reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 5 - Hearings › Section 17611.

17611. (a) The commissioner may make such investigations as he or she deems necessary to determine whether any person has violated or is about to violate any provision of this division or any rule or order hereunder or to aid in the enforcement of this division. The commissioner may publish information concerning any violation of this division or any rule or order hereunder.
(b) In making any investigation authorized by subdivision (a), the commissioner may, for a reasonable time not exceeding 30 days, take possession of the books, records, accounts, and other papers pertaining to the business of any escrow agent or joint control agent and place a keeper in exclusive charge of them in the place where they are usually kept. During such possession no person shall remove or attempt to remove any of the books, records, accounts, or other papers except pursuant to a court order or with the consent of the commissioner. However, the directors, officers, partners, and employees of the escrow agent or joint control agent may examine the books, records, accounts, or other papers and the employees shall be permitted to make entries therein reflecting current transactions.
(c) For the purpose of any investigation or proceeding under this division, the commissioner or any officer designated by the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry.
(d) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the superior court, upon application of the commissioner, may issue to the person an order requiring him or her to appear before the commissioner, or the officer designated by the commissioner, there to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt.
(e) No person is excused from attending and testifying or from producing any document or record before the commissioner, or in obedience to the subpoena of the commissioner, or any officer designated by the commissioner, or in any proceeding instituted by the commissioner, on the ground that the testimony or evidence (documentary or otherwise) required by the commissioner may tend to incriminate the person or subject him or her to a penalty or forfeiture. However, no individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she is compelled, after validly claiming his or her privilege against self-incrimination, to testify or produce evidence (documentary or otherwise), except that the individual testimony is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
(Repealed and added by Stats. 1982, Ch. 663, Sec. 14.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 5 - Hearings › Section 17612.

17612. The authority to make or conduct any examination, investigation, or hearing, including the authority to administer oaths and to subpena 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.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 5 - Hearings › Section 17613.

17613. All hearings provided for in this division shall be conducted in accordance with the provisions of Chapter 5, 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 17604 may be presided over by a hearing officer qualified under Section 11502 of the Government Code, or by any deputy designated by the commissioner.
(Amended by Stats. 1953, Ch. 1076.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17621.

17621. Whenever it appears to the commissioner that any escrow agent subject to this division:
(a) Is in an insolvent condition;
(b) Is conducting escrow business in an unsafe or unauthorized manner;
(c) Has violated its charter or any law of the State of California;
(d) Refuses to submit its books, papers and affairs to the inspection of any examiner;
(e) Neglects or refuses to observe any order of the commissioner made pursuant to the provisions of this division, within the time specified therein, unless the enforcement of such order is restrained in a proceeding brought by the escrow agent;
(f) Any officer, director, or trustee of such escrow agent refuses to be examined upon oath touching the business of such escrow agent;
(g) Any officer, director, stockholder, or trustee of such escrow agent, or attorney in fact of such escrow agent has embezzled, sequestered, or willfully diverted the assets or trust funds of such escrow agent;
(h) Has permitted its tangible net worth to be lower than the minimum required by law;
(i) Has failed to comply with the bonding requirements of Chapter 2 of this division
the commissioner shall dispatch a written notice and summary of findings, as referred to in Section 17415, to the principal officer of the escrow agent involved or to its manager of record; and such escrow agent shall be afforded a reasonable opportunity to comply or otherwise effect such remedies as the commissioner may deem acceptable. However, should the escrow agent so notified fail to comply within five days of receipt of the notice, or as soon as it appears to the commissioner that no compliance is possible, or in the event prompt delivery of the prescribed written notice is impossible, the commissioner may forthwith take possession of the property and business of such escrow agent and retain possession until such escrow agent resumes business or its affairs be finally liquidated as provided in this chapter. The escrow agent, with the consent of the commissioner, may resume business upon such conditions as the commissioner may prescribe.
(Amended by Stats. 1981, Ch. 773, Sec. 8.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17622.

17622. Whenever the commissioner has taken possession of any licensee, such licensee, within 10 days after such taking, if it deems it is aggrieved thereby, may apply to the superior court in the county in which the head office of the licensee is located to enjoin further proceedings. The court, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits may dismiss such application or enjoin the commissioner from further proceeding and direct him to surrender the property and business to the licensee, or make such further order as may be just.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17623.

