31150. (a) Except as otherwise provided in subdivision (b), no
person transacting business in this state, other than a licensee,
shall use any name or title which indicates that it is a business and
industrial development corporation or otherwise represent that it is
a business and industrial development corporation or that it is a
licensee.
(b) Any California corporation which proposes to apply for a
license or which has applied for a license, may, before being issued
a license, use a name or title which indicates that it is a business
and industrial development corporation if it meets all of the
following requirements:
(1) The corporation shall append to the name the designation
"proposed," "in organization," or "in formation," or any similar
designation which the commissioner may approve. The designation shall
be set forth at least as conspicuously as the name or title.
(2) The corporation may perform only such acts as may be necessary
(A) to apply for and obtain such license and (B) otherwise to
prepare to commence transacting business as a licensee.
(3) The corporation shall not represent that it is a licensee.
31151. No person other than a California corporation may apply for
or be issued a license.
31152. If the commissioner finds all of the following with respect
to an application for a license, the commissioner shall approve the
application:
(a) That the applicant has net worth in an amount which is not
less than one million five hundred thousand dollars ($1,500,000) and
which is adequate for the applicant to transact business as a
business and industrial development corporation.
(b) That the applicant has lendable funds in an amount which is
not less than one million five hundred thousand dollars ($1,500,000)
and which is adequate for the applicant to transact business as a
business and industrial development corporation.
(c) That the applicant has, in addition to the requirements of
subdivision (b), financial resources in an amount which is adequate
for the applicant to pay its expenses in transacting business as a
business and industrial development corporation for a period of not
less than three years.
(d) That the directors, officers, and controlling persons of the
applicant are each of good character and sound financial standing,
that the directors and officers of the applicant are each competent
to perform their functions with respect to the applicant, and that
the directors and officers of the applicant are collectively adequate
to manage the business of the applicant as a business and industrial
development corporation. For purposes of this subdivision, the
commissioner shall accord weight to the prior or current successful
operation of a commercial enterprise.
(e) That it is reasonable to believe that the applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division.
(f) That the applicant has reasonable promise of successful
operation as a business and industrial development corporation.
(g) That the licensing of the applicant will promote the public
convenience and advantage.
If, after notice and a hearing, the commissioner finds otherwise,
he or she shall deny the application.
31152.5. (a) For purposes of Section 31152, the commissioner may
find:
(1) That a director, officer, or controlling person of an
applicant is not of good character if the director, officer, or
controlling person or any director or officer of the controlling
person has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(2) That it is not reasonable to believe that an applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division if the
applicant has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(b) Subdivision (a) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 31152,
that a director, officer, or controlling person of an applicant is
not of good character or that it is not reasonable to believe that an
applicant, if licensed, will comply with all applicable provisions
of this division and of any regulation or order issued under this
division.
31153. Before any applicant for a license is issued a license, each
person which is a parent or subsidiary of such applicant shall file,
and each person who becomes a parent or subsidiary of a licensee
shall, not less than 30 days after becoming a parent or subsidiary of
such licensee, file, with the commissioner, in such form as the
commissioner may by regulation or order require, an agreement that
such person shall comply with all applicable provisions of this
division and of any regulation or order issued under this division.
31154. Whenever any application for a license has been approved and
all conditions precedent to the issuance of such license have been
fulfilled, the commissioner shall issue a license to the applicant.
31155. No license shall be transferable or assignable.
31156. Each licensee shall post its license in a conspicuous place
at its head office.
31157. No licensee shall represent that it is sponsored,
recommended, or approved by, or that its abilities or qualifications
have in any respect been passed upon by, the commissioner. Nothing in
this section shall be deemed to prohibit a licensee from stating
that it is licensed if the effect of such license is not
misrepresented.
31158. (a) The fact that a California corporation is licensed under
any law other than this division shall not preclude such corporation
from applying for or being issued a license under this division
unless the transaction of business by such corporation as a licensee
under such other law would violate any provision of this division or
of any regulation or order issued under this division or would be
contrary to the purposes of this division.
(b) The fact that a California corporation is licensed under this
division shall not preclude such corporation from applying for or
being issued a license under any other law unless the transaction of
business by such corporation as a licensee under such other law would
violate any provision of this division or of any regulation or order
issued under this division or would be contrary to the purposes of
this division.
31150. (a) Except as otherwise provided in subdivision (b), no
person transacting business in this state, other than a licensee,
shall use any name or title which indicates that it is a business and
industrial development corporation or otherwise represent that it is
a business and industrial development corporation or that it is a
licensee.
(b) Any California corporation which proposes to apply for a
license or which has applied for a license, may, before being issued
a license, use a name or title which indicates that it is a business
and industrial development corporation if it meets all of the
following requirements:
(1) The corporation shall append to the name the designation
"proposed," "in organization," or "in formation," or any similar
designation which the commissioner may approve. The designation shall
be set forth at least as conspicuously as the name or title.
(2) The corporation may perform only such acts as may be necessary
(A) to apply for and obtain such license and (B) otherwise to
prepare to commence transacting business as a licensee.
(3) The corporation shall not represent that it is a licensee.
31151. No person other than a California corporation may apply for
or be issued a license.
31152. If the commissioner finds all of the following with respect
to an application for a license, the commissioner shall approve the
application:
(a) That the applicant has net worth in an amount which is not
less than one million five hundred thousand dollars ($1,500,000) and
which is adequate for the applicant to transact business as a
business and industrial development corporation.
(b) That the applicant has lendable funds in an amount which is
not less than one million five hundred thousand dollars ($1,500,000)
and which is adequate for the applicant to transact business as a
business and industrial development corporation.
(c) That the applicant has, in addition to the requirements of
subdivision (b), financial resources in an amount which is adequate
for the applicant to pay its expenses in transacting business as a
business and industrial development corporation for a period of not
less than three years.
(d) That the directors, officers, and controlling persons of the
applicant are each of good character and sound financial standing,
that the directors and officers of the applicant are each competent
to perform their functions with respect to the applicant, and that
the directors and officers of the applicant are collectively adequate
to manage the business of the applicant as a business and industrial
development corporation. For purposes of this subdivision, the
commissioner shall accord weight to the prior or current successful
operation of a commercial enterprise.
(e) That it is reasonable to believe that the applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division.
(f) That the applicant has reasonable promise of successful
operation as a business and industrial development corporation.
(g) That the licensing of the applicant will promote the public
convenience and advantage.
If, after notice and a hearing, the commissioner finds otherwise,
he or she shall deny the application.
31152.5. (a) For purposes of Section 31152, the commissioner may
find:
(1) That a director, officer, or controlling person of an
applicant is not of good character if the director, officer, or
controlling person or any director or officer of the controlling
person has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(2) That it is not reasonable to believe that an applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division if the
applicant has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(b) Subdivision (a) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 31152,
that a director, officer, or controlling person of an applicant is
not of good character or that it is not reasonable to believe that an
applicant, if licensed, will comply with all applicable provisions
of this division and of any regulation or order issued under this
division.
31153. Before any applicant for a license is issued a license, each
person which is a parent or subsidiary of such applicant shall file,
and each person who becomes a parent or subsidiary of a licensee
shall, not less than 30 days after becoming a parent or subsidiary of
such licensee, file, with the commissioner, in such form as the
commissioner may by regulation or order require, an agreement that
such person shall comply with all applicable provisions of this
division and of any regulation or order issued under this division.
31154. Whenever any application for a license has been approved and
all conditions precedent to the issuance of such license have been
fulfilled, the commissioner shall issue a license to the applicant.
31155. No license shall be transferable or assignable.
31156. Each licensee shall post its license in a conspicuous place
at its head office.
31157. No licensee shall represent that it is sponsored,
recommended, or approved by, or that its abilities or qualifications
have in any respect been passed upon by, the commissioner. Nothing in
this section shall be deemed to prohibit a licensee from stating
that it is licensed if the effect of such license is not
misrepresented.
31158. (a) The fact that a California corporation is licensed under
any law other than this division shall not preclude such corporation
from applying for or being issued a license under this division
unless the transaction of business by such corporation as a licensee
under such other law would violate any provision of this division or
of any regulation or order issued under this division or would be
contrary to the purposes of this division.
(b) The fact that a California corporation is licensed under this
division shall not preclude such corporation from applying for or
being issued a license under any other law unless the transaction of
business by such corporation as a licensee under such other law would
violate any provision of this division or of any regulation or order
issued under this division or would be contrary to the purposes of
this division.
31150. (a) Except as otherwise provided in subdivision (b), no
person transacting business in this state, other than a licensee,
shall use any name or title which indicates that it is a business and
industrial development corporation or otherwise represent that it is
a business and industrial development corporation or that it is a
licensee.
(b) Any California corporation which proposes to apply for a
license or which has applied for a license, may, before being issued
a license, use a name or title which indicates that it is a business
and industrial development corporation if it meets all of the
following requirements:
(1) The corporation shall append to the name the designation
"proposed," "in organization," or "in formation," or any similar
designation which the commissioner may approve. The designation shall
be set forth at least as conspicuously as the name or title.
(2) The corporation may perform only such acts as may be necessary
(A) to apply for and obtain such license and (B) otherwise to
prepare to commence transacting business as a licensee.
(3) The corporation shall not represent that it is a licensee.
31151. No person other than a California corporation may apply for
or be issued a license.
31152. If the commissioner finds all of the following with respect
to an application for a license, the commissioner shall approve the
application:
(a) That the applicant has net worth in an amount which is not
less than one million five hundred thousand dollars ($1,500,000) and
which is adequate for the applicant to transact business as a
business and industrial development corporation.
(b) That the applicant has lendable funds in an amount which is
not less than one million five hundred thousand dollars ($1,500,000)
and which is adequate for the applicant to transact business as a
business and industrial development corporation.
(c) That the applicant has, in addition to the requirements of
subdivision (b), financial resources in an amount which is adequate
for the applicant to pay its expenses in transacting business as a
business and industrial development corporation for a period of not
less than three years.
(d) That the directors, officers, and controlling persons of the
applicant are each of good character and sound financial standing,
that the directors and officers of the applicant are each competent
to perform their functions with respect to the applicant, and that
the directors and officers of the applicant are collectively adequate
to manage the business of the applicant as a business and industrial
development corporation. For purposes of this subdivision, the
commissioner shall accord weight to the prior or current successful
operation of a commercial enterprise.
(e) That it is reasonable to believe that the applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division.
(f) That the applicant has reasonable promise of successful
operation as a business and industrial development corporation.
(g) That the licensing of the applicant will promote the public
convenience and advantage.
If, after notice and a hearing, the commissioner finds otherwise,
he or she shall deny the application.
31152.5. (a) For purposes of Section 31152, the commissioner may
find:
(1) That a director, officer, or controlling person of an
applicant is not of good character if the director, officer, or
controlling person or any director or officer of the controlling
person has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(2) That it is not reasonable to believe that an applicant, if
licensed, will comply with all applicable provisions of this division
and of any regulation or order issued under this division if the
applicant has been convicted of, or has pleaded nolo contendere to, a
crime involving fraud or dishonesty.
(b) Subdivision (a) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 31152,
that a director, officer, or controlling person of an applicant is
not of good character or that it is not reasonable to believe that an
applicant, if licensed, will comply with all applicable provisions
of this division and of any regulation or order issued under this
division.
31153. Before any applicant for a license is issued a license, each
person which is a parent or subsidiary of such applicant shall file,
and each person who becomes a parent or subsidiary of a licensee
shall, not less than 30 days after becoming a parent or subsidiary of
such licensee, file, with the commissioner, in such form as the
commissioner may by regulation or order require, an agreement that
such person shall comply with all applicable provisions of this
division and of any regulation or order issued under this division.
31154. Whenever any application for a license has been approved and
all conditions precedent to the issuance of such license have been
fulfilled, the commissioner shall issue a license to the applicant.
31155. No license shall be transferable or assignable.
31156. Each licensee shall post its license in a conspicuous place
at its head office.
31157. No licensee shall represent that it is sponsored,
recommended, or approved by, or that its abilities or qualifications
have in any respect been passed upon by, the commissioner. Nothing in
this section shall be deemed to prohibit a licensee from stating
that it is licensed if the effect of such license is not
misrepresented.
31158. (a) The fact that a California corporation is licensed under
any law other than this division shall not preclude such corporation
from applying for or being issued a license under this division
unless the transaction of business by such corporation as a licensee
under such other law would violate any provision of this division or
of any regulation or order issued under this division or would be
contrary to the purposes of this division.
(b) The fact that a California corporation is licensed under this
division shall not preclude such corporation from applying for or
being issued a license under any other law unless the transaction of
business by such corporation as a licensee under such other law would
violate any provision of this division or of any regulation or order
issued under this division or would be contrary to the purposes of
this division.
