General - Administration And Powers Of The Commissioner - Financial - CA

Section § 18339

This law section sets up an Industrial Loan Account within the Financial Institutions Fund in the California State Treasury. It requires that all money and other assets collected or acquired by the Commissioner of Financial Protection and Innovation related to industrial loan companies, as well as any associated liabilities, be moved from the State Corporations Fund to this new Industrial Loan Account.

As of the operative date of this section:

(a) There is established an Industrial Loan Account in the Financial Institutions Fund in the State Treasury.

(b) All money on deposit with the Treasurer in the State Corporations Fund that has been received or collected by the Commissioner of Financial Protection and Innovation under this division or any other law relating to industrial loan companies or the industrial loan business, all other assets of the State Corporations Fund that have been acquired by the Commissioner of Financial Protection and Innovation under this division or any other law relating to industrial loan companies or the industrial loan business, and all liabilities of the State Corporations Fund that have been incurred under this division or any other law relating to industrial loan companies or the industrial loan business shall be transferred to the Industrial Loan Account.

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Section § 18340

This law states that any money collected by the commissioner related to industrial loan companies must be deposited into the State Treasury, specifically credited to the Industrial Loan Account within the Financial Institutions Fund.

All money received or collected by the commissioner under this division or any other law relating to industrial loan companies or the industrial loan business shall be deposited in the State Treasury to the credit of the Industrial Loan Account of the Financial Institutions Fund.

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Section § 18340.5

This law states that all costs for the department to manage industrial loan companies and related laws must be covered by the Industrial Loan Account. This account is dedicated solely to those expenses unless Sections 276 or 277 say otherwise.

All expenses of the department in administering this division and other laws relating to industrial loan companies or the industrial loan business shall be paid out of the Industrial Loan Account; and, except as otherwise provided in Section 276 or 277, the Industrial Loan Account shall be used only for such purposes.

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Section § 18342

Industrial loan companies in California have specific powers detailed in this division and also enjoy the general powers granted to corporations. However, all these powers are subject to oversight and conditions set by the commissioner.

Industrial loan companies have the powers specified in this division. In addition, industrial loan companies have the general powers conferred upon corporations by the General Corporation Law. The powers granted, including those granted by the General Corporation Law, are subject to the supervision and control of, and the conditions imposed by, the commissioner.

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Section § 18343

This section allows a commissioner to require industrial loan companies to keep a reasonable amount of money set aside, known as reserves, for loans and contracts. These reserves ensure the company can cover potential losses and adhere to good business practices.

The commissioner can create rules about classifying loans based on whether they are paid on time, decide when unpaid loans should be written off, and set conditions for these loans to be added back as company assets. Additionally, the commissioner can outline how reserves should be created and maintained.

The commissioner may require an industrial loan company to establish and maintain reasonable reserves for loans made, and contracts or other obligations purchased or discounted in accordance with sound business practices. The commissioner may by rule or order:

(a) Establish reasonable standards for the classification of loans and contracts or other obligations as to their delinquency or currency.

(b) Prescribe the conditions requiring the writing off of delinquent loans and contracts or other obligations and the conditions under which they may be restored as part of corporate assets.

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Section § 18344

This law states that an industrial loan company in California cannot make loans from a location where other businesses are also operating or soliciting business, unless given written permission by the commissioner. The commissioner must find that having another business there won't lead to avoiding the rules of this loan division.

An industrial loan company shall not conduct the business of making loans under this division, within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as is authorized in writing by the commissioner upon the commissioner’s finding that the character of the other business is such that the granting of the authority would not facilitate evasions of this division or of the rules and regulations made pursuant to this division.

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Section § 18345

If an industrial loan company experiences any changes in its officers, directors, or management staff, they must inform the commissioner within 15 days.

The report should identify all individuals taking on new roles and include any additional information the commissioner requires. The commissioner also has the power to define what positions are considered management roles.

An industrial loan company shall notify the commissioner of every change in the officers, directors and management personnel of the company and of each branch of the company within 15 days of such change. Such report shall include a complete identification of each person assuming any such office or duties and such other information as the commissioner shall prescribe. The commissioner may by rule or order prescribe the positions or duties which will be deemed to be management personnel within the meaning of this section.

