reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22685.

22685. (a) A program administrator shall derive market value using one of the following:
(1) Automated valuation models, using the following criteria:
(A) Each automated valuation model must be provided by a third-party vendor.
(B) Each automated valuation model must have estimation models with confidence scores and regular statistical calibration by the third-party vendor.
(C) The program administrator shall utilize at least three automated valuation models for each property. The estimated value for each model shall be the average between the high and low values, if a range is provided.
(D) The program administrator shall utilize the estimated value with the highest confidence score for a property. If an automated valuation model meeting the criteria of subparagraphs (A), (B), and (C) does not obtain a confidence score for a subject property, the PACE program shall utilize the average of all estimated values.
(2) An appraisal conducted within six months of the application date by a state-licensed or state-certified real estate appraiser licensed pursuant to Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code. A program administrator may rely upon an appraisal obtained from a property owner if that appraisal was conducted in accordance with applicable laws and regulations by a state-licensed or state-certified appraiser in connection with a consumer credit transaction secured by the subject property, including the purchase or refinance of the subject property or the extension of an equity line of credit secured by the subject property.
(b) The market value determination by the program administrator shall be disclosed to the property owner prior to signing the assessment contract.
(Amended by Stats. 2018, Ch. 798, Sec. 6. (SB 1087) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22686.

22686. A program administrator shall not execute an assessment contract, and no work shall commence under a home improvement contract that is financed by that assessment contract nor shall that home improvement contract be executed unless the program administrator makes a reasonable good faith determination that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment.
(Amended by Stats. 2018, Ch. 813, Sec. 9. (AB 2063) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22688.

22688. A program administrator shall be subject to all provisions of the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050)) that are applicable to financial institutions.
(Amended by Stats. 2018, Ch. 798, Sec. 8. (SB 1087) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22689.

22689. (a) A program administrator shall not permit a PACE solicitor to do any of the following:
(1) Solicit a property owner to enter into an assessment contract with a program administrator, unless the PACE solicitor and the program administrator comply with the requirements of this chapter and any rules adopted by the commissioner.
(2) Engage in any act in violation of Section 5898.16 or 5898.17 of the Streets and Highways Code or Chapter 29.1 (commencing with Section 5900) of Part 3 of Division 7 of the Streets and Highways Code, including offering an assessment contract with terms, conditions, or disclosures that are not in compliance with applicable laws or that omits terms, conditions, or disclosures required by applicable law, excepting the reporting requirements of Section 5954 of the Streets and Highways Code.
(b) A program administrator shall be subject to the enforcement authority of the commissioner for any violations of this division, to the extent those violations have been committed by the program administrator or by a PACE solicitor authorized by that program administrator, in connection with activity related to that program administrator.
(c) A violation of any provision of Section 5898.16 or 5898.17 of the Streets and Highways Code or of any provision of Chapter 29.1 (commencing with Section 5900) of Part 3 of Division 7 of the Streets and Highways Code by a program administrator, excepting the reporting requirements of Section 5954 of the Streets and Highways Code, or by a PACE solicitor authorized by that program administrator in connection with activity related to that program administrator, shall be a violation of this division.
(Amended by Stats. 2018, Ch. 813, Sec. 11. (AB 2063) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22690.5.

22690.5. (a) The department shall maintain, on its Internet Web site, the identities of enrolled PACE solicitors and PACE solicitor agents. The Internet Web site shall identify the date of the most recent update, and the frequency with which the list is updated. This subdivision shall become operative on January 1, 2020.
(b) The department shall maintain on its Internet Web site the identities of PACE solicitors and PACE solicitor agents ordered to discontinue engaging in the business of soliciting property owners to enter into assessment contracts. The Internet Web site shall identify the date of the most recent update.
(Added by Stats. 2018, Ch. 798, Sec. 11. (SB 1087) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22691.

22691. The commissioner may by any rules he or she deems necessary or appropriate in the public interest or for the protection of property owners, either unconditionally or upon specified terms and conditions or for specified periods, exempt any class of persons specified in those rules from the provisions of Sections 22680, 22681, and 22682.
(Amended by Stats. 2018, Ch. 813, Sec. 12. (AB 2063) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22692.

