2005 California Financial Code Sections 1800-1827 CHAPTER 14. TRANSMISSION OF MONEY ABROAD

1800.  (a)  It is the intent of the Legislature in enacting this
chapter to protect the people of this state from being victimized by
unscrupulous practices by persons receiving money for transmission to
foreign countries and to establish a minimum level of fiscal
responsibility and corporate integrity for all entities engaging in
the business of receiving money for transmission to foreign countries
without regard to the method of transmission.
   (b) The Legislature finds and declares that California has a large
and diverse population many of whom are concerned with the financial
plight of people remaining in the countries which they left.  Many
of these people are not familar with the varied and intricate
financial systems of this state and due to language barriers and
other obstacles do not have access to entities offering legitimate
money transmission services.  In an effort to transmit money to their
friends and relatives, these persons give their money to persons
under the precept that the money or its equivalent will be
immediately transmitted to the designated foreign country.  The money
is frequently misappropriated or never transmitted.  The victims of
these practices are generally not aware of the law enforcement
services available to help them, thus this unlawful conduct goes
unreported.
1800.3.  (a) No person shall engage in the business of receiving
money for the purpose of transmitting the same or its equivalent to
foreign countries without first obtaining a license from the
commissioner.
   (b) This chapter shall not apply to any of the following:
   (1) A commercial bank or industrial bank, the deposits of which
are insured by the Federal Deposit Insurance Corporation or its
successor, or any foreign (other nation) bank which is licensed under
Article 3 (commencing with Section 1750) of Chapter 13.5 or which is
authorized under federal law to maintain a federal agency or federal
branch office in this state.
   (2) A trust company licensed pursuant to Section 401 or a national
association authorized under federal law to engage in a trust
banking business.
   (3) An association or federal association, as defined in Section
5102 the deposits of which are insured by the Federal Deposit
Insurance Corporation or its successor.
   (4) Any federally or state chartered credit union the member
accounts of which are insured or guaranteed as provided in Section
14858.
1800.4.  The receipt of money by an incorporated telegraph company,
or its agents, for immediate transmission by telegraph to foreign
countries shall be exempt from licensure under this chapter until
July 1, 1990, provided each of the following conditions is satisfied.
   (1) The company has applied before February 1, 1990, to the
commissioner for licensure under this chapter.
   (2) The company, and its agents, shall comply with and be subject
to all applicable provisions of this chapter.
   (3) The company directly, or through agents, on or before February
1, 1989, received money for immediate transmission by telegraph to
foreign countries.
1800.5.  For the purposes of this chapter:
   (a) (1) "Receiving money for transmission" means receiving money
for the purpose of transmitting the same or its equivalent to foreign
countries.
   (2) Except as otherwise provided in paragraph (3), "receiving
money for transmission" does not include selling any check, draft,
money order, travelers check, or other instrument (whether or not
negotiable) for the transmission or payment of money.
   (3) "Receiving money for transmission" includes the sale by a
person, either directly or indirectly through an agent, of any check
or draft which:
   (A) Is drawn by the person;
   (B) Is drawn on, or is payable through or at, an office of a bank
located in a foreign country;
   (C) Is denominated in a foreign currency; and
   (D) Is not designated on its face by the term "money order" or
"travelers check" or by any substantially similar term.
   (b) "Transmission money" means money received in this state by a
licensee for transmission to a foreign country, or any equivalent
into which the money is converted, from the time the money is
received for transmission to a foreign country until the time the
transmission of the money in accordance with the agreement of the
licensee with the customer is completed, or, if the transmission is
not completed, until such time as the money is repaid to the
customer.
   (c) "Agent" means any person whom a licensee has appointed as its
agent with authority to receive transmission money on behalf of the
licensee, provided that the licensee becomes liable for the
transmission of the transmission money at the time when the
transmission money is received by the person.  However, "agent" does
not include any officer or employee of the licensee when acting as
such at an office of a licensee.
   (d) "Licensee" means any corporation licensed pursuant to this
chapter.
   (e) For the purposes of Section 1802.2, 1803.5, and 1804 the
following terms shall have the following meanings:
   (1) "Control" has the meaning set forth in Section 700.
   (2) "Officer" has the meaning set forth in Section 33057.
1800.7.  (a) As used in this section, "designated person" means any
agent, any applicant, the officers, directors, and controlling
persons of any applicant or agent, and the directors and officers of
the controlling persons of any applicant or agent.
   (b) For the purposes of Sections 1802.2, 1803.5, and 1804, each of
the following applies:
   (1) The commissioner may, in the absence of the credible evidence
to the contrary, presume that designated persons are each of good
character and sound financial standing.
