reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17349.

17349. If Fidelity Corporation is dissolved, subject to the approval of the commissioner, the net assets after settling all liabilities shall be distributed to the members on the basis of the number of each member’s licensed locations compared to the total number of all members’ licensed locations.
(Amended by Stats. 1985, Ch. 1560, Sec. 36. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17350.

17350. All costs and expenses incurred by the commissioner in the administration of this chapter shall be paid to the commissioner by Fidelity Corporation. The limitation on the total assessment for each year set forth in paragraph (1) of subdivision (e) of Section 17207 shall not apply to Fidelity Corporation’s payment of costs and expenses incurred by the commissioner in the administration of this chapter. The commissioner may institute an action for the recovery of costs and expenses incurred in the administration of this chapter in any court of competent jurisdiction.
(Amended by Stats. 1985, Ch. 1560, Sec. 37. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17400.

17400. The commissioner may from time to time make, amend, and rescind the rules, forms, and orders that are necessary to carry out the provisions of this division, and define any terms, whether or not used in this division, insofar as the definitions are not inconsistent with the provisions of this division. For the purpose of rules and forms, the commissioner may, among other things, classify persons and matters within the commissioner’s jurisdiction and may prescribe different requirements for different classes. The commissioner may, in the commissioner’s discretion, waive any requirement of any rule or form in situations where in his or her opinion the requirement is not necessary in the public interest or for the protection of the public.
(Amended by Stats. 1999, Ch. 441, Sec. 8. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.

17403. (a) No person subject to this division shall issue, circulate, or publish any advertisement by any means of communication, or make use of or circulate any letterheads, billheads, blank notes, blank receipts, blank escrow instructions, certificates, circulars, or any written, printed, partially written or printed paper containing any fictitious or corporate name or other words indicating that the person is in the escrow business, unless the person is a licensed escrow agent.
(b) If, in the opinion of the commissioner, any person has violated this section, the commissioner may order that person to desist and refrain from that violation. If, within 30 days after the order is served, a request for hearing is filed in writing and the hearing is not held within 60 days thereafter, the order is rescinded.
(Amended by Stats. 1987, Ch. 564, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.1.

17403.1. No person subject to this division shall describe as an escrow, whether orally, in writing, or electronically, any transaction that is not defined as such in Section 17003.
(Amended by Stats. 1999, Ch. 441, Sec. 10. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.2.

17403.2. (a) No person subject to this division shall solicit or accept an escrow instruction or amended or supplemental escrow instruction containing any blank to be filled in after signing or initialing of the escrow instruction or amended or supplemental escrow instruction, nor permit any person to make any addition to, deletion from, or alteration of an escrow instruction or amended or supplemental escrow instruction, unless the addition, deletion or alteration is signed or initialed by all persons who had signed or initialed the escrow instruction or amended or supplemental escrow instruction prior to the addition, deletion or alteration.
(b) In addition to subdivision (a), no Internet escrow agent subject to this division shall solicit or accept electronically over the Internet an escrow instruction or amended or supplemental escrow instruction containing any blank to be filled in after executing that escrow instruction or amended or supplemental escrow instruction, nor permit any person to electronically, over the Internet, make any addition to, deletion from, or alteration of an escrow instruction or amended or supplemental escrow instruction, unless that addition, deletion or alteration is executed by all persons who had executed the escrow instruction or amended or supplemental escrow instruction prior to the addition, deletion, or alteration.
(Amended by Stats. 1999, Ch. 441, Sec. 11. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.3.

17403.3. (a) At the time of execution a copy of each escrow instruction or amended or supplemental escrow instruction shall be delivered to all persons executing the same.
(b) Internet escrow agents shall deliver electronically over the Internet a copy of each executed escrow instruction or amended or supplemental escrow instruction to all persons executing the same. In the event a person is not able to electronically receive the instructions, the Internet escrow agent shall mail a true and correct copy of the instructions to the person within 24 hours of execution.
(Amended by Stats. 1999, Ch. 441, Sec. 12. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.4.

17403.4. All written escrow instructions and all escrow instructions transmitted electronically over the Internet executed by a buyer or seller, whether prepared by a person subject to this division or by a person exempt from this division under Section 17006, shall contain a statement in not less than 10-point type which shall include the license name and the name of the department issuing the license or authority under which the person is operating. This section shall not apply to supplemental escrow instructions or modifications to escrow instructions.
This section shall become operative on July 1, 1993.
(Amended by Stats. 1999, Ch. 441, Sec. 13. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17403.5.