17623. An appeal from a judgment enjoining the commissioner from further proceedings and directing the commissioner to surrender the business, property, and assets to the licensee does not operate as a stay of the judgment, unless the trial court in its discretion so orders. If the judgment dismisses the action an appeal therefrom does not operate as a stay of the judgment but the court rendering the judgment may, in its discretion enjoin the commissioner pending the appeal, from further proceedings and direct the commissioner, pending the appeal, to surrender the business, property, and assets to the licensee, if an undertaking is given as required by Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
(Amended by Stats. 1982, Ch. 517, Sec. 225.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17625.

17625. If the commissioner’s demand for the possession of the property, business and assets is not complied with within 24 hours after service of the demand, the commissioner may call to his assistance the sheriff of the county in which the principal place of business of such licensee is located, by giving the sheriff written demand the sheriff shall enforce the demands of the commissioner.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17626.

17626. When the commissioner takes possession of the property, business and assets of any licensee, such licensee or the president and secretary of such licensee shall make and deliver to the commissioner verified schedules of its property, assets, and funds held in escrow. The commissioner may at any time examine under oath any licensee, or any officer, director, trustee, agent, or employee of such licensee, to determine whether or not all such property, assets, and funds held in escrow have been transferred and delivered to his possession.
(Amended by Stats. 1973, Ch. 705.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17627.

17627. The commissioner may issue subpoenas and require the attendance of parties for examination under this article as provided for in this chapter.
(Amended by Stats. 2002, Ch. 772, Sec. 14. Effective January 1, 2003.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17628.

17628. When the commissioner takes possession of the business, property, and assets of a licensee, he may appoint a custodian. The commissioner may require a good and sufficient bond from the custodian and place him in charge as his representative.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 1 - Possession by Commissioner › Section 17629.

17629. When the commissioner takes possession of the property, business, and assets of a licensee, he may collect all money due to such licensee and give receipt therefor. The commissioner may do such other acts as are necessary or expedient to collect, conserve, or protect the licensee’s business, property, and assets.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 2 - Conservatorship › Section 17630.

17630. If any facts occur which would entitle the commissioner under Section 17621 to take possession of the property, business and assets of a licensee the commissioner may appoint a conservator of a licensee and require of him such bond as the commissioner deems proper. The commissioner may also, upon the request of the board of directors of a licensee, appoint a conservator of such licensee and require of him such bond as the commissioner deems proper. The conservator, under the direction of the commissioner, shall take possession of the property, business and assets of the licensee and take such action as he may deem necessary to conserve the assets of such licensee pending further disposition of its business. The conservator shall retain such possession until the property, business and assets of the licensee are returned to the licensee or until further order of the commissioner.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 2 - Conservatorship › Section 17631.

17631. Subject to the other provisions of this article, a conservator, while in possession of the property, business and assets of a licensee, has the same powers and rights and is subject to the same duties and obligations as the commissioner while in possession of the property, business and assets of a licensee; and during such time the rights of a licensee and of all persons with respect thereto, subject to the other provisions of this article, are the same as if the commissioner had taken possession of such property, business and assets. A conservator, while in possession of the property, business and assets of a licensee, shall have all the rights, powers and privileges of the licensee, its officers and directors. All expenses of any such conservatorship shall be paid out of the assets of the licensee and shall be a lien thereon which shall be prior to any other lien. The conservator shall receive a salary, fixed by the commissioners, in an amount no greater than that which would be paid by the commissioner to a special deputy in charge of the liquidation of the licensee.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 2 - Conservatorship › Section 17632.

17632. Upon appointing a conservator the commissioner shall cause to be made and completed at the earliest possible date such an examination of the affairs of the licensee as shall be necessary to inform him as to its financial condition.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 2 - Conservatorship › Section 17633.

17633. A conservator, while in possession of the property, business and assets of a licensee, may call, upon the notice required by the licensee’s bylaws, a meeting of the investors of the licensee who are entitled to vote, for any purpose, including without limitation the election of a board of directors, and upon the holding of a meeting for such purpose the terms of office of all directors shall expire, or may call, upon the notice required by the licensee’s bylaws, a meeting of the board of directors for any purpose, including without limitation the filling of vacancies on the board of directors or the removal and election or the removal or election of officers. Each such meeting shall be supervised by the conservator.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 2 - Conservatorship › Section 17634.

