal investments for savings banks in this state or conform to the requirements of law relating to such investments, unless those securities are in fact at that time legal investments for such banks or do in fact so conform. Any person violating the provisions of this section shall be guilty of a misdemeanor and shall be punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in a county jail not exceeding one year, or by both such fine and imprisonment.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons › Section 567.

567. If the commissioner finds that a person has conducted, or that there is reasonable cause to believe that a person is about to conduct, business that requires a license issued by the commissioner and that person has not been issued the required license, the commissioner may, without any prior notice or hearing, order the person to cease and desist from conducting any unauthorized business unless and until the person is issued a license to engage in appropriate licensee business.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 3 - Orders Against Licensees and Subject Persons › Section 580.

580. If, after notice and an opportunity to be heard, the commissioner finds any of the factors set forth in subdivision (a) or (b) with respect to any subject institution, subject person, or any holding company, the commissioner may order the subject institution, subject person, or holding company to cease and desist from the act or violation:
(a) That the subject institution, subject person, or holding company has engaged or participated, is engaging or participating, or that there is reasonable cause to believe that the subject institution, subject person, or holding company is about to engage or participate, in any unsafe or unsound act with respect to the business of the subject institution.
(b) That the subject institution, subject person, or holding company has violated, is violating, or that there is reasonable cause to believe that the subject institution, subject person, or holding company is about to violate any:
(1) Provision of any division subject to the jurisdiction of the commissioner.
(2) Provision of any regulation promulgated by, or subject to the jurisdiction of, the commissioner.
(3) Provision of any other applicable law.
(4) Provision of any written agreement between the subject institution, subject person, or holding company, and the commissioner.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 3 - Orders Against Licensees and Subject Persons › Section 581.

581. If the commissioner finds that any of the factors set forth in Section 580 is true with respect to any subject institution, subject person, or holding company, and that the action, omission, or violation is likely to have any of the consequences set forth in subdivisions (a) to (d), inclusive, the commissioner may, without any prior notice or opportunity to be heard, order the subject institution or subject person to cease and desist from the following:
(a) Any act, omission, or violation that may cause the insolvency of the subject institution.
(b) Any act, omission, or violation that may cause significant dissipation of the assets or earnings of the subject institution.
(c) Any act, omission, or violation that may weaken the condition of the subject institution.
(d) Any act, omission, or violation that may otherwise prejudice the interests of the customers of the subject institution.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 3 - Orders Against Licensees and Subject Persons › Section 582.

582. If the commissioner finds that a subject institution’s books or records are so incomplete or inaccurate that the commissioner is unable through the normal supervisory process to determine the financial condition of the subject institution or the details or purpose of any transaction or transactions that may materially affect the financial condition of the subject institution, the commissioner may, without any prior notice or hearing, order the subject institution to do either of the following:
(a) Cease any activity or practice that gave rise, in whole or in part, to the incomplete or inaccurate state of the books or records.
(b) Take affirmative action to restore the books or records to a complete and accurate state.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 3 - Orders Against Licensees and Subject Persons › Section 583.

583. (a) The commissioner shall make public on the department’s Internet Web site all final orders issued pursuant to Sections 329, 567, 580, 581, 582, 585, 586, 587, 2148, 14303, 14304, 14305, 14307, 14308, 14309, 14310, 16200.5, 16900.5, 18349.5, 18356, 18357, 18358, 18359, 18363, 18367, and 18415.3 all decisions to modify or rescind an order pursuant to Sections 588, 14311, 16205, and 16905, all decisions to revoke or suspend a license pursuant to Sections 590, 591, 2149, 16202, 16203, 16902, 16903, 18349, and 18353, all decisions to revoke or suspend the designation of an agent pursuant to Sections 2150 and 2151, all decisions to approve resumption of business pursuant to Section 14314, and all decisions to take possession of the property and business of a licensee pursuant to Sections 592, 2149, 2150.2, 14313, 14315, 14319, 16206, 16906, 18415, and 18415.4. This public notice shall be in addition to the notice required pursuant to Section 594.
(b) If the commissioner makes a determination in writing that the publication of a final order or decision referenced in subdivision (a) would seriously threaten the safety or soundness of a regulated institution subject to that order or decision, the commissioner may delay publication of the order or decision for a reasonable time.
(c) If the commissioner makes a determination that the publication of a final order or decision referenced in subdivision (a) would reveal information which would identify a customer of the institution subject to the order, the commissioner may redact from the order, prior to publication, any information that, in the determination of the commissioner, would identify any customer of the subject institution.
(Amended by Stats. 2018, Ch. 699, Sec. 4. (SB 1361) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 4 - Suspension or Removal of Subject Persons › Section 585.

