reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 3 - Branch Offices and Agencies › Section 16554.

16554. (a) No foreign (other nation) credit union which is licensed to maintain a branch office or agency shall relocate the office unless the commissioner shall have first approved the relocation and issued a license authorizing the foreign (other nation) credit union to maintain the office at the new site.
(b) (1) In case the new site of the office is in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate a branch office or agency if the commissioner finds all of the following:
(A) That it will not be unsafe or unsound for the foreign (other nation) credit union to relocate the office.
(B) That the relocation of the office will not be substantially detrimental to the public convenience and advantage, or that the relocation is necessary in the interests of the safety and soundness of the foreign (other nation) credit union.
(2) In case the new site of the office is not in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate a branch office or agency if the commissioner finds all of the following:
(A) That the foreign (other nation) credit union’s plan to relocate the office and to maintain the office at the new site affords reasonable promise of successful operation.
(B) That the relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area which is primarily served by the office at the old site, or that the relocation is necessary in the interests of the safety and soundness of the foreign (other nation) credit union.
(C) That the relocation of the office to the new site will promote the public convenience and advantage.
If the commissioner finds otherwise, the commissioner shall deny the application.
(c) Whenever an application by a foreign (other nation) credit union for approval to relocate a branch office or agency has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office at the new site have been fulfilled, the commissioner shall issue the license.
(d) Promptly after a foreign (other nation) credit union that is licensed to maintain a branch office or agency relocates the office, the foreign (other nation) credit union shall surrender to the commissioner the license which authorized it to maintain the office at the old site.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 3 - Branch Offices and Agencies › Section 16555.

16555. (a) (1) No foreign (other nation) credit union that is licensed to maintain a branch office or agency shall close the office unless the commissioner shall have first approved the closing.
(2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) credit union that is licensed to maintain a branch office or agency from closing an office in accordance with Article 8 (commencing with Section 16800).
(b) If the commissioner finds the following with respect to an application by a foreign (other nation) credit union for approval to close a branch office or agency, the commissioner shall approve the application:
(1) That it will not be unsafe or unsound for the foreign (other nation) credit union to close the office.
(2) That the closing of the office will not be substantially detrimental to the public convenience and advantage or that the closing of the office is necessary in the interests of the safety and soundness of the foreign (other nation) credit union.
If the commissioner finds otherwise, the commissioner shall deny the application.
(c) Whenever an application by a foreign (other nation) credit union for approval to close a branch office or agency has been approved and all conditions precedent to the closing have been fulfilled, the foreign (other nation) credit union may close the office and shall promptly thereafter surrender to the commissioner the license which authorized it to maintain the office.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16600.

16600. (a) A foreign (other nation) credit union that has a license to establish and maintain an office may engage in activities at the office as may be authorized under applicable laws of its home country and the laws of this state.
(b) Nothing in subdivision (a) authorizes a foreign (other nation) credit union to engage in any activity at an office that it is not authorized to engage in or is prohibited from engaging in under the law of its home country, or that credit unions organized under the laws of this state are not authorized to engage in or are prohibited from engaging in under the laws of this state.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16601.

16601. (a) A foreign (other nation) credit union may not expand its field of membership in this state without first obtaining the commissioner’s approval.
(b) An application for the commissioner’s approval of an expansion of the field of membership in this state by a foreign (other nation) credit union shall be in the form and contain the information as may be specified, by order or regulation, by the commissioner.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16602.