17634. If the commissioner becomes satisfied that it may be done safely and in the public interest, he may terminate the conservatorship and permit the licensee for which a conservator was appointed to resume its business under direction of its board of directors, subject to such terms, conditions, restrictions and limitations as he may prescribe.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17635.

17635. If at any time after taking possession of the property and business of a licensee it shall appear to the commissioner that it would be futile to proceed as conservator with the conduct of the business of such person he may apply to the superior court of the county in which is located the principal office of such person in this State for an order to liquidate and wind up the business of said person. Upon a full hearing of such application, the court may make an order directing the winding up and liquidation of the business of such person by the commissioner, as liquidator.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17636.

17636. Whenever the commissioner has taken possession of the property and business of a licensee he may petition the superior court for the appointment of a receiver to liquidate the affairs of the licensee.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17637.

17637. The commissioner may appoint one or more special deputies to assist in the duties of liquidation and distribution under his direction and may also employ such special legal counsel, accountants, and assistants as may be needed and required and fix their salaries and compensation. All such salaries and compensation with other reasonable and necessary expenses as may be incurred in the liquidation shall be paid by the commissioner from the funds of the licensee in his hands. Such expenses shall include, among other things, that part of the salary of the commissioner and of his deputies, auditors, accountants, appraisers and other assistants, and that part of the general expenses of the commissioner’s office, as fairly represent, in the opinion of the commissioner, the proportion properly attributable to such liquidation.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17638.

17638. In liquidating the affairs of a licensee the commissioner may:
(a) Collect all money due to, and claims of, the licensee and give receipt therefor.
(b) Approve and pay all just and equitable claims.
(c) Commence and prosecute all actions and proceedings necessary to enforce liquidation.
(d) Compound bad or doubtful debts or claims, borrow money, sell, convey, or transfer real or personal property, on order of the superior court of the county in this State in which the principal office of the licensee is located. The order shall be made after hearing and on such notice as the court prescribes.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17639.

17639. After the issuance of an order of liquidation under Section 17635, any of the following transactions occurring within four months prior to the application for such order shall be voidable by the commissioner if such transaction has the effect of giving to or enabling any creditor of the licensee to obtain a preference over any other creditor, or to obtain a greater percentage of his debt than any other creditor:
(a) A transfer of property of the licensee.
(b) The creation of a lien upon the property of the licensee.
(c) The suffering of a judgment against such person.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17640.

17640. If the commissioner is in possession of the business, property, and assets of a licensee, whether or not he is liquidating the affairs of such licensee, the commissioner may:
(a) Apply to the superior court of the county in this State in which the principal office of the licensee is located for an order confirming any action taken by the commissioner, or authorizing the commissioner to do any act or execute any instrument not expressly authorized by this part. The order shall be given after a hearing on such notice as the court prescribes.
(b) Pay and discharge any secured claims against the licensee, whether or not such claims have been presented for payment. No secured claim shall be paid in an amount larger than the value of the security at the time of payment.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17641.

17641. Claims for damages resulting from the disaffirmance of an executory contract or lease by the commissioner may be filed and allowed. No claim of a landlord for damages resulting from the disaffirmance of an unexpired lease of real property or under any covenant of such lease shall be allowed in an amount exceeding the rent reserved by the lease, without acceleration, for the year succeeding the date of the surrender of the premises plus the amount of any unpaid accrued rent without acceleration. Any such claim must be filed within 30 days of the date of such disaffirmance.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17642.

17642. When the commissioner determines to liquidate a licensee, he shall cause an inventory of all the assets of the licensee to be made in duplicate, file the original with the court, and file the duplicate in his office.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17643.

17643. When the commissioner determines to liquidate a licensee he shall cause notice to be given by publication once a week for four successive weeks in some newspaper of general circulation published at or near the principal place of business in this State of such licensee, to all persons having claims against the licensee as creditors, investors, or otherwise, requiring them to present and file their claims and make legal proof thereof at a place and within a time designated in such publication. The time shall be not less than six months after the first publication. Within 10 days after the first publication the commissioner shall cause a copy of such notice to be mailed to all persons whose names appear of record upon the licensee’s books as creditors, or as parties to an uncompleted escrow transaction.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17644.

