reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17209.1.

17209.1. Upon the receipt of a proper and complete application for license, and all required fees, the commissioner shall immediately examine and investigate all facts connected with the proposal, including but not limited to its stockholders, directors, officers and managers, proposed location, and estimated receipts and expenditures.
(Amended by Stats. 1982, Ch. 663, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17209.2.

17209.2. The commissioner may or may not require an applicant to submit to an appropriate hearing. If a hearing is held the commissioner shall, on or before 10 days prior to the hearing, mail notice thereof to the applicant. At such hearing any interested person may show cause either in favor of, or opposed to, the application.
(Amended by Stats. 1982, Ch. 663, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17209.3.

17209.3. The commissioner may refuse to issue any license being applied for, and shall refuse to issue any license being applied for if upon the commissioner’s examination and investigation, and after appropriate hearing, the commissioner finds any of the following:
(a) That the corporation is to be formed for any business other than legitimate escrow agent services, or proposes to use a name that is misleading or in conflict with the name of an existing licensee.
(b) That any incorporator, officer, or director of the applicant has, within the last 10 years, been (1) convicted of or pleaded nolo contendere to a crime, or (2) committed any act involving dishonesty, fraud, or deceit, which crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with the provisions of this division.
(c) That there is no officer or manager possessing a minimum of five years of responsible escrow or joint control experience stationed or to be stationed at the main office of the corporation and that there is no officer, manager or employee possessing a minimum of four years of responsible escrow or joint control experience stationed or to be stationed at each branch.
(d) That the proposed licensee’s financial program is unsound.
(e) A false statement of a material fact has been made in the application for license.
(f) The applicant, any officer, director, general partner, or incorporator of the applicant, or any person owning or controlling, directly or indirectly, 10 percent or more of the outstanding equity securities of the applicant has violated any provision of this division or the rules thereunder or any similar regulatory scheme of the State of California or a foreign jurisdiction.
(g) The applicant has failed to comply with the Fidelity Corporation’s membership requirements set forth in subdivision (b) of Section 17312, in subdivision (a) of Section 17320, and in Sections 17331 and 17331.1.
(Amended by Stats. 2003, Ch. 473, Sec. 18. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17210.

17210. (a) An escrow agent licensed on or after January 1, 1986, shall maintain at all times a tangible net worth of fifty thousand dollars ($50,000), including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(b) An escrow agent licensed prior to January 1, 1986, shall maintain at all times a tangible net worth according to the following schedule:
(1) Ten thousand dollars ($10,000) from January 1, 1986, through June 30, 1986, including liquid assets of at least ten thousand dollars ($10,000) in excess of current liabilities.
(2) Fifteen thousand dollars ($15,000) as of July 1, 1986, including liquid assets of at least fifteen thousand dollars ($15,000) in excess of current liabilities.
(3) Twenty thousand dollars ($20,000) as of July 1, 1987, including liquid assets of at least twenty thousand dollars ($20,000) in excess of current liabilities.
(4) Twenty-five thousand dollars ($25,000) as of July 1, 1988, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(5)  Thirty thousand dollars ($30,000) as of July 1, 1989, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(6)  Thirty-five thousand dollars ($35,000) as of July 1, 1990, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(7)  Forty thousand dollars ($40,000) as of July 1, 1991, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(8) Forty-five thousand dollars ($45,000) as of July 1, 1992, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(9) Fifty thousand dollars ($50,000) as of July 1, 1993, and thereafter, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(c) The commissioner may determine by rule as to which assets constitute liquid assets and may also determine in an individual case by a specific written ruling whether a particular asset is a liquid asset within the meaning of this section.
(d) In the case of a licensed branch office, a tangible net worth in addition to that required by subdivision (a) shall be maintained at an amount equal to 50 percent of the tangible net worth required by subdivision (a), except that licensees operating or applying for more than one branch office shall maintain an additional tangible net worth of at least 25 percent of the amount required by subdivision (a) for each branch office licensed after the first branch office location.
(Repealed and added by Stats. 1985, Ch. 1560, Sec. 4. 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 17210.2.

