reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31103.

31103. Every final order, decision, license, or other official act of the commissioner under this division is subject to judicial review in accordance with law.
(Amended by Stats. 1996, Ch. 1064, Sec. 631. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31104.

31104. In any proceeding under this division:
(a) The burden of proving that an application should be approved is upon the applicant.
(b) The burden of proving an exemption or an exception from a definition is upon the person claiming such exemption or such exception from a definition.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31105.

31105. No provision of this division shall be construed to require by implication that the commissioner hold a hearing on any matter.
(Amended by Stats. 1996, Ch. 1064, Sec. 632. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31106.

31106. No provision of this division shall be construed to require by implication that the commissioner make written findings on any matter.
(Amended by Stats. 1996, Ch. 1064, Sec. 633. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31107.

31107. Any application filed with the commissioner under this division or under any regulation or order issued under this division shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the commissioner so requires by regulation or order) be verified in such manner, as the commissioner may by regulation or order require.
(Amended by Stats. 1996, Ch. 1064, Sec. 634. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31108.

31108. In determining whether to approve any application filed under this division or under any regulation or order issued under this division, the commissioner may consider proposals made by the applicant, including (but not limited to) proposals to appoint officers, sell securities, or obtain financing; and, if in the opinion of the commissioner it is probable that such applicant will be able to implement any such proposal, the commissioner may make findings on the basis of such proposal; provided, however, that, whenever the commissioner approves an application on the basis, in whole or in part, of a proposal made by the applicant, the commissioner shall impose upon such approval appropriate conditions requiring that such applicant implement such proposal within such period of time as the commissioner may specify.
(Amended by Stats. 1996, Ch. 1064, Sec. 635. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31109.

31109. The commissioner may honor applications from interested persons for interpretive opinions regarding any provision of this division or of any regulation or order issued under this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 636. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31110.

31110. (a) The commissioner may (1) make such public or private investigations within or outside this state as he or she deems necessary to determine whether to approve any application filed with him or her under this division or under any regulation or order issued under this division, to determine whether any person has violated or is about to violate any provision of this division or of any regulation or order issued under this division, to aid in the enforcement of any provision of this division or of any regulation or order issued under this division, or to aid in the issuing of regulations or orders under this division, and (2) publish information concerning any violation of any provision of this division or of any regulation or order issued under this division.
(b) For purposes of any investigation, examination, or other proceeding under this division, the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry.
(c) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the superior court, upon application by the commissioner, may issue to such person an order requiring him to appear before the commissioner, there to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey such order of the court may be punished by the court as a contempt.
(Amended by Stats. 1996, Ch. 1064, Sec. 637. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31110.5.

31110.5. The commissioner may provide information relating to a licensee to the Small Business Administration or to any governmental agency which licenses or regulates the licensee or any parent or subsidiary of the licensee.
(Amended by Stats. 1996, Ch. 1064, Sec. 638. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31111.

31111. Notwithstanding the fact that the commissioner permits any licensee, any affiliate of a licensee, or any governmental agency to inspect or make copies of any record relating to a licensee or to any director, officer, employee, or affiliate of a licensee, or that the commissioner provides any record of this type, or a copy thereof, to any person described above, any provision of Section 7922.000 of the Government Code and any provision listed in Section 7920.505 of the Government Code that would, but for that fact, apply to that record, shall continue to apply to the record.
(Amended by Stats. 2021, Ch. 615, Sec. 115. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31112.

31112. The commissioner may refer such evidence as is available concerning any violation of this division or of any regulation or order issued under this division which constitutes a crime to the district attorney of the county in which such violation occurred, who may, with or without such a reference, institute appropriate criminal proceedings.
(Amended by Stats. 1996, Ch. 1064, Sec. 640. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31113.