585. If, after notice and an opportunity to be heard, the commissioner finds that any of the factors set forth in subdivision (a), any of the factors set forth in subdivision (b), and any of the factors set forth in subdivision (c) are true with respect to a subject person of a subject institution or holding company, the commissioner may issue an order suspending or removing the subject person from the subject person’s office, if any, with the subject institution or holding company, and prohibiting the subject person from participating in any manner in the conduct of the affairs of the subject institution or holding company without the approval of the commissioner:
(a) (1) That the subject person has, directly or indirectly, violated, or has caused a subject institution to violate, any provision of any:
(A) Division subject to the jurisdiction of the commissioner.
(B) Regulation promulgated by, or subject to the jurisdiction of, the commissioner.
(C) Other applicable law.
(D) Order issued by the commissioner or under the commissioner’s authority.
(E) Written agreement between the subject institution, subject person, or holding company and the commissioner.
(2) That the subject person has, directly or indirectly, engaged or participated in any unsafe or unsound act in connection with the business of the subject institution, holding company, or any other business institution.
(3) That the subject person has, directly or indirectly, engaged or participated in any act that constitutes a breach of the subject person’s fiduciary duty.
(b) That, by reason of the act, violation, or breach of fiduciary duty described in subdivision (a):
(1) The subject institution, holding company, or business institution has suffered or will probably suffer financial loss or other harm.
(2) The rights or interests of the customers or members of the subject institution have been or could be prejudiced.
(3) The subject person has received financial gain or other benefit.
(c) That the act, violation, or breach of fiduciary duty described in subdivision (a) either involves dishonesty on the part of the subject person or demonstrates the subject person’s willful or continuing disregard for the safety or soundness of the subject institution, holding company, or business institution.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 4 - Suspension or Removal of Subject Persons › Section 586.

586. If the commissioner finds that any of the factors set forth in subdivision (a) of Section 585, any of the factors set forth in subdivision (b) of Section 585, and any of the factors set forth in subdivision (c) of Section 585 are true with respect to a subject person of a subject institution, and that it is necessary or advisable for the protection of the subject institution or holding company, or the rights or interests of the customers or members of the subject institution, the commissioner may, without any prior notice or opportunity to be heard, issue an order suspending the subject person from the subject person’s office, if any, with the subject institution or holding company, and prohibiting the subject person from participating in any manner in the conduct of the affairs of the subject institution or holding company without the prior approval of the commissioner.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 4 - Suspension or Removal of Subject Persons › Section 588.

588. (a) Any subject institution, subject person of a subject institution, or former subject person of a subject institution to whom an order is issued under Sections 585 to 587, inclusive, may apply to the commissioner to modify or rescind the order. In deciding whether to grant or deny the application, the commissioner shall consider whether it is in the public interest to modify or rescind the order and whether it is reasonable to believe that the subject person or former subject person will, if and when he or she becomes a subject person of a subject institution or holding company, comply with all applicable provisions of law, or any regulation or order issued by the commissioner.
(b) The right of any subject person or former subject person of a subject institution or holding company to whom an order is issued under Sections 585 to 587, inclusive, to petition for judicial review of the order shall not be affected by the failure of the subject institution or holding company to apply to the commissioner pursuant to subdivision (a) to modify or rescind the order.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 4 - Suspension or Removal of Subject Persons › Section 589.

