reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 1 - Application of This Division › Section 30003.

30003. “Person” means, in addition to the singular, persons, group of persons, cooperative, association, company, firm, partnership, corporation, limited liability company, or other legal entity.
(Amended by Stats. 1994, Ch. 1010, Sec. 118. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 1 - Application of This Division › Section 30004.

30004. “Securities depository” means any person or group of persons who acts as the custodian of securities in accordance with a system for the central handling of securities whereby all securities of a particular class or series of any issues deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entries effected by that person without physical delivery of such securities.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 1 - Application of This Division › Section 30005.

30005. This division does not apply to:
(a) A securities depository which is operated by a corporation, all of the capital stock (other than directors’ qualifying shares, if any) of which is held by or for a national securities exchange or association registered under a statute of the United States such as the Securities Exchange Act of 1934, or by a corporation all of the capital stock (other than directors’ qualifying shares, if any) of which is held by or for such a wholly owned subsidiary of a registered national securities exchange.
(b) A securities depository which is registered with the Securities and Exchange Commission pursuant to any provision of federal law or which is regulated by the Comptroller of the Currency, the Federal Reserve Board, or the Federal Deposit Insurance Corporation pursuant to any provision of federal law, or which is regulated by the Commissioner of Financial Protection and Innovation under Division 1.1 (commencing with Section 1000) of the Financial Code.
(Amended by Stats. 2022, Ch. 452, Sec. 155. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 1 - Application of This Division › Section 30006.

30006. The commissioner may establish such rules and regulations as are reasonable or necessary to carry out the purposes and provisions of this division. The commissioner may, by rule, exempt from any or all of the provisions of this division any securities depository which the commissioner determines is subject to adequate regulatory supervision by an agency, office, or commission of the federal government or by any agency, office, or commission, other than the commissioner, of the State of California.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30200.

30200. It shall be unlawful for any person to operate a securities depository within this state, or to solicit holders of securities within this state to place their securities into a securities depository located within this state or outside this state, except by means of a corporation licensed by the commissioner as a securities depository.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30201.

30201. A securities depository shall only be operated by a corportion:
(a) At least 90 percent of the capital stock of which is held by or for one or more persons (other than individuals), each of whom, (i) is subject to supervision or regulation pursuant to the provisions of federal or state banking laws or state insurance laws, or (ii) is a broker or dealer or investment company registered under the Securities Exchange Act of 1934 or the Investment Company Act of 1940, or (iii) is a national securities exchange or association registered under the Securities Exchange Act of 1934, and none of whom, other than a national securities exchange or association, holds in excess of 20 percent of the capital stock of such corporation; and
(b) Any remaining capital stock of which is held by individuals who have purchased such capital stock at or prior to the time of their taking office as directors of such corporation and who have purchased only so much of such capital stock as may be necessary to permit them to qualify as such directors.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30202.

30202. The commisioner shall charge and collect the following fees:
(a) For filing an application for a securities depository license, two thousand five hundred dollars ($2,500).
(b) For holding a hearing in connection with the application, as set forth under Section 30205, the actual costs experienced in each particular instance.
(c) For continuing a license as a securities depository in effect, a fee of two thousand five hundred dollars ($2,500) per annum, payable biennially on the 15th day of December of each odd-numbered calendar year. If a license is issued during an even-numbered calendar year, the securities depository shall pay to the commissioner, within 60 days after the issuance of its license, an additional annual fee of two thousand five hundred dollars ($2,500).
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30204.

30204. An application for a securities depository license shall be signed and verified by an authorized officer of the applicant, and shall set forth in such form as the commissioner may prescribe:
(a) The names and addresses of the incorporators, directors, and officers, with a statement of their character, experience, and general fitness to operate a securities depository.
(b) A showing that the proposed method of operation of such securities depository will be adequate for the protection of investors.
(c) The names of every person who holds or is to hold capital stock in the securities depository corporation together with a statement of the percentage interest attributable to each. The commissioner may require disclosure of such additional information as may be necessary to determine the individuals controlling such corporation.
(d) The addresses at which facilities of the applicant will be located and a description of each such facility and the functions there performed, and a description of any other business or operations which will be conducted on such premises.
(e) By way of exhibits, a copy of the articles of incorporation and a copy of the bylaws of the applicant.
(f) By way of exhibits, financial statements of the applicant, which shall include at least a balance sheet and profit and loss statement certified by an independent public accountant or certified public accountant, and if such certified statements are prepared as of a date more than 60 days prior to the filing of the application, a balance sheet and profit and loss statement, which need not be certified, prepared as of a date within such 60-day period, together with profit and loss statements covering at least three years of its operations, or such lesser period as the applicant may have operated, to the date of such certified balance sheet.
(g) Such additional information as the commissioner may by rule prescribe.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30205.