31113. Before any applicant for a license is issued a license, such applicant and each parent and subsidiary of such applicant shall file, and each person who becomes a parent or subsidiary of a licensee shall, not less than 30 days after becoming a parent or subsidiary of such licensee, file, with the commissioner, in such form as the commissioner may by regulation or order require, an irrevocable consent appointing the commissioner and his or her successor from time to time in office to be such person’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against such person, or his or her successor, executor, or administrator, which arises under this division or under any regulation or order issued under this division after such consent has been filed, with the same force and validity as if served personally on such person. Service may be made by leaving a copy of the process at any office of the commissioner, but such service is not effective unless (a) the party making such service, who may be the commissioner, forthwith sends notice of such service and a copy of the process by registered or certified mail to the party served at his or her last address on file with the commissioner, and (b) an affidavit of compliance with this section by the party making service is filed in the case on or before the return date, if any, or within such further time as the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows.
(Amended by Stats. 1996, Ch. 1064, Sec. 641. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31114.

31114. Whenever any person, including any nonresident of this state, engages in conduct prohibited or made actionable by this division or by any regulation or order issued under this division, whether or not the person has filed a consent to service of process under Section 31113, and if personal jurisdiction over the person cannot otherwise be obtained in this state, that conduct shall be considered equivalent to the person’s appointment of the commissioner and the commissioner’s successor from time to time in office to be the person’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against him or her, or his or her successor, executor, or administrator, which grows out of that conduct and which is brought under this division or under any regulation or order issued under this division, with the same force and validity as if served on him or her personally. Service may be made by leaving a copy of the process in any office of the commissioner, but the service is not effective unless (a) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the party served at his or her last known address or takes other steps which are reasonably calculated to give actual notice, and (b) an affidavit of compliance with this section by the party making service is filed in the case on or before the return date, if any, or within such further time as the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows.
(Amended by Stats. 1996, Ch. 1064, Sec. 642. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31115.

31115. (a) Fees shall be paid to, and collected by, the commissioner, as follows:
(1) The fee for filing with the commissioner an application for a license shall be two thousand dollars ($2,000).
(2) The fee for filing with the commissioner an application for approval to acquire control of a licensee shall be one thousand dollars ($1,000).
(3) The fee for filing with the commissioner an application for approval for a licensee to merge with another corporation; an application for approval for a licensee to purchase all or substantially all of the business of another person, or an application for approval for a licensee to sell all or substantially all of its business or of the business of any of its offices to another licensee, shall be one thousand dollars ($1,000). However, whenever two or more applications relating to the same merger, purchase, or sale are filed with the commissioner, the fee for filing each application shall be the quotient determined by dividing one thousand dollars ($1,000) by the number of the applications.
(4) The fee for filing with the commissioner an application for approval to relocate the head office of a licensee shall be one hundred dollars ($100).
(5) The fee for issuing a license shall be twenty-five dollars ($25).
(6) Each person that is licensed under this division on June 1 of any year shall pay, on or before the following July 1, a fee of two thousand dollars ($2,000).
(7) Whenever the commissioner examines any licensee or any affiliate of a licensee, that licensee shall pay, within 10 days after receipt of a statement from the commissioner, a fee of seventy-five dollars ($75) per hour for each examiner engaged in the examination plus, in case it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner.
(b) (1) Each fee for filing an application with the commissioner shall be paid at the time when the application is filed with the commissioner.
(2) No fee for filing an application with the commissioner shall be refundable, regardless of whether the application is approved, denied, withdrawn, or abandoned.
(Amended by Stats. 1997, Ch. 375, Sec. 16. Effective January 1, 1998.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31150.

31150. (a) Except as otherwise provided in subdivision (b), no person transacting business in this state, other than a licensee, shall use any name or title which indicates that it is a business and industrial development corporation or otherwise represent that it is a business and industrial development corporation or that it is a licensee.
(b) Any California corporation which proposes to apply for a license or which has applied for a license, may, before being issued a license, use a name or title which indicates that it is a business and industrial development corporation if it meets all of the following requirements:
(1) The corporation shall append to the name the designation “proposed,” “in organization,” or “in formation,” or any similar designation which the commissioner may approve. The designation shall be set forth at least as conspicuously as the name or title.
(2) The corporation may perform only such acts as may be necessary (A) to apply for and obtain such license and (B) otherwise to prepare to commence transacting business as a licensee.
(3) The corporation shall not represent that it is a licensee.
(Amended by Stats. 1996, Ch. 1064, Sec. 644. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31152.