   (2) The commissioner may find that a designated person is not of
good character if that person has done any of the following:
   (A) Been convicted of, or has pleaded nolo contendere to, any
crime involving an act of fraud or dishonesty.
   (B) Consented to or suffered a judgment in any civil action based
on conduct involving an act of fraud or dishonesty.
   (C) 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.
   (D) 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 application or report any material fact which was required to be
stated therein.
   (E) 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.
   (3) Paragraph (2) shall not be deemed to be an exclusive list of
grounds upon which the commissioner may find that a designated person
is not of good character.
1800.9.  The commissioner may impose on any authorization, approval,
license, or order issued pursuant to this chapter any conditions
that he or she deems reasonable or necessary to the public interest.
1801.  (a) Fees shall be paid to, and collected by, the
commissioner, as follows:
   (1) The fee for filing with the commissioner an application for a
license is five thousand dollars ($5,000).
   (2) The fee for filing with the commissioner an application for
approval to acquire control of a licensee is three thousand five
hundred dollars ($3,500).
   (3) The fee for filing with the commissioner an application for
approval to establish a branch office of a licensee is two hundred
fifty dollars ($250).
   (4) The fee for filing with the commissioner an application for
approval to establish a branch office of an agent is fifty dollars
($50).
   (5) The fee for filing with the commissioner an application for
extension of an approval to establish a branch office is one hundred
dollars ($100).
   (6) A licensee shall pay to the commissioner annually on or before
July 1, a licensee fee of two thousand five hundred dollars
($2,500).
   (7) A licensee shall pay to the commissioner annually on or before
July 1, one hundred twenty-five dollars ($125) for each licensee
branch office.
   (8) A licensee shall pay to the commissioner annually on or before
July 1, twenty-five dollars ($25) for each agent headquarter office
and each agent branch office.
   (9) Whenever the commissioner examines a licensee or any agent of
a licensee, the licensee shall pay, within 10 days after receipt of a
statement from the commissioner, a fee of seventy-five dollars ($75)
per hour for each examiner engaged in the examination plus, if it is
necessary for any examiner engaged in the examination to travel
outside this state, the travel expenses of the examiner.
   (b) (1) Each fee for filing an application with the commissioner
shall be paid at the time the application is filed with the
commissioner.
   (2) No fee for filing an application with the commissioner shall
be refundable, regardless of whether the application is approved,
denied, or withdrawn.
1801.1.  Each fiscal year the commissioner shall levy an assessment
on a pro rata basis on those licensees which at any time during the
preceding calendar year received transmission money.  The total
assessment levied on all of those licensees shall be in an amount
which, when added to the fees that the commissioner collects during
the fiscal year the assessment is levied, is sufficient to meet the
expenses of the commissioner in administering this chapter and to
provide a reasonable reserve for contingencies.  The basis of the
apportionment of the assessment among the licensees assessed shall be
the proportion that the amount of transmission money received by the
licensee bears to the total amount of transmission money received by
all licensees as shown by the reports of licensees to the
commissioner for the preceding calendar year, as required by Section
1807.  The assessment rate shall be fixed from time to time by the
commissioner but shall not exceed one dollar ($1) per one thousand
dollars ($1,000) of transmission money received by the licensee.
   The commissioner shall notify each licensee by mail of the amount
levied against it.  The licensee shall pay the amount levied within
20 days.  If payment is not made to the commissioner within that
time, the commissioner shall assess and collect, in addition to the
annual assessment, a penalty of 5 percent of  the assessment for each
month or part thereof that the payment is delinquent.
   This section shall not become operative until July 1, 1990.
1802.  (a) An application for a license shall be in writing, under
oath, and in a form prescribed by the commissioner.  It shall contain
the name and address of the applicant, and of every officer and
director thereof.  The application shall also contain any other
information the commissioner may require.
   (b) No person other than a corporation may apply for or be issued
a license.
1802.2.  If the commissioner finds, with respect to an application
for a license:
   (a) That the applicant has adequate capital as specified in
Section 1814 to engage in the business of receiving money for
transmission 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 receiving money.
   (b) That the applicant, the directors, and officers of, and any
person which controls the applicant, and the directors and officers
of any person which controls the applicant, are of good character and
sound financial standing.
   (c) That the applicant is competent to engage in the business of
receiving money for transmission.
   (d) That the applicant's plan for engaging in the business of
receiving money for transmission affords reasonable promise of
successful operation.
   (e) That it is reasonable to believe that the applicant, if
licensed, will engage in the business of receiving money for
transmission and will comply with all applicable provisions of this
chapter and of any regulation or order issued under this chapter, the
commissioner shall approve the application.  If, after notice and a
hearing, the commissioner finds otherwise, the commissioner shall
deny the application.