589. (a) In this section, “subject financial institution” means any:
(1) Licensee or any bank or credit union that maintains an office in this state.
(2) Affiliate of any of the institutions specified in paragraph (1).
(3) Subsidiary of any of the institutions specified in paragraph (1).
(4) Holding company of any of the institutions specified in paragraph (1).
(b) It is unlawful for any subject person or former subject person of a subject financial institution to whom an order is issued under Sections 585 to 587, inclusive, willfully to do, directly or indirectly, any of the following without the approval of the commissioner, so long as the order is in effect:
(1) Act as a subject person of any subject financial institution.
(2) Vote any shares or other securities having voting rights for the election of any person as a director of a subject financial institution.
(3) Solicit, procure, transfer or attempt to transfer, or vote any proxy, consent, or authorization with respect to any shares or other securities of a subject financial institution having voting rights.
(4) Otherwise to participate in any manner in the affairs of any subject financial institution.
(Amended by Stats. 2013, Ch. 334, Sec. 27. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 590.

590. The commissioner may revoke or suspend any license issued by, or under the authority of, the commissioner, if, after notice and opportunity to be heard, the commissioner finds any of the following:
(a) The licensee has violated, is violating, or that there is reasonable cause to believe that the licensee is about to violate, any provision of any of the following:
(1) Any division subject to the jurisdiction of the commissioner.
(2) Any regulation promulgated by, or subject to the jurisdiction of, the commissioner.
(3) A provision of any other applicable law.
(4) A provision of any order issued by the commissioner.
(5) A provision of any written agreement between the licensee and the commissioner.
(6) A condition imposed on any written approval granted by the commissioner.
(b) Any fact or condition exists which, if it had existed at the time of the original application for the license, would be grounds for denying the application for the license.
(c) The licensee is conducting its business in an unsafe or unsound manner.
(d) The licensee is in such condition that it is unsafe or unsound for the licensee to transact appropriate licensee business.
(e) The licensee has inadequate capital or net worth or is insolvent.
(f) The licensee failed to pay any of its obligations as they came due or is reasonably expected to be unable to pay its obligations as they come due.
(g) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for any such relief under any such law against the licensee and the licensee has by any affirmative act approved of, or consented to, the action or the relief has been granted.
(h) The licensee has ceased to transact the business the licensee is authorized to conduct pursuant to its license.
(i) The licensee refuses to submit its books, papers, and affairs to the inspection of any examiner.
(j) Any officer of the licensee refuses to be examined upon oath touching the concerns of the licensee.
(k) The licensee has, with the approval of its board, requested the commissioner to take possession of its property and business.
(Amended by Stats. 2013, Ch. 334, Sec. 28. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 591.

591. If the commissioner finds that any of the factors set forth in Section 590 is true with respect to any licensee and that it is necessary for the protection of the public interest, the commissioner may issue an order immediately suspending or revoking the licensee’s license.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 592.

