SECTIONS 31550-31552 - California Statutes

FINANCIAL CODE

SECTION 31550-31552

31550. No person shall, except with the prior approval of the
commissioner, acquire control of a licensee.

31551. If the commissioner finds, with respect to an application
for approval to acquire control of a licensee:
(a) That the applicant and the directors and officers of the
applicant are of good character and sound financial standing;
(b) That it is reasonable to believe that, if the applicant
acquires control of the licensee, the applicant will comply with all
applicable provisions of this division and of any regulation or order
issued under this division; and
(c) That the applicant's plans, if any, to make any major change
in the business, corporate structure, or management of the licensee
are not detrimental to the safety and soundness of the licensee or to
the public convenience and advantage;
The commissioner shall approve the application. If, after notice
and a hearing, the commissioner finds otherwise, he or she shall deny
the application.

31551.5. (a) For purposes of Section 31551, the commissioner may
find:
(1) That an applicant or a director or officer of an applicant is
not of good character if such person has been convicted of, or has
pleaded nolo contendere to, a crime involving fraud or dishonesty.
(2) That an applicant's plan to make a major change in the
management of a licensee is detrimental to the safety and soundness
of the licensee and to the public convenience and advantage if the
plan provides for a person who has been convicted of, or has pleaded
nolo contendere to, a crime involving fraud or dishonesty to become a
director or officer of the licensee.
(b) Subdivision (a) shall not be deemed to be the only grounds
upon which the commissioner may find, for purposes of Section 31551,
that an applicant or a director or officer of an applicant is not of
good character or that an applicant's plan to make a major change in
the management of a licensee is detrimental to the safety and
soundness of a licensee or to the public convenience and advantage.

31552. The commissioner may, by such regulations or orders as he or
she deems necessary and appropriate, either unconditionally or upon
specified terms and conditions or for specified periods, exempt from
the provisions of this chapter any person or transaction or class of
persons or transactions, if he or she finds such action to be in the
public interest and that the regulation of such persons or
transactions is not necessary for the purposes of this division.