reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 1 - Administrative Actions › Section 23055.

23055. The proceedings under this article 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 in all cases the commissioner has all the powers granted therein.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 1 - Administrative Actions › Section 23056.

23056. Every order, decision, license, or other official act of the commissioner is subject to judicial review in accordance with law.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 1 - Administrative Actions › Section 23057.

23057. On December 1, 2007, the commissioner shall report to the Governor and the Legislature on its implementation of this division. The report shall include, at a minimum, information regarding the demand for deferred deposit transactions, the growth and trends in the industry, common practices for conducting the business of deferred deposit transactions, the advertising practices of the industry, including any violations of Section 23027, and any other information the commissioner deems necessary to inform the Governor and the Legislature regarding potential legislation that may be necessary to protect the people of the State of California. The commissioner’s recommendations for future action may include, but are not limited to, changes in the fees charged to consumers, specifications regarding the length of time for deferred deposit transactions, maximum amount provided to consumers, additional regulation of advertising practices, and the implementation of an installment loan product in lieu of a deferred deposit transaction as described in this division.
As the commissioner conducts this study, licensees shall be required to supply all information the commissioner deems necessary. The study shall be made public and may not include any proprietary information.
(Amended by Stats. 2004, Ch. 312, Sec. 1. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 1 - Administrative Actions › Section 23058.

23058. (a) If, upon inspection, examination or investigation, based upon a complaint or otherwise, the department has cause to believe that a person is engaged in the business of deferred deposit transactions without a license, or a licensee or person is violating any provision of this division or any rule or order thereunder, the department may issue a citation to that person in writing, describing with particularity the basis of the citation. Each citation may contain an order to desist and refrain and an assessment of an administrative penalty not to exceed two thousand five hundred dollars ($2,500). All penalties collected under this section shall be deposited in the State Corporations Fund.
(b) The sanctions authorized under this section shall be separate from, and in addition to, all other administrative, civil, or criminal remedies.
(c) If within 30 days from the receipt of the citation of the person cited fails to notify the department that the person intends to request a hearing as described in subdivision (d), the citation shall be deemed final.
(d) Any hearing under this section 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 in all states the commissioner has all the powers granted therein.
(e) After the exhaustion of the review procedures provided for in this section, the department may apply to the appropriate superior court for a judgment in the amount of the administrative penalty and order compelling the cited person to comply with the order of the department. The application, which shall include a certified copy of the final order of the department, shall constitute a sufficient showing to warrant the issuance of the judgment and order.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 2 - Penalties for Misconduct › Section 23060.

23060. (a) If any amount other than, or in excess of, the charges or fees permitted by this division is willfully charged, contracted for, or received, a deferred deposit transaction contract shall be void, and no person shall have any right to collect or receive the principal amount provided in the deferred deposit transaction, any charges, or fees in connection with the transaction.
(b) If any provision of this division is willfully violated in the making or collection of a deferred deposit transaction, the deferred deposit transaction contract shall be void, and no person shall have any right to collect or receive any amount provided in the deferred deposit transaction, any charges, or fees in connection with the transaction.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 2 - Penalties for Misconduct › Section 23061.

23061. (a) If any amount other than, or in excess of, the charges permitted by this division is charged, contracted for, or received in connection with a deferred deposit transaction, for any reason other than a willful act of the licensee, the licensee shall forfeit all charges and fees on the deferred deposit transaction and may collect or receive only the principal amount of the transaction.
(b) Subdivision (a) shall not apply to an error in computation if (1) the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid that error, and (2) within 60 days of discovering the error the licensee notifies the customer of the error and makes whatever adjustments in the account are necessary to correct the error.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 2 - Penalties for Misconduct › Section 23062.

23062. (a) If any provision of this division is violated in the making or collection of a deferred deposit transaction, for any reason other than a willful act of the licensee, the licensee shall forfeit all charges and fees on the deferred deposit and may collect or receive only the principal amount.
(b) Subdivision (a) shall not apply to a violation if (1) the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error, and (2) within 30 days of discovering the error the licensee notified the customer of the error and rectified the error by making the appropriate changes in the documents or account and by taking other action necessary to correct the error.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 2 - Penalties for Misconduct › Section 23063.