16602. (a) The following provisions of this code apply to a foreign (other nation) credit union that maintains a branch office or agency with respect to its business in this state as if the foreign (other nation) credit union were a credit union organized under the laws of this state:
(1) Section 14203.
(2) Section 14204.
(3) Section 14208.
(4) Section 14210.
(5) Section 14256.
(6) Section 14409.
(7) Section 14409.2.
(8) Section 14602.
(9) Section 14652.5.
(10) Section 14655, to the extent promissory notes of the type described in this section are carried on the books of a branch office of a foreign (other nation) credit union.
(11) Section 14656, to the extent promissory notes of the type described in this section are carried on the books of a branch office of a foreign (other nation) credit union.
(12) Article 8 (commencing with Section 14750) of Chapter 4.
(13) Section 14800.
(14) Section 14802.
(15) Section 14803.
(16) Section 14807.
(17) Section 14808.
(18) Section 14809.
(19) Article 1 (commencing with Section 14850) of Chapter 6.
(20) Article 1 (commencing with Section 14950) of Chapter 7.
(21) Article 2 (commencing with Section 15001) of Chapter 7.
(22) Article 3 (commencing with Section 15050) of Chapter 7, to the extent loans of the type described in that article are carried on the books of a branch office of a foreign (other nation) credit union.
(23) Section 15102.
(b) In addition to the laws specified in subdivision (a), the laws of this state applicable to transactions between a credit union organized under the laws of this state and its members and creditors shall similarly apply to the transactions of a foreign (other nation) credit union in this state. These laws include, but are not limited to, consumer protection laws and laws relating to creditor rights and remedies, commercial transactions, mortgages and deeds of trust, bank deposits and collections, and negotiable instruments.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16603.

16603. (a) Any foreign (other nation) credit union that is authorized to and does maintain a branch office or agency 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 nation) credit union or any subsidiary from complying with all other laws and regulations governing the business in which the foreign (other nation) credit union 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. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16604.

16604. (a) A foreign (other nation) credit union which is licensed to establish and maintain an office or offices shall keep the assets of the offices separate and apart from the assets of its business outside this state.
(b) Persons who are creditors of a foreign (other nation) credit union as a result of the business of an office of the foreign (other nation) credit union in this state shall be entitled to priority over other creditors with respect to the assets of the business in this state of the foreign (other nation) credit union.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 6 - Conduct of Credit Union Business › Section 16607.

16607. (a) In this section:
(1) “Adjusted liabilities,” when used with respect to a foreign (other nation) credit union that is licensed to maintain a branch office, means the liabilities of the foreign (other nation) credit union’s business in this state, excluding (A) accrued expenses, (B) any liability to an office (whether in or outside of this state) or majority-owned subsidiary of the foreign (other nation) credit union, and (C) other liabilities as the commissioner may by regulation or order exclude.
(2) “Eligible assets” means any asset which the commissioner by regulation or order determines to be eligible for purposes of this section. However, “eligible asset,” when used with respect to a foreign (other nation) credit union that is licensed to maintain a branch office, includes any asset which the foreign (other nation) credit union maintains on deposit pursuant to Section 16606.
(b) For purposes of this section, the amount of eligible assets and the amount of adjusted liabilities of a foreign (other nation) credit union that is licensed to maintain a branch office each be computed for the period of time and in the manner as the commissioner may by regulation or order prescribe.
(c) A foreign (other nation) credit union licensed to maintain a branch office shall hold at its branch offices in this state or at any other place as the commissioner may approve, eligible assets in the amount, if any, as the commissioner may from time to time by regulation or order determine to be necessary for the maintenance of sound financial condition, for the protection of the interests of creditors of the foreign (other nation) credit union’s business in this state, or for the protection of the public interest. However, in no event shall the amount exceed 108 percent of the adjusted liabilities of the foreign (other nation) credit union’s business in this state.
(d) If the commissioner finds, with respect to a foreign (other nation) credit union licensed to maintain a branch office in this state, that the action is necessary for the maintenance of sound financial condition, for the protection of the interests of creditors of the foreign (other nation) credit union’s business in this state, or for the protection of the public interest, the commissioner may order the foreign (other nation) credit union to place all or part of the eligible assets which the foreign (other nation) credit union is required to hold under subdivision (c) in the custody of a bank organized under the laws of this state or a national bank headquartered in this state as the commissioner may designate, and such assets shall be subject to the order of the commissioner.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 7 - Examination, Reports, and Records › Section 16700.

16700. (a) The commissioner may at any time investigate into the affairs and examine the books, accounts, and other records of a foreign (other nation) credit union and of any subsidiary thereof.
(b) The commissioner and any person designated by the commissioner shall have free access to any office of the foreign (other nation) credit union and to its books, accounts, and other records.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 7 - Examination, Reports, and Records › Section 16701.

16701. The commissioner may make an examination of a foreign (other nation) credit union at any office of the commissioner. The commissioner may make an examination of any office, within or outside of this state, of a foreign (other nation) credit union that maintains an office in this state.
(Amended by Stats. 2003, Ch. 404, Sec. 19. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 7 - Examination, Reports, and Records › Section 16702.