17403.5. (a) All records required by this chapter may be retained by an Internet escrow agent and provided to the commissioner in electronic format.
(b) All transfers by an Internet escrow agent between trust accounts and interest-bearing accounts, and between escrow accounts, may be made electronically.
(c) A statement of account may be delivered by an Internet escrow agent to a customer by electronic mail or via the Internet, unless otherwise requested by the customer.
(Added by Stats. 2000, Ch. 437, Sec. 5. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17404.

17404. Every person subject to this division shall keep and use in its business, books, accounts, and records which will properly enable the commissioner to determine whether the escrow functions performed by such person comply with the provisions of this division and with all rules made by the commissioner under this division.
(Amended by Stats. 1973, Ch. 705.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17405.

17405. (a) The business, accounts and records of every person performing as an escrow agent, whether required to be licensed under this division or not, are subject to inspection and examination by the commissioner at any time without prior notice. The provisions of this section shall not apply to persons specified in Section 17006.
(b) Any person subject to this division shall, upon request, exhibit and allow inspection and copying of any books and records by the commissioner or his or her authorized representative.
(c) (1) The commissioner shall conduct an examination of each licensed escrow agent as described in subdivision (a) as often as the commissioner deems necessary and appropriate, but not less than once every 48 months.
(2) The examination shall be conducted for the 12-month period immediately preceding the date that the examination is commenced unless the commissioner finds, based on information uncovered in the examination or in the most recent independent audit report, that the examination should be extended beyond the 12-month period.
(3) In determining how often an examination shall be conducted, the commissioner may consider each licensed escrow agent’s compliance with the requirements set forth in this division and other factors the commissioner may by rule or order designate.
(4) This subdivision shall apply only to examinations commenced after the effective date established by the rule or order of the commissioner for the factors described in paragraph (3).
(d) Notwithstanding subdivision (c), the commissioner may conduct an indoctrination or preliminary examination, or both, under this section of any new licensee within one year of the issuance of the license under this division, and an examination described in subdivision (a) within two years of the issuance of the license under this division.
(Amended by Stats. 2001, Ch. 499, Sec. 3. Effective January 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17405.1.

17405.1. The cost of every inspection and examination of a licensee or other person subject to this division shall be paid to the commissioner by the licensee or person examined, and the commissioner may maintain an action for the recovery of these costs in any court of competent jurisdiction. In determining the cost of an inspection or examination, the commissioner may use the estimated average hourly cost for all persons performing inspections or examinations of licensees or other persons subject to this division for the fiscal year.
For the purposes of this section only, no person other than a licensee shall be deemed to be a person subject to this division unless and until the person is determined to be a person subject to this division by an administrative hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code or by a judicial hearing in any court of competent jurisdiction.
(Amended by Stats. 1981, Ch. 946, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17406.1.

17406.1. (a) Whenever the reports and financial statements required pursuant to subdivision (a), (b), or (c) of Section 17406 are to be reported upon or certified by an accountant other than the accountant reporting upon or certifying the licensee’s most recent reports or financial statements, the licensee shall furnish the commissioner with a written notice stating whether there was any disagreement with the former accountant on any matter in connection with the preparation of the most recent reports or financial statements reported upon or certified by that former accountant. If there was any disagreement, the licensee’s written notice shall describe the reasons for the disagreement. The written notice shall be signed by the chief executive officer of the licensee. The licensee shall also request, in writing, that the former accountant furnish the licensee with a letter addressed to the commissioner stating whether the former accountant agrees with the statements contained in the licensee’s written notice. If the former accountant disagrees with any of the licensee’s statements, the former accountant’s letter shall explain the reasons for disagreeing with the licensee’s statements. The written notice of the licensee, along with the former accountant’s letter shall be filed with the commissioner no later than 30 days from the date of engagement of the new accountant.
(b) The written notice of the licensee required by subdivision (a) shall be considered a notice for purposes of Section 17702.
(Added by Stats. 1994, Ch. 496, Sec. 3. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17408.