1802.6.  The license is not transferable or assignable.
1802.7.  If the application is approved by the commissioner he or
she shall, upon the payment of the license fees, issue and deliver to
the applicant a license to engage in business in accordance with
this chapter.
1802.8.  (a) Before any applicant is issued a license the applicant
shall file with the commissioner, in the form required by the
commissioner, an irrevocable consent appointing the commissioner to
receive service of any lawful process in any noncriminal judicial or
administrative proceeding against the person, that person's
successor, executor, or administrator, which arises under this
chapter or any regulation or order issued under this chapter after
the consent has been filed.
   (b) Service of process after consents have been filed pursuant to
this section shall have the same force and validity as if personally
served on the person.
   (c) Service may be made by leaving a copy of the process at any
office of the commissioner, but the service is not effective unless
(1) the party making the service, who may be the commissioner,
immediately sends notice of the service and a copy of the process by
registered or certified mail to the party served at his or her last
address on file with the commissioner, and (2) an affidavit of
compliance with this section by the party making service is filed in
the case on or before the return date, if any, or any further time
that the court, in the case of a judicial proceeding, or the
administrative agency, in the case of an administrative proceeding,
allows.
   (d) Any consent filed pursuant to this section shall be deemed to
have appointed the commissioner and any successor from time to time
in office.
1803.  No licensee shall appoint or continue any person as an agent,
unless the licensee and the person have made a written contract
which contains each of the following provisions:
   (a) That the licensee appoints the person as its agent with
authority to receive transmission money on behalf of the licensee.
   (b) That the person make and keep accounts, correspondence,
memorandums, papers, books, and other records as the commissioner by
regulation or order requires and preserve the records for the time
specified by the regulation or order.
   (c) That all funds, less fees due agents provided for and
expressly set forth, received by the person from the receipt of
transmission money on behalf of the licensee shall be trust funds
owned by and belonging to the person from whom they were received
until the time that directions have been given by the licensee or its
agents for payment abroad of the remittance and funds provided for
the payment.
   (d) Any other provisions that the commissioner may find to be
necessary to  carry out the provisions and purposes of this chapter.
   (e) This section shall not apply to any written contract between a
licensee and an agent appointed by the licensee prior to February 1,
1989, unless the commissioner, in his or her sole discretion,
determines that compliance with this section is necessary and
appropriate.  For purpose of this subdivision only, "licensee" means
an incorporated telegraph company which existed on February 1, 1989,
or any wholly owned incorporated subsidiary of that telegraph
company.
1803.5.  (a) Except as provided in subdivision (b), no person shall
act as an agent of a licensee, or act in any other similar capacity,
and no licensee shall appoint another person to act as an agent, or
to act in any other similar capacity, for the receipt of transmission
money on behalf of that licensee without first obtaining the
authorization of the commissioner.
   (b) (1) Any person appointed as an agent by a licensee before
February 1, 1989, may continue to act as an agent for that licensee,
without the original appointment having been authorized by the
commissioner as provided in this section.  However, the licensee
shall notify the commissioner by March 31, 1990, of all agents
appointed by the licensee prior to February 1, 1989.  The
commissioner may thereafter issue an order revoking or suspending any
agent appointed prior to February 1, 1989, as provided by this
section.  With respect to any person appointed as an agent by a
licensee on or after February 1, 1989, and before January 1, 1990,
the licensee shall comply with the requirements for approval set
forth in this section on or before March 31, 1990.  However, the
application fee otherwise required for the application shall be
waived.  This limited category of agents may continue to serve as an
agent of the licensee for 45 days after filing the application with
the commissioner but in no event beyond May 15, 1990, without
approval of the application by the commissioner under subdivision
(d).
   (2) Any incorporated telegraph company which had more than 1,000
agents on February 1, 1989, or a wholly owned subsidiary of that
telegraph company, either of which applies for licensure under this
chapter, shall notify the commissioner at the time of application,
or, if the application was filed prior to January 1, 1990, shall
notify the commissioner not later than February 1, 1990, of any agent
who has been an agent with that company continuously for at least
five years prior to February 1, 1989.  Any agent that has been with
that telegraph company continuously for at least five years prior to
February 1, 1989, may, from the time the license is issued by the
commissioner, continue to act as an agent for that company without
the original appointment having been authorized by the commissioner
as provided in this section.  The commissioner may thereafter issue
an order revoking or suspending any agent appointed by that company
who has been an agent with the company continuously for at least five
years prior to February 1, 1989, as provided by this section.