31152. 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 net worth in an amount which is not less than one million five hundred thousand dollars ($1,500,000) and which is adequate for the applicant to transact business as a business and industrial development corporation.
(b) That the applicant has lendable funds in an amount which is not less than one million five hundred thousand dollars ($1,500,000) and which is adequate for the applicant to transact business as a business and industrial development corporation.
(c) That the applicant has, in addition to the requirements of subdivision (b), financial resources in an amount which is adequate for the applicant to pay its expenses in transacting business as a business and industrial development corporation for a period of not less than three years.
(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 business and industrial development corporation. For purposes of this subdivision, the commissioner shall accord weight to the prior or current successful operation of a commercial enterprise.
(e) That it is reasonable to believe that the applicant, if licensed, will comply with all applicable provisions of this division and of any regulation or order issued under this division.
(f) That the applicant has reasonable promise of successful operation as a business and industrial development corporation.
(g) That the licensing of the applicant will promote the public convenience and advantage.
If, after notice and a hearing, the commissioner finds otherwise, he or she shall deny the application.
(Amended by Stats. 1996, Ch. 1064, Sec. 645. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31152.5.

31152.5. (a) For purposes of Section 31152, the commissioner may find:
(1) That a director, officer, or controlling person of an applicant is not of good character if the director, officer, or controlling person or any director or officer of the controlling person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.
(2) That it is not reasonable to believe that an applicant, if licensed, will comply with all applicable provisions of this division and of any regulation or order issued under this division if the applicant has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.
(b) Subdivision (a) shall not be deemed to be the only grounds upon which the commissioner may find, for purposes of Section 31152, that a director, officer, or controlling person of an applicant is not of good character or that it is not reasonable to believe that an applicant, if licensed, will comply with all applicable provisions of this division and of any regulation or order issued under this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 646. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31153.

31153. Before any applicant for a license is issued a license, each person which is a parent or subsidiary of such applicant shall file, and each person who becomes a parent or subsidiary of a licensee shall, not less than 30 days after becoming a parent or subsidiary of such licensee, file, with the commissioner, in such form as the commissioner may by regulation or order require, an agreement that such person shall comply with all applicable provisions of this division and of any regulation or order issued under this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 647. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31154.

31154. Whenever any application for a license has been approved and all conditions precedent to the issuance of such license have been fulfilled, the commissioner shall issue a license to the applicant.
(Amended by Stats. 1996, Ch. 1064, Sec. 648. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31157.

31157. No licensee shall represent that it is sponsored, recommended, or approved by, or that its abilities or qualifications have in any respect been passed upon by, the commissioner. Nothing in this section shall be deemed to prohibit a licensee from stating that it is licensed if the effect of such license is not misrepresented.
(Amended by Stats. 1996, Ch. 1064, Sec. 649. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 3 - Licensing › Section 31158.

31158. (a) The fact that a California corporation is licensed under any law other than this division shall not preclude such corporation from applying for or being issued a license under this division unless the transaction of business by such corporation as a licensee under such other law would violate any provision of this division or of any regulation or order issued under this division or would be contrary to the purposes of this division.
(b) The fact that a California corporation is licensed under this division shall not preclude such corporation from applying for or being issued a license under any other law unless the transaction of business by such corporation as a licensee under such other law would violate any provision of this division or of any regulation or order issued under this division or would be contrary to the purposes of this division.
(Amended by Stats. 1987, Ch. 867, Sec. 13.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 4 - Corporate Matters › ARTICLE 1 - Name › Section 31201.

31201. No licensee shall, except with the prior approval of the commissioner, transact business under any name other than its corporate name.
(Amended by Stats. 1996, Ch. 1064, Sec. 650. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 4 - Corporate Matters › ARTICLE 3 - Securities › Section 31220.