17210.2. (a) No escrow agent shall disseminate, or cause or permit to be disseminated, in any manner whatsoever, any statement or representation which is false, misleading, or deceptive, or which omits to state material information, or which refers to the supervision of that agent by the State of California or any department or official thereof.
(b) A licensed escrow agent, in referring to the corporation’s licensure under this law in any written or printed communication or any communication by means of recorded telephone messages or spoken on radio, television, or similar communications media, shall include the following statement: “This escrow company holds California Department of Financial Protection and Innovation Escrow License No. ____.”
(c) The commissioner may order any person to desist from any conduct which the commissioner finds to be a violation of this section.
(Amended by Stats. 2022, Ch. 452, Sec. 120. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17212.1.

17212.1. All licensees shall notify the commissioner of any changes in shareholders, directors, officers, trustees, managers, and other persons participating in the escrow business directly or indirectly compensated by the escrow agent (other than usual and customary employees who file pursuant to subdivision (d) of Section 17414.1 and Section 17419), by filing by certified mail, return receipt requested, for those persons a statement of identity and questionnaire, as prescribed by the commissioner for those persons, and fingerprint images and related information, submitted using the process established by the Department of Justice for requesting state and federal summary criminal history information. Persons who have previously submitted fingerprints or fingerprint images and related information to the commissioner may so notify the commissioner and need not submit additional fingerprint images and related information unless requested to do so by the commissioner. The commissioner shall provide written notice to both the licensee and to the person if any of the information received pursuant to this division shows that the person’s employment, participation, or ownership interest would be in violation of Section 17414.1, and upon that notification the escrow agent shall deny the person the employment or interest. No person shall have access to trust funds or sign checks or otherwise perform any activities related to the processing of escrow transactions after the licensed escrow agent has been notified by the commissioner that the person’s employment, participation, or ownership interest is in violation of Section 17414.1. The requirements set forth in this section are in addition to those required under Section 17213.
The commissioner may by regulation require licensees to file at such times as he or she may specify additional information as he or she may reasonably require regarding any changes in the information provided in any application filed pursuant to this division.
(Amended by Stats. 2008, Ch. 262, Sec. 2. Effective January 1, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17213.

17213. (a) An escrow agent shall not transact business pursuant to this division under any other name than that set forth in the articles of incorporation as filed with the commissioner.
(b) An escrow agent’s license is not transferable or assignable. Further, no license may be acquired, either in whole or in part, directly or indirectly, through stock purchase, foreclosure pursuant to a pledge or hypothecation, or other devices without the consent of the commissioner. Prior to the transfer of 10 percent or more of the shares of an escrow agent, the escrow agent shall file a new application for licensure as required by Section 17201. However, a new application for licensure shall not be required to be filed by the escrow agent if the transfer of 10 percent or more of the shares of the escrow agent will be made by an existing shareholder to another existing shareholder who also owns 10 percent or more of the shares of the escrow agent before the transfer.
(Amended by Stats. 1998, Ch. 174, Sec. 1. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17213.1.

17213.1. (a) An escrow agent’s business shall not be removed from the premises or address shown on the license without the prior approval of the commissioner, and notice of any intended change shall be transmitted to the commissioner not less than 30 days prior to the date of the intended change of location; provided, however, that the commissioner may waive the 30-day notice requirement when the move is occasioned by fire, emergency, or other catastrophe. The commissioner’s approval shall be granted or denied within 30 days from the date of the commissioner’s receipt of the licensee’s request containing such information as the commissioner may require.
(b) When a licensed business is to be moved a distance of five or more miles, and a change in ownership results from a transfer of 50 percent or more of the shares of the corporation, a licensee shall file an application for authorization to change location on a form furnished by the commissioner and the commissioner shall: (1) treat the matter as an application for a new license by invoking the provisions of Sections 17209, 17209.1, 17209.2, and 17209.3, and (2) require the payment of such fees as are applicable under Section 17207. The provisions of this subdivision shall not apply when the actual or contemplated change of ownership is to the transferor’s ancestors, descendants, or spouse, or any custodian or trustee for the account of the transferor or the transferor’s ancestors, descendants, or spouse.
(Amended by Stats. 1982, Ch. 663, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17213.2.

