reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 2 - Corporate Matters › ARTICLE 6 - Powers, Exclusions and Prohibitions › Section 32352.

32352. The corporation shall (a) be empowered to do and perform all acts contemplated for a business and industrial development corporation, and (b) upon approval of the Small Business Development Board, perform acts contemplated for a small business development corporation, pursuant to Part 5 (commencing with Section 14000) of the Corporations Code.
Notwithstanding any other provision of law, upon approval by the Small Business Development Board of the corporation’s application to become a small business development corporation pursuant to this section, the sum of seven hundred fifty thousand dollars ($750,000) shall be transferred from the State Enterprise Loan Fund for deposit in the Small Business Expansion Fund created pursuant to Section 14029 of the Corporations Code for immediate transfer to a loan fund established pursuant to Section 14045 of the Corporations Code. Upon suspension of the corporation as a small business development corporation, the funds shall be transferred to the Small Business Expansion Fund pursuant to Section 14025 of the Corporations Code.
(Amended by Stats. 1989, Ch. 1040, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 2 - Corporate Matters › ARTICLE 6 - Powers, Exclusions and Prohibitions › Section 32352.5.

32352.5. (a) If the corporation becomes a small business development corporation pursuant to Section 32352, the official and public members of the board of directors shall, within 30 days thereafter, appoint three additional directors to the board, who shall be residents of the region to be served by the corporation when acting as a small business development corporation.
(b) For purposes of this section, the three regional directors appointed pursuant to subdivision (a) shall be appointed by the official and public members of the board as full voting members of the board.
(Amended by Stats. 2004, Ch. 25, Sec. 8. Effective March 17, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 1 - Corporate Accounts › Section 32400.

32400. The financial accounts and records of the corporation shall be kept by the finance officer according to policies and rules which the board shall adopt.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 1 - Corporate Accounts › Section 32401.

32401. The corporation shall adopt as its fiscal year the period from July 1st to and including the following June 30th.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 1 - Corporate Accounts › Section 32402.

32402. In addition to other accounts the board may establish, the financial accounts of the corporation shall include:
(a) A general operating account.
(b) A general reserve account.
(c) An enterprise loan fund.
(d) A government guaranteed securities trust fund.
(Amended by Stats. 1989, Ch. 1040, Sec. 15.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 1 - Corporate Accounts › Section 32403.

32403. Except as otherwise provided for in this division, all funds received by the corporation shall be deposited in the general operating account of the corporation.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 1 - Corporate Accounts › Section 32404.

32404. Beginning with the fiscal year which begins July 1, 1982, and each fiscal year thereafter, the board shall not adopt any budget for the corporation in which the projected total operating expenditures exceed the expected balance of the general operating account.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 3 - Government Guaranteed Securities Trust Fund › Section 32420.

32420. In this article “trust fund” means the government guaranteed securities trust fund of the corporation.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 3 - Government Guaranteed Securities Trust Fund › Section 32421.

32421. The finance officer shall place into the trust fund all securities held by the corporation which carry a guarantee of repayment issued by the Small Business Administration or guarantee of repayment issued by any other governmental authority.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 3 - Government Guaranteed Securities Trust Fund › Section 32422.

32422. According to policies and regulations which the board shall adopt, the finance officer shall use his or her best efforts to sell the guaranteed portion of the securities held in the trust fund to private investors or the state.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 3 - Corporate Finances › ARTICLE 3 - Government Guaranteed Securities Trust Fund › Section 32423.

32423. The proceeds of the sale of government guaranteed securities shall be allocated to the accounts of the corporation in the following manner:
(a) That portion of the proceeds of the sale of government guaranteed securities which represents the purchase of the principal amount of the securities shall be credited to the enterprise loan fund of the corporation; and
(b) That portion of the proceeds of the sale of government guaranteed securities which represents the purchase of the future interest earnings of the securities shall be credited to the general operating account of the corporation.
(Amended by Stats. 2004, Ch. 25, Sec. 9. Effective March 17, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 5 - Loan Operations › Section 32600.