22692. (a) The commissioner shall require a program administrator to submit the following information in the annual report filed under Section 22159:
(1) Information beneficial to an evaluation of the overall impact on property owners caused by the 97 percent cap on total PACE and mortgage-related debt.
(2) Information beneficial to an evaluation of the overall impact on property owners caused by the use of an automated valuation model in determining the market value of property subject to a PACE assessment.
(3) Information beneficial to an evaluation of the overall impact on property owners caused by the emergency HVAC provisions.
(4) Information relevant to determining the overall impact on property owners of the absence of a minimum residual income threshold.
(b) The information received under this section shall appear in a separate section within the composite of the annual reports required to be prepared by the commissioner pursuant to Section 22160.
(c) This section does not limit the authority of the commissioner to require additional information from a program administrator under Section 22159.
(Added by Stats. 2017, Ch. 475, Sec. 71. (AB 1284) Effective October 4, 2017. Section operative January 1, 2019, pursuant to Section 22696.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22693.

22693. (a) The commissioner may, by rule, require a program administrator to use a real-time registry or database system for tracking PACE assessments in order to carry out his or her regulatory duties and to support enforcement. That registry or database system shall enable the program administrator to trace PACE assessments and shall include, but not be limited to, features for providing or obtaining information about a property’s status with regard to PACE assessments placed on the property, whether recorded or not. All costs associated with the real-time registry or database system shall be apportioned among licensed program administrators based on the volume and amount of PACE assessments by each program administrator, or any other method that fairly apportions the costs, as required by rule. The commissioner may contract with an independent third party for the development and ongoing maintenance and support of the real-time registry or database system, and may require the program administrators to pay for the cost of development and ongoing maintenance and support directly to the independent third party. In no event shall the costs apportioned to a program administrator exceed a reasonable regulatory cost.
(b) On or before January 1, 2020, the commissioner shall determine whether to proceed with a rulemaking action. This subdivision shall not restrict the ability of the commissioner to proceed with a rule under this section at any time.
(Amended by Stats. 2018, Ch. 813, Sec. 13. (AB 2063) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22694.

22694. This chapter does not apply to a finance lender, mortgage loan originator, or broker licensee, unless they engage in the business of a program administrator, PACE solicitor, or PACE solicitor agent.
(Amended by Stats. 2018, Ch. 798, Sec. 13. (SB 1087) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22695.

22695. (a) A violation of this chapter by any person is not subject to the criminal penalties established pursuant to Sections 22753 and 22780.
(b) Notwithstanding Section 22696, this section shall become operative on the effective date of this act.
(Added by Stats. 2017, Ch. 475, Sec. 71. (AB 1284) Effective October 4, 2017. Section operative October 4, 2017, by its own provisions.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22696.

22696. Except as provided in Sections 22684, 22685, 22686, 22687, 22688, and 22695, this chapter shall become operative on January 1, 2019.
(Added by Stats. 2017, Ch. 475, Sec. 71. (AB 1284) Effective October 4, 2017. Note: Operative date provision applies, with specified exceptions, to Chapter 3.5, comprising Sections 22680 to 22697.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 3.5 - Program Administrators › Section 22697.

22697. This chapter does not preclude or reduce any rights and remedies established under any other laws.
(Added by Stats. 2017, Ch. 475, Sec. 71. (AB 1284) Effective October 4, 2017. Section operative January 1, 2019, pursuant to Section 22696.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22700.

22700. (a) Finance lender, broker, and program administrator licenses issued under this division shall remain in effect until they are surrendered, revoked, or suspended.
(b) Mortgage loan originator licenses issued under this division shall be renewed annually upon the payment of an annual assessment, and, if renewed by the licensee, shall remain in effect until they are surrendered, revoked, or suspended.
(c) Surrender of a license becomes effective 30 days after receipt of an application to surrender the license or within a shorter period of time that the commissioner may determine, unless a revocation or suspension proceeding is pending when the application is filed or a proceeding to revoke or suspend or to impose conditions upon the surrender is instituted within 30 days after the application is filed. If a proceeding is pending or instituted, surrender of a license becomes effective at the time and upon the conditions that the commissioner determines.
(d) This section shall become operative on January 1, 2019.
(Repealed (in Sec. 72) and added by Stats. 2017, Ch. 475, Sec. 73. (AB 1284) Effective October 4, 2017. Section operative January 1, 2019, by its own provisions.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22701.