23063. No provision imposing liability under this division, including the provisions of subdivision (a) of Section 23061 and subdivision (a) of Section 23062, shall apply to any act done or omitted in good faith in conformity with any written general rule, regulation, or specific ruling of the commissioner, notwithstanding that after the act or omission has occurred, the written general rule, regulation, or specific ruling is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 3 - Civil Damages › Section 23064.

23064. Any person who is injured by any violation of this division may bring an action for the recovery of damages, an equity proceeding to restrain and enjoin those violations, or both. The amount awarded may be up to three times the damages actually incurred, but in no event less than the amount paid by the aggrieved consumer to a person subject to this section. If the plaintiff prevails, the plaintiff shall be awarded reasonable attorney’s fees and costs. If a court determines by clear and convincing evidence that a breach or violation was willful, the court, in its discretion, may award punitive damages in addition to the amounts set forth above. Upon application, the court may also grant any equitable relief that it deems proper, including, but not limited to, a claim for restitution and disgorgement.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 3 - Civil Damages › Section 23064.5.

23064.5. The rights, remedies, and penalties established by this division are cumulative to the rights, remedies, or penalties established under other laws. It is not necessary to exhaust administrative remedies in order to pursue the civil remedies provided for in this act.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 4 - Crimes › Section 23065.

23065. Any person, including a partner or officer of an entity that is a licensee, who willfully violates any provision of this division or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), or by imprisonment in a county jail for not more than one year, or by both that fine and imprisonment. However, no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority in Article 1 (commencing with Section 23045).
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Section operative on December 31, 2004, or sooner, pursuant to Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 5 - Transition Provisions › Section 23070.

23070. (a) The Legislature finds and declares that it is in the public interest for the administration and enforcement of this division to be undertaken by the Department of Financial Protection and Innovation.
(b) It is therefore the intent of the Legislature to transfer the existing responsibilities relating to administration and enforcement of check cashers that engage in activities subject to this division from the Department of Justice to the Department of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 145. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 5 - Transition Provisions › Section 23071.

23071. The Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation shall succeed to, and are vested with, all duties, powers, purposes, responsibilities, and jurisdiction of the Department of Justice as they relate to check cashers who engage in the activities subject to this division.
(Amended by Stats. 2022, Ch. 452, Sec. 146. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 5 - Transition Provisions › Section 23072.

23072. The Department of Financial Protection and Innovation may use the unexpended balance of funds available for use in connection with the performance of duties of the Department of Justice to which the Department of Financial Protection and Innovation succeeds pursuant to Section 23071.
(Amended by Stats. 2022, Ch. 452, Sec. 147. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 5 - Transition Provisions › Section 23073.

23073. All officers and employees of the Department of Justice who, on the operative date of this division, are performing any duty, power, purpose, responsibility, or jurisdiction to which the Department of Financial Protection and Innovation succeeds, and who are serving in the civil service, other than as temporary employees or persons in positions exempted from civil service, shall be transferred to the Department of Financial Protection and Innovation. The status, position, and rights of those persons shall not be affected by the transfer and shall be retained by those persons as officers and employees of the Department of Financial Protection and Innovation, pursuant to Part 2 (commencing with Section 18500) of Division 5 of Title 2 of the Government Code.
(Amended by Stats. 2022, Ch. 452, Sec. 148. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 5 - Transition Provisions › Section 23074.

23074. The Department of Financial Protection and Innovation shall have possession and control of all records, criminal history information, papers, equipment, supplies, moneys, funds, appropriations, licenses, permits, contracts, claims, judgments, land, and other property, real or personal, connected with the administration of, or held for the benefit or use of, the Department of Justice for the performance of the functions transferred to the Department of Financial Protection and Innovation pursuant to Section 23071.
(Amended by Stats. 2022, Ch. 452, Sec. 149. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23100.