17213.2. The commissioner may order a licensed escrow agent which opens a branch office or changes its business location or locations without first obtaining the approval of the commissioner to forfeit to the people of the state a sum of up to one hundred dollars ($100) for every day for the first 10 days and ten dollars ($10) for every day thereafter during which the branch office or changed location is maintained without authority.
(Amended by Stats. 1990, Ch. 1186, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17213.5.

17213.5. Licensees of this division shall be entitled to establish additional business office locations by compliance with all of the following:
(a) Filing with the commissioner notice of the intended address, or addresses.
(b) Payment of the fees prescribed in Section 17207.
(c) Filing with the commissioner any additional bonds for the purposes set forth in Sections 17202 and 17203. In addition to the amount required by Section 17202, the amounts for additional office locations shall be five thousand dollars ($5,000) for each additional location. The aggregate amounts of all bonds given by a licensee under this section shall be for the purpose of complying with the conditions of Sections 17202 and 17203 regardless of the office location at which any act violating those conditions takes place, and upon payment of the aggregate amount, the surety is completely released from further liability under the bond or bonds. An escrow agent licensed prior to January 1, 1996, shall comply with the requirements of this subdivision at the time of the next renewal of its bond.
(d) Filing with the commissioner financial statements prepared in accordance with generally accepted accounting principles. If the licensee’s fiscal year end is more than six months before the date of filing the application, the commissioner may require current financial statements which shall not be more than 60 days old. The interim financial statements may be unaudited.
(e) Filing with the commissioner the names and addresses of the licensee’s owners and employees to be stationed at the new location, showing that the operation of the additional office, or offices, will be under the complete management and control of the parent licensee.
(f) Filing with the commissioner statements offsetting and meeting each of the conditions set forth in Section 17209.3.
With respect to all applications for authorization to establish additional locations, the commissioner shall promptly commence his or her investigation and review of the application.
The commissioner shall within 30 days from the receipt by the commissioner of a separate and complete application, license the designated premises as a branch of the parent licensee, unless the commissioner finds (1) that the applicant has failed to comply with all of the requirements of this section, (2) that the applicant then fails to meet any of the standards applicable for the issuance of a license pursuant to Section 17209.3, or (3) that a hearing shall be held to determine whether the application should be granted or denied.
(Amended by Stats. 1995, Ch. 226, Sec. 1. Effective January 1, 1996.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17214.

17214. (a) There is established in the Department of Financial Protection and Innovation an Escrow Law Advisory Committee consisting of 11 members. The members shall consist of the commissioner or their designee; the chairman of the board and the immediate past chairman of the board for the Escrow Agents’ Fidelity Corporation; the current chairman of the board and the immediate past chairman of the board for the Escrow Institute of California; a person selected by the commissioner to represent a different type of business ownership under this division; a person selected by the commissioner to represent a different type of business specialization; a person selected by the commissioner to represent small businesses operating pursuant to this division; a person selected by the commissioner to represent medium-sized businesses operating pursuant to this division; an attorney at law experienced in escrow matters selected by the commissioner; and a certified public accountant experienced in the escrow business selected by the commissioner.
Except for the members from the Escrow Agents’ Fidelity Corporation and the Escrow Institute of California, members appointed by the commissioner shall serve for a term of two years.
The committee shall meet at least quarterly. The commissioner or their designee shall chair the committee. All members shall serve without compensation or reimbursement for expenses.
Where the chairman of the board or the immediate past chairman of the board of the Escrow Agents’ Fidelity Corporation is the same person, or is unable to serve on the advisory committee, then the commissioner, after consultation with the board of directors of the Escrow Agents’ Fidelity Corporation, shall choose a member of the board of directors to serve on the committee. Where the president or past president of the Escrow Institute of California is the same person, or is unable to serve on the advisory committee, then the commissioner, after consultation with the board of directors of the Escrow Institute of California, shall choose a member of the board of directors to serve on the committee.
(b) The purpose of the committee is to assist the commissioner in the implementation of the commissioner’s duties under this chapter.
(Amended by Stats. 2022, Ch. 452, Sec. 121. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2 - License and Bond › Section 17215.