17408. (a) If any person subject to this division fails to make any report required by law or by the commissioner, the commissioner may immediately cause the books, records, papers, and affairs of said person to be thoroughly examined.
(b) The commissioner may impose, by order, a penalty on any person who fails, within the time specified in any written demand of the commissioner, (1) to make and file with the commissioner any report required by law or requested by the commissioner, or (2) to furnish any material information required by the commissioner to be included in the report. The amount of the penalty may not exceed one hundred dollars ($100) for each day for the first five days the report or information is overdue, and thereafter may not exceed five hundred dollars ($500) for each day the report or information is overdue.
(c) If, after an order has been made under subdivision (b), a request for hearing is filed in writing within 30 days of the date of service of the order by the person to whom the order was directed, a hearing shall be held in accordance with the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted under that chapter.
(d) If the person fails to file a written request for a hearing within 30 days of the date of service of the order, the order imposing the penalty shall be deemed a final order of the commissioner, and the penalty shall be paid within five business days.
(e) If a hearing is requested, the penalty shall be paid within five business days after the effective date of any decision in the case ordering payment to be made.
(Amended by Stats. 2005, Ch. 257, second Sec. 2. Effective January 1, 2006.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17409.

17409. (a) All moneys deposited in escrow to be delivered upon the close of the escrow or upon any other contingency shall be deposited and maintained in a noninterest-bearing demand or checking account in a bank, a state or federal savings bank, or a state or federal savings association or in a noninterest-bearing account subject to immediate withdrawal in an industrial loan company insured by the Federal Deposit Insurance Corporation and approved to receive those moneys by the commissioner. Thereafter, these moneys may be deposited in an interest-bearing account in a bank, a state or federal savings bank, a state or federal savings association, an industrial loan company approved to receive those moneys by the commissioner, or a state or federal credit union, if the depositor is qualified for membership under the bylaws of that credit union, and the moneys are maintained separate, distinct, and apart from funds belonging to the escrow agent. Those funds, when deposited, are to be designated as “trust funds,” “escrow accounts,” or under some other appropriate name indicating that the funds are not the funds of the escrow agent.
Upon request of the commissioner, a licensee shall furnish to the commissioner an authorization for examination of financial records of any trust funds or escrow accounts, maintained in a financial institution, in accordance with the procedures set forth in Section 7473 of the Government Code.
(b) A licensee engaged in the business of receiving escrows for deposit or delivery of the types specified in subdivision (c) of Section 17312 and of the types not specified therein shall maintain separate escrow trust accounts, for both types of escrow business in the same manner as provided in subdivision (a) of this section and Sections 17409.1, 17410, 17411, and 17411.1.
(c) Any agreement with a financial institution to establish a trust account pursuant to this section shall be accompanied by a letter from the licensee authorizing and requesting that the financial institution immediately notify the commissioner and Fidelity Corporation, in either electronic or paper form, when it becomes aware of either of the following:
(1) The closure of any account subject to this section, other than to transfer the funds to another designated trust account at the same financial institution in the name of the escrow agent or the remittance of the funds to the Controller’s office for escheat purposes.
(2) The occurrence of any overdraft balance in an account subject to this section.
This subdivision does not impose any duty or obligation on a financial institution to Fidelity Corporation, members of Fidelity Corporation, or the commissioner.
(Amended by Stats. 2009, Ch. 140, Sec. 72. (AB 1164) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17409.1.

17409.1. (a) Each person subject to this chapter shall maintain separate escrow trust accounts for each licensed location. Transfers between accounts are prohibited except by the actual writing of a check from one escrow to the other, and by depositing the check for the account of, and the writing of a receipt for the escrow to which the funds are being transferred. Each transfer shall be properly supported and documented in escrow files by inclusion of escrow instructions executed by the principals authorizing the transfer.
(b) With regard to Internet escrow companies, transfers to trust accounts by commercial banks and from operating accounts to cover losses may be made through wire transfer. Receipts for all these transactions may be maintained in electronic form.
(Amended by Stats. 2000, Ch. 437, Sec. 6. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17410.

17410. (a) Escrow or trust funds are not subject to enforcement of a money judgment arising out of any claim against the licensee or person acting as escrow agent, and in no instance shall such escrow or trust funds be considered or treated as an asset of the licensee or person performing the functions of an escrow agent.
(b) Interest paid or payable on funds deposited in escrow by a licensee are not subject to enforcement of a money judgment arising out of any claim against the licensee or person acting as escrow agent.
(Amended by Stats. 1982, Ch. 497, Sec. 93. Operative July 1, 1983, by Sec. 185 of Ch. 497.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17411.