31220. Notwithstanding any other law of this state, but subject to the provisions of Section 31550:
(a) Any commercial bank, industrial bank, or trust company organized under the laws of this state may, with the prior approval of the commissioner, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by the commercial bank, industrial bank, or trust company shall not at any time exceed 2
1
/
2
percent of the shareholders’ equity of the commercial bank, industrial bank, or trust company. This subdivision shall not apply to any loan or other extension of credit made by a commercial bank or industrial bank organized under the laws of this state to a licensee in accordance with the Banking Law (Division 1 (commencing with Section 99)).
(b) Any savings association organized under the laws of this state may, with the prior approval of the commissioner, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by such savings association shall not at any time exceed
1
/
2
percent of the total outstanding loans of such savings association.
(c) Any insurance company admitted to transact insurance business in this state may, with the approval of the Insurance Commissioner, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by such insurance company shall not at any time exceed 2
1
/
2
percent of the unassigned surplus of such insurance company.
(d) Any public utility licensed or regulated by the Public Utilities Commission may, with the approval of the Public Utilities Commission, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by such public utility company shall not at any time exceed
1
/
2
percent of the total assets of such public utility company.
(Amended by Stats. 2000, Ch. 1015, Sec. 55. Effective September 30, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 4 - Corporate Matters › ARTICLE 4 - Distributions to Shareholders › Section 31231.

31231. No licensee shall, except with the prior approval of the commissioner, make, or obligate itself to make, any distribution to its shareholders.
(Amended by Stats. 1996, Ch. 1064, Sec. 652. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 4 - Corporate Matters › ARTICLE 4 - Distributions to Shareholders › Section 31232.

31232. If the commissioner finds, with respect to an application for approval for a licensee to make, or to obligate itself to make, a distribution to its shareholders:
(a) That for the applicant to make, or to obligate itself to make, the distribution will not endanger the applicant’s ability to provide financing assistance and management assistance to business firms in this state; and
(b) That for the applicant to make, or to obligate itself to make, the distribution will not be unsafe or unsound; the commissioner shall approve the application. If, after notice and a hearing, the commissioner finds otherwise, he or she shall deny the application.
(Amended by Stats. 1996, Ch. 1064, Sec. 653. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 4 - Corporate Matters › ARTICLE 4 - Distributions to Shareholders › Section 31233.

31233. Notwithstanding the provisions of Section 31232, unless an application for approval for a licensee to make, or to obligate itself to make, a distribution to its shareholders is approved, denied, withdrawn, or abandoned within a period of 45 days after such application is filed with the commissioner or, if the applicant consents to an extension of the period, within such extended period, such application shall be deemed to be approved by the commissioner as of the first day after such period of 45 days or such extended period, as the case may be.
For purposes of this section, an application for approval for a licensee to make, or to obligate itself to make, a distribution to its shareholders shall be deemed to be filed with the commissioner when such application, containing all the information required by the commissioner and otherwise complying with Section 31107, is received by the commissioner.
(Amended by Stats. 1996, Ch. 1064, Sec. 654. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 5 - Offices › ARTICLE 1 - General Provisions › Section 31302.

31302. Each office of a licensee shall be located in a place which is reasonably accessible to the public and shall, unless the commissioner approves otherwise, be open for the transaction of business during normal business hours on each business day.
(Amended by Stats. 1996, Ch. 1064, Sec. 655. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 5 - Offices › ARTICLE 2 - Establishing, Relocating, and Closing Offices › Section 31320.

31320. (a) No licensee shall relocate its head office without the prior approval of the commissioner.
(b) No licensee shall establish, relocate, or close any office (other than its head office) unless it files a report on the action with the commissioner not less than 30 days (or such shorter period as the commissioner may approve) before taking the action.
(Amended by Stats. 1996, Ch. 1064, Sec. 656. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 5 - Offices › ARTICLE 2 - Establishing, Relocating, and Closing Offices › Section 31322.