16702. (a) Each foreign (other nation) credit union shall, within 10 days after receipt or within any extended time that the commissioner may specify, file with the commissioner a copy of any audit report obtained by, and of any examination report prepared for, the foreign (other nation) credit union.
(b) Each foreign (other nation) credit union shall file with the commissioner a copy of any response made by the foreign (other nation) credit union to an audit or examination report referred to in subdivision (a) within 10 days after making the response or within any extended time that the commissioner may specify.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 7 - Examination, Reports, and Records › Section 16703.

16703. A foreign (other nation) credit union shall file with the commissioner any other report as the commissioner may from time to time require. Each report shall be in the form, contain the information, and be filed on the date, as may be prescribed by the commissioner.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 7 - Examination, Reports, and Records › Section 16704.

16704. Each foreign (other nation) credit union that maintains an office shall make, keep, and preserve at that office, or at any other place that the commissioner may by regulation 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 regulation or order, require.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 8 - Voluntary Surrender of License › Section 16800.

16800. (a) A foreign (other nation) credit union that is licensed to maintain an office may voluntarily surrender the license for the office by filing the license and a report with the commissioner. However, a foreign (other nation) credit union that holds licenses to maintain two or more offices may not voluntarily surrender less than all of its licenses.
(b) (1) Except as otherwise provided in paragraph (2), a voluntary surrender of a license shall be effective on the 30th day after the license and the report called for in subdivision (a) are filed with the commissioner or on an earlier date as the commissioner may by order specify.
(2) If a proceeding to revoke or suspend a license is pending at the time when the license and the report called for in subdivision (a) are filed with the commissioner or if a proceeding to revoke or suspend a license or to impose conditions upon the surrender of a license is instituted before the 30th day after the license and the report called for in subdivision (a) are filed with the commissioner, the voluntary surrender of the license shall become effective at the time and upon the conditions that the commissioner may by order specify.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16900.

16900. (a) The commissioner may bring an action in the name of the people of this state in the superior court to enjoin any violation of, to enforce compliance with, or to collect any penalty or other liability imposed under this division or any regulation or order issued under this chapter. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and a monitor, receiver, conservator, or other designated fiduciary or officer of the court may be granted as appropriate.
(b) A receiver, monitor, conservator, or other designated fiduciary officer of the court appointed by the court pursuant to this section may, with the approval of the court, exercise all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the court.
(c) If the commissioner finds that it is in the public interest, the commissioner may include in a claim for restitution, disgorgement, or damages on behalf of the person injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award ancillary relief.
(d) The provisions of this section that authorize the commissioner to bring actions and seek relief are not intended to, and do not, affect any right that any other person may have to bring the same or similar actions or to seek the same or similar relief.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16900.5.

16900.5. (a) If the commissioner finds that any person has violated, or that there is reasonable cause to believe that any person is about to violate, Section 16020, the commissioner may order the person to cease and desist from the violation unless and until the person is issued a license.
(b) (1) Within 30 days after an order is issued pursuant to subdivision (a), the person to whom the order is directed may file with the commissioner an application for a hearing on the order. If the commissioner fails to commence a hearing within 15 business days after the application is filed with him or her (or within such longer period to which the person consents), the order shall be deemed rescinded. At the hearing the commissioner shall affirm, modify, or rescind the order.
(2) The right of any person, to whom an order is issued under subdivision (a), to petition for judicial review of the order shall not be affected by the failure of the person to apply to the commissioner for a hearing on the order pursuant to paragraph (1).
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16901.

16901. If, after notice and hearing, the commissioner finds that any person has violated any provision of this chapter or of any regulation or order issued under this chapter, the commissioner may order the person to pay to the commissioner a civil penalty imposed pursuant to Section 216.3.
(Amended by Stats. 2003, Ch. 445, Sec. 17. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16902.