17411. No person shall knowingly keep or cause to be kept any funds or money in any bank or state or federal savings and loan association under the heading of “trust funds” or “escrow accounts” or any other name designating such funds or money as belonging to the clients of any escrow agency, except actual escrow or trust funds deposited with such agency.
(Amended by Stats. 1979, Ch. 475.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17411.1.

17411.1. “Trust funds” or “escrow accounts” as used in Sections 17409, 17410, and 17411 shall include all funds required to be held by an escrow agent pursuant to a federal or state law, or requirement of a governmental agency.
(Added by Stats. 1982, Ch. 663, Sec. 11.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17414.

17414. (a) It is a violation for any person subject to this division or any director, stockholder, trustee, officer, agent, or employee of any such person to do any of the following:
(1) Knowingly or recklessly disburse or cause the disbursal of escrow funds otherwise than in accordance with escrow instructions, or knowingly or recklessly to direct, participate in, or aid or abet in a material way, any activity which constitutes theft or fraud in connection with any escrow transaction.
(2) Knowingly or recklessly make or cause to be made any misstatement or omission to state a material fact, orally or in writing, in escrow books, accounts, files, reports, exhibits, statements, or any other document pertaining to an escrow or escrow affairs.
(b) Any director, officer, stockholder, trustee, employee, or agent of an escrow agent, who abstracts or willfully misappropriates money, funds, trust obligations or property deposited with an escrow agent, is guilty of a felony. Upon conviction, of an offense under this section or similar offenses specified in Chapter 4 (commencing with Section 470), Chapter 5 (commencing with Section 484), or Chapter 6 (commencing with Section 503) of Title 13 of Part 1 of the Penal Code, the court shall, in addition to any other punishment imposed, order the person to make full restitution, first to the escrow agent and then to Fidelity Corporation, to the extent it has indemnified the escrow agent. Nothing in this section shall be deemed or construed to repeal, amend, or impair any existing provision of law prescribing a punishment for such an offense.
(c) Any person subject to this division who knows of a person’s involvement in an abstraction or misappropriation of money, funds, trust obligations, or property deposited with a licensed escrow agent shall immediately report the abstraction or misappropriation in writing to the commissioner and to Fidelity Corporation. No person shall be civilly liable for reporting as required under this subdivision, unless the information provided in the report is false and the person providing false information does so with knowledge and malice. The reports filed under this section, including the identity of the person making the filing, shall remain confidential pursuant to state law.
(Amended by Stats. 1994, Ch. 423, Sec. 2. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17414.2.

17414.2. (a) In response to any written request by an escrow agent or by Fidelity Corporation, any bank, savings association, credit union, any other financial institution, or any other exempt person specified in Section 17006, an escrow agent or Fidelity Corporation may provide a written employment reference that advises of the person’s involvement in a crime or act specified in Section 17414 or subdivision (b) of Section 17414.1, or any theft, embezzlement, misappropriation, or other defalcation which has been reported to federal authorities pursuant to federal banking guidelines, or that has been reported to the commissioner or Fidelity Corporation, pursuant to this division. In order for the immunity provided in subdivision (b) to apply, a copy of the written employment reference shall be sent concurrently by the Fidelity Corporation, person, entity, escrow agent, bank, savings association, credit union, any other financial institution, or exempt person specified in Section 17006 providing the reference, to the last known address of the person concerning whom the reference is provided.
(b) No licensed escrow agent, bank, savings association, credit union, any other financial institution, exempt person specified in Section 17006, or Fidelity Corporation shall be civilly liable for providing an employment reference as specified in subdivision (a), unless the information provided is false and the licensed escrow agent, bank, savings association, credit union, any other financial institution, or exempt person specified in Section 17006, or Fidelity Corporation providing false information does so with knowledge and malice.
(Added by Stats. 1991, Ch. 1221, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17415.