22701. (a) For the purpose of discovering violations of this division or securing information required by him or her in the administration and enforcement of this division, the commissioner may at any time investigate the loans, assessment contracts, and business, and examine the books, accounts, records, and files used in the business, of every person engaged in the business of a finance lender, broker, or program administrator, whether the person acts or claims to act as principal or agent, or under or without the authority of this division. For the purpose of examination, the commissioner and his or her representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these persons.
(b) This section shall become operative on January 1, 2019.
(Repealed (in Sec. 74) and added by Stats. 2017, Ch. 475, Sec. 75. (AB 1284) Effective October 4, 2017. Section operative January 1, 2019, by its own provisions.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22702.

22702. In making any examination or investigation, the commissioner may, for a reasonable time not to exceed 30 days, take possession of the books, records, accounts, and other papers pertaining to the business. The commissioner may place a keeper in exclusive charge and custody of the books, records, accounts, and other papers in the office or place where they are usually kept. During possession, no person shall remove or attempt to remove any of the books, accounts, papers, records, files, safes, and vaults, or any part thereof, except in compliance with a court order or written consent of the commissioner.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22703.

22703. The officers, employees, partners, directors, and stockholders may inspect and examine the books, accounts, papers, records, files, safes, and vaults while they are in the custody of the commissioner. Employees may make entries in these documents reflecting current operations or transactions.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22704.

22704. The power of investigation and examination by the commissioner is not terminated by the surrender, suspension, or revocation of any license issued by him or her.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22705.

22705. Whenever the commissioner deems it necessary for the general welfare of the public, he or she has continuous authority to exercise the powers set forth in this division whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked.
(Amended by Stats. 2002, Ch. 772, Sec. 17. Effective January 1, 2003.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22705.1.

22705.1. (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an action substantially related to the activity regulated under this division may be grounds for disciplinary action by the commissioner. A certified copy of the record of the disciplinary action taken against the licensee by the State of California, other state, agency of the federal government, or other country shall be conclusive evidence of the events related therein.
(b) Nothing in this section shall preclude the commissioner from applying a specific statutory provision in this division providing for discipline against a licensee as a result of disciplinary action taken against a licensee by the State of California, another state, an agency of the federal government, or another country.
(Added by Stats. 2003, Ch. 473, Sec. 21. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22706.

22706. The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony relates to activities and businesses regulated by this division or to the subject matter of any examination, investigation, or hearing.
(Amended by Stats. 2020, Ch. 160, Sec. 1. (AB 2559) Effective January 1, 2021.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22707.

22707. (a) The cost of each examination of a licensee or a person subject to this division shall be paid to the commissioner by the licensee or person examined, and the commissioner may maintain an action for the recovery of the cost in any court of competent jurisdiction. In determining the cost of an examination, the commissioner may use the estimated average hourly cost for all persons performing examinations of licensees or other persons subject to this division for the fiscal year.
(b) For the purpose of this section only, no person other than a licensee shall be deemed to be a person subject to this division until the person is determined to be a person subject to this division by an administrative hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code or by a judicial hearing in any court of competent jurisdiction.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22708.

22708. After an examination, investigation, or hearing under this division, if the commissioner deems it of public interest or advantage, he or she may certify a record to the proper prosecuting official of the city, county, or city and county in which the act complained of, examined, or investigated occurred.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22709.

22709. The commissioner may require the production for examination in this state of all books, records, and supporting data used by the licensee in the preparation of reports to the commissioner. The books, records, and supporting data shall be made available for examination by the commissioner in this state within 10 days after a written demand.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22710.

22710. The commissioner may upon three days’ notice and a hearing, suspend any license for a period not exceeding 30 days, pending investigation.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22711.

22711. Any licensee may surrender any license by delivering to the commissioner written notice that the licensee surrenders that license. Surrender of the license does not affect the licensee’s civil or criminal liability for acts committed prior to surrender of the license.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22712.

22712. (a) Whenever, in the opinion of the commissioner, any person is engaged or has engaged in business as a finance lender, broker, program administrator, or mortgage loan originator, as defined in this division, without a license from the commissioner, or any licensee is violating or has violated any provision of this division, any provision of an order, or any regulation adopted pursuant to this division, the commissioner may order that person or licensee to desist and to refrain from engaging in the business or further continuing that violation. In addition, the commissioner may include a claim for ancillary relief. The ancillary relief may include, but not be limited to, refunds, restitution or disgorgement, or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action. If, within 30 days after the order is served, a written request for a hearing is filed and no hearing is held within 30 days thereafter, the order is rescinded. For purposes of this section, “licensee” includes a mortgage loan originator.
(b) Notwithstanding subdivision (a), if, after an investigation, the commissioner has reasonable grounds to believe that a person is conducting or has conducted business in an unsafe or injurious manner, the commissioner shall, by written order addressed to that person, direct the discontinuance of the unsafe or injurious practices. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 22717.
(Amended by Stats. 2022, Ch. 188, Sec. 15. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22713.