30205. Upon the receipt of a proper and complete application for license, and all required fees, the commissioner shall immediately examine and investigate all facts connected with the proposed licensee, including but not limited to its stockholders, directors, officers and managers, and its proposed safeguards with respect to custody, handling, recordkeeping, insurance, and auditing of securities on deposit. The commissioner may or may not require the applicant to submit to an appropriate hearing. At such hearing any interested person may show cause either in favor of, or opposed to, the application.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30206.

30206. The commissioner may refuse to issue any license being applied for, and shall refuse to issue any license being applied for if upon his examination and investigation, and after appropriate hearing, he finds any of the following:
(a) That the incorporators, directors, officers, or stockholders lack the character, experience, or general fitness to engage in such a business.
(b) That the proposed licensee’s program of safeguards with respect to custody, handling, recordkeeping, insurance, and auditing of securities on deposit is inadequate for the protection of investors.
(c) That the requirements with respect to ownership of capital stock of Section 30201 are not met.
(d) That the applicant is, or is in danger of becoming, insolvent.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30207.

30207. No licensee, or any other person, shall solicit deposits of securities or otherwise conduct the business of a licensee, by means of any statement or representation which is false, misleading, or deceptive, or which omits to state material information, or which infers that such licensee has been sponsored, recommended or approved or that his abilities or qualifications have in any respect been passed upon by the commisioner. The commissioner may order a licensee or other person to desist from any conduct which he shall find to be a violation of this section.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30209.

30209. Any person who operates a securities depository, or solicits holders of securities within this state to place securities in a securities depository, either directly as principal or indirectly as agent, employee, manager, fiduciary representative, or in any other capacity, unless such securities depository has applied for and received the license required by this division, is guilty of a misdemeanor punishable by imprisonment in a county jail for not less than three months and not exceeding 12 months, or by a fine of not less than two hundred fifty dollars ($250) and not exceeding one thousand dollars ($1,000), or by both such fine and imprisonment.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30210.

30210. Every person subject to this division shall keep and use in its business, books, accounts, and records which will properly enable the commissioner to determine whether the operation of a securities depository by such person complies with the provisions of this division and with all rules and regulations made by the commissioner under this division.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30213.

30213. (a) Every person subject to this division shall submit to the commissioner, at such person’s own expense, financial statements prepared in accordance with generally accepted accounting principles covering the calendar year or, if such person has an established fiscal year, then for such fiscal year, within 105 days after the close of the calendar year or fiscal year. Such financial statements shall be covered by a report or certificate of an independent certified public accountant or independent public accountant. In addition financial statements, which may be unaudited, as of the end of the calendar month next preceding the date of submission of the audited financial statements shall also be filed concurrently with such audited financial statements. All audits referred to in this section shall be by independent certified public accountants or independent public accountants acceptable to the commissioner. The audits shall be conducted in accordance with generally accepted auditing standards. The audited financial statements shall include at least an audited balance sheet showing the person’s net worth and a statement of income and expenses for the year ended on the balance sheet date. The commissioner may by rule prescribe the matters to be covered in the report or certification of the auditor.
(b) Within such period as the commissioner shall prescribe, which shall not be less than 10 days, a person subject to this division shall submit to the commissioner, at such person’s own expense, a report containing such information regarding its financial condition, operations, or the ownership of its outstanding securities as the commissioner may require.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30214.

30214. If any person subject to this division fails to make any report required by law or by the commissioner, the commissioner shall immediately cause the books, records, papers, and affairs of said person to be thoroughly examined. The commissioner may, in carrying out his responsibilities under this section, employ an independent public accountant or certified public accountant the cost of whose services shall be borne by such person in accordance with Section 30212.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30215.

30215. If the commissioner, as a result of any examination or from any report made to him, shall find that any person subject to this division is in an insolvent condition, or is operating a securities depository in such an unsafe or injurious manner as to render further operations hazardous to the public or to depositors the commissioner may forthwith, by an order addressed to and served by registered mail on such person, direct discontinuance of the operation of a securities depository within the State of California or direct discontinuance of the solicitation of security holders within the State of California by such securities depository, or otherwise limit the conduct of the business of such depository as may be necessary for the safety of security holders. The order shall remain in effect until set aside by the commissioner in whole or in part.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30216.