32600. (a) The finance officer shall not execute any loan that is not:
(1) Approved for guarantee by the Small Business Administration, under that agency’s prevailing standards for loans of similar type, purpose, amount, and duration that are in effect at the time the guarantee is approved by the agency.
(2) Approved for guarantee by another governmental loan guarantee authority, and the minimum amount of the guarantee is not less than 50 percent of the principal amount of the loan.
(3) Made pursuant to the corporation’s participation with the Small Business Administration as a small business investment company or local development company.
(4) Less than 16 percent of the total financing package arranged between the corporation and another lender or lenders on behalf of the applicant.
(b) This section does not apply to loans made pursuant to Section 32724.
(Amended by Stats. 1994, Ch. 929, Sec. 1. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 5 - Loan Operations › Section 32601.

32601. The corporation shall not provide financing assistance on any application, except for any application submitted for review as a special project, which has not been reviewed in the manner specified by the board.
(Repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 6 - Miscellaneous › ARTICLE 3 - Special Projects › Section 32720.

32720. The corporation is authorized to accept any public or private financial grant in furtherance of the purposes of this division, including, but not limited to, grants for alternative energy research or demonstration projects, manpower training, or economic development.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 6 - Miscellaneous › ARTICLE 3 - Special Projects › Section 32721.

32721. The board may consider and adopt rules for the acceptance and disbursement of grants, provided, however, that the cost of administering any grant, less any payment for grant administration made to the corporation by the granting authority, shall in no case exceed 5 percent of the operating budget of the corporation in any calendar year.
(Amended by Stats. 2004, Ch. 25, Sec. 16. Effective March 17, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 6 - Miscellaneous › ARTICLE 3 - Special Projects › Section 32722.

32722. The corporation may participate with any federal or state governmental agency, department, board, bureau, or office in any program which is intended to assist the development of the alternative energy industry or to encourage economic development.
(Amended by Stats. 2004, Ch. 25, Sec. 17. Effective March 17, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 6 - Miscellaneous › ARTICLE 3 - Special Projects › Section 32723.

32723. The corporation may develop and implement a program to assist private financial institutions, to evaluate investment opportunities in alternative energy systems, and to help potential small business borrowers make contact with appropriate private sources of funds for alternative energy investments.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 6 - Miscellaneous › ARTICLE 3 - Special Projects › Section 32724.

32724. Notwithstanding any other provision of this division, loans or other financing programs undertaken by the corporation in furtherance of minority enterprises and export financing shall be funded from the enterprise loan fund, or other accounts which the corporation may establish. The board shall promulgate separate loan review procedures and criteria which shall be applicable to loans and other financing programs implemented by the corporation pursuant to this section.
(Amended by Stats. 1989, Ch. 1040, Sec. 18.7.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 2 - State Enterprise Loan Fund › Section 32810.

32810. The Controller shall establish, maintain, and administer a separate account within the General Fund of the State of California to effect the provisions of this chapter.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 2 - State Enterprise Loan Fund › Section 32811.

32811. The name of this account shall be the “State Enterprise Loan Fund,” which fund shall be continuously appropriated for the purposes of this division.
(Amended by Stats. 1989, Ch. 1040, Sec. 20.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 2 - State Enterprise Loan Fund › Section 32812.

32812. The Controller shall transfer into the fund from the General Fund and from the Energy Resources Program Account in the General Fund all moneys required to meet the loan requests of the corporation, subject to the following terms and conditions:
(a) The amount transferred to the fund from the General Fund shall not exceed one million five hundred thousand dollars ($1,500,000).
(b) The amount transferred to the fund from the Energy Resources Programs Account in the General Fund shall not exceed one million dollars ($1,000,000) and the Controller shall not transfer any money from the account to the fund unless and until both of the following occur:
(1) The corporation certifies to the Controller that it has approved not less than a total of five million dollars ($5,000,000) in loans to eligible small businesses in this state.
(2) The corporation certifies to the Controller that it will use the additional money transferred to the fund only to make new loans to eligible small businesses in this state.
(Amended by Stats. 1983, Ch. 323, Sec. 31. Effective July 1, 1983.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 2 - State Enterprise Loan Fund › Section 32813.