16902. If, after notice and hearing, the commissioner finds any of the following with respect to a foreign (other nation) credit union that is licensed to maintain an office, the commissioner may issue an order suspending or revoking the license of the foreign (other nation) credit union.
(a) That the foreign (other nation) credit union has violated a provision of this division or of any regulation or order issued under this division or a provision of any other applicable law, regulation, or order.
(b) That the foreign (other nation) credit union is transacting the business in this state or elsewhere in an unsafe or unsound manner.
(c) That the foreign (other nation) credit union is in unsafe or unsound condition.
(d) That the foreign (other nation) credit union has ceased to operate its office.
(e) That the foreign (other nation) credit union is insolvent in that it has ceased to pay its debts in the ordinary course of business, it cannot pay its debts as they become due, or its liabilities exceed its assets.
(f) That the foreign (other nation) credit union has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due.
(g) That the foreign (other nation) credit union is the subject of an order for relief in bankruptcy or has sought other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for such relief under any such law against the foreign (other nation) credit union, and the foreign (other nation) credit union has by any affirmative act approved of or consented to the action or the relief has been granted.
(h) That a receiver, liquidator, or conservator has been appointed for the foreign (other nation) credit union or that any proceeding for an appointment or any similar proceeding has been initiated in the home country of the foreign (other nation) credit union.
(i) That the existence of the foreign (other nation) credit union or the authority of the foreign (other nation) credit union to transact banking business under the laws of the home country of the foreign (other nation) credit union has been suspended or terminated.
(j) That any fact or condition exists that, if it had existed at the time when the foreign (other nation) credit union applied for approval to transact business in this state, would have been grounds for denying the application.
(Amended by Stats. 2009, Ch. 500, Sec. 39. (AB 1059) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16903.

16903. (a) If the commissioner finds that any of the factors set forth in Section 16902 is true with respect to any foreign (other nation) credit union that is licensed to maintain an office and that it is necessary for the protection of the interests of creditors of the foreign (other nation) credit union’s business in this state or, in any case, for the protection of the public interest that the commissioner immediately suspend or revoke the license of the foreign (other nation) credit union, the commissioner may issue an order suspending or revoking the license of the foreign (other nation) credit union.
(b) (1) Within 30 days after an order is issued pursuant to subdivision (a), the foreign (other nation) credit union to which the order is issued may file with the commissioner an application for a hearing on the order. 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 foreign (other nation) credit union consents), the order shall be deemed rescinded. Within 30 days after the hearing, the commissioner shall affirm, modify, or rescind the order; otherwise, the order shall be deemed rescinded.
(2) The right of any foreign (other nation) credit union to which an order is issued under subdivision (a) to petition for judicial review of the order shall not be affected by the failure of the foreign (other nation) credit union to apply to the commissioner for a hearing on the order pursuant to paragraph (1).
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16904.

16904. Any foreign (other nation) credit union whose license to maintain an office is suspended or revoked shall immediately surrender the license to the commissioner.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 12 - Foreign (Other Nation) Credit Unions › ARTICLE 9 - Enforcement › Section 16905.

16905. (a) Any foreign (other nation) credit union to which an order is issued under Section 16902 and 16903 may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the foreign (other nation) credit union will, if and when it is again authorized to maintain an office, comply with all applicable provisions of this division and of any regulation or order issued under this division.
(b) The right of any foreign (other nation) credit union to which an order is issued under Section 16902 or 16903 to petition for judicial review of the order shall not be affected by the failure of the foreign (other nation) credit union to apply to the commissioner pursuant to subdivision (a) to modify or rescind the order.
(Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17002.5.

17002.5. “Person” means, in addition to the singular, persons, group of persons, co-operative, association, company, firm, partnership, corporation, limited liability company, or other legal entity.
(Amended by Stats. 1994, Ch. 1010, Sec. 114. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17003.

17003. (a) “Escrow” means any transaction in which one person, for the purpose of effecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by that third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter.
(b) With regard to Internet escrow companies, “escrow” also includes any transaction in which one person, for the purpose of effecting the sale or transfer of personal property or services to another person, delivers money, or its Internet-authorized equivalent, to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by that third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter.
(Amended by Stats. 2000, Ch. 437, Sec. 1. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17004.5.

17004.5. “Internet escrow agent” means any person engaged in the business of receiving escrows for deposit or delivery over the Internet.
(Added by Stats. 1999, Ch. 441, Sec. 2. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.1.