592. If the commissioner finds that any of the factors set forth in subdivisions (a) to (k), inclusive, is true with respect to a licensee, the commissioner may by order, without any prior notice or opportunity to be heard, take possession of the property and business of the licensee:
(a) The licensee has violated any provision of (1) any division subject to the jurisdiction of the commissioner, (2) any regulation promulgated by, or subject to the jurisdiction of, the commissioner, (3) any provision of any other applicable law, (4) any provision of any order issued by the commissioner, (5) any provision of any written agreement made between the commissioner and the licensee, or (6) a condition imposed on any written approval granted by the commissioner.
(b) The licensee is conducting its business in an unsafe or unsound manner.
(c) The licensee is in such condition that it is unsafe or unsound for the licensee to transact appropriate licensee business.
(d) The licensee has inadequate capital or net worth or is insolvent.
(e) If the licensee is a bank, the tangible shareholders’ equity of the bank is less than the following:
(1) If the bank is a commercial bank or industrial bank, the greater of three percent of the bank’s total assets or one million dollars ($1,000,000).
(2) If the bank is a trust company other than a commercial bank authorized to engage in trust business, one million dollars ($1,000,000).
(f) The licensee failed to pay any of its obligations as they came due or is reasonably expected to be unable to pay its obligations as they come due.
(g) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for any such relief under any such law against the licensee and the licensee has by any affirmative act approved of or consented to the action or the relief has been granted.
(h) The licensee has ceased to transact the business the licensee is authorized to conduct pursuant to its license.
(i) The licensee refuses to submit its books, papers, and affairs to the inspection of any examiner.
(j) Any officer of the licensee refuses to be examined upon oath touching the concerns of the licensee.
(k) The licensee has, with the approval of its board, requested the commissioner to take possession of its property and business.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 593.

593. (a) If the commissioner takes possession of the property and business of a licensee pursuant to Section 592, the licensee may, within 10 days, apply to the superior court in the county where its head office is located to enjoin further proceedings. The court may, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing, dismiss the application or enjoin the commissioner from further proceedings and order the commissioner to surrender the property and business of the licensee to the licensee or make any further order as may be just. The judgment of the court may be appealed by the commissioner or by the licensee as allowed by law.
(b) At any time after the commissioner takes possession of the property and business of a licensee pursuant to Section 592, the licensee may, with the approval of the commissioner, resume business upon conditions as the commissioner may prescribe.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 594.

594. (a) Upon taking possession of the property and business of any licensee, the commissioner shall give notice of that fact to all persons holding or having in their possession any assets of the licensee. No person knowing of the taking, or who has been notified thereof, shall have a lien or charge upon any assets of the licensee for any payment, advance, or clearance thereafter made or for any liability thereafter incurred.
(b) The giving of notice in accordance with this section shall not be deemed to be a prerequisite to the taking of possession of the property and business of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 6 - Enforcement › ARTICLE 5 - Suspension or Possession of a License › Section 595.

595. The commissioner is deemed to take possession of the entire property and business of a licensee when the commissioner takes possession of the business and property of the head office of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 600.

600. In this chapter, “Federal Insurance Agency” means the Federal Deposit Insurance Corporation or the National Credit Union Administration, as appropriate, or their respective successors-in-interest.
(Amended by Stats. 2013, Ch. 334, Sec. 29. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 601.

601. Upon taking possession of the property and business of any licensee, the commissioner has authority, and it is his or her duty, to collect all moneys due to the licensee and to do other acts as are necessary or expedient to collect, conserve, or protect the licensee’s assets, property, and business, and he or she shall proceed to conserve or liquidate the affairs of the licensee as provided in this article.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 602.

602. No attachment shall be issued against the property of any licensee subject to conservation or liquidation pursuant to this article.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 603.

603. Upon taking possession of the property and business of any licensee pursuant to Section 592, the commissioner may proceed to liquidate or conserve the licensee in the manner provided by this article.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 604.

604. Upon taking possession of the property and business of a licensee pursuant to Section 592, the commissioner may tender to any person or persons an appointment as conservator, liquidator, receiver, or liquidating committee of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 605.

605. The commissioner shall supervise the acts of the conservator, liquidator, receiver, or liquidating committee appointed under this article and may remove the conservator, liquidator, receiver, or any or all members of the liquidating committee in his or her discretion.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 606.

606. If required by the commissioner, the conservator, liquidator, receiver, or members of the liquidating committee appointed under this article shall provide proof of bond coverage that extends to the conservator, liquidator, receiver, or members of the liquidating committee. The bond shall include fraud, dishonesty, and faithful performance coverage. The premium for that bond shall be paid out of the assets of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 607.

