BlackletterCalifornia law

DIVISION 12.5. Student Loan Servicing Act [28100. - 28182.]

Division 12.5 added by Stats. 2016, Ch. 824, Sec. 2.

§§ 28100–28182 · 47 sections

  1. CHAPTER 1. General Provisions §§ 28100–28104 · 3 sections
    1. ARTICLE 1. Short Title § 28100 · 1 section
      • § 28100 This division may be known and cited as the “Student Loan Servicing Act.”
    2. ARTICLE 2. Requirement for License § 28102 · 1 section
      • § 28102 (a) No person shall engage in the business of servicing a student loan in this state without first obtaining a license pursuant to this division. A license…
    3. ARTICLE 3. Definitions § 28104 · 1 section
      • § 28104 For the purposes of this division, the following terms have the following meanings: (a) “Applicant” means a person applying for a license pursuant to this…
  2. CHAPTER 2. Licensing §§ 28106–28125.2 · 15 sections
    1. ARTICLE 1. Commissioner of Financial Protection and Innovation §§ 28106–28111 · 4 sections
      • § 28106 (a) The commissioner shall administer the provisions of this division and may promulgate rules and regulations and issue orders consistent with that authority.…
      • § 28108 (a) The commissioner shall have the authority to conduct investigations and examinations of an applicant or licensee as follows: (1) For purposes of…
      • § 28110 (a) Notwithstanding any other law, the commissioner may by rule or order prescribe circumstances under which to accept electronic records or electronic…
      • § 28111 (a) The commissioner may require an applicant for a student loan servicer license or a student loan servicer licensee to make some or all of the filings with…
    2. ARTICLE 2. Application for License §§ 28112–28124 · 8 sections
      • § 28112 An applicant shall apply for a license by submitting all of the following to the commissioner: (a) A completed application for a license in a form prescribed…
      • § 28114 (a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice of every…
      • § 28116 (a) Upon the filing of an application for a license pursuant to Section 28112 and the payment of the fees, the commissioner shall investigate the applicant and…
      • § 28117 (a) Before an applicant is issued a license, the applicant shall file with the commissioner, in such form as the commissioner may require, an appointment…
      • § 28118 The commissioner shall, when the application is complete, including having received the information from the Department of Justice, either grant a license…
      • § 28120 (a) The proceedings for a denial of a license shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title…
      • § 28122 (a) The commissioner may deem an application for a license abandoned if the applicant fails to respond to any request for information required by the…
      • § 28124 A license shall remain effective until the license is either suspended or revoked by the commissioner or surrendered by the licensee.
    3. ARTICLE 3. Nationwide Multistate Licensing System and Registry §§ 28125–28125.2 · 3 sections
      • § 28125 (a) The commissioner is authorized to establish relationships or contracts with the Nationwide Multistate Licensing System & Registry or other entities…
      • § 28125.1 (a) Except as otherwise provided in Section 1512 of the SAFE Act (12 U.S.C. Sec. 5111(a)), the requirements under any federal law or the Information Practices…
      • § 28125.2 The commissioner shall report regularly violations of this division, as well as enforcement actions and other relevant information, to the Nationwide…
  3. CHAPTER 3. Licensee Duties §§ 28126–28150 · 11 sections
    • § 28126 (a) A licensee shall notify the commissioner, in writing, of any change in the information provided in the application for a license, as applicable, not later…
    • § 28128 (a) A licensee seeking to engage in the business of servicing student loans at a new location shall submit an application for a branch office license to the…
    • § 28130 A licensee shall do all of the following: (a) Develop policies and procedures reasonably intended to promote compliance with this division. (b) File with the…
    • § 28132 (a) A licensee shall not be required to comply with the requirements of subdivision (g) of Section 28130, if the licensee reasonably determines that any of the…
    • § 28138 Notwithstanding subdivision (b) of Section 28134 and unless prohibited by federal law, a licensee shall retain and maintain its records of servicing a…
    • § 28140 (a) A licensee shall continuously maintain a minimum net worth of at least two hundred fifty thousand dollars ($250,000). (b) Subject to the commissioner’s…
    • § 28142 (a) A licensee shall maintain a surety bond in accordance with this section in a minimum amount of twenty-five thousand dollars ($25,000). The bond shall be…
    • § 28144 (a) Each licensee shall pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of this division, as…
    • § 28146 (a) A licensee shall file an annual report with the commissioner, on or before the 15th day of March, giving the relevant information that the commissioner…
    • § 28148 (a) At the end of the licensee’s fiscal year, but in no case more than 12 months after the last audit conducted pursuant to this section, each licensee shall…
    • § 28150 A licensee that ceases to service student loans to borrowers shall inform the commissioner in writing and surrender the license and all other indicia of…
  4. CHAPTER 4. Administration and Power of the Commissioner §§ 28152–28153.5 · 3 sections
    • § 28152 (a) As often as the commissioner deems necessary and appropriate, but at least once every 36 months, the commissioner shall examine the affairs of each…
    • § 28153 The commissioner may require persons who are not expressly excluded from this division under subdivision (b) of Section 28102 to file with the commissioner,…
    • § 28153.5 In any proceeding under this division, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
  5. CHAPTER 5. Enforcement §§ 28154–28176 · 12 sections
    • § 28154 (a) If a licensee fails to do either of the following, the commissioner shall impose a penalty in a sum of up to one hundred dollars ($100) for every day late:…
    • § 28156 (a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar from…
    • § 28158 If, after investigation, the commissioner has reasonable grounds to believe that a licensee is conducting or has conducted business in an unsafe or injurious…
    • § 28160 Whenever, in the opinion of the commissioner, a person is engaged in the business of servicing student loans in this state, either actually or through…
    • § 28162 If, after investigation, the commissioner has reasonable grounds to believe that a licensee is failing to comply with this division or any regulation or order…
    • § 28164 (a) No order issued pursuant to this chapter may become final except after notice to the affected licensee of the commissioner’s intention to make the order…
    • § 28166 The commissioner may issue an order suspending or revoking a license if, after notice and an opportunity for hearing, the commissioner finds any of the…
    • § 28168 (a) If, after investigation, the commissioner has reasonable grounds to believe that a person has engaged or is about to engage in any act or practice…
    • § 28170 (a) If, upon inspection, examination or investigation, based upon a complaint or otherwise, the department has cause to believe that a person is engaged in the…
    • § 28172 (a) Any person who violates a provision of this division, or any rule or order under this division, shall be liable for a civil penalty not to exceed two…
    • § 28174 (a) The commissioner may refer the evidence that is available concerning any violation of this division or of any rule or order adopted under this division to…
    • § 28176 All hearings provided for in this division shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of…
  6. CHAPTER 6. Miscellaneous §§ 28178–28182 · 3 sections
    • § 28178 If any provision of this division or the application thereof to any person or circumstances is held invalid, illegal, or unenforceable, such invalidity,…
    • § 28180 The rights and remedies provided in this division are in addition to any other rights and remedies provided by law.
    • § 28182 This division shall become operative on July 1, 2018. The commissioner may take any necessary actions to exercise the authority pursuant to this division to…