Section 17331.1 Of Article 4. General Provisions From California Financial Code >> Division 6. >> Chapter 2.5. >> Article 4.
17331.1
. (a) Any person not previously issued a certificate must,
upon employment with an escrow agent within this state, apply to
Fidelity Corporation for a certificate. The member shall submit all
applications for certificates to Fidelity Corporation within 10
business days of the date of employment. The person may continue
employment until or unless denied a certificate by Fidelity
Corporation.
(b) Upon written notice by Fidelity Corporation to any or all
members that any person has been denied a certificate, or has had a
certificate suspended, canceled, or revoked, no member or person
acting on behalf of a member shall authorize that person to have
access to money or negotiable securities belonging to or in the
possession of the escrow agent, or to draw checks upon the escrow
agent or the trust accounts of the escrow agent. Any member or person
who commits or who causes a violation of this section, which
violation was either known or should have been known by the member or
the person committing or causing the violation, may be subject to
action by the commissioner and Fidelity Corporation as provided for
in this division.
(c) Each member and each person required to have a certificate
shall comply with the Fidelity Corporation rules, to be approved by
the commissioner, concerning the manner and timing within which
Fidelity Corporation shall receive notice of employment, change of
the person's name, mailing address, or employment status, the
certificate form, and the procedures for the administration thereof.
Fidelity Corporation may collect a fee to cover the cost of
processing the notices but no fee shall exceed twenty-five dollars
($25).
(d) Fidelity Corporation shall assess the member a penalty at the
rate of twenty-five dollars ($25) for every day that the member has
not fully complied with this section, Section 17331, or Section
17331.2.
(e) Any member that suffers a loss of trust obligations caused by
any person who is required to have a certificate but has (1) failed
to apply for a certificate, (2) has had the application for a
certificate denied, (3) has a suspended certificate, or (4) whose
certificate has been revoked shall be obligated to pay a deductible
in the amount of 100 percent of the amount of the loss,
notwithstanding the amount of the statutory deductible as prescribed
by Section 17314.3. The failure to obtain a certificate, the denial
of an application for a certificate, or the suspension, cancellation,
or revocation of a certificate shall not limit the obligation of
Fidelity Corporation to indemnify a member against loss of trust
obligations as defined in this division.