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Section § 18346

This law allows the commissioner to require industrial loan companies to get a 'fidelity bond.' This bond is like insurance that protects the company in case their money or property is lost due to the actions of employees or officers. It must cover all workers who are paid by the company, and possibly even those who aren't. The bond can be one of several types but must be issued by an approved insurance provider. The commissioner will decide how much coverage is needed, and they have to approve who is guaranteeing the bond.

The commissioner may require each industrial loan company to file with the commissioner a fidelity bond indemnifying the industrial loan company against loss of money or property by act of any officer, director or employee of such company, having access to assets owned by or pledged with the company. The fidelity bond shall contain a rider which provides that the coverage of the bond extends to all officers, directors and employees of the insured who are compensated by the insured. The commissioner may require that the fidelity bond contain a rider which provides that coverage of the bond extends to all officers and directors who are not compensated by the insured. The fidelity bond may be either a primary commercial blanket bond, a blanket position bond, or a banker’s blanket bond, but shall be written by an admitted surety insurer. The commissioner shall by regulation prescribe the amount of fidelity coverage to be required. The sufficiency of the sureties on the bond are at all times subject to the approval of the commissioner.

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Section § 18346.1

This law allows a licensee, instead of providing a required bond, to deposit certain types of security with the commissioner to protect the public from losses due to theft or mysterious disappearance. Acceptable forms of security include cash, U.S. or California state bearer bonds, or deposits in banks or investment certificates from insured savings and loan associations operating in California.

Additionally, any security deposited is not considered an asset of the licensee for certain legal compliance purposes.

(a) In lieu of providing a bond required pursuant to Section 18346, a licensee may deposit with the commissioner security in an amount as the commissioner may determine, for the protection of the public against loss suffered through theft or mysterious disappearance. Such security may only be in the form of cash, lawful money of the United States, bearer bonds issued by the United States or the State of California or evidence of deposit in banks or investment certificates issued by insured savings and loan associations authorized or licensed to do business in the State of California.

(b) Security deposited with the commissioner pursuant to subdivision (a) shall not be deemed an asset of the licensee for the purpose of complying with Article 3 of Chapter 2 of this division.

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Section § 18347

This law section allows the commissioner to create reasonable rules and regulations needed to implement the goals and provisions of this division. These rules can also cover how investment certificates are offered and sold, including their terms and format.

The commissioner may establish rules and regulations which are reasonable and necessary to carry out the purposes and provisions of this division, including rules and regulations concerning the terms, form, offer, and sale of investment certificates.

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Section § 18349

This law says that the Commissioner can suspend or revoke the license of an industrial loan company if they break any rules or if there were any problems that would have stopped them from getting a license in the first place. The company must be given a chance to know the issues and be heard before any action is taken.

The commissioner may, upon reasonable notice and opportunity to be heard, suspend or revoke the license of an industrial loan company if the commissioner finds that the industrial loan company has violated any provision of this division or any rule or regulation of the commissioner made pursuant to this division, or if any factor or condition exists which, if it had existed at the time of the original application for a license, reasonably would have warranted the commissioner in refusing originally to issue such license.

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Section § 18349.5

This statute outlines how the commissioner can suspend or remove someone from their role at an industrial loan company if they break certain rules. It defines key terms like 'account holder,' 'industrial loan company,' and 'controlling person.' Violations can include breaking laws, engaging in risky business activities, or not fulfilling trust obligations. If the company's finances or account holders are put at risk, the commissioner can issue orders to stop the person from working in the industry. Suspensions can happen immediately if there's an urgent need to protect the company or public trust, especially if individuals have been charged with or convicted of crimes involving dishonesty. People affected by these orders can request a hearing or appeal. Breaking the terms of the order can lead to fines or further legal action. All proceedings may be private unless the commissioner decides a public hearing is needed for the public interest.

(a) For the purposes of this section, the following definitions are applicable:

(1) “Account holder” includes, in the case of an investment certificate account, an investment certificate holder; in the case of a trust account, each trustor and beneficiary of the trust account; and, in the case of any other fiduciary account, each person who occupies, with respect to the account, a position which is similar to the position that a trustor or beneficiary occupies with respect to a trust account.

