Section 12307.2 Of Chapter 4. Licensee Regulations From California Financial Code >> Division 3. >> Chapter 4.
12307.2
. If the commissioner finds as a result of an examination or
report that a licensee is insolvent or conducting business in such
an unsafe or injurious manner as to render its further operations
hazardous to the public, he may forthwith by an order addressed to
and served on the licensee by registered mail and on any other person
having funds of the licensee or its customers in his possession,
direct discontinuance of the disbursement of such funds and the
further conduct of business by the licensee. The order shall be
conditioned to remain in effect unless the commissioner fails to hold
a hearing within 15 days after receipt of a written request by the
licensee, until set aside by the commissioner in whole or in part,
until the licensee is the subject of an order for relief in
bankruptcy, or pursuant to a petition filed by the commissioner or
other interested person a receiver has been appointed by a court of
competent jurisdiction.