   (c) An application for the appointment of an agent shall be
submitted by a licensee for each proposed agent, shall be in writing,
under oath, and in a form prescribed by the commissioner.  The
application shall contain that information which the commissioner may
require.
   (d) If the application for the appointment of an agent is not
approved or denied within 45 days after the application is filed with
the commissioner, the application shall be deemed to be approved by
the commissioner as of the first day after the 45-day period.
   For purposes of this subdivision, an application for the
appointment of an agent is deemed to be filed with the commissioner
at the time when the complete application, including any amendments
or supplements, containing all the information in the form required
by the commissioner, is received by the commissioner.
   The commissioner may disapprove the application for the
appointment of an agent by a licensee if the commissioner finds any
of the following:
   (1) That the operations and financial condition of the licensee
indicate that the licensee is not competent to appoint the proposed
agent to receive transmission money and to supervise the proposed
agent.
   (2) That the proposed agent, any person who controls the proposed
agent, and any director or officer of the proposed agent or of any
person who controls the proposed agent, if any, are not of good
character or of sound financial standing.
   (3) That the proposed agent is not competent to engage in the
business of receiving money for transmission.
   (4) That it is reasonable to believe that the proposed agent, if
it becomes an agent of a licensee, will not comply with all
applicable provisions of this chapter and of any regulation or order
issued under this chapter.
   (e) An agent of a licensee shall not appoint a subagent to receive
transmission money.
   (f) Each licensee shall be liable as a principal for the
transmission of the transmission money at the time when the
transmission money is received by the agent.
   (g) The commissioner may issue an order revoking or suspending any
authorization issued pursuant to this section or revoking authority
to continue any agent appointed prior to February 1, 1989, if, after
a hearing, the commissioner finds any of the following:
   (1) The agent has violated this chapter or any regulation adopted
by the commissioner under this chapter.
   (2) Any fact or condition exists which would be grounds for
denying an application for authorization under subdivision (d).
   (3) The agent is conducting its business in an unsafe manner.
   (h) (1) If the commissioner finds that any of the factors set
forth in subdivision (g) is true with respect to any agent and that
it is necessary for the protection of the public interest that the
commissioner immediately suspend or revoke the authorization issued
pursuant to this section, the commissioner may issue an order
suspending or revoking the authorization issued pursuant to this
section.
   (2) Within 30 days after an order is issued pursuant to paragraph
(1), any licensee to whom the order is issued or any agent or former
agent with respect to whom the order was issued may file with the
commissioner an application for a hearing on the order.  If the
commissioner fails to commence a hearing within 15 business days
after the application is filed with the commissioner, (or within a
longer period of time agreed to by a licensee, agent, or former
agent) the order shall be deemed rescinded.  Within 30 days after the
hearing the commissioner shall affirm, modify, or rescind the order.
  Otherwise the order shall be deemed rescinded.  The right of any
licensee to which an order has been issued under paragraph (1) or of
the agent or former agent with respect to whom the order was issued
to petition for judicial review of the order shall not be affected by
the failure of the licensee, or the agent or former agent to apply
to the commissioner for a hearing on the order pursuant to this
paragraph.
   (i) Section 1805 shall apply to the establishment of a branch
office in this state by an agent of a licensee and Section 1805.5
shall apply to the relocation of a branch office in this state by an
agent of a licensee.
1804.  (a) No person shall, directly or indirectly, acquire control
of a licensee unless the commissioner has first approved in writing
of the acquisition of control.  An application to acquire control of
a licensee shall be in writing, under oath, and in a form prescribed
by the commissioner.  The application shall contain that information
which the commissioner may require.
   (b) The commissioner shall not approve the application unless the
commissioner finds, all of the following:
   (1) The applicant and the officers and directors of the applicant
are of good character and sound financial standing.
   (2) The applicant is competent to engage in the business of
receiving money for transmission.
   (3) It is reasonable to believe that, if the applicant acquires
control of the licensee, the applicant will comply with all
applicable provisions of this chapter and any regulation or order
issued under this chapter.
   (4) The applicant's plans, if any, to make any major change in the
business, corporate structure, or management of the licensee are not
detrimental to the safety and soundness of the licensee.
   (c) For the purposes of subdivision (b), the commissioner may find
an applicant's plan to make major changes in the management of a
licensee is detrimental to the licensee if the plan provides for a
person who is not of good character  to become a director or officer
of the licensee.
   The grounds specified in this subdivision shall not be deemed to
be the only grounds upon which the commissioner may find, for the
purposes of subdivision (b), that an applicant's plan to make a major
change in the management of a licensee is detrimental to the
licensee.