23100. (a) Check cashers that hold a valid permit prior to January 1, 2003, issued pursuant to Section 1789.37 of the Civil Code, and that have been making deferred deposits prior to January 1, 2003, shall do the following prior to engaging in the business of deferred deposits on or after December 31, 2004:
(1) Pay the assessment on or before May 15, 2003, pursuant to the provisions of this division for the 2003–04 fiscal year. The fees and assessments paid pursuant to this subdivision shall be nonrefundable.
(2) On or before May 15, 2003, submit a license application and pay a license fee pursuant to Article 2 (commencing with Section 23005).
(b) Any person that intends to engage in the business of deferred deposits after December 31, 2004, and that holds a check cashing permit from the Attorney General on or before January 2003 and fails to submit a license application or pay a license fee as provided in this subdivision, shall upon the request of the commissioner and applying for a license forfeit to the people of the state a sum of twenty-five dollars ($25) for every day or part of a day that the submission or payment is delayed or withheld. Applications will be processed in the order of the date received by the commissioner. Applications submitted prior to December 31, 2004, shall not be subject to subdivision (c) of Section 23011.
(c) The commissioner shall issue a license to a licensee under this division upon receiving payment of the assessment for the 2003–04 fiscal year, the license application, and fee and any additional information the commissioner may require in the application to demonstrate compliance with provisions of this division. The amount collected shall be deposited in the State Corporations Fund and shall be subject to appropriation by the Legislature for the 2003–04 fiscal year.
(Amended by Stats. 2004, Ch. 17, Sec. 16. Effective February 23, 2004. Provisions of this section are operative (no later than Dec. 31, 2004) as prescribed in Section 23104 and by Stats. 2004, Ch. 17, Sec. 20.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23101.

23101. Regulations of the commissioner adopted prior to June 30, 2003, to implement this division shall be adopted as emergency regulations. Upon receipt of the regulations, the Office of Administrative Law shall file the regulations with the Secretary of State for immediate effectiveness.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Provisions of this section are operative (no later than Dec. 31, 2004) as prescribed in Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23102.

23102. The deferred deposits made pursuant to a permit issued under Section 1789.37 of the Civil Code prior to December 31, 2004, shall be subject to and enforced to the extent valid under Sections 1789.30 to 1789.37, inclusive, of the Civil Code, as if those sections were not repealed. Any regulation, order, or other action adopted, prescribed, taken, or performed by the Department of Justice or by an officer of that department in connection with deferred deposit transactions made prior to December 31, 2004, shall continue to apply to those transactions. No suit, action, or other proceeding lawfully commenced by or against the Department of Justice or any other officer of the state in relation to deferred deposit transactions made prior to December 31, 2004, shall abate by reason of the transfer of authority concerning deferred deposit transactions to the Department of Financial Protection and Innovation pursuant to Section 23071.
(Amended by Stats. 2022, Ch. 452, Sec. 150. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23103.

23103. It is the intent of the Legislature that this division shall be administered and enforced with sufficient program resources and funding including personnel to examine licensees as often as the commissioner deems necessary and appropriate but at least once every two years, and to authorize enforcement actions that are necessary and appropriate to protect the public. This act should be administered and enforced only to the extent funds are appropriated by the Legislature and made available for this purpose.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Provisions of this section are operative (no later than Dec. 31, 2004) as prescribed in Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23104.

23104. Except as provided in this article, the provisions of this division shall become effective on January 1, 2003, and shall become operative on December 31, 2004. However, the commissioner shall have the power and authority to implement the provisions of this division prior to December 31, 2004.
(Amended by Stats. 2004, Ch. 17, Sec. 18. Effective February 23, 2004. Note: This section prescribes the operative date (no later than Dec. 31, 2004) for provisions of Division 10, commencing with Section 23000. See also Stats. 2004, Ch. 17, Sec. 20.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23105.

23105. The provisions of this division are severable. If any provision of this division or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Provisions of this section are operative (no later than Dec. 31, 2004) as prescribed in Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10 - CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW › CHAPTER 3 - Enforcement › ARTICLE 6 - Miscellaneous › Section 23106.

23106. This division creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution.
(Added by Stats. 2002, Ch. 777, Sec. 10. Effective January 1, 2003. Provisions of this section are operative (no later than Dec. 31, 2004) as prescribed in Section 23104.)
2023 California Code › Financial Code - FIN › DIVISION 10.5 - Financial Empowerment Fund › Section 24000.