32813. The Controller shall disburse moneys from the fund to the corporation subject to the provisions of this chapter.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 2 - State Enterprise Loan Fund › Section 32814.

32814. The Controller shall deposit in the fund all moneys received from the corporation in repayment of the principal and interest of loans made to the corporation.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 3 - Borrowing from the Fund › Section 32820.

32820. The corporation is authorized to borrow money from the fund, subject to the following terms and conditions:
(a) The interest rate on loans from the fund to the corporation shall be six percent per annum;
(b) The maximum term of the loans to the corporation shall be for 20 years;
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 3 - Borrowing from the Fund › Section 32820.5.

32820.5. Upon approval of the corporation to exercise the powers of a small business development corporation pursuant to Section 32352, the corporation shall cease to be liable for payment of interest on loans made or to be made from the fund pursuant to this article.
(Added by Stats. 1989, Ch. 1040, Sec. 21.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 3 - Borrowing from the Fund › Section 32821.

32821. The corporation shall make application in writing to the Controller for loans from the fund.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 3 - Borrowing from the Fund › Section 32822.

32822. Within five working days after receipt of an application from the corporation for a loan from the fund, the Controller shall disburse the proceeds of the loan to the corporation, unless:
(a) The corporation is in default on any previous loan from the fund; or
(b) In order to lend the amount requested by the corporation, the Controller would be required to transfer to the fund amounts which cumulatively would exceed the maximum amount specified in Section 32812.
(Amended by Stats. 1983, Ch. 323, Sec. 31.5. Effective July 1, 1983.)
2023 California Code › Financial Code - FIN › DIVISION 15.5 - STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION › CHAPTER 7 - Borrowing From the State › ARTICLE 3 - Borrowing from the Fund › Section 32823.

32823. If the Controller finds either subdivision (a) or (b) of Section 32822 to be the case, the Controller shall deny the loan application of the corporation.
(Added by Stats. 1980, Ch. 819, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 19 - RELEASE OF DEMAND DEPOSIT FUNDS › Section 40500.

40500. It is the intent of the Legislature that a financial institution shall not transfer funds from a depositor’s account unless authorization has been granted by that depositor. This division is declaratory of existing case law and is intended to codify the law for the convenience of the public, regulatory authorities, and financial institutions.
(Added by Stats. 1985, Ch. 1057, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 19 - RELEASE OF DEMAND DEPOSIT FUNDS › Section 40501.

40501. In accordance with the implied contract existing between a financial institution and its depositor, no bank, savings association, credit union, or other financial institution operating in this state which maintains and services demand deposit accounts, including NOW accounts, may release any funds from those accounts to any person or entity who is not the account holder, unless the funds are released pursuant to the depositor’s authorization or in accordance with the law. This section does not apply to any setoff for a debt claimed to be owed to a bank, savings association, credit union, or other financial institution by a customer.
(Added by Stats. 1985, Ch. 1057, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50000.

50000. This division will be known and may be cited as the California Residential Mortgage Lending Act.
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50001.

50001. Unless the context otherwise requires, the definitions in this chapter apply throughout this division.
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50002.5.

50002.5. (a) Every licensee engaging in the business of making, servicing, or making and servicing residential mortgage loans shall require that every mortgage loan originator employed or compensated by that licensee obtains and maintains a mortgage loan originator license from the commissioner under this division or Division 9 (commencing with Section 22000), or has first obtained a license endorsement from the commissioner of Real Estate pursuant to Article 2.1 (commencing with Section 10166.01) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code.
(b) A residential mortgage lender or servicer shall not employ a mortgage loan originator whose license or license endorsement has lapsed.
(c) A residential mortgage lender or servicer may not make or broker a residential mortgage loan unless that loan is negotiated by or applied for through a licensed mortgage loan originator.
(d) Every licensee engaged in the business of making, servicing, or making and servicing residential mortgage loans and every mortgage loan originator licensed under this division shall register with and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.
(e) No mortgage loan originator licensed under this division and employed by a licensed residential mortgage lender or residential mortgage servicer shall engage in any activity that is not an authorized activity for a licensed residential mortgage lender or residential mortgage servicer pursuant to this division.
(Added by Stats. 2009, Ch. 160, Sec. 46. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50003.6.