   (d) If it appears to the commissioner that any person is violating
or failing to comply with this section, the commissioner may direct
the person to comply with this section by an order issued over the
commissioner's official seal.
   (e) Whenever it appears to the commissioner that any person has
committed or is about to commit a violation of any provision of this
section or of any regulation or order of the commissioner issued
pursuant to this section, the  commissioner may apply to the superior
court for an order enjoining the person from violating or continuing
to violate this section or that regulation or order, and for other
equitable relief as the nature of the case or interests of the
licensee, the controlling person, the creditors or shareholders of
the licensee or controlling person or the public may require.
   (f) The commissioner, may, for good cause, amend, alter, suspend,
or revoke any approval of a proposal to acquire control of a licensee
issued pursuant to this section.
   (g) There shall be exempted from the provisions of this section
any transaction which the commissioner by regulation or order exempts
as not being comprehended within the purposes of this section and
the regulation of which he or she finds is not necessary or
appropriate in the public interest or for the protection of a
licensee or the customers of a licensee.
1805.  (a) For the purposes of this section "branch office" means
any office in this state, other than the headquarters office of a
licensee or agent, at which the licensee receives money for
transmission to a foreign country, either directly or through an
agent.
   (b) A licensee shall not establish a branch office without first
obtaining the approval of the commissioner.
   (c) An application to establish and operate a branch office shall
be in writing and in a form prescribed by the commissioner.  The
application shall contain that information which the commissioner may
require.
   (d) The commissioner shall deny an application to establish and
operate a branch office where the operations or financial condition
of the licensee or of the agent are not satisfactory.
   (e) In case an application to establish and operate a branch
office is not denied or approved by the commissioner within 60 days
after the application is filed with the commissioner, or, if the
commissioner extends the period within which the commissioner may
act, within the extended period, the application shall be deemed to
be approved by the commissioner as of the first day after the 60-day
period or the extended period, as the case may be.
   For purposes of this subdivision, an application to establish and
operate a branch office shall be deemed to be filed with the
commissioner at the time when the complete application, including any
amendments or supplements, containing all the information in the
form required by the commissioner, is received by the commissioner.
   (f) The approval of an application for authority to establish and
operate a branch office shall be revoked by operation of law with
respect to any branch office which the applicant does not establish
and operate, as the case may be, within one year after the date of
approval by the commissioner.  However, for good cause on written
application made before the approval is revoked, the commissioner may
extend the approval for additional periods not in excess of one
year.
   (g) Not less than 60 days prior to discontinuing the operation of
a branch office, a licensee shall provide the commissioner and the
public with written notice of the discontinuance in the manner the
commissioner directs.  This subdivision does not apply to the
discontinuance of a branch office of an agent if the discontinuance
of the branch office results from termination of the agency
relationship.
1805.5.  A licensee shall not change the location of a branch office
without notifying the commissioner and the public in the manner as
the commissioner directs at least 30 days before the date of the
proposed relocation.  For purposes of this section, "branch office"
has the meaning specified in subdivision (a) of Section 1805.
1807.  (a) The commissioner may by order or regulation grant
exemptions from this section in cases where the commissioner finds
that the requirements of this section are not necessary.
   (b) Each licensee shall, within 90 days after the end of each
fiscal year, or within such extended time as the commissioner may
prescribe, file with the commissioner an audit report for the fiscal
year.
   (c) The audit report called for in subdivision (b) shall comply
with all of the following provisions:
   (1) The audit report shall contain such audited financial
statements of the licensee for or as of the end of the fiscal year
prepared in accordance with generally accepted accounting principles
and such other information as the commissioner may require.
   (2) The audit report shall be based upon an audit of the bank
conducted in accordance with generally accepted auditing standards
and such other requirements as the commissioner may prescribe.
   (3) The audit report shall be prepared by an independent certified
public accountant or independent public accountant who is not
unsatisfactory to the commissioner.
   (4) The audit report shall include or be accompanied by a
certificate of opinion of the independent certified public accountant
or independent public accountant that is satisfactory in form and
content to the commissioner.  If the certificate or opinion is
qualified, the commissioner may order the licensee to take such
action as the commissioner may find necessary to enable the
independent or certified public accountant or independent public
accountant to remove the qualification.
   (d) Each licensee shall, not more than 45 days after the end of
each quarter (except the fourth quarter of its fiscal year), or
within a longer period as the commissioner may by regulation or order
specify, file with the commissioner a report containing all of the
following:
   (1) Financial statements, including balance sheet, income
statement, statement of changes in shareholders' equity, and
statement of cashflows, for, or as of the end of, that fiscal
quarter, verified by two of the licensee's principal officers.  The
verification shall state that each of the officers making the
verification has a personal knowledge of the matters in the report
and that each of them believes that each statement on the report is
true.