24000. (a) There is hereby established in the State Treasury the Financial Empowerment Fund. Notwithstanding Section 13340 of the Government Code, moneys in the fund are hereby continuously appropriated without regard to fiscal years to the Commissioner of the Department of Financial Protection and Innovation for purposes of the act.
(b) Notwithstanding Section 13340 of the Government Code, the Controller shall, on July 1, 2020, transfer from the State Corporations Fund to the Financial Empowerment Fund the sum of four million dollars ($4,000,000) plus an amount estimated by the department to be the reasonable costs to administer the division.
(c) The Commissioner of the Department of Financial Protection and Innovation shall use moneys in the Financial Empowerment Fund for allocation to fund financial education and financial empowerment programs and services for at-risk populations in California, as described in Section 24001. The commissioner may additionally use moneys in the Financial Empowerment Fund to cover its costs to administer this act.
(Amended by Stats. 2021, Ch. 77, Sec. 3. (AB 137) Effective July 16, 2021. Repealed as of January 1, 2030, pursuant to Section 24002.)
2023 California Code › Financial Code - FIN › DIVISION 10.5 - Financial Empowerment Fund › Section 24002.

24002. (a) This division shall remain in effect only until January 1, 2030, and as of that date is repealed.
(b) Upon the repeal of this division, the Controller shall transfer any moneys remaining in the Financial Empowerment Fund to the Financial Protection Fund.
(Amended by Stats. 2021, Ch. 77, Sec. 5. (AB 137) Effective July 16, 2021. Repealed as of January 1, 2030, by its own provisions. Note: Repeal affects Division 10.5, commencing with Section 24000.)
2023 California Code › Financial Code - FIN › DIVISION 11.5 - NATIONAL HOUSING ACT LOANS › CHAPTER 1 - Investments › Section 27000.

27000. Insurance companies, personal finance companies, mortgage companies, mortgage insurance companies, building and loan associations, trust companies, fiduciaries, or fiduciary institutions may invest in, or purchase such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of real estate, including any part of an issue of notes or bonds secured by such first liens, which have been accepted for insurance by the Federal Housing Administrator. The investment or purchase may be made with their funds or the money in their custody or possesion, including but not being restricted to, all trust funds or funds the investment of which is regulated by law.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 11.5 - NATIONAL HOUSING ACT LOANS › CHAPTER 1 - Investments › Section 27001.

27001. Insurance companies, personal finance companies, mortgage companies, mortgage insurance companies, building and loan associations, trust companies, fiduciaries, fiduciary institutions, or public or private agencies may invest in, or purchase obligations of national mortgage associations. The investment or purchase may be made with their funds or the money in their custody or possession, including but not being restricted to, all trust funds, or funds the investment of which is regulated by law.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 11.5 - NATIONAL HOUSING ACT LOANS › CHAPTER 1 - Investments › Section 27003.

27003. Insurance companies, personal finance companies, mortgage companies, mortgage insurance companies, building and loan associations, or trust companies may make such loans secured by real property or leasehold, as the Federal Housing Administrator insures, or makes a commitment to insure, and may obtain such insurance.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 11.5 - NATIONAL HOUSING ACT LOANS › CHAPTER 1 - Investments › Section 27004.

27004. No law of this State, prescribing the nature, amount or form of security or requiring security upon which loans or investments may be made, or prescribing or limiting interest rates upon loans or advances of credit or prescribing or limiting the period for which loans or investments may be made, applies to loans or investments made pursuant to this chapter.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 11.5 - NATIONAL HOUSING ACT LOANS › CHAPTER 2 - Securities for Deposit › Section 27050.

27050. Wherever, by statute of this State, collateral is required as security for the deposit of public or other funds, or deposits are required to be made with any public official or department, or an investment of capital or surplus, or a reserve or other fund, is required to be maintained consisting of designated securities, the notes, and bonds secured by mortgages insured, and debentures issued, by the Federal Housing Administrator, and obligations of national mortgage associations are eligible securities for such purposes.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 12 - COLLEGE LOANS › Section 28000.

