§ 28820. — 28820. (Repealed and added by Stats. 2010, Ch. 516, Sec. 14.)

California § 28820.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 3.
• Title 4.: DIVISION 3. CAPITAL ACCESS COMPANIES
• Ch. 12.: CHAPTER 12. Crimes and Criminal Penalties
• Art. 2.: ARTICLE 2. Conflicts of Interest

Text

In this article, unless the context otherwise requires:
(a)
(1)
“Associate,” when used with respect to a licensee, means all of the following:
(A)
Any principal shareholder, director, officer, manager, agent, or adviser of the licensee.
(B)
Any director, officer, partner, general manager, agent, employer, or employee of any person referred to in subparagraph (A).
(C)
Any person who controls, is controlled by, or is under common control with, any person referred to in subparagraph (A), directly or indirectly,
through one or more intermediaries.
(D)
Any close relative of any person referred to in subparagraph (A).
(E)
Any person of whom any person referred to in subparagraphs (A) to (D), inclusive, is a director or officer.
(F)
Any person in whom any person referred to in subparagraphs (A) to (D), inclusive, or any combination of persons acting in concert owns or controls, directly or indirectly, a 10-percent or greater equity interest.
(2)
For purposes of this subdivision, any person who is in any of the relationships referred to in subparagraphs (A) to (F), inclusive, of paragraph (1) within six months before or after a licensee provides financing assistance shall be deemed to be in the relationship as of the date when the licensee provides the financing
assistance.
(3)
For purposes of this subdivision, if a licensee, in order to protect its interests, designates any person to serve as a director of, officer of, or in any capacity in the management of, a small business firm to which the licensee provides financing assistance, the person shall not, on that account, be deemed to have any relationship with the small business firm. However, this paragraph shall not apply in any case where the person has, directly or indirectly, any other financial interest in the small business firm or where the person, at any time before the licensee provides the financing assistance, served as a director of, officer of, or in any other capacity in the management of, the small business firm for a period of 30 days or more.
(b)
“Close relative” means ancestor, lineal descendant, brother or sister and lineal descendants of either, spouse,
father-in-law, mother-in-law, son-in-law, brother-in-law, daughter-in-law, or sister-in-law.

Legislative History

Repealed and added by Stats. 2010, Ch. 516, Sec. 14. (SB 1155) Effective January 1, 2011.