   (2) The current address of the headquarters office and each branch
office of the licensee and each agent at which the licensee receives
transmission money in this state.
   (3) The name and business address of each person who acted as an
agent of the licensee during the quarter in this state, and if the
person is no longer an agent of the licensee, the date on which the
relationship terminated.
   (4) Other information as the commissioner may by regulation or
order require.
   (e) Each licensee shall file with the commissioner other reports
as and when the commissioner may by regulation or order require.
1807.5.  (a) Each licensee and each agent of a licensee shall make,
keep, and preserve within the United States such books, accounts, and
other records in such form, in such manner, and for such time as the
commissioner may by regulation or order specify.
   (b) All references in this chapter to financial statements,
balance sheets, income statements, and statements of changes in
financial position of a licensee or agent of a licensee mean
financial statements, income statements, and statements of cash flows
prepared or determined in conformity with generally accepted
accounting principles then applicable, fairly presenting in
conformity with generally accepted accounting principles the matters
which they purport to present.
1808.  (a) The commissioner may at any time and from time to time
examine the business and any office, within or outside this state, of
any licensee or any agent of a licensee in order to ascertain
whether that business is being conducted in a lawful manner and
whether all moneys received for transmission are properly accounted
for.
   (b) The directors, officers, and employees of a licensee or agent
of a licensee being examined by the commissioner shall exhibit to the
commissioner, on request, any or all of the licensee's accounts,
books, correspondence, memoranda, papers, and other records and shall
otherwise facilitate the examination so far as it may be in their
power to do so.
1809.  (a) Each licensee shall file with the commissioner a
certified copy of every receipt form used by it or by its agents for
money received for transmission.  No licensee or its agents shall use
any receipt, a certified copy of which has not first been filed with
and approved by the commissioner.
   (b) If a receipt is required by this chapter to be in English and
another language, the English version of the receipt shall govern any
dispute concerning the terms of the receipt.  However, any
discrepancies between the English version and any other version due
to the translation of the receipt from English to another language
including errors or ambiguities shall be construed against the
licensee or its agent and the licensee or its agent shall be liable
for any damages caused by these discrepancies.
   (c) Any licensee violating the requirements of this section shall
be subject to a fine of fifty dollars ($50) for each violation.
   (d) If any licensee or its agent uses a receipt form, a certified
copy of which has not first been filed with and approved by the
commissioner, the licensee shall be liable for the acts of its agents
whether or not the licensee authorized the agent to use that form.
1810.  (a) Every licensee or its agent shall forward all moneys
received for transmission to a foreign country or give instructions
committing equivalent funds to the person designated by the customer
within 10 days after receiving that money, unless otherwise ordered
by his or her customer.
   (b) Whenever a licensee, either directly or indirectly through an
agent, receives money for transmission by means of selling a check or
draft of the type described in subdivision (b) of Section 1800.5,
the purchaser of the instrument shall be deemed to have ordered
compliance with subdivision (a), as follows:
   (1) In case the instrument is payable at a definite time, not
later than that definite time.
   (2) In case the instrument is payable on demand, on or before the
next business day.
1810.5.  (a) Every licensee or its agent shall refund to the
customer within 10 days of receipt of the customer's written request
for a refund any and all moneys received for transmission to a
foreign country unless any of the following occurs:
   (1) The funds have been forwarded within 10 days of the date of
receipt.
   (2) Instructions have been given committing an equivalent amount
of money to the person designated by the customer within 10 days of
the date of the receipt of the funds from the customer.
   (3) The customer instructs the licensee to transmit the moneys at
a time beyond 10 days.  If the customer gives instructions as to when
the moneys shall be forwarded or transmitted and the moneys have not
yet been forwarded or transmitted, the licensee or its agent shall
refund the customer's money within 10 days of receipt of the customer'
s written request for a refund.
   (b) A receipt shall be provided by a licensee or its agent to a
customer which shall be  made available to the customer in English
and in the language principally used by that licensee or that agent
to advertise, solicit, or negotiate, either orally or in writing, at
that office if other than English. The receipt shall either include
or have attached a conspicuous statement in English and in the
language principally used by the licensee or that agent to advertise,
solicit, or negotiate, either orally or in writing at that office if
other than English in a size equal to at least 10-point bold type,
as follows:
      RIGHT TO REFUND
   "You, the customer, are entitled to a refund of the money to be
transmitted as the result of this agreement if ______ (name of
licensee or its agent) does not forward the money received from you
within 10 days of the date of its receipt, or does not give
instructions committing an equivalent amount of money to the person
designated by you within 10 days of the date of the receipt of the
funds from you unless otherwise instructed by you.
