2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 3 - CAPITAL ACCESS COMPANIES › CHAPTER 3 - Licensing › Section 28152.

28152. If the commissioner finds all of the following with respect to an application for a license, the commissioner shall approve the application:
(a) That the applicant has a tangible net worth, exclusive of the funds to invest under subdivision (b), in an amount that is not less than two hundred fifty thousand dollars ($250,000) and that the tangible net worth is adequate for the applicant to transact business as a capital access company.
(b) That the applicant has funds to invest in an amount that is not less than five million dollars ($5,000,000).
(c) That the applicant has, in addition to the requirements of subdivisions (a) and (b), financial resources in an amount that is adequate for the applicant to pay its expenses in transacting business as a capital access company for a period of not less than three years from the date of licensure.
(d) That the directors, officers, and controlling persons of the applicant are each of good character and sound financial standing, that the directors and officers of the applicant are each competent to perform their functions with respect to the applicant, and that the directors and officers of the applicant are collectively adequate to manage the business of the applicant as a capital access company. For purposes of this subdivision, the commissioner shall accord weight to the prior or current successful operation of a commercial or investment enterprise.
(e) That none of the following persons are subject to any act or omission enumerated in subdivision (a), (e), (f), or (g) of Section 25212, or has been convicted of, or pled nolo contendere to, any offense or been held liable in any civil action specified in subdivision (b) of Section 25212, or is enjoined from any act, conduct, or practice specified in subdivision (c) of Section 25212, or is subject to any order specified in subdivision (d) of Section 25212:
(1) A person who is or will be a controlling person of the applicant.
(2) A person who makes or will make recommendations with respect to the investment of funds of the applicant.
(3) A person who is or will be a partner, principal executive officer, manager, or director of the applicant.
(4) A person who occupies or will occupy a similar status or who performs or will perform similar functions to those listed above in paragraphs (1) to (3), inclusive.
(5) An employee who materially aids or assists or will materially aid or assist in the applicant’s investment-related functions.
(6) A broker-dealer or agent who materially aids or assists or will materially aid or assist in the sale or distribution of any securities of the applicant.
(f) That it is reasonable to believe that the applicant, if licensed, will comply with the provisions of Section 6(a)(5) of the Investment Company Act of 1940, the applicable provisions of the Corporate Securities Law of 1968, this division, and of any regulation adopted or order issued under this division.
If, after notice and a hearing, the commissioner finds otherwise, the commissioner shall deny the application.
(Amended by Stats. 2010, Ch. 516, Sec. 6. (SB 1155) Effective January 1, 2011.)