17005.1. “Joint control agent” means a person engaging in the business of receiving money or other property for disbursal or use in payment of the cost of labor, materials, services, permits, fees, or other items of expense incurred in the construction of improvements upon real property. As used in this section, “in the business” means the conduct of the aforesaid transaction either for compensation or without compensation as a primary business or as an incidence to another business, but shall not mean the conduct of the business of real estate lending or of acting as an authorized representative, agent or loan correspondent for such a lender.
(Added by Stats. 1965, Ch. 287.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.2.

17005.2. “Business location” and “business office location” mean a facility or other place of business where a person engages in the business of receiving an escrow for deposit or delivery, but does not include a customer contact center.
(Added by Stats. 2000, Ch. 437, Sec. 2. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.3.

17005.3. “Customer contact center” means a facility operated by an Internet escrow agent that exists solely for the purpose of responding to customer electronic messages and telephone inquiries; provided, that no receipt or disbursements relating to an escrow are made from the facility; and provided further, that any documentation or other material generated, transmitted, or otherwise sent from the facility can be reviewed at any time from the business location of the Internet escrow agent.
(Added by Stats. 2000, Ch. 437, Sec. 3. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.4.

17005.4. “Person subject to this division” means any person undertaking the performance of escrow agent services. Unless specifically exempted, as in Section 17006, however, this definition shall not be used to exclude anyone.
(Added by renumbering Section 17005.3 (as renumbered from 17005.5 by Stats. 1999, Ch. 441) by Stats. 2002, Ch. 772, Sec. 10. Effective January 1, 2003.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.5.

17005.5. “Within this state” means any activity of a person relating to receiving escrows for deposit or delivery that originates from this state and is directed to persons outside this state, or that originates from outside this state and is directed to persons inside this state, or that originates inside this state and is directed to persons inside this state, or that leads to the formation of a contract and the offer or acceptance thereof is directed to a person in this state, whether from inside or outside this state and whether the offer was made inside or outside this state.
(Added by Stats. 1999, Ch. 441, Sec. 4. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17005.6.

17005.6. Except as provided for in Section 17004, “escrow agent” as used in this division includes joint control agents and Internet escrow agents.
(Amended by Stats. 1999, Ch. 441, Sec. 5. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17006.

17006. (a) This division does not apply to:
(1) Any person doing business under any law of this state or the United States relating to banks, trust companies, building and loan or savings and loan associations, credit unions, or insurance companies.
(2) Any person licensed to practice law in California who has a bona fide client relationship with a principal in a real estate or personal property transaction and who is not actively engaged in the business of an escrow agent.
(3) Any person whose principal business is that of preparing abstracts or making searches of title that are used as a basis for the issuance of a policy of title insurance by a company doing business under any law of this state relating to insurance companies.
(4) Any broker licensed by the Real Estate Commissioner while performing acts in the course of or incidental to a real estate transaction in which the broker is an agent or a party to the transaction and in which the broker is performing an act for which a real estate license is required.
(b) The exemptions provided for in paragraphs (2) and (4) of subdivision (a) are personal to the persons listed, and those persons shall not delegate any duties other than duties performed under the direct supervision of those persons. Notwithstanding the provisions of this subdivision, the exemptions provided for in paragraphs (2) and (4) of subdivision (a) are not available for any arrangement entered into for the purpose of performing escrows for more than one business.
(Amended by Stats. 2018, Ch. 267, Sec. 9. (AB 2862) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17008.

17008. No foreign corporation shall transact any escrow business in this State without first complying with all the requirements of this division, nor until it has executed and filed with the commissioner a written instrument appointing the commissioner its attorney upon whom all process in any action or proceeding by any resident of this State against it may be served with the same force and effect as if such corporation were formed under the laws of this State, and had been lawfully served with process in this State. Service of process by a resident of this State upon the commissioner constitutes personal service on the foreign corporation.
(Amended by Stats. 1961, Ch. 475.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17009.

17009. The commissioner shall forward by prepaid registered mail a copy of every paper served under this chapter, to the secretary of the corporation at its last known post-office address as shown by the records and reports of the corporation filed in the office of the commissioner.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 1 - Application of This Division › Section 17010.

17010. The commissioner shall collect from the plaintiff at the time of service, the sum of two dollars ($2) for each copy of process served on him pursuant to this chapter. This sum shall be recovered by the plaintiff as part of his taxable costs, if he succeeds in the suit or proceeding.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17200.