   If your instructions as to when the moneys shall be forwarded or
transmitted are not complied with and the money has not yet been
forwarded or transmitted you have a right to a refund of your money.
   If you want a refund, you must mail or deliver your written
request to ______ (name of licensee or its agent) at ______ (mailing
address of licensee or its agent).  If you do not receive your
refund, you may be entitled to your money back plus a penalty of up
to $1,000 and attorney's fees pursuant to Section 1810.5 of the
California Financial Code."
   (c) A cause of action under this section may be brought in small
claims court  if it does not exceed the jurisdiction of that court,
or in any other appropriate court.  The customer shall be entitled to
recover each of the following:
   (1) Any and all moneys received for transmission to a foreign
county, plus any fees and charges paid by the customer.
   (2)  A penalty in an amount not to exceed one thousand dollars
($1,000).
   The court shall award the prevailing party costs and attorney's
fees.
1811.  (a) As security for the timely and proper delivery of
transmission money received by it, each licensee  subject to the
order of the commissioner, shall deposit and thereafter maintain on
deposit with the Treasurer cash in an amount not less than, or
securities having a market value not less than, such amount as the
commissioner may find and specify as necessary for the protection of
transmission money received by such licensee.  These securities are
subject to the approval of the commissioner and shall consist of
interest-bearing bonds, notes, or other obligations of the United
States or any agency or instrumentality thereof, or of the State of
California, or of any city, county, or city and county, political
subdivision or district of the State of California, or which are
guaranteed by the United States or the State of California.
   (b) So long as a licensee which maintains securities on deposit
with the Treasurer pursuant to this section is solvent, that licensee
shall be entitled to receive any interest paid on such securities.
1812.  In lieu of the deposit of cash or securities pursuant to
Section 1811, a licensee may deliver to the commissioner the bond of
a surety company, in form and written by a company satisfactory to
the commissioner, in an amount not less than the amount of the
deposit of cash or securities required of the licensee, conditioned
upon the timely and proper delivery of all transmission money
received by such licensee or its agents for such purpose.  The
commissioner shall deposit such bond with the Treasurer.
1813.  The money and securities deposited with the State Treasurer
pursuant to Section 1811 and the proceeds of any bond held by the
State Treasurer pursuant to Section 1812 shall constitute a trust
fund for the benefit of such persons as shall deliver to any such
licensee or its agent money for transmission.  Suit to recover on any
such bond may be brought by any party aggrieved in a court of
competent jurisdiction of any county in which such licensee has an
agent.  The service of summons on any agent of such licensee shall
constitute service upon such licensee.
1814.  (a) Each licensee shall at all times maintain tangible
shareholders' equity determined to be adequate by the commissioner of
at least five hundred thousand dollars ($500,000).  However, with
respect to any licensee licensed as of January 1, 2002, the
commissioner may, for good cause and to avoid undue hardship, extend
the time within which the licensee is required to satisfy this
subdivision.
   (b) "Tangible shareholders' equity" means shareholders' equity
minus intangible assets as determined in accordance with generally
accepted accounting principles.
1815.  (a) The receipt presented to each customer for each
transaction pursuant to subdivision (b) of Section 1810.5 shall
clearly state the rate of exchange for the particular transaction,
the amount of commission or fees, and the net exchange after all fees
and commissions have been deducted.  The receipt shall also state
the total amount of currency presented by the customer and the total
amount to be delivered to the beneficiary designated by the customer.
  These disclosures shall be in English and in the same language as
that principally used by the licensee or any agent of the licensee to
advertise, solicit, or negotiate, either orally or in writing, at
that office if other than English.
   (b) All window and exterior signs concerning the rates of exchange
shall clearly state in English and in the same language principally
used by the licensee or any agent of the licensee to advertise,
solicit, or negotiate, either orally or in writing, at that office if
other than English, the rate of exchange for exchanging the currency
of the United States for foreign currency.  All interior signs and
all advertising, if rates are quoted, shall clearly state the rates
of exchange for exchanging the currency of the United States for
foreign currency and shall state all commissions and fees charged on
all transactions.
   (c) At each office of each licensee and each agent, there shall be
disclosed in those offices in this state the information  specified
in subdivision (b) in English and in the same language principally
used by the licensee or any agent of the licensee to advertise,
solicit, or negotiate, either orally or in writing, with respect to
receiving money or its equivalent for transmission to a foreign
country at that office.
   (d) If the customer does not specify at the time the currency is
presented to the licensee or its agent the country to which the
currency is to be transmitted, the rate of exchange for the
transaction is not required to be set forth on the receipt.