22713. (a) Whenever the commissioner believes from evidence satisfactory to the commissioner that any person has violated or is about to violate a provision of this division, or a provision of any order, license, decision, demand, requirement, or any regulation adopted pursuant to this division, the commissioner may, in the commissioner’s discretion, bring an action, or the commissioner may request the Attorney General to bring an action in the name of the people of the State of California, against that person to enjoin that person from continuing that violation or doing any act in furtherance of the violation. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and other ancillary relief may be granted as appropriate.
(b) If the commissioner determines that it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution, disgorgement, or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action. The court shall have jurisdiction to award additional relief.
(c) Any person who willfully violates any provisions of this division, or who willfully violates any rule or order adopted pursuant to 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.
(d) 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. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22714.

22714. (a) The commissioner shall suspend or revoke any license, upon notice and reasonable opportunity to be heard, if the commissioner finds any of the following:
(1) The licensee has failed to comply with any demand, ruling, or requirement of the commissioner made pursuant to and within the authority of this division.
(2) The licensee has violated any provision of this division or any rule or regulation made by the commissioner under and within the authority of this division.
(3) A fact or condition exists that, if it had existed at the time of the original application for the license, reasonably would have warranted the commissioner in refusing to issue the license originally.
(4) There has been repeated failure by the finance lender, when making or negotiating loans, to take into consideration in determining the size and duration of loans, the financial ability of the borrower to repay the loan in the time and manner provided in the loan contract, or to refinance the loan at maturity.
(5) There has been repeated failure by the program administrator, when administering assessment contracts, to take into consideration in determining the size and duration of the assessment contracts, the property owner’s ability to meet the annual PACE obligations in the time and manner provided in the contract.
(b) A master license shall not be suspended or revoked pursuant to this section as a result of any action or failure to act by a subsidiary licensee unless grounds exist for the suspension or revocation of the master license pursuant to this section. An order suspending or revoking a license or imposing sanctions against a licensee shall not affect other licensed locations unless expressly stated in the order.
(c) This section shall become operative on January 1, 2019.
(Repealed (in Sec. 80) and added by Stats. 2017, Ch. 475, Sec. 81. (AB 1284) Effective October 4, 2017. Section operative January 1, 2019, by its own provisions.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22715.

22715. (a) The commissioner may by order summarily suspend or revoke the license of any licensee if that person fails to file the report required by Section 22159 within 10 days after notice by the commissioner that the report is due and not filed. If, after an order is made, a request for hearing is filed in writing within 30 days and the hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date.
(b) (1) Subject to paragraph (2), the commissioner may impose, by order, a penalty on any licensee who does not do, within the time specified in any written demand of the commissioner, either of the following:
(A) Make and file with the commissioner any report required by law.
(B) Furnish any material information required by the commissioner to be included in any report required by law.
(2) A penalty may not be imposed on a licensee pursuant to this subdivision in connection with a report or information required to be submitted by a licensee if either:
(A) The commissioner requires information from the licensee pursuant to subdivision (a) of Section 22159 that was not required the prior year and the licensee is notified about the requirement to submit that new information less than 90 days before the information is due to the commissioner.
(B) The commissioner requires the licensee to submit information pursuant to subdivision (b) of Section 22159 and the licensee is notified about the requirement to submit that information less than 90 days before the information is due to the commissioner.
(3) The amount of the penalty imposed pursuant to this subdivision shall not exceed one hundred dollars ($100) for each business day for the first five business days the report or information is overdue, and thereafter shall not exceed five hundred dollars ($500) for each business day the report or information is overdue, not to exceed twenty-five thousand dollars ($25,000) in the aggregate.
(c) If an order has been made under subdivision (b), and a request for a hearing is filed in writing within 30 days of the date of service of the order by the licensee to whom the order was directed, a hearing shall be held in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. At the hearing, the commissioner shall have all the powers granted under that chapter.
(d) If the licensee fails to file a written request for a hearing within 30 days of the date of service of the order, the order imposing the penalty shall be deemed a final order of the commissioner, and the penalty shall be paid within five business days.
(e) If a hearing is requested, the penalty shall be paid within five business days after the effective date of any decision in the case ordering payment to be made.
(Amended by Stats. 2017, Ch. 329, Sec. 1. (AB 1636) Effective January 1, 2018.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22716.

