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.
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