SECTIONS 30600-30609

30600.  A security depository license remains in effect untilsurrendered, revoked or suspended.30601.  If the commissioner has reason to believe that a licensedsecurities depository has violated its articles of incorporation, orany law or rule binding upon it, he shall, by written order addressedto the agent direct the discontinuance of such violation.30602.  If any licensed securities depository fails to make anyreport required by law or by the commissioner within 10 days from theday designated for the making of the report, or within any extensionof time granted by the commissioner, or has failed to pay any fee orcharge payable under this division within 10 days after notice bythe commissioner that such fee is due and unpaid, such failure shallconstitute grounds for the suspension or revocation of the licenseheld by such securities depository or for the issuance of an order bythe commissioner under the provisions of Section 30215.30603.  If it appears to the commissioner that any licensedsecurities depository located within this state is conductingbusiness in an unsafe or injurious manner, he shall, by written orderaddressed to the securities depository direct the discontinuance ofsuch unsafe or injurious practices, or if the licensed securitiesdepository is one which is located outside this state but issoliciting holders of securities in California to place theirsecurities in such securities depository, the commissioner shalldirect such securities depository to discontinue all suchsolicitations until all such unsafe and unsound practices have beencorrected.30604.  An order issued pursuant to Section 30601 or 30603 shallrequire the licensed securities depository to show cause before thecommissioner, at a time fixed by the commissioner, why the ordershould not be observed. If upon the hearing, it appears to thecommissioner that the licensed securities depository is conductingbusiness in an unsafe or injurious manner or is violating itsarticles of incorporation or any law of this state, or any rulebinding upon it, the commissioner shall make the order ofdiscontinuance final and the licensed securities depository shallimmediately discontinue the practices named in the order.30605.  The licensed securities depository has 10 days after anorder is made final in which to commence action to restrainenforcement of such order, and unless such action is commenced, andthe enforcement of such order is enjoined within 10 days by the courtin which the suit is brought, the licensed securities depositoryshall comply with the order.30606.  (a) If a securities depository fails to comply with a finalorder and has not secured a court order restraining the enforcementof the final order, the commissioner may revoke the license of thesecurities depository or may institute proceedings under subdivision(b) to enforce the final order. (b) Whenever it appears to the commissioner that any person hasengaged or is about to engage in any act or practice constituting aviolation of any provision of this law or any rule or order underthis law, the commissioner may in the commissioner's discretion bringan action in the superior court to enjoin the acts or practices orto enforce compliance with this law or any rule or order under thislaw. Upon a proper showing, a permanent or preliminary injunction,restraining order, or writ of mandate shall be granted and a receiveror conservator may be appointed for the defendant or the defendant'sassets.30607.  The commissioner may commence and prosecute actions andproceedings to enjoin violations of this division or violations oforders or decisions of the commissioner rendered pursuant to thisdivision, and for the enforcement of any and all civil penaltiesprovided for by this division.30608.  The commissioner may, after notice and a reasonableopportunity to be heard, suspend, revoke, or decline to renew anylicense if he finds that: (a) The licensee has violated any provision of this division orany rule or order made by the commissioner under and within theauthority of this division. (b) Any fact or condition exists which, if it had existed at thetime of the original application for such license, reasonably wouldhave warranted the commissioner in refusing originally to issue suchlicense.30609.  (a) The commissioner may, after appropriate notice andopportunity for hearing, by order, censure or suspend for a periodnot exceeding 12 months, or bar from any position of employment,management, or control any person who operates a securitiesdepository, or any other person, if the commissioner finds either ofthe following: (1) That the censure, suspension, or bar is in the public interestand that the person has committed or caused a violation of thisdivision or rule or order of the commissioner, which violation waseither known or should have been known by the person committing orcausing it or has caused material damage to the securitiesdepository, or to the public. (2) That the person has been convicted of or pleaded nolocontendere to any crime, or has been held liable in any civil actionby final judgment, or any administrative judgment by any publicagency, if that crime or civil or administrative judgment involvedany offense involving dishonesty, fraud, or deceit, or any otheroffense reasonably related to the qualifications, functions, orduties of a person engaged in the business in accordance with theprovisions of this division. (b) Within 15 days from the date of a notice of intention to issuean order pursuant to subdivision (a), the person may request ahearing under the Administrative Procedure Act (Chapter 4.5(commencing with Section 11400) of Division 3 of Title 2 of theGovernment Code). Upon receipt of a request, the matter shall be setfor hearing to commence within 30 days after such receipt unless theperson subject to this division consents to a later date. If nohearing is requested within 15 days after the mailing or service ofsuch notice and none is ordered by the commissioner, the failure torequest a hearing shall constitute a waiver of the right to ahearing. (c) Upon receipt of a notice of intention to issue an orderpursuant to this section, the person who is the subject of theproposed order is immediately prohibited from engaging in anyactivities subject to licensure under the law. (d) Persons suspended or barred under this section are prohibitedfrom participating in any business activity of a securitiesdepository and from engaging in any business activity on the premiseswhere a securities depository is conducting business.