28000. (a) Pursuant to the authority contained in Section 1 of Article XV of the State Constitution, and subject to subdivision (b), educational institutions of collegiate grade are authorized to make loans or forbearances to finance student educational expenses including tuition, room, and board, and other costs of attendance or living at the institution, at rates not to exceed the higher of:
(1) Ten percent per annum.
(2) Five percent per annum plus the rate established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a) of the Federal Reserve Act as now in effect or hereafter from time to time amended or, if there is no such single determinable rate of advances, the closest counterpart of this rate as shall be designated by the Commissioner of Financial Institutions of the State of California unless some other person or agency is delegated such authority by the Legislature. The date of determining the applicable rate established by the Federal Reserve bank shall be the 25th day of the month preceding the earlier of the date of execution of the contract to make the loan or forbearance, or the date of making the loan or forbearance.
(b) Where the institution has obtained a loan specifically in order to make loans to finance student educational expenses, the rate of interest shall not exceed the lower of:
(1) The rate determined pursuant to subdivision (a).
(2) One percentage point in excess of the interest rate imposed upon the loan made to the institution, as of the date of execution of the contract to make the student loan to such extent the foregoing creates and authorizes a class of exempt persons pursuant to Section 1 of Article XV of the Constitution.
(c) Solely with respect to loans or forbearances made by educational institutions of collegiate grade to their faculty or staff, secured by real property consisting of a residential dwelling, these institutions are hereby declared to be an exempt class of persons as this term is used in Section 1 of Article XV of the Constitution.
(Amended by Stats. 1996, Ch. 1064, Sec. 618. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 1 - General Provisions › ARTICLE 1 - Short Title › Section 28100.

28100. This division may be known and cited as the “Student Loan Servicing Act.”
(Added by Stats. 2016, Ch. 824, Sec. 2. (AB 2251) Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 1 - General Provisions › ARTICLE 2 - Requirement for License › Section 28102.

28102. (a) No person shall engage in the business of servicing a student loan in this state without first obtaining a license pursuant to this division. A license shall not be transferable or assignable.
(b) This division shall not apply to any of the following:
(1) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States that is authorized to transact business in this state.
(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state.
(3) A savings and loan association, savings bank, or credit union organized under the laws of this or any other state that is authorized to transact business in this state.
(4) A public postsecondary educational institution or a private nonprofit postsecondary educational institution servicing a student loan it extended to the borrower.
(5) A nonprofit community service organization that meets all the criteria of Section 12104.
(6) In connection with its responsibilities as a guaranty agency engaged in default aversion, a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education under Section 428(b) of the Higher Education Act of 1965 (20 U.S.C. Sec. 1078(b)).
(c) A private postsecondary educational institution not exempted from the requirements of this division pursuant to subdivision (b) shall not be required to comply with this division for the servicing of a student loan it extended to a borrower that a licensee is servicing pursuant to a servicing agreement with the private postsecondary educational institution for that student loan.
(Amended by Stats. 2018, Ch. 379, Sec. 2. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 1 - Commissioner of Financial Protection and Innovation › Section 28106.

28106. (a) The commissioner shall administer the provisions of this division and may promulgate rules and regulations and issue orders consistent with that authority.
(b) Without limitation, the functions, powers, and duties of the commissioner include all of the following:
(1) To issue or refuse to issue a license as provided by this division.
(2) To revoke or suspend for cause any license as provided by this division.
(3) To keep records of licenses issued under this division.
(4) To receive, consider, investigate, and act upon complaints made in connection with a licensee.
(5) To prescribe the forms of and receive (A) applications for licenses and (B) reports, books, and records required to be made by a licensee under this division, including annual audited financial statements.
(6) To subpoena documents and witnesses and compel their attendance and production, to administer oaths, and to require the production of books, papers, or other materials relevant to any inquiry authorized by this division.
(7) To require information with regard to an applicant that the commissioner may deem necessary, with regard for the paramount public interest in ascertaining the experience, background, honesty, truthfulness, integrity, and competency of an applicant for servicing student loans, and if an applicant is an entity other than an individual, in ascertaining the honesty, truthfulness, integrity, and competency of officers, directors, or managing members of the corporation, association, or other entity, or the general partners of a partnership.
(8) To enforce by order any provision of this division.
(9) To levy fees, fines, and charges in an amount sufficient to cover the cost of the services performed in administering this division.
(10) To appoint examiners, attorneys, supervisors, experts, and special assistants as needed to effectively and efficiently administer this division.
(Amended by Stats. 2018, Ch. 379, Sec. 4. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 1 - Commissioner of Financial Protection and Innovation › Section 28108.