607. (a) If the commissioner retains possession of the assets of the licensee for the purpose of liquidation or conservation, the commissioner shall, to the extent possible, use the services of civil service employees of the commissioner’s office, and the attorneys employed by the commissioner or the Department of Justice shall render all necessary legal services, as the commissioner may request.
(b) The commissioner, from time to time, under his or her official seal, may appoint one or more special deputy commissioners as his or her agent or agents with the powers specified in the certificate of appointment to assist him or her in the duties of conservation or of liquidation and distribution. The certificate of appointment shall be filed in the office of the commissioner and a certified copy in the office of the clerk of the county in which the head office of the licensee is located. The commissioner may employ counsel and procure expert assistance and advice as may be necessary in the liquidation and distribution of the assets of the licensee and for that purpose may retain any of the officers or employees of the licensee as the commissioner may deem necessary.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 608.

608. The compensation of civil service employees, special deputies, counsel, and other employees and assistants appointed to assist in the conservation or liquidation of any licensee and the distribution of its assets and all expenses of supervision and liquidation shall be fixed by the commissioner and shall be paid out of the funds of the licensee in the hands of the commissioner. The expenses of liquidation shall be reported to the court upon each application for payment of a dividend.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 1 - General Provisions › Section 609.

609. If a licensee is not insured by a Federal Insurance Agency, upon the commissioner taking possession of the business and property of the licensee, the superior court of the State of California for the county in which the head office of the licensee is located shall have exclusive original jurisdiction of all proceedings relating thereto and of any action or other proceedings brought under the provisions of this article. All papers relating to the proceeding, including copies of the certificate of appointment of any special deputy and the inventories required to be filed, shall be filed and be made a part of the record of the proceeding without the payment of any additional fees. No damages may be awarded in the proceeding but, if sought, may only be recovered in a separate action.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 2 - Conservation or Liquidation of an Insured Licensee › Section 620.

620. If the licensee whose property and business has been taken pursuant to Section 592 is insured by a Federal Insurance Agency, the commissioner may tender to the appropriate Federal Insurance Agency an appointment as conservator, liquidator, or receiver of the licensee. The commissioner shall determine whether the licensee whose property and business has been taken shall be liquidated or conserved. If the Federal Insurance Agency accepts the appointment, the Federal Insurance Agency shall have, in addition to any powers conferred by applicable federal law, the powers conferred on the commissioner pursuant to this chapter.
(Amended by Stats. 2015, Ch. 190, Sec. 29. (AB 1517) Effective January 1, 2016.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 2 - Conservation or Liquidation of an Insured Licensee › Section 621.

621. The Federal Insurance Agency may be, and act as, a conservator, liquidator, or receiver without bond.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 2 - Conservation or Liquidation of an Insured Licensee › Section 622.

622. If the Federal Insurance Agency accepts the appointment in accordance with Section 620, the rights of customers and other creditors of the insured licensee shall be determined in accordance with the applicable provisions of the laws of this state.
(Amended by Stats. 2015, Ch. 190, Sec. 30. (AB 1517) Effective January 1, 2016.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 2 - Conservation or Liquidation of an Insured Licensee › Section 623.

623. The Federal Insurance Agency conservator, liquidator, or receiver shall possess with respect to the insured licensee all the powers, rights, and privileges given the commissioner under this article with respect to the conservation or liquidation of a licensee, as appropriate, and the property and assets of which he or she has taken possession, except insofar as the same may be in conflict with the provisions of applicable federal law.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 640.

640. Whenever the commissioner deems it necessary in order to conserve the assets of any licensee that does not have federal deposit or share insurance for the benefit of the customers and other creditors, he or she may appoint a conservator of the licensee and require the conservator to post a bond as the commissioner deems proper. The conservator, under the direction of the commissioner, shall take possession of the books, records, and assets of every description of the licensee and take any action as the conservator may deem necessary to conserve the assets of the licensee pending further disposition of its business.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 641.