1816.  All funds, less fees, received by a licensee or its agents
for transmission to a foreign country shall constitute trust funds
owned by and belonging to the person from whom they were received
until such time as directions have been given by the licensee or its
agents for payment abroad of the remittance and funds provided for
such payment.
1817.  If it appears to the commissioner that a licensee is
violating or failing to comply with any law of this  state, the
commissioner may direct such licensee to comply with the law by an
order issued over his or her official seal, or if it appears to the
commissioner that any licensee is conducting its business in an
unsafe or injurious manner the commissioner may in like manner direct
it to discontinue the unsafe or injurious practices.  The order
shall require the licensee to show cause before the commissioner at a
time and place to be fixed by him or her why the order should not be
observed.
1818.  If upon any hearing held pursuant to Section 1817 the
commissioner finds that the licensee is violating or failing to
comply with any law of this state or is conducting its business in an
unsafe or injurious manner he or she may make a final order
directing it to comply with the law or to discontinue the unsafe or
injurious practices.  Unless within 10 days after the issuance of
such final order its enforcement is restrained in a proceeding
brought by the licensee, it shall forthwith comply therewith.
1819.  The commissioner may revoke or suspend any license issued
pursuant to this article, if, after a hearing, he or she finds any of
the following:
   (a) The licensee has violated any provision of this chapter or any
rule or regulation adopted by the commissioner.
   (b) Any fact or condition exists which, if it had existed at the
time of the original application for the license, would be grounds
for denying an application for a license under Section 1802.2.
   (c) The licensee is conducting its business in an unsafe manner.
   (d) The licensee has failed to obey a final order issued by the
commissioner.
1820.  Every order, decision, or other official act of the
commissioner is subject to review in accordance with law.
1821.  Whenever it appears to the commissioner that:    (a) Any
licensee has violated any law of this state;   (b) Any licensee is
conducting its business in an unsafe or unauthorized manner;   (c)
Any licensee refuses to submit its books, papers, and affairs to the
inspection of the commissioner;   (d) Any licensee or any officer of
a licensee, if a corporation, refuses to be examined upon oath
touching the concerns of such licensee;   (e) Any licensee has
suspended payment of its obligations;   (f) Any licensee is in such
condition that it is unsound, unsafe, or inexpedient for it to
transact business; or   (g) Any licensee neglects or refuses to
observe any order of the commissioner made pursuant to Section 1818
unless the enforcement of such order is restrained in a proceeding
brought by the licensee; the commissioner may forthwith take
possession of the property and business of such licensee and retain
possession until such licensee resumes business or its affairs be
finally liquidated as herein provided.  Such licensee, with the
consent of the commissioner, may resume business upon such conditions
as the commissioner may prescribe.
1822.  Whenever the commissioner has taken possession of the
property and business of any licensee, such licensee, within 10 days
after such taking, if it deems itself aggrieved thereby, may apply to
the superior court in the county in which the head office of such
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 proceedings and direct him or her to
surrender the property and business to such licensee.
1823.  Every person who violates or fails to comply with this
chapter, or who, without complying with this chapter, represents that
he or she is authorized to receive, or who solicits or receives,
money or the equivalent for transmission to a foreign country, shall
upon conviction be fined not more than fifty thousand dollars
($50,000) or shall be imprisoned in the state prison, or in a county
jail for not more than one year, or be punished by both the fine and
imprisonment.
1824.  An appeal may be taken from the judgment of the court by the
commissioner or by the licensee in the manner provided by law for
appeals from the judgment of a superior court to the court of appeal.
1825.  When the commissioner takes possession of the property or
business of any licensee for the purpose of liquidation or
conservation, the commissioner shall liquidate or conserve the
property or business pursuant to Chapter 17 of this division.
1826.  Any person who violates this chapter shall be liable to the
people of the State of California in an action brought by the
commissioner for a civil penalty not to exceed one thousand dollars
($1,000) for each violation or, in the case of a continuing
violation, one thousand dollars ($1,000) for each day or part thereof
during which the violation continues.
1827.  (a) No agent of a licensee who has actual notice that the
commissioner has suspended or revoked the license of a licensee or
that the commissioner has issued an order taking possession of the
property and business of the licensee, shall receive any transmission
money on behalf of the licensee.
   (b) If any agent of a licensee, after first having actual notice
that the commissioner has suspended or revoked the license of a
licensee or that the commissioner has issued an order taking
possession of the property and business of the licensee, receives any
transmission money on behalf of the licensee, the agent shall be
jointly and severally liable with the licensee for the timely and
proper delivery of transmission money received by the agent of the
licensee.