(2) “Industrial loan company” means any corporation which falls within the definitions of Sections 18003 and 18003.5.

(3) “Order” means any approval, consent, authorization, permit, exemption, denial, prohibition, or requirement applicable to a specific case issued by the commissioner, including without limitation, any condition thereof. “Order” does not include any certificate of authority or license issued by the commissioner, but does include any condition of a license and any written agreement made by any person with the commissioner under this division.

(4) “Subject person of an industrial loan company” means any director, officer, or employee of the industrial loan company, or any person who participates in the conduct of the business of the industrial loan company. However, “subject person of an industrial loan company” does not include an individual who is a director, officer, or employee of a controlling person of an industrial loan company unless the individual is a director, officer, or employee of the industrial loan company or participates in the conduct of the industrial loan company.

(5) “Controlling person” means a person who, directly or indirectly, controls an industrial loan company.

(6) “Violation” includes, without limitation, any act done, alone or with one or more persons, for or toward causing, bringing about, participation in, counseling, aiding or abetting a violation.

(b) If, after notice and opportunity for hearing, the commissioner finds the following, the commissioner may issue an order suspending or removing a subject person of an industrial loan company from his or her office with the industrial loan company and prohibiting the subject person from further participating in any manner in the conduct of the business of the industrial loan company, except with the prior consent of the commissioner:

(1)

(A) That the subject person has violated any provision of this division or of any regulation or order issued under this division, or any provision of any other applicable law relating to the business of the industrial loan company; or

(B) That the subject person has engaged or participated in any unsafe or unsound act with respect to the business of the industrial loan company; or

(C) That the subject person has committed or engaged in any act which constitutes a breach of his or her fiduciary duty as a subject person; and

(2)

(A) That the industrial loan company has suffered or will probably suffer substantial financial loss or other damage by reason of that violation, act, or breach of fiduciary duty; or

(B) That the interests of the industrial loan company’s accountholders have been or are likely to be seriously prejudiced by reason of the violation, act, or breach of fiduciary duty; or

(C) That the subject person has received financial gain by reason of that violation, act, or breach of fiduciary duty; and

(3) That the violation, act, or breach of fiduciary duty is one involving personal dishonesty on the part of the subject person, or one which demonstrates a willful or continuing disregard for the safety or soundness of the industrial loan company.

(c) If, after notice and opportunity for hearing, the commissioner finds the following, the commissioner may issue an order suspending or removing a subject person of an industrial loan company from his or her office with the industrial loan company and prohibiting the subject person from further participating in any manner in the conduct of the business of the industrial loan company, except with the prior consent of the commissioner:

(1) That the subject person’s conduct or practice with respect to another industrial loan company or business institution has resulted in substantial financial loss or other damage; and

(2) That the conduct or practice has evidenced personal dishonesty or willful or continuing disregard for the safety and soundness of the other industrial loan company or business institution; and

(3) That the conduct or practice is relevant in that it demonstrates unfitness to continue as a subject person of the industrial loan company.

(d) If the commissioner finds the following, the commissioner may immediately issue an order suspending or removing a subject person of an industrial loan company from his or her office with the industrial loan company and prohibiting the subject person from further participating in any manner in the conduct of the business of the industrial loan company, except with the prior consent of the commissioner:

(1) That it is necessary for the protection of the industrial loan company or the interests of the industrial loan company’s account holders that the commissioner issue the order immediately, and

(2)

(A) That any of the factors set forth in paragraphs (1) and (2) of subdivision (b) and any of the factors set forth in paragraph (3) of subdivision (c) are true with respect to the subject person; or

(B) That any of the factors set forth in paragraphs (1), (2), and (3) of subdivision (c), and the factor set forth in paragraph (3) of subdivision (c) are true with respect to the subject person.

(e)

(1) If the commissioner finds the following, the commissioner may immediately issue an order suspending or removing a subject person of an industrial loan company from his or her office with the industrial loan company and prohibiting the subject person from further participating in any manner in the conduct of the business of the industrial loan company, except with the prior consent of the commissioner.

