§ 17621. — 17621. (Amended by Stats. 1981, Ch. 773, Sec. 8.)

California § 17621.

• Jurisdiction: California
• Code FIN: Financial Code - FIN
• Div. 6.: DIVISION 6. ESCROW AGENTS
• Ch. 6.: CHAPTER 6. Liquidation and Conservatorship
• Art. 1.: ARTICLE 1. Possession by Commissioner

Text

Whenever it appears to the commissioner that any escrow agent subject to this division:
(a)
Is in an insolvent condition;
(b)
Is conducting escrow business in an unsafe or unauthorized manner;
(c)
Has violated its charter or any law of the State of California;
(d)
Refuses to submit its books, papers and affairs to the inspection of any examiner;
(e)
Neglects or refuses to observe any order of the commissioner made pursuant to the provisions of this division, within the time specified therein, unless the enforcement of such order is restrained in a proceeding brought by the escrow agent;
(f)
Any officer, director, or trustee of such escrow agent refuses to be examined upon oath touching the business of such escrow agent;
(g)
Any officer, director, stockholder, or trustee of such escrow agent, or attorney in fact of such escrow agent has embezzled, sequestered, or willfully diverted the assets or trust funds of
such escrow agent;
(h)
Has permitted its tangible net worth to be lower than the minimum required by law;
(i)
Has failed to comply with the bonding requirements of Chapter 2 of this division
the commissioner shall dispatch a written notice and summary of findings, as referred to in Section 17415, to the principal officer of the escrow agent involved or to its manager of record; and such escrow agent shall be afforded a reasonable opportunity to comply or otherwise effect such remedies as the commissioner may deem acceptable. However, should the escrow agent so notified fail to comply within five days of receipt of the notice, or as soon as it appears to the commissioner that no compliance is possible, or in the event prompt delivery of
the prescribed written notice is impossible, the commissioner may forthwith take possession of the property and business of such escrow agent and retain possession until such escrow agent resumes business or its affairs be finally liquidated as provided in this chapter. The escrow agent, with the consent of the commissioner, may resume business upon such conditions as the commissioner may prescribe.

Legislative History

Amended by Stats. 1981, Ch. 773, Sec. 8.