30216. Whenever in the opinion of the commissioner any person required by this division to be licensed is engaged in operating a securities depository or in soliciting securities holders within this state to place securities in a securities depository, without a license from the commissioner, the commissioner may order said person to desist and to refrain from engaging in such business. If, after such an order is made, a request for a hearing is filed in writing and the hearing is not held within 60 days thereafter, the order is rescinded.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30217.

30217. The commissioner may from time to time make, amend, and rescind such rules, forms, and orders as are necessary to carry out the provisions of this law, including rules defining any terms, whether or not used in this law, insofar as the definitions are not inconsistent with the provisions of this law. For the purposes of rules and forms, the commissioner may classify persons and matters within the commissioner’s jurisdiction and may prescribe different requirements for different classes. The commissioner may in the commissioner’s discretion waive any requirement of any rule or form in situations where in the commissioner’s opinion such requirement is not necessary in the public interest or for the protection of investors. All rules of the commissioner other than those relating solely to the internal administration of the Department of Financial Protection and Innovation shall be made, amended, or rescinded in accordance with the provisions of Chapter 4.5 (commencing with Section 11371) of Part 1 of Division 3 of Title 2 of the Government Code.
(Amended by Stats. 2022, Ch. 452, Sec. 156. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 2 - License › Section 30218.

30218. (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the administration or enforcement of this division.
(b) It is unlawful for any person to knowingly make an untrue statement to the commissioner during the course of licensing, investigation, or examination, with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division.
(Added by Stats. 2007, Ch. 101, Sec. 26. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30601.

30601. If the commissioner has reason to believe that a licensed securities depository has violated its articles of incorporation, or any law or rule binding upon it, he shall, by written order addressed to the agent direct the discontinuance of such violation.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30602.

30602. If any licensed securities depository fails to make any report required by law or by the commissioner within 10 days from the day designated for the making of the report, or within any extension of time granted by the commissioner, or has failed to pay any fee or charge payable under this division within 10 days after notice by the commissioner that such fee is due and unpaid, such failure shall constitute grounds for the suspension or revocation of the license held by such securities depository or for the issuance of an order by the commissioner under the provisions of Section 30215.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30603.

30603. If it appears to the commissioner that any licensed securities depository located within this state is conducting business in an unsafe or injurious manner, he shall, by written order addressed to the securities depository direct the discontinuance of such unsafe or injurious practices, or if the licensed securities depository is one which is located outside this state but is soliciting holders of securities in California to place their securities in such securities depository, the commissioner shall direct such securities depository to discontinue all such solicitations until all such unsafe and unsound practices have been corrected.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30604.

30604. An order issued pursuant to Section 30601 or 30603 shall require the licensed securities depository to show cause before the commissioner, at a time fixed by the commissioner, why the order should not be observed. If upon the hearing, it appears to the commissioner that the licensed securities depository is conducting business in an unsafe or injurious manner or is violating its articles of incorporation or any law of this state, or any rule binding upon it, the commissioner shall make the order of discontinuance final and the licensed securities depository shall immediately discontinue the practices named in the order.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30605.

30605. The licensed securities depository has 10 days after an order is made final in which to commence action to restrain enforcement of such order, and unless such action is commenced, and the enforcement of such order is enjoined within 10 days by the court in which the suit is brought, the licensed securities depository shall comply with the order.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30606.

30606. (a) If a securities depository fails to comply with a final order and has not secured a court order restraining the enforcement of the final order, the commissioner may revoke the license of the securities depository or may institute proceedings under subdivision (b) to enforce the final order.
(b) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this law or any rule or order under this law, the commissioner may in the commissioner’s discretion bring an action in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order under this law. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver or conservator may be appointed for the defendant or the defendant’s assets.
(Amended by Stats. 1982, Ch. 517, Sec. 229.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30607.

30607. The commissioner may commence and prosecute actions and proceedings to enjoin violations of this division or violations of orders or decisions of the commissioner rendered pursuant to this division, and for the enforcement of any and all civil penalties provided for by this division.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30608.

30608. The commissioner may, after notice and a reasonable opportunity to be heard, suspend, revoke, or decline to renew any license if he finds that:
(a) The licensee has violated any provision of this division or any rule or order made by the commissioner under and within the authority of this division.
(b) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 3 - Revocation of License › Section 30609.