31322. If the commissioner finds, with respect to an application by a licensee for approval to relocate its head office:
(a) That the office at its proposed location will be reasonably accessible to the public;
(b) That it is reasonable to believe that the applicant will operate the office at its proposed location in compliance with all applicable provisions of this division and of any regulation or order issued under this division;
(c) That it will not be unsafe or unsound for the applicant to relocate the office; and
(d) That the relocation of the office will not be detrimental to the public convenience and advantage, or, if the relocation of the office would be detrimental to the public convenience and advantage, that the relocation of the office is necessary in the interests of the safety and soundness of the applicant; the commissioner shall approve the application. If, after notice and a hearing, the commissioner finds otherwise, the commissioner shall deny the application.
(Amended by Stats. 1996, Ch. 1064, Sec. 657. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31400.

31400. (a) Each licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition.
(b) No licensee shall commit any unsafe or unsound act.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31401.

31401. No licensee shall engage in any business other than one or more of the following:
(a) The business of providing financing assistance and management assistance to business firms.
(b) The business of a state development company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration.
(c) The business of a local development company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration.
(d) The business of a small business investment company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration.
(Amended by Stats. 1987, Ch. 867, Sec. 21.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31402.

31402. Each licensee shall use its best efforts:
(a) To provide financing assistance to business firms in this state in cooperation with the Small Business Administration pursuant to Section 7(a) of the Small Business Act;
(b) To obtain loans from the Small Business Administration pursuant to Sections 501 and 502 of the Small Business Investment Act of 1958; and
(c) Otherwise to cooperate with, and meet the requirements of, the Small Business Administration for the purpose of providing financing assistance and management assistance to business firms in this state.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31403.

31403. (a) Except as provided in subdivision (b), no licensee shall provide financing assistance or management assistance to any person other than a business firm in this state.
(b) (1) If a licensee provides financing assistance to a business firm in this state, the licensee may also provide financing assistance and management assistance to the business firm with respect to business transacted in any other state of the United States or the District of Columbia.
(2) If a licensee provides financing assistance to a business firm in this state which is a franchisor, the licensee may also provide financing assistance and management assistance to any business firm in another state which is a franchisee of the franchisor.
(3) If a licensee provides financing assistance to a business firm in this state which is a franchisee of a franchisor, the licensee may also provide financing assistance and management assistance to any business firm in another state which is a franchisee of the franchisor.
(Amended by Stats. 1987, Ch. 867, Sec. 22.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31404.

31404. Except as otherwise provided in subdivision (b) of Section 31403, no licensee shall provide financing assistance or management assistance for use outside this state.
(Amended by Stats. 1987, Ch. 867, Sec. 23.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31405.

31405. Except as otherwise provided in subdivisions (b), (c), and (d) of Section 31406:
(a) No licensee shall provide financing assistance or management assistance to any business firm the primary business of which is to provide financing assistance or management assistance.
(b) No licensee shall provide financing assistance to any business firm for the purpose of providing financing assistance to other persons or discharging, in whole or in part, any obligation incurred for such purpose.
(Amended by Stats. 1987, Ch. 867, Sec. 24.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31406.

31406. No licensee shall, either by itself or in concert with any of its directors, officers, principal shareholders, or affiliates, any other licensee, or any of the directors, officers, principal shareholders, or affiliates of any other licensee, acquire or hold control of any business firm, except as follows:
(a) Any licensee which has provided financing assistance to a business firm may, if and to the extent necessary to protect its interests as a creditor of, or investor in, such business firm, acquire and hold control of such business firm; provided, however, that such licensee shall divest itself of such control as soon as practicable and in any event within three years after acquiring such control or such longer period as the commissioner may approve.
(b) Any licensee may, with the prior approval of the commissioner, acquire and hold control of a corporation which is licensed as a small business investment company under the Small Business Investment Act of 1958.
(c) Any licensee may, with the prior approval of the commissioner, acquire and hold control of a corporation which is licensed as a personal property broker under Division 9 (commencing with Section 22000).
(d) Any licensee may, with the prior approval of the commissioner, acquire and hold control of a corporation which transacts business as a local development company in accordance with all applicable provisions of the Small Business Investment Act of 1958 and of the regulations of the Small Business Administration.
(Amended by Stats. 1996, Ch. 1064, Sec. 658. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31408.