17415. (a) If the commissioner, as a result of any examination or from any report made to the commissioner, shall find that any person subject to this division is in an insolvent condition, is conducting or has conducted escrow business in such an unsafe or injurious manner as to render further operations hazardous to the public or to customers, is failing or has failed to comply with the provisions of Section 17212.1 or 17414.1, is permitting or has permitted its tangible net worth to be lower than the minimum required by law, is failing or has failed to maintain its liquid assets in excess of current liabilities as set forth in Section 17210, or is failing or has failed to comply with the bonding requirements of Chapter 2 (commencing with Section 17200) of this division, the commissioner may, by an order addressed to and served by registered or certified mail or by personal service on such person and on any other person having in their possession or control any escrowed funds, trust funds, or other property deposited in escrow with said person, direct discontinuance of the disbursement of trust funds by the parties or any of them, the receipt of trust funds, the delivery or recording of documents received in escrow, or other business operations. No person having in their possession any of these funds or documents shall be liable for failure to comply with the order unless they received written notice of the order. Subject to subdivision (b), the order shall remain in effect until set aside by the commissioner in whole or in part, the person is the subject of an order for relief in bankruptcy, or pursuant to Chapter 6 (commencing with Section 17621) of this division the commissioner has assumed possession of the escrow agent.
(b) Within 15 days from the date of an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Division 3 of Title 2 of the Government Code. Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing. Neither the request for a hearing nor the hearing itself shall stay the order issued by the commissioner under subdivision (a).
(Amended by Stats. 2022, Ch. 188, Sec. 9. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17416.

17416. Whenever in the opinion of the commissioner any person, except as named in Section 17006, is engaged, either actually or through subterfuge, in the business of receiving escrows for deposit or delivery as defined in this division, without a license from the commissioner the commissioner may order that person to desist and to refrain from engaging in that business. If, within 30 days after such an order is served, a request for a hearing is filed in writing and the hearing is not held within 60 days thereafter, the order is rescinded.
(Amended by Stats. 1987, Ch. 564, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17420.

17420. Except for the normal compensation of his own employees, it shall be a violation of this division for any person subject to this division to pay over to any other person any commission, fee, or other consideration as compensation for referring, soliciting, handling, or servicing escrow customers or accounts.
It shall also be a violation for any person to enter into any arrangement, either of his own making or of a subsidiary nature, or through any other person having a dual capacity, or through any person having a direct or indirect interest in the escrow, or other device permitting any fee, commission, or compensation which is contingent upon the performance of any act, condition, or instruction set forth in an escrow to be drawn or paid, either in whole or in part, or in kind or its equivalent, prior to the actual closing and completion of the escrow.
(Amended by Stats. 1961, Ch. 475.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17421.

17421. Notwithstanding the provisions of Section 17420, a disbursal, other than for a fee, commission or compensation may be advanced or paid out prior to the close of an escrow if the written instructions of all parties to the transaction so provide.
(Added by Stats. 1963, Ch. 996.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17421.5.

17421.5. (a) Notwithstanding Section 17420, a licensee may charge a fee for administering an escrow that has been postponed for at least two months from the most recent closing date agreed upon by the parties in the written instructions or has been canceled if all of the following requirements are met:
(1) The postponement or cancellation resulted from the acts or omissions of the parties to the escrow transaction.
(2) The fee was disclosed in the written instructions in not less than 8-point bold type on the face or front page of the instructions.
(3) The principal parties to the escrow transaction have executed the written fee instructions by initialing those instructions.
(b) This section shall apply to written instructions made on and after January 1, 2008.
(Added by Stats. 2007, Ch. 237, Sec. 4. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17422.

17422. A joint control agent, unless acting pursuant to written instructions of his principals, shall not disburse funds for the payment of the cost of labor, materials, services, permits, fees, or other items of expense incurred in the construction of improvements upon real property until such time as he determines that the person furnishing such labor, materials, services, permits, fees, or other items has substantially complied with the specifications contained in the control agreement.
(Added by Stats. 1965, Ch. 1205.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17423.1.