(A) That the subject person has been charged in an indictment issued by a grand jury or in an information, complaint, or similar pleading issued by a United States attorney, district attorney, or other governmental official or agency authorized to prosecute crimes, with a crime which is punishable by imprisonment for a term exceeding one year and which involves dishonesty or breach of trust; and

(B) That the person’s continuing to serve as a subject person of the industrial loan company may pose a material threat to the interest of the industrial loan company’s account holders or may threaten to materially impair public confidence in the industrial loan company. In case the criminal proceedings are terminated other than by a judgment of conviction the order shall be deemed rescinded.

(2) If the commissioner finds the following, the commissioner may immediately issue an order suspending or removing a subject person of an industrial loan company or a former subject of an industrial loan company, from his or her office, if any, with the industrial loan company and prohibiting the person from further participating in any manner in the conduct of the business of the industrial loan company, except with the prior consent of the industrial loan company:

(A) That the person has been finally convicted of a crime which is punishable by imprisonment for a term exceeding one year and which involves dishonesty or breach of trust; and

(B) That the person’s continuing to serve or resumption of service as a subject person of the industrial loan company may pose a material threat to the interests of the industrial loan company’s account holders or may threaten to materially impair public confidence in the industrial loan company.

(3) The fact that any subject person of an industrial loan company charged with a crime involving dishonesty or breach of trust is not finally convicted of that crime shall not preclude the commissioner from issuing an order regarding the subject person pursuant to other provisions of this division.

(f) Within 30 days after an order is issued pursuant to subdivision (d) or (e), the person to whom the order is issued may file an application for a hearing.

(g) Any person to whom an order is issued under subdivision (b), (c), (d), or (e) may apply to the commissioner to modify or rescind that order. The commissioner shall not grant that application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the person will, if and when he or she becomes a subject person of an industrial loan company, comply with all applicable provisions of this division and of any regulation or order issued thereunder.

(h) A hearing held pursuant to this section shall be private unless the commissioner, in his or her discretion, after fully considering the views of the parties, determines that a public hearing is necessary to protect the public interest.

(i)

(1) It is unlawful for any subject person of an industrial loan company or former subject person of an industrial loan company to whom an order is issued under subdivision (b), (c), (d), or (e) to do any of the following, except with the prior consent of the commissioner, so long as the order is effective:

(A) To serve or act as a director, officer, employee, or agent of any industrial loan company.

(B) To vote any shares or other securities of an industrial loan company having voting rights, for the election of any person as a director of an industrial loan company.

(C) Directly or indirectly, to solicit, procure, or transfer or attempt to transfer, or vote any proxy, consent, or authorization with respect to any shares or other securities of any industrial loan company having voting rights.

(D) Otherwise to participate in any manner in the conduct of the business of any industrial loan company.

(2) Any person who violates paragraph (1) shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail not to exceed one year, or by both that fine and imprisonment.

(3) If the commissioner believes that any person has violated paragraph (1), the commissioner may bring an action in a court of competent jurisdiction petitioning the court to assess that person a civil penalty in an amount as the commissioner may specify; provided, however, that the amount of the civil penalty shall not exceed two thousand five hundred dollars ($2,500) for each violation or, in the case of a continuing violation, two thousand five hundred dollars ($2,500) for each day for which the violation continues.

In determining the amount of a civil penalty to be assessed under this paragraph, the court shall consider the financial resources and good faith of the person charged, the gravity of the violation, the history of previous violations by the person, and such other factors as in the opinion of the court may be relevant.

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Section § 18350

This law requires each industrial loan company to pay its share of the costs and expenses needed for the state's oversight and administration of laws related to these companies. The amount each company pays is based on its share of the total assets of all such companies. This share is determined using the latest annual reports. However, this payment doesn't cover the costs of specific company examinations unless those costs can't be collected from the company being examined.

Each industrial loan company shall pay to the commissioner its pro rata share of all costs and expenses of the department in administering this division and other laws relating to industrial loan companies or the industrial loan business, as estimated by the commissioner for the ensuing year and of any deficit actually incurred or anticipated in the year in which the assessment is made. The pro rata share shall be the proportion which a company’s assets bear to the aggregate assets of all companies as shown by the latest annual reports of the companies to the commissioner. The pro rata share shall not include the costs of any examinations provided for in Section 18392, unless they cannot be collected from the company examined.