17200. It shall be unlawful for any person to engage in business as an escrow agent within this state except by means of a corporation duly organized for that purpose licensed by the commissioner as an escrow agent.
(Amended by Stats. 1999, Ch. 441, Sec. 6. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17200.8.

17200.8. (a) Within the organization of each escrow agent corporation, either as an owner, officer, or employee, there shall be one or more persons possessing a minimum of five years of responsible escrow or joint control experience to be stationed at the main office of the corporation and one or more persons possessing a minimum of four years of responsible escrow or joint control experience stationed at each branch. At least one such qualified person shall be stationed on duty at each business location licensed by this division during the time the location is open for business. A person who has satisfied educational requirements established by the commissioner may substitute education for up to one year of experience.
(b) Subdivision (a) does not apply to an Internet escrow agent with respect to escrows involving personal property. However, within the organization of each Internet escrow agent corporation engaged in the business of an escrow involving personal property, either as an owner, officer, or employee, one or more qualified persons shall possess knowledge and understanding of the Escrow Law (as set forth in Division 6 (commencing with Section 17000)), the rules promulgated thereunder, and accounting so that, among other things, appropriate books and records are used and maintained in order to account for escrows involving personal property. At least one qualified person shall be on duty at each business location of an Internet escrow agent licensed by this division when operations are being conducted that require knowledge of accounting and the Escrow Law and regulations. An Internet escrow agent shall notify the commissioner of the daily business hours during which those operations are to be conducted.
(Amended by Stats. 2000, Ch. 437, Sec. 4. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17201.

17201. (a) An application for a license as an escrow agent shall be in writing and in such form as is prescribed by the commissioner. The application shall be verified by the oath of the applicant.
(b) Notwithstanding any other law, the commissioner may by rule or order prescribe circumstances under which to accept electronic records or electronic signatures. This section does not require the commissioner to accept electronic records or electronic signatures.
(c) For purposes of this section, the following terms have the following meanings:
(1) “Electronic record” means an initial license application, or material modification of that license application, and any other record created, generated, sent, communicated, received, or stored by electronic means. “Electronic records” also includes, but is not limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for any order, license, consent, or other authority.
(B) A financial statement, report, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of issues in connection with any application, registration, order, license, consent, or other authority.
(E) A proposed decision of a hearing officer and a decision of the commissioner.
(F) The transcripts of a hearing and correspondence between a party and the commissioner directly relating to the record.
(G) A release, newsletter, interpretive opinion, determination, or specific ruling.
(H) Correspondence between a party and the commissioner directly relating to any document listed in subparagraphs (A) to (G), inclusive.
(2) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(d) The Legislature finds and declares that the Department of Financial Protection and Innovation has continuously implemented methods to accept records filed electronically, and is encouraged to continue to expand its use of electronic filings to the extent feasible, as budget, resources, and equipment are made available to accomplish that goal.
(Amended by Stats. 2022, Ch. 452, Sec. 119. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17202.

17202. (a) At the time of filing an application for an escrow agent’s license, the applicant shall deposit with the commissioner a bond satisfactory to the commissioner in the amount of at least twenty-five thousand dollars ($25,000). Thereafter, a licensee shall maintain a bond satisfactory to the commissioner in the amount of: (1) twenty-five thousand dollars ($25,000) if 150 percent of the previous year’s average annual trust fund obligations, as calculated under Section 17348, equals two hundred fifty thousand dollars ($250,000) or less; (2) thirty-five thousand dollars ($35,000) if 150 percent of the previous year’s average annual trust fund obligations, as calculated under Section 17348, equals at least two hundred fifty thousand one dollars ($250,001) but not more than five hundred thousand dollars ($500,000); or (3) fifty thousand dollars ($50,000) if 150 percent of the previous year’s average annual trust fund obligations, as calculated under Section 17348, equals five hundred thousand one dollars ($500,001) or more. The bond shall run to the state for the use of the state and for any person who has cause against the obligor of the bond under the provision of this division. A deposit given instead of the bond required by this section shall not be deemed an asset of the applicant or licensee for the purpose of complying with Section 17210. An applicant or licensee may obtain an irrevocable letter of credit approved by the commissioner in lieu of the bond.
(b) Escrow agents licensed prior to January 1, 1986, shall comply with the requirements of subdivision (a) on or before July 1, 1986.
(Amended by Stats. 1985, Ch. 1560, Sec. 2. Effective October 2, 1985. Operative January 1, 1986, by Sec. 45 of Ch. 1560.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17202.1.