30609. (a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar from any position of employment, management, or control any person who operates a securities depository, or any other person, if the commissioner finds either of the following:
(1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the securities depository, or to the public.
(2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in accordance with the provisions of this division.
(b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of Division 3 of Title 2 of the Government Code). Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing.
(c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in any activities subject to licensure under the law.
(d) Persons suspended or barred under this section are prohibited from participating in any business activity of a securities depository and from engaging in any business activity on the premises where a securities depository is conducting business.
(Added by Stats. 2007, Ch. 101, Sec. 27. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 4 - Hearings › Section 30700.

30700. The commissioner, and all persons designated by him, may administer oaths, take the testimony of witnesses, and issue subpoenas requiring the attendance of witnesses and the production of books, documents, and other things under their control, at any examination, investigation, or hearing in any part of the state.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 4 - Hearings › Section 30701.

30701. All of the provisions of Chapter 2 (commencing with Section 1985), Title 3, Part 4 of the Code of Civil Procedure relating to the means of production of evidence out of court are applicable to any examination, investigation, or hearing under this division.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 4 - Hearings › Section 30702.

30702. The authority to make or conduct any examination, investigation, or hearing, including the authority to administer oaths and to subpoena witnesses, and to take their testimony may be delegated by the commissioner to any deputy, investigator, or auditor appointed by him for that purpose. The appointment shall be made by an instrument in writing, signed by the Commissioner. Upon any examination, investigation, or hearing, the instrument shall be produced by the deputy, investigator, or auditor at any time upon demand.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 14 - SECURITIES DEPOSITORIES › CHAPTER 4 - Hearings › Section 30703.

30703. All hearings provided for in this division shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500), Part 1, Division 3, Title 2, of the Government Code, and the commissioner has all the powers granted therein, except that a hearing held in accordance with Section 30604 may be presided over by a hearing officer qualified under Section 11502 of the Government Code, or by any deputy designated by the commissioner.
(Added by Stats. 1972, Ch. 1057.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 1 - Short Title, Construction, and Severability › Section 31002.

31002. No provision of this division imposing any liability applies to any act committed in good faith in conformity with any regulation, order, or written interpretive opinion of the commissioner or any such opinion of the Attorney General, notwithstanding that such regulation, order, or written interpretive opinion may later be amended, rescinded, or repealed or be determined by judicial or other authority to be invalid for any reason.
(Amended by Stats. 1996, Ch. 1064, Sec. 623. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 1 - Short Title, Construction, and Severability › Section 31003.

31003. In this division, unless otherwise expressly provided:
(a) A reference to a statute or to a regulation includes such statute or regulation as amended, whether before or after the effective date of this division, as well as any new statute or regulation substituted for such statute or regulation after the effective date of this division.
(b) A reference to a governmental agency or to a public officer includes any governmental agency or public officer which succeeds after the effective date of this division to substantially the same functions as those performed by such governmental agency or public officer on the effective date of this division.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 1 - Short Title, Construction, and Severability › Section 31004.

31004. Except as otherwise provided in Chapter 14 (commencing with Section 31950) of this division:
(a) The provisions of the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code) shall apply to any licensee which is a California nonprofit corporation; provided, however, that, whenever any provision of the Nonprofit Corporation Law conflicts with any provision of this division or of any regulation or order issued under this division, such provision of the Nonprofit Corporation Law shall not apply and such provision of this division or of such regulation or order issued under this division shall apply.
(b) The provisions of the General Corporation Law (Division 1 (commencing with Section 100), Title 1 of the Corporations Code) shall apply to any licensee other than a licensee which is a California nonprofit corporation; provided, however, that, whenever any provision of the General Corporation Law conflicts with any provision of this division or of any regulation or order issued under this division, such provision of the General Corporation Law shall not apply and such provision of this division or of such regulation or order issued under this division shall apply.
(Amended by Stats. 1980, Ch. 1155, Sec. 32.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 1 - Short Title, Construction, and Severability › Section 31006.

31006. If any provision of this division or the application thereof to any person or circumstances is held invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability shall not affect other provisions or applications of this division which can be given effect without the invalid, illegal, or unenforceable provision or application, and to this end, the provisions of this division are declared to be severable.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 2 - Legislative Findings and Purposes › Section 31020.