17423.1. (a) (1) Whenever the commissioner takes any enforcement or disciplinary action pursuant to Section 17423, upon the action becoming final the commissioner shall notify the Real Estate Commissioner and the Insurance Commissioner of the action or actions taken. The purpose of this notification is to alert the departments that enforcement or disciplinary action has been taken, if the person seeks or obtains employment with entities regulated by the departments.
(2) The commissioner shall provide the Real Estate Commissioner and the Insurance Commissioner, in addition to the notification of the action taken, with a copy of the written accusation, statement of issues, or order issued or filed in the matter and, at the request of the Real Estate Commissioner or Insurance Commissioner, with any underlying factual material relevant to the enforcement or disciplinary action. Any confidential information provided by the commissioner to the Insurance Commissioner or the Real Estate Commissioner shall not be made public pursuant to this section. Notwithstanding any other provision of law, the disclosure of any underlying factual material to the Insurance Commissioner or the Real Estate Commissioner shall not operate as a waiver of confidentiality or any privilege that the commissioner may assert.
(b) The commissioner shall establish and maintain, on the internet website maintained by the Department of Financial Protection and Innovation, a separate and readily identifiable database of all persons who have been subject to any enforcement or disciplinary action that triggers the notification requirements of this section. The database shall also contain a direct link to the databases, described in Section 10176.1 of the Business and Professions Code and Section 12414.31 of the Insurance Code and required to be maintained on the Web sites of the Bureau of Real Estate and the Department of Insurance, respectively, of persons who have been subject to enforcement or disciplinary action for malfeasance or misconduct related to the escrow industry by the Insurance Commissioner and the Real Estate Commissioner.
(c) There shall be no liability on the part of, and no cause of action of any nature shall arise against, the State of California, the Department of Financial Protection and Innovation, the Commissioner of Financial Protection and Innovation, any other state agency, or any officer, agent, employee, consultant, or contractor of the state, for the release of any false or unauthorized information pursuant to this section, unless the release of that information was done with knowledge and malice, or for the failure to release any information pursuant to this section.
(Amended by Stats. 2022, Ch. 452, Sec. 126. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17424.

17424. (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an action substantially related to the activity regulated under this division may be grounds for disciplinary action by the commissioner. A certified copy of the record of the disciplinary action taken against the licensee by the State of California, other state, agency of the federal government, or other country shall be conclusive evidence of the events related therein.
(b) Nothing in this section shall preclude the commissioner from applying a specific statutory provision in this division providing for discipline against a licensee as a result of disciplinary action taken against a licensee by the State of California, another state, an agency of the federal government, or another country.
(Added by Stats. 2003, Ch. 473, Sec. 19. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 3 - Escrow Regulations › Section 17425.

17425. Any person subject to this division or any director, stockholder, trustee, officer, agent, or employee of that person who violates any provision of the federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.), or any regulation promulgated thereunder, violates this division.
(Added by Stats. 2007, Ch. 237, Sec. 5. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17600.

17600. (a) An escrow agent’s license remains in effect until surrendered, revoked, or suspended.
(b) A licensee that ceases to engage in the business regulated by this division and desires to no longer be licensed shall notify the commissioner in writing and, at that time, tender the license and all other indicia of licensure to the commissioner. Within 105 days of the written notice to the commissioner, the licensee shall submit to the commissioner, at its own expense, a closing audit report as of the date the license is tendered to the commissioner for surrender, or for another period as the commissioner may specify, to be performed by an independent certified public accountant. The closing audit shall include, but not be limited to, information required by the commissioner, a bank reconciliation of the trust account, and a verified statement from a certified public accountant confirming lawful disbursement of funds. A license is not surrendered until the commissioner has reviewed and accepted the closing audit report, a determination has been made by the commissioner that acceptance of the surrender is in the public interest, and tender of the license is accepted in writing by the commissioner.
(Amended by Stats. 2009, Ch. 568, Sec. 3. (SB 204) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17601.

17601. If the commissioner has reason to believe that any escrow agent is violating the provisions of this division, the commissioner may investigate the escrow agent’s business and examine the books, accounts, records, and files used in the business of every escrow agent and of every person who acts or claims to act as principal or agent under or without the authority of this division. For the purposes of examination the commissioner and representatives of the commissioner shall have free access to the offices and places of business, books, accounts, records, papers, files, safes, and vaults of all persons examined. The cost of any investigation, inspection, and examination of a licensee under this section shall be paid to the commissioner as provided in Section 17405.1.
(Amended by Stats. 1996, Ch. 670, Sec. 4. Effective January 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17602.

17602. If it appears to the commissioner that any licensed escrow agent is violating or has violated its articles of incorporation, or any law or rule binding upon it, the commissioner shall, by written order addressed to the agent direct the discontinuance of such violation. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 17604.
(Amended by Stats. 2022, Ch. 188, Sec. 10. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17602.5.