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Section § 18351

Every year by November 30th, industrial loan companies in California will receive a notice from the commissioner about an assessment fee they need to pay within 20 days. If they don't pay on time, they'll face an extra 1% penalty for each month or part of a month that the payment is late.

On or before the 30th day of November in each year, the commissioner shall notify each industrial loan company by mail of the amount assessed and levied against it and that amount shall be paid within 20 days thereafter. If payment is not made within 20 days, the commissioner shall assess and collect a penalty in addition to the assessment, of 1 percent of the assessment for each month or part of a month that the payment is delayed or withheld.

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Section § 18352

This law states that industrial loan companies must pay a minimum annual assessment of $250, or at least $25 per month, starting from their incorporation until the end of the year on December 31st. They can't be charged less than these amounts for their assessment fees.

In the levying and collection of an assessment pursuant to Section 18350, an industrial loan company shall not be assessed for nor be permitted to pay less than two hundred fifty dollars ($250) per year, or not less than twenty-five dollars ($25) per month or fraction of a month for the unexpired year ending December 31st following its incorporation.

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Section § 18353

If an industrial loan company doesn't pay a specific fee on time, the commissioner can quickly suspend or cancel their business certificate. If the company requests a hearing within 15 days and it's not held within 60 days, the suspension or cancellation is reversed. While suspended, the company can't conduct business unless the commissioner allows it. This process doesn't limit the commissioner's power to oversee these companies.

The law has been in effect since January 1, 1969, and requires companies to have an authorization certificate to conduct business, which is assumed valid unless proven otherwise.

If an industrial loan company fails to pay the assessment provided in Section 18350 on or before the 30th day of December following the day upon which payment is due, the commissioner may by order summarily suspend or revoke the certificate issued to that company. If, after such an order is made, a request for hearing is filed in writing within 15 days from the date of service of the order and a hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date. During any period when its certificate is revoked or suspended, a company shall not issue thrift certificates or make loans or otherwise conduct business pursuant to this division except as may be permitted by order of the commissioner; provided, however, that neither the revocation, suspension or surrender of a certificate shall affect the powers of the commissioner as provided in this division.

This section shall become operative January 1, 1969. For the purpose of making its provisions operative, the commissioner shall issue to all industrial loan companies authorized to conduct business under this division on said date a certificate of authorization to conduct business pursuant to this division in such form as the commissioner may prescribe and as provided in Section 18101 and thereafter all such companies shall be conclusively presumed to be conducting business under this division pursuant to such certificate of authorization.

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Section § 18354

This law allows the commissioner to call witnesses and question them under oath if their testimony is needed for investigations, examinations, or hearings concerning the business operations of an industrial loan company.

The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he requires relative to the affairs of an industrial loan company or to the subject matter of any examination, investigation, or hearing.

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Section § 18355

This law allows the commissioner to recommend legal action by sending a record to the local prosecutor if, after looking into a matter, they think it's in the public's interest.

Whenever, after an examination, investigation or hearing under this division, the commissioner deems it of public interest or advantage, he may certify a record to the proper prosecuting official of the county or city in which the act complained of, examined, or investigated, occurred.

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Section § 18356

This law allows the commissioner to stop any industrial loan company from engaging in actions that break the rules set by the division or any specific rules or orders the commissioner has made.

The commissioner may order any industrial loan company to desist from any conduct which the commissioner finds in violation of this division or any rule or order of the commissioner made pursuant to this division.

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Section § 18357

This law allows the commissioner to issue a formal order to an industrial loan company if it's not following its articles of incorporation or state laws. The company is directed to stop any violations and follow the law.

If the commissioner's report or other evidence shows the company's capital stock is below the legal requirement, the commissioner can order the company to fix this issue. If the company doesn't correct the deficiency within 60 days, the commissioner can take control of the company's property and business.

The company's capital is considered impaired when its required minimum capital is reduced due to a net deficit in its surplus account.

(a) If it appears to the commissioner that an industrial loan company has violated or failed to comply with the provisions of its articles of incorporation, or with any law of this state, the commissioner may by written order addressed to the company, direct that company to discontinue the violation and to comply with the law.