22716. (a) The revocation, suspension, expiration, or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower or property owner, nor the validity and enforceability of any bonds issued and secured by those contracts. This division does not affect the validity and enforceability of any PACE assessment contracts entered into or bonds issued and secured by those contracts.
(b) This section shall become operative on January 1, 2019.
(Amended (as added by Stats. 2017, Ch. 475, Sec. 83) by Stats. 2018, Ch. 813, Sec. 14. (AB 2063) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22717.

22717. Except in cases in which the time for setting the hearing is shortened as provided in this division, the proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and in all cases the commissioner has all the powers granted therein.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 1 - Revocation and Suspension of License › Section 22718.

22718. Every order, decision, license, or other official act of the commissioner is subject to judicial review in accordance with law.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22750.

22750. (a) If any amount other than, or in excess of, the charges permitted by this division is willfully charged, contracted for, or received, the contract of loan is void, and no person has any right to collect or receive any principal, charges, or recompense in connection with the transaction.
(b) If any provision of this division is willfully violated in the making or collection of a loan, whether by a licensee or by an unlicensed person subject to this division, the contract of loan is void, and no person has any right to collect or receive any principal, charges, or recompense in connection with the transaction.
(Amended by Stats. 2013, Ch. 467, Sec. 3. (SB 318) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22751.

22751. (a) If any amount other than or in excess of the charges permitted by this division is charged or contracted for, or received, for any reason other than a willful act of the licensee, the licensee shall forfeit all interest and charges on the loan and may collect or receive only the principal amount of the loan.
(b) Subdivision (a) shall not apply to an error in computation if (1) the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error, and (2) within 60 days of discovering the error the licensee notifies the borrower of the error and makes whatever adjustments in the account are necessary to correct the error.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22752.

22752. (a) If any provision of this division is violated in the making or collection of a loan, for any reason other than a willful act of the licensee, the licensee shall forfeit all interest and charges on the loan and may collect or receive only the principal amount of the loan.
(b) Subdivision (a) shall not apply to a violation if (1) the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error, and (2) within 30 days of discovering the error the licensee notifies the borrower of the error and rectifies the error by making the appropriate changes in the documents or account and by taking other action necessary to correct the error.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22753.

22753. Except as provided in Section 22696, any person who willfully violates any provision of this division or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment in a county jail for not more than one year or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment. However, no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority in Section 22713.
(Amended by Stats. 2017, Ch. 475, Sec. 84. (AB 1284) Effective October 4, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22754.

22754. No provision imposing liability under this division, including the provisions of subdivision (a) of Section 22751 and subdivision (a) of Section 22752, shall apply to any act done or omitted in good faith in conformity with any written general rule, regulation, or specific ruling of the commissioner, notwithstanding that after the act or omission has occurred, the written general rule, regulation, or specific ruling is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22755.

22755. It is a violation of this division for a mortgage loan originator to do any of the following:
(a) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person.
(b) Engage in any unfair or deceptive practice toward any person.
(c) Obtain property by fraud or misrepresentation.
(d) Solicit or enter into a contract with a borrower that provides in substance that the mortgage loan originator may earn a fee or commission through best efforts to obtain a loan even though no loan is actually obtained for the borrower.
(e) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting.
(f) Conduct any business covered by this division without holding a valid license as required under this division, or assist or aide and abet any person in the conduct of business under this division without a valid license as required under this division.
(g) Fail to make disclosures as required by this division and any other applicable state or federal law, including regulations thereunder.
(h) Fail to comply with this division or rules or regulations promulgated under this division, or fail to comply with any other state or federal law, including the rules and regulations thereunder, applicable to any business authorized or conducted under this division.
(i) Make, in any manner, any false or deceptive statement or representation including, with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan, or engage in bait and switch advertising.
(j) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the Nationwide Mortgage Licensing System and Registry or in connection with any investigation conducted by the commissioner or another governmental agency.
(k) Make any payment, threat, or promise, directly or indirectly, to any person for the purposes of influencing the independent judgment of the person in connection with a residential mortgage loan, or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property.
(l) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this division.
(m) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer.
(n) Fail to truthfully account for moneys belonging to a party of a residential mortgage loan transaction.
(Added by Stats. 2009, Ch. 160, Sec. 44. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22756.