31408. No licensee shall, except with the prior approval of the commissioner, guarantee the debt of any other person or otherwise lend its credit to any other person; provided, however, that, whenever a licensee sells to another person an obligation to pay money, which obligation is owned by such licensee, such licensee may guarantee the payment of such obligation.
(Amended by Stats. 1996, Ch. 1064, Sec. 659. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31409.

31409. No licensee shall, except with the prior approval of the commissioner, provide a lien or security interest in any of its property for the purpose of securing an obligation of, or an obligation incurred for the benefit of, any other person.
(Amended by Stats. 1996, Ch. 1064, Sec. 660. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 6 - Transaction of Business › Section 31410.

31410. This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the State Constitution. The restrictions upon rates of interest contained in Section 1 of Article XV of the State Constitution shall not apply to any loans made by, or forbearances of, any licensee. This section shall apply retroactively to any such loans or forbearances.
(Added by renumbering Section 31953 by Stats. 1987, Ch. 867, Sec. 31.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31501.

31501. Each licensee shall make and keep such books, accounts, and other records in such form and in such manner as the commissioner may by regulation or order require. All records so required shall be kept at such place and shall be preserved for such time as the commissioner may by regulation or order specify.
(Amended by Stats. 1996, Ch. 1064, Sec. 661. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31502.

31502. No licensee shall, except with the prior approval of the commissioner, enter or carry on its books or records any asset at a valuation exceeding the actual cost of such asset to such licensee.
(Amended by Stats. 1996, Ch. 1064, Sec. 662. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31503.

31503. The commissioner may by order require a licensee to write down any asset on its books and records to a valuation which represents its then value.
(Amended by Stats. 1996, Ch. 1064, Sec. 663. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31504.

31504. Each licensee shall, not more than 90 days after the close of each of its fiscal years or within such longer period as the commissioner may by regulation or order specify, file with the commissioner an audit report containing:
(a) Financial statements (including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position or, in the case of a licensee which is a California nonprofit corporation, comparable financial statements) for or as of the end of such fiscal year, prepared with audit by an independent certified public accountant or an independent public accountant in accordance with generally accepted accounting principles;
(b) Report, certificate, or opinion of such independent certified public accountant or independent public account, stating that such financial statements were prepared in accordance with generally accepted accounting principles; and
(c) Such other information as the commissioner may by regulation or order require.
(Amended by Stats. 1996, Ch. 1064, Sec. 664. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31506.

31506. Each licensee, each director, officer, and employee of a licensee, and each parent and subsidiary of a licensee shall file with the commissioner such reports as and when the commissioner may by regulation or order require. In addition, each affiliate of a licensee (other than a parent or subsidiary of the licensee) shall file with the commissioner such reports regarding transactions between the affiliate and the licensee as and when the commissioner may require. Each report shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the commissioner so requires by regulation or order) be verified in such manner, as the commissioner may by regulation or order require.
(Amended by Stats. 1996, Ch. 1064, Sec. 665. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31507.