50003.6. (a) A loan processor or underwriter who does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a loan originator shall not be required to be licensed as a mortgage loan originator.
(b) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.
(c) An independent contractor may not engage in the activities of a loan processor or underwriter for a residential mortgage loan unless the independent contractor loan processor or underwriter obtains and maintains a residential mortgage lender or residential mortgage servicer license and a mortgage loan originator license under this division.
(Added by Stats. 2009, Ch. 160, Sec. 49. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50004.

50004. “Fraud,” “deceit,” and “defraud” are not limited to common law fraud or deceit.
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50005.

50005. This division creates and authorizes a class of exempt persons pursuant to Section 1 of Article XV of the California Constitution.
(Amended by Stats. 1995, Ch. 564, Sec. 7. Effective January 1, 1996.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 1 - General › Section 50006.

50006. No person subject to this law shall use in its name “bank,” “trust,” “trustee,” “loan association,” or related terms. This section does not apply to any person licensed under the Banking Law or the Savings Association Law.
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50120.

50120. (a) A residential mortgage lender shall file an application for licensure under this chapter with the commissioner to make or service residential mortgage loans in this state.
(b) A licensee may not engage in the business as a residential mortgage lender under a name other than the name that appears on the license, or a legally assumed name disclosed either in the application or in an amendment to the application, which shall be reflected on the license.
(c) A licensee may not make or service residential mortgage loans secured by real property pursuant to the authority of a license, or an exemption from licensure, under the Real Estate Law.
(d) The commissioner may, pursuant to Section 50321, order a licensee to cease any other business conducted at any location where the licensee operates under the authority of a residential mortgage lender license, if the commissioner finds that the conduct of that business has facilitated evasions of this division or the rules adopted pursuant to this division, or that the conduct of that business is in violation of any law to which that business is subject.
(e) A license issued for a business location outside this state shall constitute an agreement by the licensee to, at the sole discretion of the commissioner, either (1) make the licensee’s books, accounts, papers, records, and files available to the commissioner or the commissioner’s representatives in this state within 10 calendar days of a request from the commissioner or, (2) pay the reasonable expenses for travel, meals, and lodging of the commissioner or the commissioner’s representatives incurred during an investigation or examination made at the licensee’s location outside this state.
(f) The commissioner may, by rule, require an applicant for a residential mortgage lender or servicer license or a residential mortgage lender or servicer licensee to make some or all filings with the commissioner through the Nationwide Mortgage Licensing System and Registry.
(g) The commissioner may, by rule, require licensees to pay assessments through the Nationwide Mortgage Licensing System and Registry.
(Amended by Stats. 2009, Ch. 160, Sec. 50. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50121.

50121. The commissioner shall issue a residential mortgage lender license upon the satisfaction of all of the following:
(a) The filing with the commissioner of a complete and executed application for licensure, which may, at the discretion of the commissioner, include background and experience disclosures required by any of the uniform application forms of the Nationwide Mortgage Licensing System and Registry.
(b) The payment of a nonrefundable investigation fee of one hundred dollars ($100), plus the cost of fingerprint processing and clearance, and an application filing fee of nine hundred dollars ($900).
(c) An investigation of the statements required by Section 50124 based upon which the commissioner is able to issue findings that the financial responsibility, criminal records (verified by fingerprint, at the discretion of the commissioner), experience, character, and general fitness of the applicant and of the partners or members thereof, if the applicant is a partnership or association, and of the principal officers and directors thereof, if the license applicant is a corporation, support a finding that the business will be operated honestly, fairly, and in accordance with the requirements of this division.
(Amended by Stats. 2009, Ch. 160, Sec. 51. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50122.