17215. Whenever the commissioner issues a license or order under this division, the commissioner may impose conditions that are necessary and appropriate to carry out the provisions and purposes of this division and, with respect to Internet escrow agents, are also consistent with the intent of the Legislature.
(Added by Stats. 1999, Ch. 441, Sec. 7. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17300.

17300. “Fidelity Corporation” means the Escrow Agents’ Fidelity Corporation.
(Amended by Stats. 1985, Ch. 1560, Sec. 6. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17301.

17301. “Member” means any person licensed under this division who is required by Section 17312 to be a member of Fidelity Corporation.
(Amended by Stats. 1985, Ch. 1560, Sec. 7. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17302.

17302. “Trust obligation” means:
(a) All money and property deposited with a member within the State of California in an escrow or joint control transaction.
(b) All money and property deposited with a member to be held in trust within the State of California pursuant to a federal or state statute or requirements of a governmental agency.
(Amended by Stats. 2001, Ch. 662, Sec. 1. Effective January 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17303.

17303. “Commissioner” means the Commissioner of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 122. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17304.

17304. “Loss,” within the meaning of this chapter, means the loss of trust obligations held by a member within the State of California as a result of the fraudulent or dishonest abstraction, misappropriation, or embezzlement of trust obligations by an officer, director, trustee, stockholder, manager, or employee of a member.
(Amended by Stats. 2001, Ch. 662, Sec. 2. Effective January 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 1 - Definitions › Section 17305.

17305. “Monthly average escrow liability,” as used in this chapter, means the average escrow liability for the 12-month period as reported in the most recent report made by the member to the commissioner pursuant to Section 17348.
(Amended by Stats. 1989, Ch. 590, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17310.

17310. (a) It shall be the purpose of Fidelity Corporation to indemnify a member within the State of California against loss, subject to the limitations set forth in this chapter.
(b) Fidelity Corporation shall not be liable for any consequential damages sustained by a member, or by any other person, nor for any punitive damages whatsoever.
(c) The indemnification shall be provided by any of the following:
(1) A fund established by Fidelity Corporation pursuant to Section 17320.
(2) A fidelity bond or insurance policy to be approved by the commissioner.
(3) A combination of paragraphs (1) and (2) subject, however, to the maximum coverage specified in subdivision (b) of Section 17314.
(d) Fidelity Corporation shall provide a copy to all of its members and the commissioner of the fidelity bond or insurance policy as it is acquired or renewed, and Fidelity Corporation shall promptly provide a copy to any member or successor in interest, upon request.
(Amended by Stats. 2006, Ch. 376, Sec. 1. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17311.

17311. (a) Persons licensed pursuant to this division shall maintain a corporation under the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code) operating under the name Escrow Agents’ Fidelity Corporation.
(b) The State of California, the Department of Financial Protection and Innovation, or any officer, agent, or employee of either shall not be liable in any way for the conduct of Fidelity Corporation, its directors, officers, agents, employees, or members.
(Amended by Stats. 2022, Ch. 452, Sec. 123. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17313.

17313. The commissioner shall review and approve the articles of incorporation and bylaws of Fidelity Corporation before they are filed with the Secretary of State.
(Amended by Stats. 1985, Ch. 1560, Sec. 11. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17313.1.

17313.1. The fiscal year of Fidelity Corporation shall commence on July 1 of each year.
(Added by Stats. 1988, Ch. 1458, Sec. 5. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17314.1.

17314.1. (a) Notwithstanding any other provision of this article, Fidelity Corporation shall not be obligated to pay any claim made by a member unless (1) the claim would, except for the dollar amount thereof, be a valid claim under the bond as prescribed by Section 17203.1 and (2) the claim is made within the time prescribed by Section 17205. The protection to members provided by Fidelity Corporation and by the fidelity bond or insurance policy, if any, shall therefore be deemed to be coextensive except as to the dollar amounts as set forth in Section 17314. All defenses available to the insurer under the fidelity bond or insurance policy, if any, on any claim shall also be a defense to Fidelity Corporation, as either an indemnitor or surety, on any claim brought against the corporation.
(b) No person other than a member, or the member’s successor in interest, who shall be the commissioner, a conservator, receiver, or trustee as designated by a court of competent jurisdiction, is entitled to assert a claim against Fidelity Corporation for losses covered under this article.
(Amended by Stats. 2006, Ch. 376, Sec. 2. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17314.2.

