California Financial Code 12221 – Upon reasonable notice and opportunity to be heard, the commissioner …
Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for the license for any of the following reasons:
(a) A false statement of a material fact has been made in the application for license.
Terms Used In California Financial Code 12221
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Person: includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. See California Financial Code 18
(b) Any officer, director, or member of the applicant has, within the last 10 years, been (1) convicted of or pleaded nolo contendere to a crime, or (2) committed any act involving dishonesty, fraud, or deceit, which crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with the provisions of this division.
(c) The applicant, any officer, director, general partner, or member of the applicant, or any person owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant has violated any provision of this division or the rules thereunder or any similar regulatory scheme of the State of California or a foreign jurisdiction.
(d) The applicant has not complied with all the applicable provisions of this division.
(e) The proposed officers and directors do not have sufficient check selling, bill paying, prorating, or other experience to afford reasonable promise of successful operation.
(f) The plan of business does not demonstrate that the proposed business will have a reasonable chance for a successful operation.
(g) The proposed business is being formed for a purpose other than the legitimate objectives contemplated by this division.
(h) The proposed capital structure is inadequate.
(Amended by Stats. 2003, Ch. 473, Sec. 15. Effective January 1, 2004.)