50122. (a) Except as provided in Section 50120, the information provided on an application for a residential mortgage lender, residential mortgage servicer, or residential mortgage lender and servicer license shall be sworn testimony on a form prescribed by the commissioner. If an applicant proposes to engage in business as a residential mortgage loan servicer as well as a residential mortgage lender, this information shall be set forth in the application. The commissioner may issue a license under this chapter to engage in business as a residential mortgage lender or to engage in business as a residential mortgage lender and residential mortgage loan servicer. A person filing an application under this chapter to engage in business as a residential mortgage lender and a residential mortgage loan servicer is not required to file an application under Chapter 3 (commencing with Section 50130).
(b) The application shall contain the name and complete business and residential address or addresses of the applicant. If the applicant is a partnership, association, corporation, or other entity, the application shall contain the names and complete business and residential addresses of each member, director, and principal officer. The application also shall include a description of the activities of the applicant in the detail and for the periods that the commissioner may require, including all of the following:
(1) A statement of financial solvency, noting the net worth requirements and supported by an audited financial statement prepared by an independent certified public accountant, and access to the supporting credit information as required by this division.
(2) A statement that the applicant or its members, directors, or principals, as appropriate, are at least 18 years of age. The statement may be made by providing each person’s date of birth.
(3) Information as to the character, fitness, financial and business responsibility, background, experience, and criminal convictions of any of the following:
(A) Any person that owns or controls, directly or indirectly, 10 percent or more of any class of stock of the applicant.
(B) Any person that controls, directly or indirectly, the election of 25 percent or more of the members of the board of directors of an applicant.
(C) Any person or entity that significantly influences or controls the management of the applicant.
(4) A description of any disciplinary action filed under any other license through which the person conducts its business.
(5) A description of any adverse judgments entered in court actions filed by borrowers based upon allegations of fraud, misrepresentation, or dishonesty in the conduct of the person’s business.
(6) A copy of the fidelity bond currently in effect.
(7) Other information as required by rule of the commissioner.
(Amended by Stats. 2009, Ch. 160, Sec. 52. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50123.

50123. (a) A residential mortgage lender license shall remain in effect until suspended, surrendered, or revoked.
(b) A residential mortgage lender licensee that ceases to engage in the business regulated by this division and desires to no longer be licensed shall inform the commissioner in writing and, at that time, surrender the license and all other indicia of licensure to the commissioner. The licensee shall file a plan for the withdrawal from regulated business, and the plan shall include a timetable for the disposition of the business. The plan shall also include a closing audit, review, or other agreed upon procedures performed by an independent certified public accountant prescribed by rule or order of the commissioner. Upon receipt of the written notice and plan, the commissioner shall review the plan and, if satisfactory to the commissioner, shall accept the surrender of the license. A license is not surrendered until its tender is accepted in writing by the commissioner after a review, and a finding has been made on the licensee’s plan required to be filed by this section, and a determination has been made that there is no violation of this law.
(c) A residential mortgage lender or servicer licensee may not surrender its license under this division and, under the authority of a real estate license, subsequently engage in residential mortgage lending or servicing activities that are subject to this division, unless the licensee has been licensed under this division for a period of five years or more.
(Amended by Stats. 2009, Ch. 160, Sec. 53. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50125.

50125. The commissioner may refuse to issue a residential mortgage lender or servicer license if any of the following apply:
(a) The applicant is not in material compliance with a provision of this division or an order or rule of the commissioner.
(b) The commissioner cannot make the findings specified in subdivision (c) of Section 50121.
(c) A material requirement for issuance of a license has not been met.
(Amended by Stats. 2009, Ch. 160, Sec. 55. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50126.

50126. (a) Upon reasonable notice and opportunity to be heard, the commissioner may deny an application for any of the following reasons:
(1) A false statement of a material fact has been made in the application.
(2) Any officer, director, general partner, or person owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant has, within the last 10 years, (A) been convicted of, or pleaded nolo contendere to, a crime or (B) committed any act involving dishonesty, fraud, or deceit, if the crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with this division.
(3) The applicant or any officer, director, general partner, or person owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or 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.
(4) The applicant employs a mortgage loan originator who is not licensed in this state, unless the mortgage loan originator is exempt from licensure.
(b) The application shall be considered withdrawn within the meaning of this section if the applicant fails to respond to a written notification of a deficiency in the application within 90 days of the date of the notification.
(c) The commissioner shall, within 60 days from the filing of a full and complete application for a license, including the receipt of background and investigative reports from the Department of Justice or other government agencies, and the payment of the fees required by Section 50121, issue either a residential mortgage lender or servicer license or a statement of issues prepared in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(Amended by Stats. 2009, Ch. 160, Sec. 56. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50127.