28108. (a) The commissioner shall have the authority to conduct investigations and examinations of an applicant or licensee as follows:
(1) For purposes of determining whether an applicant is eligible for a license, or that a licensee is complying with the provisions of this division or any regulation or order of the commissioner, the commissioner may access, receive, and use any books, accounts, records, files, documents, information, or evidence, including, but not limited to, any of the following relating to the intent to, or the practice of, servicing student loans for borrowers:
(A) Criminal, civil, and administrative history information.
(B) Personal history and experience information, including, but not limited to, independent credit reports obtained from a consumer reporting agency.
(C) Any other documents, information, or evidence that the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control, or custody of those documents, information, or evidence.
(2) For the purposes of investigating violations or complaints arising under this division, the commissioner may direct, subpoena, or order the attendance of, and examine under oath, any person whose testimony may be required about the student loan or account of the borrower.
(b) In making any examination or investigation authorized by this section, the commissioner may control access to any documents and records of the licensee or person under examination or investigation. The commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no person shall remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the commissioner. Unless the commissioner has reasonable grounds to believe the documents or records of a licensee have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of this division, the licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.
(Added by Stats. 2016, Ch. 824, Sec. 2. (AB 2251) Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 1 - Commissioner of Financial Protection and Innovation › Section 28110.

28110. (a) Notwithstanding any other law, the commissioner may by rule or order prescribe circumstances under which to accept electronic records or electronic signatures. This section shall not be deemed to require the commissioner to accept electronic records or electronic signatures.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Electronic record” means an initial license application, or material modification of that license application, and any other record created, generated, sent, communicated, received, or stored by electronic means. “Electronic records” also includes, but is not limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for any license, consent, or other authority.
(B) A financial statement, report, or advertising.
(C) A surety bond, rider, or endorsement thereto.
(D) An order, license, consent, or other authority.
(E) A notice of public hearing, accusation, and statement of issues in connection with any application, license, consent, or other authority.
(F) A proposed decision of a hearing officer and a decision of the commissioner.
(G) The transcripts of a hearing and correspondence between a party and the commissioner directly relating to the record.
(H) A release, newsletter, interpretive opinion, determination, or specific ruling.
(I) Correspondence between a party and the commissioner directly relating to any document listed in subparagraphs (A) to (H), inclusive.
(2) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(c) The Legislature finds and declares that the Department of Financial Protection and Innovation has continuously implemented methods to accept records filed electronically, and is encouraged to continue to expand its use of electronic filings to the extent feasible, as budget, resources, and equipment are made available to accomplish that goal.
(Amended by Stats. 2022, Ch. 452, Sec. 153. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 1 - Commissioner of Financial Protection and Innovation › Section 28111.

28111. (a) The commissioner may require an applicant for a student loan servicer license or a student loan servicer licensee to make some or all of the filings with the commissioner through the Nationwide Multistate Licensing System & Registry.
(b) The commissioner may require an application to be made through the Nationwide Multistate Licensing System & Registry, and may require fees, fingerprints, financial statements, supporting documents, changes of address, and any other information, and amendments or modifications thereto, to be submitted by applicants and licensees through the Nationwide Multistate Licensing System & Registry.
(c) The commissioner may require licensees to pay assessments through the Nationwide Multistate Licensing System & Registry.
(Added by Stats. 2018, Ch. 379, Sec. 6. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 2 - Application for License › Section 28112.