17314.2. Claims filed prior to the effective date of this chapter shall be governed by the provisions in effect when the loss occurred.
(Added by Stats. 1988, Ch. 1458, Sec. 9. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17314.3.

17314.3. (a) A deductible shall apply to each loss suffered by a member in the amount of five thousand dollars ($5,000), plus 5 percent of the amount by which the loss exceeds five thousand dollars ($5,000). If a member with more than one licensed location suffers a covered loss at more than one location, the deductible shall apply to each location separately in proportion to the amount of the loss suffered at each such licensed location.
(b) Fidelity Corporation shall pay the full amount of any member’s loss to the member or the member’s successor in interest. The member shall be obligated to pay to Fidelity Corporation the amount of the member’s deductible after payment in full of the loss by Fidelity Corporation.
(c) In the event a license is surrendered, suspended, or revoked prior to payment in full by the member of all or any portion of the deductible, the member shall nevertheless be liable to Fidelity Corporation for the amount of the deductible. If the license of the member is surrendered, suspended, or revoked prior to payment in full of the deductible, Fidelity Corporation shall have priority over all other claimants, except the State of California and any conservator or receiver of the member’s estate, against the assets of the licensee, including the bond required under Section 17202.
(d) Nothing in this section shall be construed to give any person or entity not (1) a member of Fidelity Corporation, or (2) a successor in interest of a member, or (3) the commissioner any right of action or any right to make a claim directly against Fidelity Corporation, its officers, directors, agents, or employees. Fidelity Corporation shall be entitled to recover its reasonable costs and attorney’s fees as an item of costs, as provided for in paragraph (10) of subdivision (a) and paragraph (5) of subdivision (c) of Section 1033.5 of the Code of Civil Procedure, in defending any claim made directly against Fidelity Corporation, not authorized in this division.
(e) If a member fails to pay the deductible within the time set forth in the bylaws of Fidelity Corporation, Fidelity Corporation may bring an action at law or in equity against the member to recover the amount of the deductible. Fidelity Corporation shall recover its reasonable costs and attorney’s fees as an item of costs, as provided for in paragraph (10) of subdivision (a) and paragraph (5) of subdivision (c) of Section 1033.5 of the Code of Civil Procedure, provided, that the payment of the costs and attorney’s fees will not cause the member to be in violation of Section 17202, 17202.1, or 17210.
(Amended by Stats. 1990, Ch. 1431, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 2 - Purpose: Scope of Guarantee › Section 17315.

17315. The commissioner may establish rules which are reasonable and necessary to carry out the provisions of this chapter.
(Added by Stats. 1982, Ch. 1106, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 3 - Membership Fee and Assessments › Section 17321.1.

17321.1. Fidelity Corporation shall levy a special assessment against its members whenever:
(a) Deemed necessary by the board of directors in the event of any extraordinary expenses which would seriously deplete the resources of the operations fund; or
(b) A proof of loss has been submitted by a member which, if paid during that fiscal year, would reduce the membership fund by 10 percent or more.
(Added by Stats. 1988, Ch. 1458, Sec. 15. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 3 - Membership Fee and Assessments › Section 17321.2.

17321.2. Fidelity Corporation shall be entitled to collect late fees as specified in Fidelity Corporation’s bylaws for any late payment of assessments under Section 17320, 17321, or 17321.1.
(Added by Stats. 1988, Ch. 1458, Sec. 16. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 3 - Membership Fee and Assessments › Section 17322.

17322. Fidelity Corporation shall report to the commissioner each levy of assessment within 10 business days after the levy.
(Repealed and added by Stats. 1988, Ch. 1458, Sec. 18. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 3 - Membership Fee and Assessments › Section 17323.