17644. All claims, demands, or causes of action of creditors, and persons other than the parties to an escrow transaction against the licensee or against any property owned or held by it in trust or otherwise, must be presented to the commissioner in writing, verified by the claimant, or someone in his behalf, within the period specified in the notice for the presentation of claims, whether or not an action is pending to enforce any such claim or demand. The commissioner shall not approve any claim not so presented, and any such claim, demand or cause of action not so presented is forever barred.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17645.

17645. Upon the expiration of the time fixed for the presentation of claims, the commissioner shall prepare in duplicate a full and complete schedule of all claims presented, specifying by classes those that have been approved and those that have been disapproved and shall file the original with the court and the duplicate in his office.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17646.

17646. Not later than five days after the time of filing the schedule of claims with the court, written notice shall be mailed to all claimants whose claims have been rejected. Action to enforce the payment of or to establish any rejected claim must be brought and service had within four months from and after the date of filing of the schedule of claims with the proper court or all such actions are forever barred.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17647.

17647. Regardless of any law of this state, the judges of the superior court of the county in this state in which the principal office of the licensee is located may, whenever the judges deem it necessary or advisable, hold hearings relating to the sale, exchange, or other disposition of any real property or any personal property of the licensee regardless of the location of the property. The hearings shall be held at the county seat of any county in this state or at the places in the home county of the superior court at which sessions are held.
(Amended by Stats. 2003, Ch. 149, Sec. 12. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17648.

17648. If it appears improbable that anything can be realized from any property of the licensee and that the cost of maintaining, preserving, or protecting the property would probably be lost, the court may direct the commissioner to abandon the property.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17649.

17649. For the purpose of executing and performing any of the powers and duties conferred upon him by this article, the commissioner may in the name of the licensee or in his own name prosecute and defend any suit or other legal proceeding and may in the name of the licensee or in his own name as commissioner execute, acknowledge, and deliver any and all deeds, assignments, releases, requests for reconveyance, and other instruments necessary and proper to effectuate any sale of real or personal property or other transaction in connection with the liquidation of the licensee. Any deed, assignment, release, request for reconveyance, or other instrument executed pursuant to this section is valid and effectual for all purposes as though it was executed by the officers of such licensee with the authority of its board of directors.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17650.

17650. If any real property of the licensee sold by the commissioner is located in a county other than the county in which the application to the court for permission to sell the property was made, the commissioner shall cause a certified copy of the order authorizing or ratifying such sale to be recorded in the office of the recorder of the county in which the real property is located.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17651.

17651. When the commissioner has (a) fully liquidated all claims other than claims of stockholders, and (b) made due provision for any and all known but unclaimed liabilities, excepting claims of stockholders, and (c) paid all expenses of liquidation, then upon the written request of the holders of a majority of the stock of such licensee he shall deliver to the licensee or its trustees any surplus that then remains in his hands, together with all the records and effects. The licensee or its trustees shall have title to such surplus, records, and effects free from any claim of the commissioner.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17652.

17652. Upon the payment of a final dividend in liquidation, the commissioner shall prepare and file with the court a full and final statement of the liquidation, including a summary of the receipts and disbursements, and a duplicate of such statement shall be filed in the office of the commissioner. After hearing and approval by the court, the liquidation shall be closed.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17653.

17653. In making its order approving the commissioner’s final statement of the liquidation of a licensee, the court shall determine the amounts of the liquidating dividends to which claimants and investors are entitled but that then remain unpaid or unclaimed in the hands of the commissioner. The order of the court shall direct the commissioner to deposit the amounts with the Controller. All amounts so deposited shall be deemed to be deposited with the Controller under Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, and may be recovered in the manner prescribed in that chapter.
(Amended by Stats. 1996, Ch. 860, Sec. 6. Effective January 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 6 - Liquidation and Conservatorship › ARTICLE 3 - Liquidation by the Commissioner › Section 17654.

17654. The order of the court approving the final statement on liquidation shall provide for the destruction or other disposition of the books and records of the licensee or pertaining to the liquidation of the licensee, and the court may declare the licensee dissolved as a corporation.
(Added by Stats. 1963, Ch. 2130.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 7 - Crimes and Civil Penalties › Section 17700.

17700. Any person who willfully violates any provision of this division, or who willfully violates any rule or order under this division, shall, upon conviction, be fined not more than ten thousand dollars ($10,000), imprisoned in a county jail for not more than one year, imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or be punished by both that fine and imprisonment, but 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 provided in Section 17423.
(Amended by Stats. 2011, Ch. 15, Sec. 109. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 7 - Crimes and Civil Penalties › Section 17701.