641. A conservator appointed in accordance with Section 640 has all of the powers and rights with relation to the business and the property of the licensee for which he or she is appointed conservator as are possessed by the commissioner under this article with relation to a licensee of which the commissioner has taken possession, and the conservator is subject to the same obligations as are imposed upon the commissioner under this article. During the time that the conservator remains in possession of the licensee the rights of the licensee, and of all persons with respect thereto, subject to the other provisions of this article, are the same as if the commissioner had taken possession of the property and business of the licensee for the purposes of liquidation. All expenses of the conservatorship shall be paid out of the assets of the licensee and shall be a lien thereon which shall be prior to any other lien. The conservator shall receive a salary in an amount no greater than that which would be paid by the commissioner to a special deputy in charge of the liquidation of a licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 642.

642. The commissioner may order an examination at the earliest possible date of a licensee for which the commissioner has appointed a conservator.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 643.

643. While any licensee is in the hands of a conservator, the commissioner may require the conservator to set aside and make available for withdrawal by customers and for payment to other creditors on a ratable basis such amounts as in the opinion of the commissioner may safely be used for that purpose.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 644.

644. The commissioner, in his or her discretion, may permit the conservator to receive shares or deposits, but any shares or deposits received while the licensee is in the hands of a conservator shall be held as trust funds and shall not be subject to any limitation as to payment or withdrawal. The shares or deposits shall be segregated and shall not be used to liquidate any indebtedness of the licensee existing at the time the conservator was appointed or for the payment of any later indebtedness incurred for the purpose of liquidating any indebtedness of the licensee existing at the time the conservator was appointed. The shares or deposits shall be kept on hand in cash, invested in direct obligations of the United States, or deposited with the Federal Reserve Bank.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 645.

645. If the commissioner is satisfied that it may be done safely and that it would be in the public interest, he or she may terminate a conservatorship and permit the licensee for whom a conservator was appointed to resume the transaction of its business under the direction of its board, subject to any terms, conditions, restrictions, and limitations as the commissioner may prescribe.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 646.

646. The conservator of a licensee that has been permitted to resume accepting member shares or deposits shall first cause a notice to be published in a newspaper of local circulation. The notice shall state the date on which the affairs of the licensee will be returned to its board and that the provisions of Section 644 will not be effective after 30 days from that date. The form of the notice and the newspaper in which the same is to be published shall be first approved by the commissioner. On the date of the publication of the notice, the conservator shall mail a copy of the notice to every person who made any deposit in the licensee after the date of the appointment of the conservator. The conservator shall address the copy of the notice to the persons who have made the deposits at the addresses appearing upon the books of the licensee. The conservator shall also mail a similar notice to every person making a deposit in the licensee after the date of the publication of the notice and before the affairs of the licensee are returned to its board.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 647.

647. The commissioner may assess and collect from all licensees for whom a conservator is appointed their ratable share of the costs incurred in the administration of this article.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1 - FINANCIAL INSTITUTIONS › CHAPTER 7 - Liquidation and Conservation › ARTICLE 3 - Conservatorship of an Uninsured Licensee › Section 648.

648. Any licensee that the commissioner has taken possession of pursuant to Section 592, and for which a conservator has been appointed pursuant to this article, may be reorganized under a plan that requires the consent of any of the following:
(a) Customers and other creditors of the licensee representing at least 75 percent in amount of its total member shares or deposits and other liabilities as shown by the books of the licensee, excluding member shares or deposits and other liabilities which are to be satisfied in full under the provisions of the plan.
(b) Stockholders owning at least two-thirds of the outstanding stock as shown by the books of the licensee.
(c) Members of the licensee.
(d) Customers and other creditors of the licensee representing at least 75 percent in amount of its total shares or deposits and other liabilities as shown by the books of the licensee, excluding shares or deposits and other liabilities that are to be satisfied in full under the provisions of the plan, and, if applicable to the licensee, of stockholders owning at least two-thirds of its outstanding stock as shown by the books of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)