31020. The Legislature finds all of the following:
(a) That it is necessary to increase job opportunities in this state.
(b) That promoting the establishment, growth, and expansion of business firms in this state is an efficient way to increase job opportunities in this state.
(c) That it is appropriate to provide for the licensing and regulation of business and industrial development corporations which will provide financing assistance and management assistance primarily to business firms in this state.
(d) That the federal government, through the Small Business Administration and other federal agencies, offers programs for providing, through such intermediaries as business and industrial development corporations, financing assistance and management assistance to business firms in this state.
(e) That, in order that this state may obtain the full benefits of such programs, it is necessary that this state provide for the licensing and regulation of business and industrial development corporations.
(f) That only California corporations should be licensed to transact business as business and industrial development corporations because, compared with other types of persons, California corporations can be more effectively regulated and supervised, have greater permanency of existence, and can give better assurance of uninterrupted service.
(Amended by Stats. 1987, Ch. 867, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 2 - Legislative Findings and Purposes › Section 31021.

31021. (a) The purposes of this division are:
(1) To provide for the licensing and regulation of business and industrial development corporations which will provide financing assistance and management assistance primarily to business firms in this state.
(2) To provide for the licensing and regulation of business and industrial development corporations so that such corporations will constitute state development companies for purposes of Sections 501 and 502 of the Small Business Investment Act of 1958 and eligible lending institutions for purposes of Section 7(a) of the Small Business Act.
(3) To provide for the safe and sound conduct of the business of licensees.
(4) To maintain the confidence of the Small Business Administration and other governmental agencies in licensees.
(b) The purposes of this division, as set forth in subdivision (a), constitute standards which the commissioner shall observe in administering the provisions of this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 624. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31030.

31030. Subject to additional definitions contained in this division which are applicable to specific provisions of this division and unless the context otherwise requires, the definitions in this article apply throughout this division.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31032.

31032. “Affiliate”, when used with respect to a specified person, means any person (other than a natural person) controlling, controlled by, or under common control with, such specified person, directly or indirectly through one or more intermediaries.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31033.

31033. “Business day” means any day other than (a) Saturday, (b) Sunday, and(c) any other day which is specified or provided for as a holiday in the Government Code.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31034.

31034. “Business firm” means any person which transacts business on a regular and continual basis, with respect to the transacting of such business.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31034.5.

31034.5. “Business firm in another state” means both of the following:
(a) Any person which transacts business on a regular and continual basis at one or more places of business in another state of the United States or the District of Columbia, with respect to the transacting of that business at those places of business.
(b) Any person which proposes to establish one or more places of business in another state of the United States or in the District of Columbia and to transact business on a regular and continual basis at those places of business, with respect to the establishment of those places of business and the transacting of that business at those places of business.
(Added by Stats. 1987, Ch. 867, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31035.

31035. “Business firm in this state” means:
(a) Any person which transacts business on a regular and continual basis at one or more places of business in this state, with respect to the transacting of such business at such places of business; or
(b) Any person which proposes to establish one or more places of business in this state and to transact business on a regular and continual basis at such places of business, with respect to the establishment of such places of business and the transacting of such business at such places of business.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31036.

31036. “California corporation” means:
(a) Any corporation organized under the General Corporation Law (Division 1 (commencing with Section 100), Title 1 of the Corporations Code) or any predecessor statute; provided, however, that “California corporation” does not include any corporation which is a close corporation, as defined in Section 158 of the Corporations Code; or
(b) Any corporation organized under Part 6 (commencing with Section 14200), Division 3, Title 1 of the Corporations Code, as added by Chapter 985 of the Statutes of 1975; or
(c) Any California nonprofit corporation.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31037.

31037. “California nonprofit corporation” means any corporation organized under the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code) or any predecessor statute.
(Amended by Stats. 1980, Ch. 1155, Sec. 33.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31038.

31038. “Control”, when used with respect to a specified person, means possession, direct or indirect, of the power to do either of the following:
(a) To vote 35 percent or more of any class of the voting securities issued by the specified person.
(b) To direct or cause the direction of the management and policies of such specified person, whether through the ownership of voting securities, by contract (other than a commercial contract for goods or nonmanagement services), or otherwise; provided, however, that no natural person shall be deemed to control a person solely on account of being a director, officer, or employee of such person. For purposes of this subdivision, any person who, directly or indirectly, owns of record or beneficially, holds with power to vote, or holds proxies with discretionary authority to vote, 20 percent or more of any class of the then outstanding voting securities issued by a corporation shall be rebuttably presumed to control such corporation. This presumption is a presumption affecting the burden of proof.
(Amended by Stats. 1987, Ch. 867, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31039.