17701. (a) Any person who violates any provision of this division, or who violates any rule or order under this division, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.
(b) As applied to the penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce the provisions of this division.
(Added by Stats. 1985, Ch. 1560, Sec. 42. Effective October 2, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 7 - Crimes and Civil Penalties › Section 17702.

17702. It is unlawful for any person to willfully make any untrue statement of a material fact in any application, notice, or report filed with the commissioner under this division or the regulations issued thereunder, or to willfully omit any material fact which is required to be stated in any application, notice, or report.
(Added by Stats. 1988, Ch. 1300, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 6 - ESCROW AGENTS › CHAPTER 7 - Crimes and Civil Penalties › Section 17703.

17703. (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 any provision 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. 17. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18000.

18000. This division shall be known and may be cited as the “Industrial Loan Law,” the “Industrial Banking Law,” or the “Thrift and Loan Law.”
(Amended by Stats. 1998, Ch. 827, Sec. 2. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18002.

18002. “Commissioner” means the Commissioner of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 127. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18002.5.

18002.5. “Department” means the Department of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 128. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18003.

18003. “Industrial loan company,” “thrift and loan company,” or “company” as used in this division means a premium finance agency as defined in Section 18560. Notwithstanding any other provision of this chapter, these terms and this division do not apply to an industrial bank subject to, and governed by, Chapter 15 (commencing with Section 1530) of Division 1.1.
(Amended by Stats. 2013, Ch. 334, Sec. 66. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18003.2.

18003.2. (a)Any reference in a provision of any statute or regulation of this state to an industrial loan company or a thrift and loan company means an insurance premium finance agency as defined in Section 18560.
(b) Subdivision (a) does not apply in any of the following cases:
(1) In case the provision or a related provision expressly provides otherwise.
(2) In the case of any provision of Division 1 (commencing with Section 99) or Division 1.5 (commencing with Section 4800).
(Added by Stats. 2000, Ch. 1015, Sec. 52. Effective September 30, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18003.5.

18003.5. (a) When used with respect to an industrial loan company, “insured” means an industrial loan company that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.).
(b) When used with respect to an investment certificate, “insured” means an investment certificate that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.).
(Repealed and added by Stats. 1998, Ch. 827, Sec. 4. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18003.6.

18003.6. “Certificate of deposit” as that term is used by an industrial loan company licensed under this division means an investment certificate representing the obligation of an industrial loan company to repay a nondemand deposit as deposit is defined in Section 3(1) of the Federal Deposit Insurance Act.
(Added by Stats. 1994, Ch. 129, Sec. 1. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18003.7.

18003.7. “Demand deposit” means investment or thrift certificates in account, passbook, or certificate form which are redeemable and payable upon demand to the owner.
(Added by Stats. 1999, Ch. 345, Sec. 1. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18005.

18005. “Consumer loan or consumer obligation” means a loan made to, or an obligation incurred by, a natural person in which the money loaned, or the property delivered or service rendered under the obligation is primarily for personal, family, or household purposes.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18006.

18006. “Primarily secured by real property”, as used in this division, means the fair market value of the real property less prior encumbrances, at the time the loan is made or other obligation is acquired, is more than 50 percent of the principal amount owing on the loan or obligation.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18007.

18007. “Charges”, as used in this division, include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by an industrial loan company or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, or enforcing of a loan, or for forbearance of money, credit, goods, things in action, or any other service or services rendered.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18008.

18008. “Charges” also include any profit or advantage of any kind that any person may contract for, collect, receive, or in any manner obtain by a collateral sale, purchase, or agreement, in connection with the negotiating, arranging, making, or otherwise in connection with any loan, except commissions received on insurance sold as provided in this division.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18009.

18009. “Principal amount”, as used in this division, means the net amount of money, credit, goods, or things in action received by the debtor or borrower or disbursed on the borrower’s instructions at the time of entering into the transaction.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18011.

18011. “Affiliated company”, as used in this division, is a company under substantially the same management or control, directly or indirectly, as the industrial loan company.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18011.1.

18011.1. “Affiliate” means an affiliated company or a person who, directly or indirectly, controls over 10 percent of the voting stock of an industrial loan company.
(Added by Stats. 1996, Ch. 467, Sec. 1. Effective January 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18012.

