New Stipulations for LicensingMortgagePress.comFinance Lender's License, applicant, California Assembly Bill 1230
California Assembly Bill 1230 requires the Commissioner of
Corporations to investigate the principal officers of certain
applicants for a Finance Lender's License. If the applicant is a
corporation, an unincorporated organization, a trust or an
association, the Commissioner must investigate its principal
officers--president, CEO, treasurer or CFO--directors and all other
persons directly or indirectly owning or controlling 10 percent or
more of all outstanding equity securities. The investigation
required by this new provision may be limited to information not
already included in previous applications filed for a Finance
Lenders License.
The bill clarifies the instances in which the Commissioner may
deny an application:
++A false statement of a material fact has been made in the
application.
++Any officer, director, general partner, or person owning or
controlling 10 percent or more of the outstanding interest or
equity securities of the applicant that has, within the last 10
years, been convicted of, or pleaded nolo contendere to, a crime,
or committed any act involving dishonesty, fraud, or deceit, if the
crime or act is substantially related to the qualifications,
functions, or duties of a person engaged in business in accordance
with the Finance Lenders Law.
++The applicant or any officer, director, general partner, or
person owning or controlling directly or indirectly, 10 percent or
more of the outstanding interests of equity securities of the
applicant has violated any provision of the Finance Lenders Law or
the rules thereunder or any similar regulatory scheme of a foreign
jurisdiction.