17602.5. If any licensed escrow agent fails to make any reports required by law or by the commissioner within ten (10) days from the day designated for the making of the reports, or within any extension of time granted by the commissioner, or fails to include therein any matter required by law or by the commissioner, such failure shall constitute grounds for the suspension or revocation of the license held by such escrow agent.
(Added by Stats. 1961, Ch. 475.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17603.

17603. If it appears to the commissioner that any licensed escrow agent is conducting or has conducted business in an unsafe or injurious manner, the commissioner shall, by written order addressed to the agent direct the discontinuance of such unsafe or injurious practices. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 17604.
(Amended by Stats. 2022, Ch. 188, Sec. 11. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17604.

17604. No order issued pursuant to Sections 17602 or 17603 may become final except after notice to any licensed escrow agent affected thereby of the intention of the commissioner to make such order final and of the reasons therefor and that upon receipt of a request the matter will be set down for hearing to commence within 15 business days after such receipt unless the licensed agent affected consents to a later date. If no hearing is requested within 30 days after the mailing of such notice and none is ordered by the commissioner, the order may become final without hearing and the licensed escrow agent shall immediately discontinue the practices named in the order. If a hearing is requested or ordered, it shall be held in accordance with the provisions of the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted thereunder. If upon the hearing, it appears to the commissioner that the licensed agent is conducting or has conducted business in an unsafe and injurious manner or is violating or has violated its articles of incorporation or any law of this state, or any rule binding upon it, the commissioner shall make the order of discontinuance final and the licensed escrow agent shall immediately discontinue the practices named in the order.
(Amended by Stats. 2022, Ch. 188, Sec. 12. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17605.

17605. The licensed escrow agent has ten (10) days after an order is made final in which to commence action to restrain enforcement of such order, and unless such action is commenced, and the enforcement of such order is enjoined within ten (10) days by the court in which the suit is brought, the licensed escrow agent shall comply with the order.
(Amended by Stats. 1961, Ch. 475.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17606.

17606. The commissioner may immediately revoke by order the escrow agent’s license if the licensee fails to comply with any order, unless the escrow agent secures a court order restraining the enforcement of the commissioner’s revocation order.
(Amended by Stats. 2002, Ch. 772, Sec. 12. Effective January 1, 2003.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17606.1.

17606.1. The license of an escrow agent shall be deemed revoked upon the completion or closure of a court approved liquidation of the business of the escrow agent, whether pursuant to Section 17635 or 17636, or otherwise, unless the escrow agent within 10 days of the court’s order approving the closing or completion of liquidation secures a court order restraining the revocation from taking effect.
(Added by Stats. 1994, Ch. 423, Sec. 3. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17607.

17607. (a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this division or any rule or order hereunder, the commissioner may in the commissioner’s discretion bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order hereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver, monitor, conservator, or other designated fiduciary or officer of the court, which may include the commissioner, may be appointed for the defendant or the defendant’s assets, or any other ancillary relief may be granted as appropriate.
A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise any or all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court, by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court.
(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award additional relief.
(Repealed and added by Stats. 1990, Ch. 1186, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17608.

17608. The commissioner may, after notice and a reasonable opportunity to be heard, suspend or revoke any license if he finds that:
(a) The licensee has failed to maintain in effect a bond required under the provisions of this division.
(b) The licensee has violated any provision of this division or any rule made by the commissioner under and within the authority of this division.
(c) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license.
(Amended by Stats. 1973, Ch. 705.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17609.

17609. The revocation, suspension, surrender or expiration of an escrow agent’s license does not impair or affect pre-existing escrows lawfully contracted, but nothing contained in this division shall be deemed to authorize the acceptance of further funds or documents into escrow subsequent to such revocation, surrender or expiration or during any period of suspension.
(Amended by Stats. 1955, Ch. 261.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 4 - Revocation of License › Section 17609.2.

17609.2. Whenever the commissioner deems it necessary for the general welfare of the public, the commissioner has continuous authority to exercise the powers set forth in this division whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked.
(Amended by Stats. 2002, Ch. 772, Sec. 13. Effective January 1, 2003.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 5 - Hearings › Section 17610.

17610. The commissioner, and all persons designated by him, may administer oaths, take the testimony of witnesses, and issue subpenas requiring the attendance of witnesses and the production of books, documents, and other things under their control, at any examination, investigation, or hearing in any part of the State.
(Enacted by Stats. 1951, Ch. 364.)