17323. (a) In the event any member fails to pay an assessment when due, Fidelity Corporation shall by written demand addressed to the member request the payment of the assessment within 30 days of the demand letter. If the member fails to pay an assessment, the commissioner may issue an order pursuant to subdivision (b).
(b) If a member fails to pay the assessment, or any applicable late fee, the commissioner may by order summarily suspend the license issued to the company. If after the order is made, a request for a hearing is filed in writing and a hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date. During any period when its license is suspended, a company shall not conduct business pursuant to this division, except as may be permitted by order of the commissioner. However, the suspension of a license shall not affect the powers of the commissioner as provided in this division.
(c) Fidelity Corporation may bring an action at law or in equity against the member to recover any assessment or fees.
(d) Fidelity Corporation may be awarded costs and reasonable attorney’s fees, if it prevails in any action against a member, or against a third party, except the commissioner, to enforce a claim against the bond or other security posted by the member pursuant to Section 17202, or in any action against a member pursuant to subdivision (c). Those costs and attorney’s fees may be awarded as an item of costs, as provided for in paragraph (10) of subdivision (a) and paragraph (5) of subdivision (c) of Section 1033.5 of the Code of Civil Procedure, provided that the payment of the costs and attorney’s fees will not cause the member to be in violation of Section 17202, 17202.1, or 17210.
(Amended by Stats. 1990, Ch. 1431, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 3 - Membership Fee and Assessments › Section 17324.

17324. Any reduction in the membership fund caused by payment of an extraordinary expense pursuant to subdivision (a) of Section 17320 or payment of claims pursuant to subdivision (c) of Section 17320 shall be replenished by the operations fund or the fidelity fund, as appropriate. The next assessment for the operations fund or the fidelity fund, as appropriate, shall include an amount necessary for that replenishment.
(Added by Stats. 1988, Ch. 1458, Sec. 20. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17330.

17330. Any member or successor in interest who suffers a loss may file a claim with Fidelity Corporation for the amount of the loss.
(Amended by Stats. 1988, Ch. 1458, Sec. 21. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17331.1.

17331.1. (a) Any person not previously issued a certificate must, upon employment with an escrow agent within this state, apply to Fidelity Corporation for a certificate. The member shall submit all applications for certificates to Fidelity Corporation within 10 business days of the date of employment. The person may continue employment until or unless denied a certificate by Fidelity Corporation.
(b) Upon written notice by Fidelity Corporation to any or all members that any person has been denied a certificate, or has had a certificate suspended, canceled, or revoked, no member or person acting on behalf of a member shall authorize that person to have access to money or negotiable securities belonging to or in the possession of the escrow agent, or to draw checks upon the escrow agent or the trust accounts of the escrow agent. Any member or person who commits or who causes a violation of this section, which violation was either known or should have been known by the member or the person committing or causing the violation, may be subject to action by the commissioner and Fidelity Corporation as provided for in this division.
(c) Each member and each person required to have a certificate shall comply with the Fidelity Corporation rules, to be approved by the commissioner, concerning the manner and timing within which Fidelity Corporation shall receive notice of employment, change of the person’s name, mailing address, or employment status, the certificate form, and the procedures for the administration thereof. Fidelity Corporation may collect a fee to cover the cost of processing the notices but no fee shall exceed twenty-five dollars ($25).
(d) Fidelity Corporation shall assess the member a penalty at the rate of twenty-five dollars ($25) for every day that the member has not fully complied with this section, Section 17331, or Section 17331.2.
(e) Any member that suffers a loss of trust obligations caused by any person who is required to have a certificate but has (1) failed to apply for a certificate, (2) has had the application for a certificate denied, (3) has a suspended certificate, or (4) whose certificate has been revoked shall be obligated to pay a deductible in the amount of 100 percent of the amount of the loss, notwithstanding the amount of the statutory deductible as prescribed by Section 17314.3. The failure to obtain a certificate, the denial of an application for a certificate, or the suspension, cancellation, or revocation of a certificate shall not limit the obligation of Fidelity Corporation to indemnify a member against loss of trust obligations as defined in this division.
(Amended by Stats. 2004, Ch. 180, Sec. 5. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17332.

