California Financial Code CHAPTER 4 - Licensee Regulations

• Section 12300.
  The commissioner may make general rules and regulations and specific rulings, demands, and findings for the enforcement of this division.(Enacted by Stats. 1951, Ch. 364.)
• Section 12300.1.
  Licensees shall observe reasonable precautions against theft or alteration of checks, drafts or money orders, and against burglary or holdup.(Added by Stats. 1963, Ch. 1817.)
• Section 12300.2.
  Every person engaging in the business of a check seller shall conduct the business under his or her true name unless he or she has...
• Section 12300.3.
  All funds received by a licensee or its agents from the sale of checks, drafts, money orders, or other commercial paper serving the same purpose...
• Section 12300.4.
  Prior to such separation and transmittal to the licensee or deposit by its agent such funds received by said agent may be used by said...
• Section 12300.5.
  An amount equal to all such funds received by a licensee shall be separated from the funds of the licensee and deposited in its trust...
• Section 12300.6.
  Prior to separation and deposit by the licensee such funds may only be used by the licensee for the making of change or the cashing...
• Section 12301.
  A licensee may establish branch offices or agencies if it is qualified under the provisions of Section 12205 and if it expressly assumes responsibility for...
• Section 12301.1.
  A licensee within 10 days after establishing a mobile unit, a branch office or agency location shall notify the commissioner in writing and shall furnish...
• Section 12301.2.
  A check, draft, or money order sold by a licensee shall be drawn on an account of a licensee maintained at a bank authorized to...
• Section 12301.3.
  A licensee shall not permit any officer, employee, or agent to sell any check, draft, or money order unless the signature of the person signing...
• Section 12301.4.
  A licensee shall terminate and cancel any agency immediately upon instruction from the commissioner and when it has been established (a) that the agent has refused...
• Section 12301.5.
  No agent of a licensee shall issue or cause to be issued any check, draft, or money order, or other commercial paper serving the same...
• Section 12302.
  Whenever a licensee desires to change his place of business to a street address other than that designated in his license or desires to change...
• Section 12303.
  Every licensee shall keep and use in his business books, accounts and records in accordance with good accounting practice and which will enable the commissioner...
• Section 12304.
  (a) Each licensee, except a special prorater, shall submit to the commissioner, at such licensee’s own expense, an audit report containing audited financial statements covering the...
• Section 12305.
  For the purpose of discovering violations of this division the commissioner may at any time investigate the business and examine the books, accounts, records, and...
• Section 12306.
  The cost of every examination of a licensee or other person subject to this division shall be paid to the commissioner by the licensee or...
• Section 12307.
  The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he requires relative to any examination or investigation.(Enacted by...
• Section 12307.1.
  The commissioner may commence and prosecute actions and proceedings to enjoin violations of this division or violations of orders or decisions of the commissioner rendered...
• Section 12307.2.
  If the commissioner finds as a result of an examination or report that a licensee is insolvent or conducting business in such an unsafe or...
• Section 12307.3.
  Whenever as a result of an examination or report it appears to the commissioner that:(a) The capital of any licensee is impaired;(b) Any licensee is conducting its...
• Section 12307.4.
  Whenever the commissioner has taken possession of the property and business of a licensee the commissioner may petition the superior court for the appointment of...
• Section 12307.5.
  (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an...
• Section 12309.
  (a) A schedule of the fees charged by a licensee shall be posted in a conspicuous place in the place of business of the licensee and...
• Section 12310.
  A licensee under this division shall not sell checks payable to bearer, to cash, or to the purchaser, but a licensee may sell a check...
• Section 12311.
  No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any...
• Section 12312.
  An agreement between one licensed to engage in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, and...
• Section 12313.5.
  Nothing in this chapter shall be construed as authorizing the examination, inspection or auditing of the books and records of any client of a business...
• Section 12314.
  The total charges received by a prorater, or any other person for the prorater’s services, may not exceed in the aggregate twelve percent (12%) for...
• Section 12314.1.
  A cancellation fee or termination penalty may not be charged to a debtor.(Added by Stats. 1972, Ch. 999.)
• Section 12315.
  A prorater shall not receive any fee unless he has the consent of at least 51 percent of the total amount of indebtedness and of...
• Section 12315.1.
  A prorater shall notify, in writing, all creditors listed in the prorate contract of the debtors desire to engage the services of the prorater within...
• Section 12316.
  If a prorater contracts for, receives or makes any charge in excess of the maximum permitted by this division, except as the result of an...
• Section 12317.
  A prorater shall not purchase from a creditor any obligation of a debtor.(Added by Stats. 1957, Ch. 498.)
• Section 12318.
  A prorater shall not take:(a) Any contract, promise to pay, or other instrument which has any blank spaces when signed by a debtor;(b) Any negotiable instrument for...
• Section 12319.
  Every contract between a prorater and a debtor shall:(a) List every debt to be prorated with the creditor’s name and disclose the total of all such...
• Section 12320.
  A prorater shall deliver a copy of any contract or agreement between the prorater and a debtor to the debtor immediately after the debtor executes...
• Section 12321.
  Unless paid by check or money order a prorater shall deliver a receipt to a debtor for each payment within five (5) days after receipt...
• Section 12322.
  At least once in each six (6) months, the prorater shall render an accounting to the debtor which shall itemize the total amount received from...
• Section 12323.
  A prorater shall not lend money or credit.(Added by Stats. 1957, Ch. 498.)
• Section 12324.
  A prorater shall not:(a) Offer, pay, or give any cash, fee, gift, bonus, premium, reward, or other compensation to any person for referring any prospective customer...
• Section 12325.
  A prorater shall not solicit or require a debtor to purchase or agree to purchase any policy of insurance.(Added by Stats. 1957, Ch. 498.)
• Section 12326.
  A special prorater shall not advertise in any manner or otherwise hold himself out to the public as a general prorater or as qualified to...
• Section 12327.
  Nothing in this division shall be deemed to authorize the performance, directly or indirectly, of an act or acts constituting the practice of law by...
• Section 12328.
  (a) No collection agency may be maintained in the same premises as a prorating organization unless such prorating organization is exempt under the provisions of this...
• Section 12329.
  It shall be unlawful for any prorater to disclose the list of creditors of a debtor to any individual or firm for the purpose of...
• Section 12330.
  The commissioner shall have power and authority to promulgate rules and regulations governing the form and wording of advertising to be used by proraters. The...
• Section 12331.
  Within the organization of each prorater corporation, either as an owner, officer, or employee, there shall be one or more persons possessing a minimum of...
• Section 12332.
  (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or...

Last modified: October 22, 2018