2007 California Financial Code Article 4. Granting And Renewal Of Licenses

CA Codes (fin:1857-1860)

1857.  The commissioner shall approve an application for a license
within 90 days from the date of filing unless after a duly noticed
hearing, the commissioner makes any of the following findings, each
of which shall constitute sufficient grounds for the denial of such
application:
   (a) The granting of the license will be against public interest.
   (b) The applicant does not intend actively and in good faith to
carry on as a business the transactions which would be permitted by
the issuance of the license applied for.
   (c) The applicant is not of good business reputation.
   (d) The applicant is lacking in integrity.
   (e) The applicant has been refused a professional, occupational or
vocational license or had such a license suspended or revoked, by
any licensing authority for reasons that should preclude the granting
of the license applied for.
   (f) The applicant or any person acting on behalf of the applicant
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 is required to
be stated therein.
   (g) The applicant has previously engaged in a fraudulent practice
or act or has conducted any business in an unlawful or dishonest
manner.
   (h) The applicant has shown incompetence or untrustworthiness in
the conduct of any business, or has by commission of a wrongful act
or practice in the course of any business exposed the public or those
dealing with the applicant to the danger of loss.
   (i) The applicant has knowingly failed to perform a duty expressly
enjoined upon such applicant by a provision of this chapter or the
regulations promulgated by the commissioner or has knowingly
committed an act expressly forbidden by such a provision or such
rules.
   (j) The applicant has been convicted of:
   (1) A felony; or
   (2) Any crime involving moral turpitude.
   (k) The applicant has knowingly aided or abetted any person in any
act or omission which would constitute grounds for the suspension,
revocation or refusal of a license issued under this chapter to the
person aided or abetted.
   (l) The applicant has knowingly permitted any person in its employ
to violate any provision of this chapter.
   (m) The applicant does not have an amount of shareholders' equity
determined to be adequate by the commissioner but in no case shall
that amount, as a condition of granting the license, be required to
exceed five million dollars (,000,000).  The amount shall be
computed in accordance with generally accepted accounting principles
applied on a consistent basis.


1857.5.  (a) In this section:
   (1) "Control" has the meaning set forth in Section 700.
   (2) "Officer" has the meaning set forth in Section 33057.
   (b) For purposes of Section 1857, the commissioner may find that
an applicant is lacking in integrity if the applicant, any person who
controls the applicant, or any director or officer of the applicant
or of any person who controls the applicant has been convicted of, or
has pleaded nolo contendere to, any crime involving fraud or
dishonesty.
   (c) Subdivision (b) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 1803,
that an applicant is lacking in integrity.



1858.  Prior to the issuance of a license pursuant to this chapter,
and as a further condition to the issuance and continuing validity of
such license, each applicant shall enter into a contract with the
State of California, by and through the commissioner, in form and
substance satisfactory to the commissioner, which contract shall
provide that applicant shall comply with the laws of the State of
California, all regulations and orders issued by the commissioner and
all of the provisions, obligations and requirements of this chapter,
including, but not limited to, the provisions of Article 6
(commencing with Section 1877) hereof relating to examinations.




1859.  (a) Prior to the issuance of a license pursuant to this
chapter, and as a further condition to the issuance of such license,
each applicant shall file with the commissioner, in such form as the
commissioner may by regulation or order require, an irrevocable
consent appointing the commissioner and any successor from time to
time in office to receive service of any lawful process in any
noncriminal judicial or administrative proceeding against such
person, his or her successor, executor, or administrator, which
arises under this chapter or any regulation or order issued under
this chapter after such consent has been filed.
   (b) Service of process pursuant to this section shall have the
same force and validity as if served personally upon the person.
   (c) Service may be made by leaving a copy of the process at any
office of the commissioner, but such service is not effective unless
(1) the party making such service, who may be the commissioner,
forthwith sends notice of such service and a copy of such 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 within such further
time as the court, in the case of a judicial proceeding, or the
administrative agency, in the case of an administrative proceeding,
allows.



1860.  If the application is approved by the commissioner, and the
applicant has complied with Sections 1858 and 1859, the  commissioner
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.