17332. When either Fidelity Corporation or the insurer providing the fidelity bond or insurance policy, if any, under Section 17310, or both, pay an obligation on behalf of a member, Fidelity Corporation and the insurer shall be subrogated to the rights, claims, and remedies of the member up to the amount paid by Fidelity Corporation and the insurer on behalf of the member. Independent of any duty or obligation of Fidelity Corporation, the member shall do nothing to prejudice those rights. In any subrogation action filed by Fidelity Corporation, the provider of the fidelity bond or insurance policy if payment was made thereunder, or both, Fidelity Corporation shall have the first right to the proceeds of any judgment or settlement obtained against the principal obligors and any other party who is held liable jointly or severally, in whole or in part, with the principal obligors, up to the amount actually paid on the claim by Fidelity Corporation. Fidelity Corporation and the insurer, as subrogees, shall also recover in the subrogation action reasonable costs and attorney’s fees which may be awarded either as part of any judgment or as an item of costs, as provided for in paragraph (10) of subdivision (a) and paragraph (5) of subdivision (c) of Section 1033.5 of the Code of Civil Procedure. No member engaged in business pursuant to Section 17200 shall be required to pay those costs and attorney’s fees awarded pursuant to this section. Amounts recouped by Fidelity Corporation through subrogation, minus all costs, attorney’s fees, and other administrative expenses incurred in obtaining that recovery, shall be credited to the fidelity fund.
(Amended by Stats. 2004, Ch. 180, Sec. 7. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17333.

17333. The commissioner may forthwith upon written notice and order take possession of the property and business of Fidelity Corporation and retain possession until Fidelity Corporation satisfies the commissioner that it will operate in conformity with this chapter whenever it appears to the commissioner that Fidelity Corporation has done any of the following:
(a) Violated its articles of incorporation or any law of this state.
(b) Invested its funds in violation of Section 17337.
(c) Not levied assessments as required by Sections 17320, 17321 and 17321.1.
(d) Has not diligently prosecuted an action pursuant to Section 17323.
(e) Violated any section of this chapter.
(f) Neglected or refused to submit its books, papers, and affairs to the inspection of the commissioner.
During the time the commissioner has possession the commissioner shall perform the duties and carry out the obligations of Fidelity Corporation.
(Amended by Stats. 1990, Ch. 1431, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17334.

17334. Whenever the commissioner has taken possession of the property and business of Fidelity Corporation, Fidelity Corporation within 10 business days after the taking, if it deems itself aggrieved thereby, may apply to the superior court in the county in which the head office of Fidelity Corporation is located to enjoin further proceedings. The court, after citing the commissioner to show cause why further proceedings should not be enjoined, and after a hearing and a determination of the facts upon the merits, may dismiss the application or enjoin the commissioner from further proceedings and direct the commissioner to surrender the property and business to Fidelity Corporation, or make a further order as may be just.
(Amended by Stats. 1985, Ch. 1560, Sec. 22. 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 17335.

17335. An appeal may be taken from the judgment of the court by the commissioner or by Fidelity Corporation in the manner provided by law for appeals from the judgment of a superior court to the court of appeal. An appeal from the judgment of the court does not operate as a stay of the judgment unless the court, on good cause, so orders. No bond need be given if the appeal is taken by the commissioner, but if the appeal is taken by Fidelity Corporation a bond shall be given as required by Sections 917.2 and 917.5 of the Code of Civil Procedure as a condition to any stay.
(Amended by Stats. 1998, Ch. 931, Sec. 148. Effective September 28, 1998.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17337.

17337. Fidelity Corporation may invest its funds only as provided by rules of the commissioner adopted with a view to preserving reasonable liquidity.
Upon request of the commissioner, Fidelity Corporation shall furnish an authorization for disclosure to the commissioner of financial records of funds pursuant to Section 7473 of the Government Code.
(Amended by Stats. 1985, Ch. 1560, Sec. 25. 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 17339.

17339. Prior to incurring any extraordinary or nonrecurring expense, Fidelity Corporation shall first obtain the written consent of the commissioner.
(Amended by Stats. 1988, Ch. 1458, Sec. 26. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17340.

17340. In the event the board of directors of Fidelity Corporation deem it necessary and prudent to raise additional moneys for payment of claims or expenses of administration, it may, with the commissioner’s written consent, borrow money against its assets, including future assessments.
(Repealed and added by Stats. 1988, Ch. 1458, Sec. 28. Effective September 28, 1988.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17341.

