SECTIONS 28400-28405 - California Statutes

CORPORATIONS CODE

SECTION 28400-28405

28400. No licensee shall engage in any business other than the
following:
(a) The business of providing financing assistance through the
purchase of securities of small business firms or smaller business
firms doing business or proposing to do business wholly or
substantially in this state.
(b) The business of providing managerial assistance (including
managerial and technical assistance) to small business firms or
smaller business firms doing business or proposing to do business
wholly or substantially in this state.
(c) At least 20 percent of all financing assistance provided by
the licensee shall be through purchase of securities of smaller
business firms doing business or proposing to do business wholly or
substantially in this state.

28404. No licensee shall provide financing assistance to any small
business firm for the purpose of evading the requirements of this
division.

28405. This section creates and authorizes an exempt class of
persons pursuant to Section 1 of Article XV of the California
Constitution. The restrictions upon rates of interest contained in
Section 1 of Article XV of the California Constitution shall not
apply to any evidence of indebtedness purchased by any licensee.