17202.1. An applicant for an escrow agent’s license or a licensee may, in lieu of and subject to the same conditions as the bond required by Section 17202, deposit with the commissioner a cash bond in the sum specified in Section 17202. Evidence of the cash bond shall be a deposit in the amount specified in Section 17202 in a bank or investment certificates of industrial loan companies, authorized to do business in this state and insured by the Federal Deposit Insurance Corporation, or an investment certificate or share account in the amount specified in Section 17202 issued by a savings and loan association doing business in this state and insured by the Federal Deposit Insurance Corporation. Those deposits, certificates, or accounts shall be assigned to and accepted and maintained by the commissioner, upon those terms as the commissioner may prescribe, until released by the commissioner, and shall not be deemed an asset of the applicant or licensee for the purpose of complying with Section 17210.
(Amended by Stats. 2022, Ch. 16, Sec. 2. (SB 577) Effective April 28, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17203.

17203. The bond of an escrow agent shall be conditioned that the licensee will faithfully conform to and abide by the provisions of this division and all the rules made by the commissioner under this division. The bond shall be conditioned that the licensee will honestly and faithfully apply all funds received, will faithfully and honestly perform all obligations and undertakings under this division, and will pay to the state and any person all amounts which become due or owing to the state or to such person under the provisions of this division, including the costs in any conservatorship, or liquidation, whether by the commissioner or by a receiver. In determining the liability of the principal and the sureties under the bond, escrow money held in trust and any money recovered to restore any deficiency in the trust shall not be considered as an asset of the liquidation subject to assessment for the cost of the liquidation. The surety under the bond may pay the full amount of its liability thereunder to the commissioner or a conservator appointed by the commissioner pursuant to Chapter 6 (commencing with Section 17621) in lieu of payment to the state or persons having a cause of action against the principal, and upon such payment the surety is completely released from further liability under the bond.
(Amended by Stats. 1982, Ch. 517, Sec. 219.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17203.1.

17203.1. (a) All officers, directors, trustees, and employees of an escrow agent, whether or not compensated, who have access to money or negotiable securities belonging to the escrow agent or in the possession of the escrow agent in the regular discharge of their duties, or persons who draw checks upon the escrow agent or upon the trust funds of the escrow agent in the regular discharge of their duties, before entering upon their duties and throughout the entire term of their office and employment and any subsequent term thereof, shall furnish to the escrow agent a bond indemnifying the escrow agent against loss of money or property. No officer, director, trustee, or employee shall enter upon their duties or have access to money or negotiable securities or draw checks upon the escrow agent or the trust funds of an escrow agent prior to complying with such rules as the commissioner shall adopt with respect to the qualifications of these officers, directors, trustees, or employees to assume their duties.
The commissioner shall prescribe the aggregate amount of the bond and the terms during which the bond runs. The sufficiency of the sureties on the bond are at all times subject to the approval of the commissioner. The bond shall be filed in the commissioner’s office. The aggregate liability of the surety for all claims shall in no event exceed the penal sum of the bond.
(b) The commissioner may at any time require an additional bond or surety to be filed when in the commissioner’s opinion any bond then in force is insufficient for any reason.
(Amended by Stats. 1984, Ch. 548, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17206.

17206. When an action is commenced on an escrow agent’s bond the commissioner may require the filing of a new bond, and immediately upon the recovery of any action on the bond, the licensee shall file a new bond. Failure to file a new bond within 10 days of the recovery on a bond, or within 10 days after notification of the commissioner that a new bond is required constitutes sufficient grounds for the suspension or revocation of the license.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17208.

17208. All money received by the commissioner shall be paid by him or her into the State Treasury to the credit of the State Corporations Fund for the sole purpose of administering and enforcing this division.
(Amended by Stats. 1996, Ch. 670, Sec. 2. Effective January 1, 1997.)