2005 California Business and Professions Code Sections 7500-7500.3 Article 1. General Provisions

7500.  This chapter of the Business and Professions Code constitutes
the chapter on repossessors.  It may be cited as the "Collateral
Recovery Act."
7500.1.  The following terms as used in this chapter have the
meaning expressed in this section.
   (a) "Advertisement" means any written or printed communication,
including a directory listing, except a free telephone directory
listing which does not allow space for a license number.
   (b) "Assignment" means a written authorization by the legal owner,
lienholder, lessor or lessee to skip trace, locate, or repossess or
to collect money payment in lieu of repossession of, any collateral,
including, but not limited to, collateral registered under the
Vehicle Code that is subject to a security agreement that contains a
repossession clause.  "Assignment" also means a written authorization
by an employer to recover any collateral entrusted to an employee or
former employee if the possessor is wrongfully in possession of the
collateral.  A photocopy, facsimile copy, or electronic copy of an
assignment shall have the same force and effect as an original
written assignment.
   (c) "Bureau" means the Bureau of Security and Investigative
Services.
   (d) "Chief" means the Chief of the Bureau of Security and
Investigative Services.
   (e) "Collateral" means any vehicle, boat, recreational vehicle,
motor home, appliance, or other property that is subject to a
security agreement.
   (f) "Combustibles" means any substance or article that is capable
of undergoing combustion or catching fire, or that is flammable, if
retained.
   (g) "Dangerous drugs" means any controlled substances as defined
in Chapter 2 (commencing with Section 11053) of Division 10 of the
Health and Safety Code.
   (h) "Deadly weapon" means and includes any instrument or weapon of
the kind commonly known as a blackjack, slungshot, billy, sandclub,
sandbag, metal knuckles, dirk, dagger, pistol, or revolver, or any
other firearm, any knife having a blade longer than five inches, any
razor with an unguarded blade, and any metal pipe or bar used or
intended to be used as a club.
   (i) "Debtor" means any person obligated under a security
agreement.
   (j) "Department" means the Department of Consumer Affairs.
   (k) "Director" means the Director of Consumer Affairs.
   (l) "Health hazard" means any personal effects which if retained
would produce an unsanitary or unhealthful condition.
   (m) "Legal owner" means a person holding a security interest in
any collateral that is subject to a security agreement, a lien
against any collateral, or an interest in any collateral that is
subject to a lease agreement.
   (n) "Licensee" means an individual, partnership, limited liability
company, or corporation licensed under this chapter as a
repossession agency.
   (o) "Multiple licensee" means a repossession agency holding more
than one repossession license under this chapter, with one fictitious
trade style and ownership, conducting repossession business from
additional licensed locations other than the location shown on the
original license.
   (p) "Person" includes any individual, partnership, limited
liability company, or corporation.
   (q) "Personal effects" means any property that is not the property
of the legal owner.
   (r) "Private building" means and includes any dwelling,
outbuilding, or other enclosed structure.
   (s) "Qualified certificate holder" or "qualified manager" is a
person who possesses a valid qualification certificate in accordance
with the provisions of Article 5 (commencing with Section 7504) and
is in active control or management of, and who is a director of, the
licensee's place of business.
   (t) "Registrant" means a person registered under this chapter.
   (u) "Secured area" means and includes any fenced and locked area.
   (v) "Security agreement" means an obligation, pledge, mortgage,
chattel mortgage, lease agreement, deposit, or lien, given by a
debtor as security for payment or performance of his or her debt, by
furnishing the creditor with a recourse to be used in case of failure
in the principal obligation.  "Security agreement" also includes a
bailment where an employer-employee relationship exists or existed
between the bailor and the bailee.
   (w) "Services" means any duty or labor to be rendered by one
person for another.
   (x) "Violent act" means any act that results in bodily harm or
injury to any party involved.
7500.2.  A repossession agency means and includes any person who,
for any consideration whatsoever, engages in business or accepts
employment to locate or recover collateral, whether voluntarily or
involuntarily, including, but not limited to, collateral registered
under the provisions of the Vehicle Code which is subject to a
security agreement, except for any person registered pursuant to
Article 7 (commencing with Section 7506).
7500.3.  A repossession agency shall not include any of the
following:
   (a) Any bank subject to the jurisdiction of the Commissioner of
Financial Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of the Currency of the United States.
   (b) Any person organized, chartered, or holding a license or
authorization certificate to make loans pursuant to the laws of this
state or the United States who is subject to supervision by any
official or agency of this state or the United States.
   (c) An attorney at law in performing his or her duties as an
attorney at law.
   (d) The legal owner of collateral which is subject to a security
agreement.
   (e) An officer or employee of the United States of America, or of
this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her official duties.
   (f) A person employed exclusively and regularly by one employer in
connection with the affairs of that employer only, and where there
exists an employer-employee relationship.
   (g) A qualified certificate holder or a registrant when performing
services for, or on behalf of, a licensee.