(b) Whenever it appears from the report of an industrial loan company or the commissioner has reason to conclude, that the capital stock of an industrial loan company is impaired or reduced below the amount required by this division, the commissioner shall by written order addressed to the company, direct that company to make good the alleged deficiency or impairment of capital. If the company fails to make good the alleged deficiency or impairment of capital, the commissioner may forthwith take possession of the property and business of the industrial loan company pursuant to Section 18415. If the company fails to make good the alleged deficiency or impairment of capital within 60 days of the date of the order, the commissioner shall take possession of the industrial loan company pursuant to Section 18415. The capital of an industrial loan company is impaired when the minimum amount of capital required by Sections 18130 and 18131 is reduced by a net deficit balance in the company’s surplus account.

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Section § 18358

If an industrial loan company is operating in a way that is risky or harmful, the commissioner can step in and order them to stop those practices through a written directive.

If it appears to the commissioner that an industrial loan company is conducting business in an unsafe, unsound, or injurious manner, the commissioner may, by written order, direct the discontinuance of any such unsafe or injurious practices.

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Section § 18359

This law allows a commissioner to order an industrial loan company to either stop or limit the sale of its investment certificates. Alternatively, the commissioner can require the company to hold the money earned from these sales in a way that the commissioner specifies. This order can be issued when the commissioner has the authority from related sections, 18357 or 18358.

Whenever the commissioner is authorized to issue an order pursuant to Section 18357 or Section 18358 of this division, the commissioner may issue an order directing an industrial loan company to discontinue or limit the sale of its investment certificates or to impound the proceeds from the sale of its investment certificates in such manner as the commissioner may specify in such order.

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Section § 18360

If a company receives an order from the commissioner without an option for a hearing, it has 15 days to request one in writing. However, requesting a hearing doesn't delay the order unless the commissioner allows it. The commissioner can change or cancel the order anytime. A hearing must take place within 30 business days of the request, unless the company agrees to a different time.

The company named in any order issued pursuant to this division for which no express hearing right is provided, including Sections 18356, 18357, 18358, 18359, 18363, and 18415.3 may, within 15 days after receipt thereof, file with the commissioner its written request for hearing. The filing of that request shall not operate to postpone or suspend the effectiveness of any order issued by the commissioner unless otherwise directed by the commissioner. The order may be amended or set aside by the commissioner at any time. The commissioner shall, within 30 business days after the receipt of that written request or at a later time as may be mutually agreed with the company, cause that matter to be heard.

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Section § 18361

If an industrial loan company gets a final order against it, it has 10 days to start a lawsuit to stop the order from being enforced. If the company doesn't take legal action and the court doesn't stop the order's enforcement within those 10 days, the company must follow the order.

After any order is made final, the industrial loan company shall have 10 days in which suit may be commenced to restrain enforcement of such order and unless such action is commenced and enforcement of the final order is enjoined within 10 days by the court in which such suit is brought, the company shall comply with the final order.

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Section § 18362

If the commissioner thinks an industrial loan company or its people are violating, or about to violate, the rules, they can take them to court to stop it. This action is done on behalf of the people and the court can issue orders to prevent further violations.

If it's in the public's interest, the commissioner can also ask for additional help for those harmed, like paying back money or damages. The court can grant this extra relief.

Anyone breaking these rules might have to pay up to $2,500 for each violation. This penalty is collected through a legal case started by the commissioner.

The law offers different ways to penalize wrongdoers, which can be used together to make sure the rules are followed.

(a) If the commissioner believes that an industrial loan company or its directors, officers, agents, or employees have violated or are about to violate any of the provisions of this division, or any provision of an order, license, permit, decision, demand, or requirement of the commissioner, the commissioner may bring an action against such persons to enjoin those persons from continuing the violation or the attempt to violate this division, or doing any act in furtherance thereof. The commissioner shall bring such action in the name of the people in the superior court, and the court may enter an order or judgment awarding a preliminary or final injunction as is proper.

(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award the additional relief.

(c) Any person who violates any provision of this division, or who violates any rule or order adopted pursuant to this division, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.

(d) As applied to civil and criminal penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce the provisions of this division.