50127. The proceedings for a denial of a license shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner has all the powers granted therein.
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50128.

50128. As used in this act, the term “principal officer” means an officer with direct responsibility for the conduct of the residential mortgage lender or servicer licensee’s or license applicant’s lending or servicing activities in this state.
(Amended by Stats. 2009, Ch. 160, Sec. 57. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 2 - Licensing: Residential Mortgage Lender › Section 50129.

50129. (a) A residential mortgage lender or servicer licensed under this chapter may, under the authority of that license and subject to the provisions of this division, do both of the following:
(1) Engage as a principal in the business of buying from or selling to institutional investors residential mortgage loans by using or advancing one’s own funds.
(2) Engage, pursuant to a written agency contract with an institutional lender specified in paragraph (1), (2), or (4) of subdivision (k) of Section 50003, in the business of soliciting, processing applications, or applying residential loan underwriting criteria, but not engage in the business of brokerage services pursuant to this subdivision, for residential mortgage loans for that lender, using or advancing the funds of that lender, provided that no fees or charges may be demanded or collected by the residential mortgage lender licensee for any performance or service, except fees demanded by, or collected on behalf of, the institutional lender, and that the licensee gives a written disclosure to the borrower, as soon as practicable but prior to loan closing, identifying the licensee and stating that the licensee is not the lender in the transaction but has contracted to provide soliciting, processing, or underwriting services for the lender. Separate schedules of the number and principal amount of the loans processed and underwritten shall be included in the licensee’s annual report required by subdivision (a) of Section 50401.
(b) The act of soliciting other institutional lenders with whom a residential mortgage lender licensee has concluded an agency contract pursuant to paragraph (2) of subdivision (a) for placement of a loan upon declination of that loan by another institutional lender contracted under paragraph (2) of subdivision (a), constitutes brokerage services, and may be pursued by the licensee only following execution of a loan brokerage agreement with the borrower as provided in this division.
(Amended by Stats. 2009, Ch. 160, Sec. 58. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 3 - Licensing: Residential Mortgage Loan Servicer › Section 50130.

50130. (a) A mortgage servicer shall file an application for licensure under this chapter with the commissioner to service mortgage loans in this state by satisfying the requirements of this chapter and the applicable provisions, as determined by the commissioner, of Chapter 2 (commencing with Section 50120).
(b) A mortgage servicer may apply for licensure by doing all of the following:
(1) Filing with the commissioner an application containing the information required by Section 50122, and any additional information the commissioner may require by rule.
(2) Paying the investigation and application fees required by Section 50121.
(3) Submitting any information required by Section 50124.
(4) Complying with the applicable provisions of Chapter 2 (commencing with Section 50120).
(c) A licensee may not make or service loans secured by real property pursuant to the authority of a license, or exemption from licensure, under the Real Estate Law.
(d) The commissioner may, pursuant to Section 50321, order a licensee to cease any other business conducted at any location where the licensee operates under the authority of a residential mortgage servicer license, if the commissioner finds that the conduct of that business has facilitated evasions of this division or the rules adopted pursuant to this division, or that the conduct of that business is in violation of any law to which that business is subject.
(e) A license for a business location outside this state shall constitute an agreement by the mortgage servicer to, at the discretion of the commissioner, either (1) make the licensee’s books, accounts, papers, records, and files available to the commissioner or the commissioner’s representatives in this state within 10 calendar days of a request from the commissioner or, (2) pay the reasonable expenses for travel, meals, and lodging of the commissioner or the commissioner’s representatives incurred during an investigation or examination made at the licensee’s location outside this state.
(f) The commissioner shall license a mortgage servicer upon completion of the investigation and issuance of the findings required by Section 50121, subject to Sections 50123, 50125, 50126, and 50127.
(g) A mortgage servicer licensed to service mortgage loans shall comply with all applicable requirements of California and federal law, including the Civil Code and Section 2609 of the federal Real Estate Settlement Procedures Act of 1974, as amended (12 U.S.C. Sec. 2601 et seq.).
(h) A license shall remain in effect until suspended, surrendered, or revoked.
(i) The commissioner may require an applicant or licensee to make some or all filings with the commissioner through the Nationwide Mortgage Licensing System and Registry.
(Amended by Stats. 2009, Ch. 160, Sec. 59. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 3.5 - Mortgage Loan Originators › Section 50141.

