Section 17209.3 Of Chapter 2. License And Bond From California Financial Code >> Division 6. >> Chapter 2.
17209.3
. The commissioner may refuse to issue any license being
applied for, and shall refuse to issue any license being applied for
if upon the commissioner's examination and investigation, and after
appropriate hearing, the commissioner finds any of the following:
(a) That the corporation is to be formed for any business other
than legitimate escrow agent services, or proposes to use a name that
is misleading or in conflict with the name of an existing licensee.
(b) That any incorporator, officer, or director of the applicant
has, within the last 10 years, been (1) convicted of or pleaded nolo
contendere to a crime, or (2) committed any act involving dishonesty,
fraud, or deceit, which crime or act is substantially related to the
qualifications, functions, or duties of a person engaged in business
in accordance with the provisions of this division.
(c) That there is no officer or manager possessing a minimum of
five years of responsible escrow or joint control experience
stationed or to be stationed at the main office of the corporation
and that there is no officer, manager or employee possessing a
minimum of four years of responsible escrow or joint control
experience stationed or to be stationed at each branch.
(d) That the proposed licensee's financial program is unsound.
(e) A false statement of a material fact has been made in the
application for license.
(f) The applicant, any officer, director, general partner, or
incorporator of the applicant, or any person owning or controlling,
directly or indirectly, 10 percent or more of the outstanding equity
securities of the applicant has violated any provision of this
division or the rules thereunder or any similar regulatory scheme of
the State of California or a foreign jurisdiction.
(g) The applicant has failed to comply with the Fidelity
Corporation's membership requirements set forth in subdivision (b) of
Section 17312, in subdivision (a) of Section 17320, and in Sections
17331 and 17331.1.