22756. Notwithstanding any other law, any application for licensure, amendment to the application or registration document or notice filed under any of the laws administered by the Department of Financial Protection and Innovation, or record otherwise required to be filed in this state as an electronic record pursuant to a nationwide central depository for information regarding licensees, including mortgage loan originators, or any electronic record filed through the Nationwide Mortgage Licensing System and Registry, shall be deemed to be a valid original document upon reproduction to paper form by the Department of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 141. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22757.

22757. A finance lender, broker, or mortgage loan originator licensed under this division shall not pay any commission, fee, or other compensation to an unlicensed individual for conducting activities that require a license, unless that unlicensed individual is exempt from licensure pursuant to this division.
(Added by Stats. 2012, Ch. 264, Sec. 7. (AB 2666) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 2 - Consumer Loan Penalties › Section 22758.

22758. This article does not apply to a program administrator or a PACE solicitor.
(Added by Stats. 2017, Ch. 475, Sec. 85. (AB 1284) Effective October 4, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 3 - Commercial Loan Penalties › Section 22780.

22780. Except as provided in Section 22696, any person who willfully violates any provision of this division, or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment in a county jail for not more than one year or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment. However, no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority provided in Section 22713.
This article does not apply to a program administrator or PACE solicitor.
(Amended by Stats. 2017, Ch. 475, Sec. 86. (AB 1284) Effective October 4, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 4 - Revocation and Penalties › ARTICLE 3 - Commercial Loan Penalties › Section 22780.1.

22780.1. A violation of Division 9.5 (commencing with Section 22800) by a licensee shall constitute a violation of this division.
(Added by Stats. 2018, Ch. 1011, Sec. 1. (SB 1235) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9.5 - Commercial Financing Disclosures › Section 22801.

22801. This division does not apply to any of the following:
(a) A provider that is a depository institution.
(b) A provider that is a lender regulated under the federal Farm Credit Act (12 U.S.C. Sec. 2001 et seq.).
(c) A commercial financing transaction secured by real property.
(d) A commercial financing transaction in which the recipient is a dealer, as defined by Section 285 of the Vehicle Code, or an affiliate of such a dealer, or a vehicle rental company, or an affiliate of such a company, pursuant to a specific commercial financing offer or commercial open-end credit plan of at least fifty thousand dollars ($50,000), including any commercial loan made pursuant to such a commercial financing transaction.
(e) Any person who makes no more than one commercial financing transaction in California in a 12-month period or any person who makes five or fewer commercial financing transactions in California in a 12-month period that are incidental to the business of the person relying upon the exemption.
(Added by Stats. 2018, Ch. 1011, Sec. 2. (SB 1235) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 9.5 - Commercial Financing Disclosures › Section 22802.

22802. (a) A provider subject to this division shall disclose all of the information in subdivision (b) or in Section 22803, if applicable, to a recipient at the time of extending a specific commercial financing offer to that recipient, and shall obtain the recipient’s signature on the disclosure before consummating the commercial financing transaction.
(b) Except as provided in Section 22803, a provider subject to this division shall disclose all of the following:
(1) The total amount of funds provided.
(2) The total dollar cost of the financing.
(3) The term or estimated term.
(4) The method, frequency, and amount of payments.
(5) A description of prepayment policies.
(6) The total cost of the financing expressed as an annualized rate.
(Amended (as added by Stats. 2018, Ch. 1011, Sec. 2, 1st text) by Stats. 2023, Ch. 376, Sec. 1. (SB 33) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 9.5 - Commercial Financing Disclosures › Section 22803.

22803. As an alternative to the disclosures required in subdivision (b) of Section 22802, a provider who offers commercial financing that is factoring or asset-based lending and that offers the recipient an agreement that describes the general terms and conditions of the commercial financing transaction that will occur under the agreement, may provide the following disclosures as an example of a transaction that could occur under the general agreement for a given amount of accounts receivables:
(a) An amount financed.
(b) The total dollar cost.
(c) The term or estimated term.
(d) The method, frequency, and amount of payments.
(e) A description of prepayment policies.
(f) The total cost of the financing expressed as an annualized rate.
(Amended (as added by Stats. 2018, Ch. 1011, Sec. 2, 1st text) by Stats. 2023, Ch. 376, Sec. 3. (SB 33) Effective January 1, 2024.)