CHAPTER 4. Licensee Regulations

Chapter 4 enacted by Stats. 1951, Ch. 364.

§§ 12300–12332 · 50 sections

§ 12300 The commissioner may make general rules and regulations and specific rulings, demands, and findings for the enforcement of this division.
§ 12300.1 Licensees shall observe reasonable precautions against theft or alteration of checks, drafts or money orders, and against burglary or holdup.
§ 12300.2 Every person engaging in the business of a check seller shall conduct the business under his or her true name unless he or she has complied with Chapter 5…
§ 12300.3 All funds received by a licensee or its agents from the sale of checks, drafts, money orders, or other commercial paper serving the same purpose and for the…
§ 12300.4 Prior to such separation and transmittal to the licensee or deposit by its agent such funds received by said agent may be used by said agent for the sole…
§ 12300.5 An amount equal to all such funds received by a licensee shall be separated from the funds of the licensee and deposited in its trust account not later than…
§ 12300.6 Prior to separation and deposit by the licensee such funds may only be used by the licensee for the making of change or the cashing of checks in the normal…
§ 12301 A licensee may establish branch offices or agencies if it is qualified under the provisions of Section 12205 and if it expressly assumes responsibility for the…
§ 12301.1 A licensee within 10 days after establishing a mobile unit, a branch office or agency location shall notify the commissioner in writing and shall furnish the…
§ 12301.2 A check, draft, or money order sold by a licensee shall be drawn on an account of a licensee maintained at a bank authorized to do business in the State of…
§ 12301.3 A licensee shall not permit any officer, employee, or agent to sell any check, draft, or money order unless the signature of the person signing the same is on…
§ 12301.4 A licensee shall terminate and cancel any agency immediately upon instruction from the commissioner and when it has been established (a) that the agent has…
§ 12301.5 No agent of a licensee shall issue or cause to be issued any check, draft, or money order, or other commercial paper serving the same purpose which is drawn…
§ 12302 Whenever a licensee desires to change his place of business to a street address other than that designated in his license or desires to change the place or…
§ 12303 Every licensee shall keep and use in his business books, accounts and records in accordance with good accounting practice and which will enable the…
§ 12304 (a) Each licensee, except a special prorater, shall submit to the commissioner, at such licensee’s own expense, an audit report containing audited financial…
§ 12305 For the purpose of discovering violations of this division the commissioner may at any time investigate the business and examine the books, accounts, records,…
§ 12306 The cost of every examination of a licensee or other person subject to this division shall be paid to the commissioner by the licensee or person examined, and…
§ 12307 The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he requires relative to any examination or…
§ 12307.1 The commissioner may commence and prosecute actions and proceedings to enjoin violations of this division or violations of orders or decisions of the…
§ 12307.2 If the commissioner finds as a result of an examination or report that a licensee is insolvent or has been insolvent or is conducting or has conducted business…
§ 12307.3 Whenever as a result of an examination or report it appears to the commissioner that: (a) The capital of any licensee is impaired; (b) Any licensee is…
§ 12307.4 Whenever the commissioner has taken possession of the property and business of a licensee the commissioner may petition the superior court for the appointment…
§ 12307.5 (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an…
§ 12309 (a) A schedule of the fees charged by a licensee shall be posted in a conspicuous place in the place of business of the licensee and its agents. A licensee and…
§ 12310 A licensee under this division shall not sell checks payable to bearer, to cash, or to the purchaser, but a licensee may sell a check in which the name of the…
§ 12311 No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published,…
§ 12312 An agreement between one licensed to engage in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, and…
§ 12313.5 Nothing in this chapter shall be construed as authorizing the examination, inspection or auditing of the books and records of any client of a business agent…
§ 12314 The total charges received by a prorater, or any other person for the prorater’s services, may not exceed in the aggregate twelve percent (12%) for the first…
§ 12314.1 A cancellation fee or termination penalty may not be charged to a debtor.
§ 12315 A prorater shall not receive any fee unless he has the consent of at least 51 percent of the total amount of indebtedness and of the number of creditors listed…
§ 12315.1 A prorater shall notify, in writing, all creditors listed in the prorate contract of the debtors desire to engage the services of the prorater within five days…
§ 12316 If a prorater contracts for, receives or makes any charge in excess of the maximum permitted by this division, except as the result of an accidental and bona…
§ 12317 A prorater shall not purchase from a creditor any obligation of a debtor.
§ 12318 A prorater shall not take: (a) Any contract, promise to pay, or other instrument which has any blank spaces when signed by a debtor; (b) Any negotiable…
§ 12319 Every contract between a prorater and a debtor shall: (a) List every debt to be prorated with the creditor’s name and disclose the total of all such debts; (b)…
§ 12320 A prorater shall deliver a copy of any contract or agreement between the prorater and a debtor to the debtor immediately after the debtor executes it, and the…
§ 12321 Unless paid by check or money order a prorater shall deliver a receipt to a debtor for each payment within five (5) days after receipt of a payment.
§ 12322 At least once in each six (6) months, the prorater shall render an accounting to the debtor which shall itemize the total amount received from the debtor, the…
§ 12323 A prorater shall not lend money or credit.
§ 12324 A prorater shall not: (a) Offer, pay, or give any cash, fee, gift, bonus, premium, reward, or other compensation to any person for referring any prospective…
§ 12325 A prorater shall not solicit or require a debtor to purchase or agree to purchase any policy of insurance.
§ 12326 A special prorater shall not advertise in any manner or otherwise hold himself out to the public as a general prorater or as qualified to do business as a…
§ 12327 Nothing in this division shall be deemed to authorize the performance, directly or indirectly, of an act or acts constituting the practice of law by a…
§ 12328 (a) No collection agency may be maintained in the same premises as a prorating organization unless such prorating organization is exempt under the provisions…
§ 12329 It shall be unlawful for any prorater to disclose the list of creditors of a debtor to any individual or firm for the purpose of soliciting the accounts and…
§ 12330 The commissioner shall have power and authority to promulgate rules and regulations governing the form and wording of advertising to be used by proraters. The…
§ 12331 Within the organization of each prorater corporation, either as an owner, officer, or employee, there shall be one or more persons possessing a minimum of five…
§ 12332 (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible…