State Codes and Statutes

Statutes > California > Fin > 31400-31410

FINANCIAL CODE
SECTION 31400-31410



31400.  (a) Each licensee shall transact its business in a safe and
sound manner and shall maintain itself in a safe and sound condition.
   (b) No licensee shall commit any unsafe or unsound act.



31401.  No licensee shall engage in any business other than one or
more of the following:
   (a) The business of providing financing assistance and management
assistance to business firms.
   (b) The business of a state development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (c) The business of a local development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (d) The business of a small business investment company in
accordance with all applicable provisions of the Small Business
Investment Act of 1958 and of the regulations of the Small Business
Administration.



31402.  Each licensee shall use its best efforts:
   (a) To provide financing assistance to business firms in this
state in cooperation with the Small Business Administration pursuant
to Section 7(a) of the Small Business Act;
   (b) To obtain loans from the Small Business Administration
pursuant to Sections 501 and 502 of the Small Business Investment Act
of 1958; and
   (c) Otherwise to cooperate with, and meet the requirements of, the
Small Business Administration for the purpose of providing financing
assistance and management assistance to business firms in this
state.



31403.  (a) Except as provided in subdivision (b), no licensee shall
provide financing assistance or management assistance to any person
other than a business firm in this state.
   (b) (1) If a licensee provides financing assistance to a business
firm in this state, the licensee may also provide financing
assistance and management assistance to the business firm with
respect to business transacted in any other state of the United
States or the District of Columbia.
   (2) If a licensee provides financing assistance to a business firm
in this state which is a franchisor, the licensee may also provide
financing assistance and management assistance to any business firm
in another state which is a franchisee of the franchisor.
   (3) If a licensee provides financing assistance to a business firm
in this state which is a franchisee of a franchisor, the licensee
may also provide financing assistance and management assistance to
any business firm in another state which is a franchisee of the
franchisor.


31404.  Except as otherwise provided in subdivision (b) of Section
31403, no licensee shall provide financing assistance or management
assistance for use outside this state.



31405.  Except as otherwise provided in subdivisions (b), (c), and
(d) of Section 31406:
   (a) No licensee shall provide financing assistance or management
assistance to any business firm the primary business of which is to
provide financing assistance or management assistance.
   (b) No licensee shall provide financing assistance to any business
firm for the purpose of providing financing assistance to other
persons or discharging, in whole or in part, any obligation incurred
for such purpose.



31406.  No licensee shall, either by itself or in concert with any
of its directors, officers, principal shareholders, or affiliates,
any other licensee, or any of the directors, officers, principal
shareholders, or affiliates of any other licensee, acquire or hold
control of any business firm, except as follows:
   (a) Any licensee which has provided financing assistance to a
business firm may, if and to the extent necessary to protect its
interests as a creditor of, or investor in, such business firm,
acquire and hold control of such business firm; provided, however,
that such licensee shall divest itself of such control as soon as
practicable and in any event within three years after acquiring such
control or such longer period as the commissioner may approve.
   (b) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
small business investment company under the Small Business Investment
Act of 1958.
   (c) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
personal property broker under Division 9 (commencing with Section
22000).
   (d) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which transacts business
as a local development company in accordance with all applicable
provisions of the Small Business Investment Act of 1958 and of the
regulations of the Small Business Administration.




31408.  No licensee shall, except with the prior approval of the
commissioner, guarantee the debt of any other person or otherwise
lend its credit to any other person; provided, however, that,
whenever a licensee sells to another person an obligation to pay
money, which obligation is owned by such licensee, such licensee may
guarantee the payment of such obligation.



31409.  No licensee shall, except with the prior approval of the
commissioner, provide a lien or security interest in any of its
property for the purpose of securing an obligation of, or an
obligation incurred for the benefit of, any other person.




31410.  This section creates and authorizes an exempt class of
persons pursuant to Section 1 of Article XV of the State
Constitution. The restrictions upon rates of interest contained in
Section 1 of Article XV of the State Constitution shall not apply to
any loans made by, or forbearances of, any licensee. This section
shall apply retroactively to any such loans or forbearances.


State Codes and Statutes

Statutes > California > Fin > 31400-31410

FINANCIAL CODE
SECTION 31400-31410



31400.  (a) Each licensee shall transact its business in a safe and
sound manner and shall maintain itself in a safe and sound condition.
   (b) No licensee shall commit any unsafe or unsound act.



31401.  No licensee shall engage in any business other than one or
more of the following:
   (a) The business of providing financing assistance and management
assistance to business firms.
   (b) The business of a state development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (c) The business of a local development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (d) The business of a small business investment company in
accordance with all applicable provisions of the Small Business
Investment Act of 1958 and of the regulations of the Small Business
Administration.



31402.  Each licensee shall use its best efforts:
   (a) To provide financing assistance to business firms in this
state in cooperation with the Small Business Administration pursuant
to Section 7(a) of the Small Business Act;
   (b) To obtain loans from the Small Business Administration
pursuant to Sections 501 and 502 of the Small Business Investment Act
of 1958; and
   (c) Otherwise to cooperate with, and meet the requirements of, the
Small Business Administration for the purpose of providing financing
assistance and management assistance to business firms in this
state.



31403.  (a) Except as provided in subdivision (b), no licensee shall
provide financing assistance or management assistance to any person
other than a business firm in this state.
   (b) (1) If a licensee provides financing assistance to a business
firm in this state, the licensee may also provide financing
assistance and management assistance to the business firm with
respect to business transacted in any other state of the United
States or the District of Columbia.
   (2) If a licensee provides financing assistance to a business firm
in this state which is a franchisor, the licensee may also provide
financing assistance and management assistance to any business firm
in another state which is a franchisee of the franchisor.
   (3) If a licensee provides financing assistance to a business firm
in this state which is a franchisee of a franchisor, the licensee
may also provide financing assistance and management assistance to
any business firm in another state which is a franchisee of the
franchisor.


31404.  Except as otherwise provided in subdivision (b) of Section
31403, no licensee shall provide financing assistance or management
assistance for use outside this state.



31405.  Except as otherwise provided in subdivisions (b), (c), and
(d) of Section 31406:
   (a) No licensee shall provide financing assistance or management
assistance to any business firm the primary business of which is to
provide financing assistance or management assistance.
   (b) No licensee shall provide financing assistance to any business
firm for the purpose of providing financing assistance to other
persons or discharging, in whole or in part, any obligation incurred
for such purpose.



31406.  No licensee shall, either by itself or in concert with any
of its directors, officers, principal shareholders, or affiliates,
any other licensee, or any of the directors, officers, principal
shareholders, or affiliates of any other licensee, acquire or hold
control of any business firm, except as follows:
   (a) Any licensee which has provided financing assistance to a
business firm may, if and to the extent necessary to protect its
interests as a creditor of, or investor in, such business firm,
acquire and hold control of such business firm; provided, however,
that such licensee shall divest itself of such control as soon as
practicable and in any event within three years after acquiring such
control or such longer period as the commissioner may approve.
   (b) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
small business investment company under the Small Business Investment
Act of 1958.
   (c) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
personal property broker under Division 9 (commencing with Section
22000).
   (d) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which transacts business
as a local development company in accordance with all applicable
provisions of the Small Business Investment Act of 1958 and of the
regulations of the Small Business Administration.




31408.  No licensee shall, except with the prior approval of the
commissioner, guarantee the debt of any other person or otherwise
lend its credit to any other person; provided, however, that,
whenever a licensee sells to another person an obligation to pay
money, which obligation is owned by such licensee, such licensee may
guarantee the payment of such obligation.



31409.  No licensee shall, except with the prior approval of the
commissioner, provide a lien or security interest in any of its
property for the purpose of securing an obligation of, or an
obligation incurred for the benefit of, any other person.




31410.  This section creates and authorizes an exempt class of
persons pursuant to Section 1 of Article XV of the State
Constitution. The restrictions upon rates of interest contained in
Section 1 of Article XV of the State Constitution shall not apply to
any loans made by, or forbearances of, any licensee. This section
shall apply retroactively to any such loans or forbearances.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 31400-31410

FINANCIAL CODE
SECTION 31400-31410



31400.  (a) Each licensee shall transact its business in a safe and
sound manner and shall maintain itself in a safe and sound condition.
   (b) No licensee shall commit any unsafe or unsound act.