18012. “Corporate Securities Law” means the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18013.

18013. “Outstanding loans and obligations,” as used in this division, means total outstanding loans and obligations, including lease obligations, less unearned interest or charges, unearned discount, reserve or allowance for losses, and other applicable allowances or deductions as determined by regulation of the commissioner.
(Amended by Stats. 1979, Ch. 911.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18014.

18014. “Obligation” as used in Sections 18265, 18271, 18272, and 18343 includes lease obligations as authorized by Section 18310.
(Added by Stats. 1979, Ch. 911.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18016.

18016. “Investment certificates ratio”, as used in this division, means the ratio of the aggregate sum of all of the outstanding investment certificates, exclusive of those hypothecated with the company issuing them, of a company to the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus declared not available for dividends pursuant to Section 18319.
(Added by renumbering Section 18373 by Stats. 1985, Ch. 142, Sec. 7. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18016.5.

18016.5. “Premium finance agency” has the meaning set forth in Section 18560.
(Added by Stats. 1998, Ch. 827, Sec. 5. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.

18018. “Capital,” as used in this division, consists of all of the following:
(a) Capital stock.
(b) Primary capital to the extent not included in capital stock.
(c) Secondary capital.
(Added by Stats. 1989, Ch. 663, Sec. 1. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.1.

18018.1. “Primary capital,” as used in this division, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, and mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of that debt).
(Added by Stats. 1989, Ch. 663, Sec. 1.1. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.2.

18018.2. “Secondary capital,” as used in this division, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock, and subordinated notes and debentures, all in an amount up to 50 percent of primary capital. Issues of limited life preferred stock and subordinated notes and debentures, except mandatory convertible debt, shall have original weighted average maturities of at least seven years to be included within capital surplus under primary capital.
(Added by Stats. 1989, Ch. 663, Sec. 1.2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.3.

18018.3. “Perpetual preferred stock,” as used in this division, means a preferred stock that does not have a stated maturity date or that can not be redeemed at the option of the holder. It includes those issues of preferred stock that automatically convert into common stock at a stated date. It excludes those issues, the rate on which increases, or can increase, in such a manner that would effectively require the issuer to redeem the issue.
(Added by Stats. 1989, Ch. 663, Sec. 1.3. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.4.

18018.4. “Mandatory convertible debt,” as used in this division, means a subordinated debt instrument which requires the issuer to convert that instrument into common or perpetual preferred stock by a date at or before the maturity of the debt instrument. The maturity of those instruments shall be 12 years or less.
(Added by Stats. 1989, Ch. 663, Sec. 1.4. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.5.

18018.5. “Limited life preferred,” as used in this division, means preferred stock which has a maturity or which may be redeemed at the option of the holder.
(Added by Stats. 1989, Ch. 663, Sec. 1.5. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18018.6.

18018.6. “Subordinated notes and debentures,” as used in this division, means an obligation other than an investment certificate obligation that:
(a) Bears on its face, in boldface type no smaller than the largest size type used in the obligation, the following: “this obligation is not a deposit and is not insured by the Federal Deposit Insurance Corporation.”
(b) (1) Has a maturity of at least seven years, or (2) in the case of an obligation or issue that provides for scheduled repayments of principal, has an average maturity of at least seven years; however, the commissioner may permit the issuance of an obligation or issue with a shorter maturity or average maturity if the commissioner has determined that exigent circumstances require the issuance of that obligation or issue. This subdivision shall not apply to mandatory convertible obligations or issues.
(c) States expressly that the obligation is subordinated and junior in right of payment to the issuing industrial loan company’s obligations to its investment certificate holders and to the industrial loan company’s other obligations to its general and secured creditors, and is ineligible as collateral for a loan by the issuing industrial loan company.
(d) Is unsecured.
(e) States expressly that the issuing industrial loan company may not retire any part of its obligation without the prior written consent of the commissioner.
(f) Includes, if the obligation is issued to a depository institution, a specific waiver of the right of offset by the lending depository institution.
(Added by Stats. 1989, Ch. 663, Sec. 1.6. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 1 - General Provisions › ARTICLE 1 - Definitions › Section 18019.

18019. “Capital Stock,” as used in this division, means one-class voting common stock.
(Added by Stats. 1989, Ch. 663, Sec. 2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)