50141. (a) The commissioner shall deny an application for a mortgage loan originator license unless the commissioner makes at a minimum the following findings:
(1) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a subsequent formal vacation or set aside of such revocation shall not be deemed a revocation.
(2) (A) The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court during the seven-year period preceding the date of the application for licensing and registration, or at any time preceding the date of application, if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. Whether a particular crime is classified as a felony shall be determined by the law of the jurisdiction in which an individual is convicted.
(B) For purposes of this paragraph, an expunged or pardoned felony conviction shall not require denial of an application. However, the commissioner may consider the underlying crime, facts, or circumstances of an expunged or pardoned felony conviction when determining the eligibility of an applicant for licensure under this paragraph or paragraph (3).
(3) The applicant has demonstrated such financial responsibility, character, and general fitness as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this division.
(4) The applicant has completed the prelicensing education requirement described in Section 50142.
(5) The applicant has passed a written test that meets the test requirements described in Section 50143.
(6) The applicant is employed by, and subject to the supervision of, a residential mortgage lender or servicer that has obtained a license from the commissioner pursuant to this division.
(7) The surety bond of the residential mortgage lender or servicer employing the applicant covers the activities of the applicant and meets the requirements of Section 50205.
(b) Before denying a license under this section, the commissioner shall proceed as prescribed by Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code and shall have all the powers granted under that chapter.
(Amended by Stats. 2011, Ch. 444, Sec. 4. (SB 217) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 3.5 - Mortgage Loan Originators › Section 50142.

50142. (a) An applicant for a mortgage loan originator license shall complete at least 20 hours of education approved in accordance with subdivision (b). The education shall include at least the following:
(1) Three hours of instruction on federal law and regulations.
(2) Three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues.
(3) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
(4) Two hours of training related to relevant California law and regulations.
(b) For purposes of subdivision (a), prelicensing education courses shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry. Review and approval of a prelicensing education course shall include review and approval of the course provider.
(c) Nothing in this section shall preclude any prelicensing education course approved by the Nationwide Mortgage Licensing System and Registry that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.
(d) Prelicensing education may be offered either in a classroom, online, or by any other means approved by the Nationwide Mortgage Licensing System and Registry.
(e) The prelicensing education requirements approved by the Nationwide Mortgage Licensing System and Registry for any state other than California shall be accepted as credit toward completion of prelicensing education requirements in California.
(f) An individual previously licensed under this chapter applying to be licensed again must prove that he or she has completed all of the continuing education requirements for the year in which that individual last held the license.
(Amended by Stats. 2014, Ch. 123, Sec. 4. (SB 1459) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 20 - CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT › CHAPTER 3.5 - Mortgage Loan Originators › Section 50143.

50143. (a) An applicant for a mortgage loan originator license shall pass a qualified written test developed or otherwise deemed acceptable by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry.
(b) A written test shall not be treated as a qualified written test for purposes of subdivision (a) unless the test adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including the following:
(1) Ethics.
(2) Federal law and regulation relating to mortgage origination.
(3) State law and regulation relating to mortgage origination.
(4) Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
(c) Nothing in this section shall prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(d) (1) An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than 75 percent of correct answers to questions.
(2) An individual who fails the qualified written test may retake the test up to three consecutive times, although at least 30 days shall pass between each retesting.
(3) An applicant who fails three consecutive retests shall wait at least six months before retesting.
(4) A licensed mortgage loan originator who fails to maintain a valid license for a period of five years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.
(Amended by Stats. 2014, Ch. 123, Sec. 5. (SB 1459) Effective January 1, 2015.)