2009 California Financial Code - Section 33400-33408 :: Chapter 4. Licensing

33400.  No person other than a licensee shall engage in the business
of selling payment instruments in this state. However, this section
shall not be deemed to prohibit a California agent of a licensee from
selling in this state payment instruments issued by such licensee.

33401.  No licensee shall sell in this state any payment instruments
other than payment instruments issued by it. However, this section
shall not be deemed to prohibit:
   (a) Any licensee that is an agent of another licensee, from
selling payment instruments issued by such other licensee; or
   (b) Any licensee that is an agent of a person referred to in
subdivision (a) of Section 33100, from selling payment instruments
which are issued by such person and which such person is permitted to
sell under the paragraph of Section 33100(a) applicable to such
person.

33402.  (a) No person other than a corporation may apply for or be
issued a license.
   (b) No person other than the following may be issued a license:
   (1) A corporation organized under the laws of this state; or
   (2) A corporation (other than a corporation organized under the
laws of this state) which is qualified to transact intrastate
business in this state under Chapter 21 (commencing with Section
2100) of Division 1 of Title 1 of the Corporations Code.

33403.  If the commissioner finds, with respect to an application
for a license:

    (a) That the applicant has adequate shareholders' equity to
engage in the business of selling payment instruments issued by it
and that the financial condition of the applicant is otherwise such
that it will be safe and sound for the applicant to engage in the
business of selling payment instruments issued by it;

    (b) That the applicant, the directors, officers, and controlling
persons of the applicant, and the directors and officers of the
controlling persons of the applicant are each of good character and
sound financial standing;

    (c) That the applicant is competent to engage in the business of
selling payment instruments issued by it;

    (d) That the applicant's plan for engaging in the business of
selling payment instruments issued by it affords reasonable promise
of successful operation; and

    (e) That it is reasonable to believe that the applicant, if
licensed, will engage in the business of selling payment instruments
issued by it and will comply with all applicable provisions of this
division and of any regulation or order issued under this division:

The commissioner shall approve the application. If, after notice and
a hearing, the commissioner finds otherwise, the commissioner shall
deny the application.

33404.  For purposes of Section 33403, the commissioner may, in the
absence of credible evidence to the contrary, presume that an
applicant, the directors, officers, and controlling persons of an
applicant, and the directors and officers of the controlling persons
of an applicant are each of good character and sound financial
standing.

33405.  (a) For the purposes of Section 33403, the commissioner may
find that an applicant, a director, officer, or controlling person of
an applicant, or a director or officer of a controlling person of an
applicant is not of good character if such person:
   (1) Has been convicted of, or has pleaded nolo contendere to, any
crime involving an act of fraud or dishonesty;
   (2) Has consented to or suffered a judgment in any civil action
based upon conduct involving an act of fraud or dishonesty;
   (3) Has consented to or suffered the suspension or revocation of
any professional, occupational, or vocational license based upon
conduct involving an act of fraud or dishonesty;
   (4) Has willfully made or caused to be made in any application or
report filed with the commissioner or in any proceeding before the
commissioner, any statement which was at the time and in the light of
the circumstances under which it was made false or misleading with
respect to any material fact, or has willfully omitted to state in
any such application or report any material fact which was required
to be stated therein; or
   (5) Has willfully committed any violation of, or has willfully
aided, abetted, counseled, commanded, induced or procured the
violation by any other person of, any provision of this division or
of any regulation or order issued under this division.
   (b) Subdivision (a) shall not be deemed to be an exclusive list of
the grounds upon which the commissioner may find, for purposes of
Section 33403, that an applicant, a director, officer, or controlling
person of an applicant, or a director or officer of a controlling
person of an applicant is not of good character.

33406.  Whenever any application for a license has been approved by
the commissioner and all conditions precedent to the issuance of such
license have been fulfilled, the commissioner shall issue the
license to the applicant.

33407.  No license shall be transferable or assignable.

33408.  No licensee shall represent that it is sponsored,
recommended, or approved, or that its abilities or qualifications
have in any respect been passed upon, by the commissioner. However,
this section shall not be deemed to prohibit a licensee from stating
that it is licensed if the effect of such license is not
misrepresented.