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Section § 18363

This rule allows a commissioner to temporarily stop or limit a loan company's ability to pay back certain investments or debts if it's necessary to protect the company, its investors, creditors, or the public. The suspension starts as soon as the company is notified and stays until the commissioner changes or cancels it. However, the company is still allowed to pay for ongoing operations and any expenses incurred during the suspension period.

The commissioner may order an industrial loan company to suspend the redemption of investment certificates or the payment of the liabilities of the company or limit the payment of the liabilities in such manner as he prescribes, if it appears to the commissioner that such action is necessary for the protection of the company, its investors or creditors, or in the public interest. The order is effective upon receipt of notice by the company and continues in effect until rescinded or modified by the commissioner in a writing delivered to the manager or executive officer of the company. Nothing in this section shall affect the right of any company to pay its current operating expenses and liabilities incurred during the period of suspension or limitation.

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Section § 18364

Once an order is issued to suspend or limit how an industrial loan company pays off its debts, the company can't transfer or use any money owed to it by an investor as collateral. They must first use the money to pay off what they owe to that investor.

After an order of suspending or limiting the payment of liabilities is effective and until that order is rescinded, the industrial loan company shall make no assignment or hypothecation of any indebtedness due to it from an investor without first crediting thereon the investment liability of the company to such investor-borrower.

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Section § 18365

This law explains that the commissioner has the flexibility to use the authority given by Section 18363 either alongside other powers from the same chapter or on its own without those powers.

The authority granted to the commissioner by Section 18363, may be exercised by him in conjunction with all other powers granted by this chapter, or independently from them.

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Section § 18366

If you disagree with a decision made by the commissioner, you can ask for a review. It's your job to prove why the decision was wrong. The court will look at any relevant evidence that was presented earlier. The main focus of the review is to decide if the commissioner used their power inappropriately.

Every order, decision, license, or other official act of the commissioner is subject to review in accordance with law. Upon review, the burden of proof lies upon the appellant, and the court shall receive and consider any pertinent evidence which was introduced in the formal hearing before the commissioner, whether oral or documentary, concerning the action of the commissioner under review. The review is limited to a consideration and determination of the question of whether there has been an abuse of discretion on the part of the commissioner in making such order, decision, finding, requirement, or rule.

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Section § 18367

If the commissioner feels that selling more investment certificates by an industrial loan company would harm buyers, they can order the company to stop selling them. If the company disagrees, it has 15 days to ask for a hearing, but the order stays in effect unless the commissioner decides otherwise. After the hearing, the commissioner will make a final decision, which can be changed later if needed. These orders or decisions can be reviewed in court.

(a) If at any time the commissioner is of the opinion that the further sale of investment certificates by an industrial loan company would be unfair, unjust or inequitable to the purchasers of its investment certificates, the commissioner may, notwithstanding any other provision of this division, order the company to desist and refrain from the further sale of its investment certificates.

(b) The company named in any order issued pursuant to subdivision (a) of this section may, within 15 days after receipt thereof, file with the commissioner its written request for hearing. The filing of such request shall not operate to postpone or suspend the effectiveness of any order issued by the commissioner unless otherwise directed by the commissioner. The commissioner shall, within 15 days after the receipt of such written request or at such later time as may be mutually agreed with the company, cause such matter to be heard and shall thereafter issue his final decision. Such decision may be amended or set aside by the commissioner at any time.

(c) Every order or decision of the commissioner made pursuant to this section is subject to judicial review in accordance with law.

investment certificates industrial loan company commissioner order ...

Section § 18368

This section explains that the commissioner has the authority to make agreements deemed necessary while performing their duties. These agreements can be with various regulatory agencies, both inside and outside the state, to cover aspects such as examining industrial loan companies. Additionally, such agreements with financial regulation agencies are not subjected to typical advertising and competitive bidding rules.

(a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers.

(b)

(1) The agreements authorized under subdivision (a) may include, but are not limited to, agreements with agencies of this state, of other states of the United States, or of the United States that regulate financial institutions, relating to examinations of industrial loan companies and other matters.

(2) Any agreement with a government agency that regulates financial institutions is exempt from the advertising and competitive bidding requirements of the Public Contract Code.

commissioner agreements financial institutions regulation industrial loan companies ...

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Administration And Powers Of The Commissioner

Administration and Powers of the CommissionerGeneral