§ 28120. — 28120. (Amended by Stats. 2018, Ch. 379, Sec. 10.)

California § 28120.

• Jurisdiction: California
• Code FIN: Financial Code - FIN
• Div. 12.5.: DIVISION 12.5. Student Loan Servicing Act
• Ch. 2.: CHAPTER 2. Licensing
• Art. 2.: ARTICLE 2. Application for License

Text

(a)
The proceedings for a denial of a license shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)
The commissioner may deny an application for a license for any of the following reasons:
(1)
A false statement of a material fact has been made in the application.
(2)
The applicant or any principal officer, director, general partner, managing member, or individual owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity
securities of the applicant, within the last 10 years has (A) been convicted of, or pleaded nolo contendere to, a crime or (B) committed any act involving dishonesty, fraud, or deceit, if the crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with this division.
(3)
The applicant or any principal officer, director, general partner, managing member, or individual owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant, has violated, or is not in material compliance with this division, or an order or rule of the commissioner.
(4)
A material requirement for issuance of a license has not been met.
(5)
The applicant or any principal officer, director, general partner, managing member, or individual owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant, has violated this division or the rules thereunder, or any similar regulatory scheme of this or a foreign jurisdiction.
(6)
The applicant or any principal officer, director, general partner, managing member, or individual owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant, has been held liable in any civil action by final judgment or any administrative judgment by any public agency within the past seven years.
(7)
The commissioner, based on its investigation of the applicant, is unable to find that the financial responsibility, criminal records, experience, character, and general fitness of the applicant and its general partners, managing members, principal officers and directors, and individuals owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant, support a finding that the business will be operated honestly, fairly, efficiently, and in accordance with the requirements of this division.

Legislative History

Amended by Stats. 2018, Ch. 379, Sec. 10. (AB 38) Effective January 1, 2019.