31401.  No licensee shall engage in any business other than one or
more of the following:
   (a) The business of providing financing assistance and management
assistance to business firms.
   (b) The business of a state development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (c) The business of a local development company in accordance with
all applicable provisions of the Small Business Investment Act of
1958 and of the regulations of the Small Business Administration.
   (d) The business of a small business investment company in
accordance with all applicable provisions of the Small Business
Investment Act of 1958 and of the regulations of the Small Business
Administration.



31402.  Each licensee shall use its best efforts:
   (a) To provide financing assistance to business firms in this
state in cooperation with the Small Business Administration pursuant
to Section 7(a) of the Small Business Act;
   (b) To obtain loans from the Small Business Administration
pursuant to Sections 501 and 502 of the Small Business Investment Act
of 1958; and
   (c) Otherwise to cooperate with, and meet the requirements of, the
Small Business Administration for the purpose of providing financing
assistance and management assistance to business firms in this
state.



31403.  (a) Except as provided in subdivision (b), no licensee shall
provide financing assistance or management assistance to any person
other than a business firm in this state.
   (b) (1) If a licensee provides financing assistance to a business
firm in this state, the licensee may also provide financing
assistance and management assistance to the business firm with
respect to business transacted in any other state of the United
States or the District of Columbia.
   (2) If a licensee provides financing assistance to a business firm
in this state which is a franchisor, the licensee may also provide
financing assistance and management assistance to any business firm
in another state which is a franchisee of the franchisor.
   (3) If a licensee provides financing assistance to a business firm
in this state which is a franchisee of a franchisor, the licensee
may also provide financing assistance and management assistance to
any business firm in another state which is a franchisee of the
franchisor.


31404.  Except as otherwise provided in subdivision (b) of Section
31403, no licensee shall provide financing assistance or management
assistance for use outside this state.



31405.  Except as otherwise provided in subdivisions (b), (c), and
(d) of Section 31406:
   (a) No licensee shall provide financing assistance or management
assistance to any business firm the primary business of which is to
provide financing assistance or management assistance.
   (b) No licensee shall provide financing assistance to any business
firm for the purpose of providing financing assistance to other
persons or discharging, in whole or in part, any obligation incurred
for such purpose.



31406.  No licensee shall, either by itself or in concert with any
of its directors, officers, principal shareholders, or affiliates,
any other licensee, or any of the directors, officers, principal
shareholders, or affiliates of any other licensee, acquire or hold
control of any business firm, except as follows:
   (a) Any licensee which has provided financing assistance to a
business firm may, if and to the extent necessary to protect its
interests as a creditor of, or investor in, such business firm,
acquire and hold control of such business firm; provided, however,
that such licensee shall divest itself of such control as soon as
practicable and in any event within three years after acquiring such
control or such longer period as the commissioner may approve.
   (b) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
small business investment company under the Small Business Investment
Act of 1958.
   (c) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which is licensed as a
personal property broker under Division 9 (commencing with Section
22000).
   (d) Any licensee may, with the prior approval of the commissioner,
acquire and hold control of a corporation which transacts business
as a local development company in accordance with all applicable
provisions of the Small Business Investment Act of 1958 and of the
regulations of the Small Business Administration.




31408.  No licensee shall, except with the prior approval of the
commissioner, guarantee the debt of any other person or otherwise
lend its credit to any other person; provided, however, that,
whenever a licensee sells to another person an obligation to pay
money, which obligation is owned by such licensee, such licensee may
guarantee the payment of such obligation.



31409.  No licensee shall, except with the prior approval of the
commissioner, provide a lien or security interest in any of its
property for the purpose of securing an obligation of, or an
obligation incurred for the benefit of, any other person.




31410.  This section creates and authorizes an exempt class of
persons pursuant to Section 1 of Article XV of the State
Constitution. The restrictions upon rates of interest contained in
Section 1 of Article XV of the State Constitution shall not apply to
any loans made by, or forbearances of, any licensee. This section
shall apply retroactively to any such loans or forbearances.


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