28112. An applicant shall apply for a license by submitting all of the following to the commissioner:
(a) A completed application for a license in a form prescribed by the commissioner and signed under penalty of perjury.
(b) The sum of one hundred dollars ($100) as a fee for investigating the application, plus the cost of fingerprint processing and the criminal history record check under Section 28116, and three hundred dollars ($300) as an application fee. The investigation fee, including the amount for the criminal history record check, and the application fee are not refundable if an application is denied or withdrawn.
(c) Audited financial statements prepared in accordance with generally accepted accounting principles and acceptable to the commissioner that indicate a net worth of at least two hundred fifty thousand dollars ($250,000).
(d) Subject to the commissioner’s discretion, an applicant or licensee that is a wholly owned subsidiary of a public holding company required to comply with the reporting requirements of the Securities and Exchange Commission may satisfy the requirement of subdivision (c) by submitting the annual consolidated audited financial statements filed with the Securities and Exchange Commission, including consolidating financial statements of the subsidiary.
(Amended by Stats. 2020, Ch. 154, Sec. 4. (AB 376) Effective January 1, 2021.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 2 - Application for License › Section 28114.

28114. (a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice of every applicant for a license for purposes of obtaining information as to the existence and content of a record of state or federal convictions, state or federal arrests, and information as to the existence and content of a record of state or federal arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance pending trial or appeal.
(b) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the commissioner.
(c) The Department of Justice shall provide a response to the commissioner pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(d) The commissioner shall request from the Department of Justice subsequent arrest notification service, as provided pursuant to Section 11105.2 of the Penal Code, for the license applicant described in subdivision (a).
(e) The Department of Justice shall charge a fee, payable by the applicant, sufficient to cover the costs of processing the requests pursuant to this section.
(Amended by Stats. 2018, Ch. 379, Sec. 7. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 2 - Application for License › Section 28116.

28116. (a) Upon the filing of an application for a license pursuant to Section 28112 and the payment of the fees, the commissioner shall investigate the applicant and its general partners and individuals owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or any individual responsible for the conduct of the applicant’s servicing activities in this state, if the applicant is a partnership. If the applicant is a corporation, trust, limited liability company, or association, including an unincorporated organization, the commissioner shall investigate the applicant, its principal officers, directors, trustee, managing members, and individuals owning or controlling, directly or indirectly, 10 percent or more of the outstanding equity securities or any individual responsible for the conduct of the applicant’s servicing activities in this state.
(b) Upon the filing of an application for a license pursuant to Section 28128 and the payment of the fees, the commissioner shall investigate the individual responsible for the servicing activity of the licensee at the new location described in the application. The investigation may be limited to information that was not included in prior applications filed pursuant to this division. If the commissioner determines that the applicant has satisfied this division and does not find facts constituting reasons for denial, the commissioner shall issue and deliver a license to the applicant.
(c) For the purposes of this section, “principal officers” shall mean president, chief executive officer, treasurer, and chief financial officer, as may be applicable, and any other officer with direct responsibility for the conduct of the applicant’s servicing activities in this state.
(Amended by Stats. 2018, Ch. 379, Sec. 8. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 2 - Application for License › Section 28117.

28117. (a) Before an applicant is issued a license, the applicant shall file with the commissioner, in such form as the commissioner may require, an appointment irrevocably appointing the commissioner to be the applicant’s or licensee’s attorney, to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the applicant or licensee, or any of its successors, that arises under this division or under any regulation or order issued under this division after such appointment has been filed, with the same force and validity as if served personally on the applicant, licensee, or successor.
(b) Service may be made by leaving a copy of the process at any office of the commissioner, but that service is not effective unless (1) the party making that service, who may be the commissioner, sends notice of service and a copy of the process by registered or certified mail to the party served at its last address on file with the commissioner, and (2) 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.
(Added by Stats. 2018, Ch. 379, Sec. 9. (AB 38) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 12.5 - Student Loan Servicing Act › CHAPTER 2 - Licensing › ARTICLE 2 - Application for License › Section 28118.

28118. The commissioner shall, when the application is complete, including having received the information from the Department of Justice, either grant a license pursuant to this division or provide a written explanation for the denial.
(Added by Stats. 2016, Ch. 824, Sec. 2. (AB 2251) Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)