31039. “Controlling person”, when used with respect to a specified person, means any person who controls such specified person, directly or indirectly through one or more intermediaries.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31041.

31041. “Financial institution” means any commercial bank, trust company, savings and loan association, credit union, industrial loan company, insurance company, or person engaged in the business of lending money.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31042.

31042. “Insolvent”, when used with respect to any person, means a person who has ceased to pay his debts in the ordinary course of business, who cannot pay his debts as they become due, or whose liabilities exceed his assets.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31046.

31046. “Officer” means:
(a) When used with respect to a corporation, any person appointed or designated as an officer of such corporation by or pursuant to applicable law or the articles of incorporation or bylaws of such corporation or any person who performs with respect to such corporation functions usually performed by an officer of a corporation; and
(b) When used with respect to a specified person other than a natural person or a corporation, any person who performs with respect to such specified person functions usually performed by an officer of a corporation with respect to such corporation.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31047.

31047. “Order” means any approval, consent, authorization, exemption, denial, prohibition, or requirement applicable to a specific case issued by the commissioner. “Order” includes any condition of a license and any agreement made by any person with the commissioner under this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 625. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31047.5.

31047.5. “Parent,” when used with respect to a specified person other than a natural person, means any person other than a natural person which controls the specified person, directly or indirectly through one or more intermediaries.
(Added by Stats. 1987, Ch. 867, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31048.

31048. “Person” means any natural person, proprietorship, joint venture, partnership, trust, business trust, syndicate, association, joint stock company, corporation, limited liability company, government, agency of any government, or any other organization; provided, however, that “person”, when used with respect to acquiring control of or controlling a specified person, includes any combination of two or more persons acting in concert.
(Amended by Stats. 1994, Ch. 1010, Sec. 119. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31049.

31049. “Principal shareholder”, when used with respect to a corporation, means any person who owns, directly or indirectly, of record or beneficially, securities representing 10 percent or more of the voting power of such corporation.
(Added by renumbering Section 31047 by Stats. 1982, Ch. 1570, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31050.

31050. To “provide financing assistance” to a person includes:
(a) To lend money or otherwise extend credit to such person;
(b) To purchase securities issued by such person, either directly or indirectly through an underwriter; and
(c) To lease property to such person.
(Added by renumbering Section 31048 by Stats. 1982, Ch. 1570, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31051.

31051. To “provide management assistance” to a person includes:
(a) To provide management or technical advice to such person; and
(b) To provide management or technical services to such person.
(Added by renumbering Section 31049 by Stats. 1982, Ch. 1570, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31052.

31052. “Regulation” means any published regulation, rule, or standard of general application issued by the commissioner.
(Amended by Stats. 1996, Ch. 1064, Sec. 626. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31054.

31054. “Subsidiary”, when used with respect to a specified person other than a natural person, means any person other than a natural person controlled by such specified person, directly or indirectly through one or more intermediaries.
(Added by Stats. 1977, Ch. 1164.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 1 - General Provisions › ARTICLE 3 - Definitions › Section 31055.

31055. “Commissioner” means the Commissioner of Financial Protection and Innovation, or other person to whom the commissioner delegates the authority to act for the commissioner in the particular matter.
(Amended by Stats. 2022, Ch. 452, Sec. 157. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 15 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS › CHAPTER 2 - Administration › Section 31101.

31101. (a) The commissioner may from time to time issue such regulations and orders as are in his or her opinion necessary to carry out the provisions and purposes of this division.
(b) Regulations and orders issued under this division may, among other things, define any term used in this division, including (but not limited to) the term “unsafe or unsound act”, as well as any term not used in this division.
(c) For purposes of regulations and orders issued under this division, the commissioner may classify persons, transactions, and other matters within his or her jurisdiction, and may prescribe different regulations or orders for different classes.
(d) The commissioner may waive any provision of any regulation or order issued under this division in any case where in his or her opinion such provision is not necessary in the public interest.
(Amended by Stats. 1996, Ch. 1064, Sec. 629. 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 31102.

31102. Whenever the commissioner issues an order or license under this division, he or she may impose such conditions as are in his or her opinion necessary to carry out the provisions and purposes of this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 630. Effective January 1, 1997. Operative July 1, 1997.)