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Chapter 3. Revocation Of License of California Financial Code >> Division 14. >> Chapter 3.
A security depository license remains in effect until
surrendered, revoked or suspended.
If the commissioner has reason to believe that a licensed
securities depository has violated its articles of incorporation, or
any law or rule binding upon it, he shall, by written order addressed
to the agent direct the discontinuance of such violation.
If any licensed securities depository fails to make any
report required by law or by the commissioner within 10 days from the
day designated for the making of the report, or within any extension
of time granted by the commissioner, or has failed to pay any fee or
charge payable under this division within 10 days after notice by
the commissioner that such fee is due and unpaid, such failure shall
constitute grounds for the suspension or revocation of the license
held by such securities depository or for the issuance of an order by
the commissioner under the provisions of Section 30215.
If it appears to the commissioner that any licensed
securities depository located within this state is conducting
business in an unsafe or injurious manner, he shall, by written order
addressed to the securities depository direct the discontinuance of
such unsafe or injurious practices, or if the licensed securities
depository is one which is located outside this state but is
soliciting holders of securities in California to place their
securities in such securities depository, the commissioner shall
direct such securities depository to discontinue all such
solicitations until all such unsafe and unsound practices have been
corrected.
An order issued pursuant to Section 30601 or 30603 shall
require the licensed securities depository to show cause before the
commissioner, at a time fixed by the commissioner, why the order
should not be observed. If upon the hearing, it appears to the
commissioner that the licensed securities depository is conducting
business in an unsafe or injurious manner or is violating its
articles of incorporation or any law of this state, or any rule
binding upon it, the commissioner shall make the order of
discontinuance final and the licensed securities depository shall
immediately discontinue the practices named in the order.
The licensed securities depository has 10 days after an
order is made final in which to commence action to restrain
enforcement of such order, and unless such action is commenced, and
the enforcement of such order is enjoined within 10 days by the court
in which the suit is brought, the licensed securities depository
shall comply with the order.
(a) If a securities depository fails to comply with a final
order and has not secured a court order restraining the enforcement
of the final order, the commissioner may revoke the license of the
securities depository or may institute proceedings under subdivision
(b) to enforce the final order.
(b) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this law or any rule or order under this law, the commissioner may in the commissioner's discretion bring an action in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order under this law. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver or conservator may be appointed for the defendant or the defendant's assets.
(b) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this law or any rule or order under this law, the commissioner may in the commissioner's discretion bring an action in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order under this law. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver or conservator may be appointed for the defendant or the defendant's assets.
The commissioner may commence and prosecute actions and
proceedings to enjoin violations of this division or violations of
orders or decisions of the commissioner rendered pursuant to this
division, and for the enforcement of any and all civil penalties
provided for by this division.
The commissioner may, after notice and a reasonable
opportunity to be heard, suspend, revoke, or decline to renew any
license if he finds that:
(a) The licensee has violated any provision of this division or any rule or order made by the commissioner under and within the authority of this division.
(b) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license.
(a) The licensee has violated any provision of this division or any rule or order made by the commissioner under and within the authority of this division.
(b) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license.
(a) The commissioner may, after appropriate notice and
opportunity for hearing, by order, censure or suspend for a period
not exceeding 12 months, or bar from any position of employment,
management, or control any person who operates a securities
depository, or any other person, if the commissioner finds either of
the following:
(1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the securities depository, or to the public.
(2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in accordance with the provisions of this division.
(b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of Division 3 of Title 2 of the Government Code). Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing.
(c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in any activities subject to licensure under the law.
(d) Persons suspended or barred under this section are prohibited from participating in any business activity of a securities depository and from engaging in any business activity on the premises where a securities depository is conducting business.
(1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the securities depository, or to the public.
(2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in accordance with the provisions of this division.
(b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of Division 3 of Title 2 of the Government Code). Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing.
(c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in any activities subject to licensure under the law.
(d) Persons suspended or barred under this section are prohibited from participating in any business activity of a securities depository and from engaging in any business activity on the premises where a securities depository is conducting business.