17341. The commissioner shall give prompt notice to Fidelity Corporation when the commissioner takes possession of the property and business of a member and shall give further prompt notice when the commissioner determines to liquidate the property and business of a member.
(Amended by Stats. 1985, Ch. 1560, Sec. 29. 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 17342.

17342. Memberships issued by Fidelity Corporation shall be nontransferable and shall be exempt from the provisions of the Corporate Securities Law of 1968.
(Amended by Stats. 1985, Ch. 1560, Sec. 30. 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 17343.

17343. No provision of the Insurance Code shall apply to Fidelity Corporation.
(Amended by Stats. 1985, Ch. 1560, Sec. 31. 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 17344.

17344. The operation of Fidelity Corporation shall at all times be subject to the regulation of the commissioner and the commissioner’s duly designated representatives. The commissioner and the commissioner’s duly designated representatives may at any time investigate the affairs and examine the books, accounts, records, and files used by Fidelity Corporation. The commissioner and the commissioner’s duly designated representatives shall have free access to the offices, books, accounts, papers, records, files, safes, and vaults of Fidelity Corporation.
(Amended by Stats. 1985, Ch. 1560, Sec. 32. 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 17345.

17345. Any member aggrieved by any action or decision of Fidelity Corporation may appeal to the commissioner within 30 days from the action or decision, except that all matters relating to claims for loss of trust obligations shall be decided under Section 17345.1. The commissioner’s decision on appeal shall be made within 60 days from the date of the appeal and shall be considered final.
(Repealed and added by Stats. 1997, Ch. 370, Sec. 3. Effective January 1, 1998.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17346.

17346. (a) Fidelity Corporation and its members shall not advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner any statement or representation with regard to a guarantee of trust obligations in their advertisements that is false or misleading or calculated to deceive or misinform the public. Any statement or representation with regard to a guarantee of trust obligations, except the statement set forth in subdivision (b), shall be reviewed and approved by the commissioner prior to its use.
(b) Any advertising referring to Fidelity Corporation shall state in a clear and conspicuous manner, the following statement:
“MEMBER OF ESCROW AGENTS’ FIDELITY CORPORATION (EAFC). EAFC PROVIDES FIDELITY COVERAGE TO ITS MEMBERS.  EAFC IS NOT A GOVERNMENT AGENCY, AND THERE IS NO GUARANTEE OF A PAYMENT OF ANY CLAIM BY THE STATE OF CALIFORNIA.”
(c) Neither Fidelity Corporation nor its members shall advertise that trust obligations of escrow agents are “protected,” “guaranteed,” “insured,” or use words to that effect.
(Amended by Stats. 2007, Ch. 237, Sec. 2. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17347.

17347. (a) The Secretary of State shall not file articles for the incorporation of Fidelity Corporation or an amendment to the articles unless the commissioner has issued a written approval of the articles or amendment.
(b) Fidelity Corporation shall not adopt any bylaws or amendments thereto without the written consent of the commissioner. Within 60 calendar days from the receipt of any bylaws or amendments thereto, submitted to the commissioner, the commissioner shall inform Fidelity Corporation, in writing, that the bylaws or amendments are not disapproved, or that those bylaws or amendments are disapproved and specify the information needed to complete the submittal. Within 60 calendar days from the receipt of a complete submittal, the commissioner shall reach a decision on the submittal.
(Amended by Stats. 1992, Ch. 476, Sec. 6. Effective January 1, 1993.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 2.5 - Escrow Agents Fidelity Corporation › ARTICLE 4 - General Provisions › Section 17348.

17348. In order to permit Fidelity Corporation to fulfill its obligation under this chapter, the commissioner shall furnish a list of all persons licensed under this division as of December 31 of each year and a copy of an escrow liability schedule filed with the commissioner. Each member on or before February 15 shall furnish to the commissioner and Fidelity Corporation the schedule of its escrow liability for each of its licensed locations as of the last day of each month for the preceding 12 months which ended December 31. A list of officers, directors, stockholders, trustees, agents, managers, and employees as of that date shall also be submitted to Fidelity Corporation, with the schedule. The schedule shall be in the form and contain such information as the commissioner may require.
(Amended by Stats. 1993, Ch. 492, Sec. 5. Effective January 1, 1994.)