31507. (a) The commissioner shall examine each licensee not less frequently than once each calendar year.
(b) (1) The commissioner may at any time examine any licensee or any parent or subsidiary of a licensee.
(2) The commissioner may at any time examine any office of any licensee within or outside of this state.
(3) The commissioner may at any time examine any affiliate of a licensee (other than a parent or subsidiary of the licensee) but only with respect to matters relating to transactions between the affiliate and the licensee.
(c) The directors, officers, and employees of any licensee or of any affiliate of a licensee being examined by the commissioner and any other person having custody of any of the books, accounts, or records of the licensee or affiliate shall exhibit to the commissioner, on request, any or all of the books, accounts, and other records of the licensee or affiliate and shall otherwise facilitate the examination so far as it may be in their power to do so. However, in the case of an examination of an affiliate of a licensee other than a parent or subsidiary of the licensee, only books, accounts, and records of the affiliate that relate to transactions between the affiliate and the licensee shall be subject to this subdivision.
(d) The commissioner may, if in his or her opinion it is necessary in the examination of any licensee or of any affiliate of a licensee, retain any certified public accountant, attorney, appraiser, or other person to assist him or her, and the licensee shall pay, within 10 days after receipt of a statement from the commissioner, the fees of that person.
(Amended by Stats. 2003, Ch. 404, Sec. 20. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31508.

31508. (a) No licensee shall, except with the prior approval of the commissioner, cause or permit any other person to make or keep any of its books, accounts, or other records.
(b) In case any person other than a licensee makes or keeps any of the books, accounts, or other records of such licensee, the provisions of this division and of any regulation or order issued under this division shall apply to such person with respect to the performance of such services and with respect to such books, accounts, and other records to the same extent as if such person were such licensee.
(c) In case any person other than an affiliate of a licensee makes or keeps any of the books, accounts, or other records of such affiliate or, in the case of an affiliate other than a parent or subsidiary of the licensee, the books, accounts, and other records of the affiliate that relate to transactions between the affiliate and the licensee, the provisions of this division and of any regulation or order issued under this division shall apply to such person with respect to such books, accounts, and other records to the same extent as if such person were such affiliate.
(Amended by Stats. 1996, Ch. 1064, Sec. 667. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 7 - Records, Reports, and Examinations › Section 31509.

31509. The commissioner may publish any report filed with him or her under this division or under any regulation or order issued under this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 668. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 8 - Acquisition of Control › Section 31550.

31550. No person shall, except with the prior approval of the commissioner, acquire control of a licensee.
(Amended by Stats. 1996, Ch. 1064, Sec. 669. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 8 - Acquisition of Control › Section 31551.

31551. If the commissioner finds, with respect to an application for approval to acquire control of a licensee:
(a) That the applicant and the directors and officers of the applicant are of good character and sound financial standing;
(b) That it is reasonable to believe that, if the applicant acquires control of the licensee, the applicant will comply with all applicable provisions of this division and of any regulation or order issued under this division; and
(c) That the applicant’s plans, if any, to make any major change in the business, corporate structure, or management of the licensee are not detrimental to the safety and soundness of the licensee or to the public convenience and advantage;
The commissioner shall approve the application. If, after notice and a hearing, the commissioner finds otherwise, he or she shall deny the application.
(Amended by Stats. 1996, Ch. 1064, Sec. 670. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 8 - Acquisition of Control › Section 31551.5.

31551.5. (a) For purposes of Section 31551, the commissioner may find:
(1) That an applicant or a director or officer of an applicant is not of good character if such person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.
(2) That an applicant’s plan to make a major change in the management of a licensee is detrimental to the safety and soundness of the licensee and to the public convenience and advantage if the plan provides for a person who has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty to become a director or officer of the licensee.
(b) Subdivision (a) shall not be deemed to be the only grounds upon which the commissioner may find, for purposes of Section 31551, that an applicant or a director or officer of an applicant is not of good character or that an applicant’s plan to make a major change in the management of a licensee is detrimental to the safety and soundness of a licensee or to the public convenience and advantage.
(Amended by Stats. 1996, Ch. 1064, Sec. 671. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 8 - Acquisition of Control › Section 31552.

31552. The commissioner may, by such regulations or orders as he or she deems necessary and appropriate, either unconditionally or upon specified terms and conditions or for specified periods, exempt from the provisions of this chapter any person or transaction or class of persons or transactions, if he or she finds such action to be in the public interest and that the regulation of such persons or transactions is not necessary for the purposes of this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 672. Effective January 1, 1997. Operative July 1, 1997.)