You are here: California / Business and Professions Code - BPC / ARTICLE 6. Claim of Exemption From Securities Qualification [10237. - 10239.4.] / Section 10239.1.


Section 10239.1. (Added by Stats. 2003, Ch. 901, Sec. 2.)
Cite as: Cal. Bus. & Prof. Code §10239.1.

Nothing in this article shall be construed to change the agency relationships between the parties where they exist or limit in any manner the fiduciary duty of brokers to borrowers, lenders, and purchasers of notes or interests in transactions subject to this article.

The superior court of the county in which is located the principal office of such person in this State shall, upon the filing by the commissioner of the verified application showing any of the following conditions hereinafter enumerated to exist, issue its order vesting title to all of the assets of such person, wheresoever situated, in the commissioner or his successor in office, in his official capacity as such, and direct the commissioner forthwith to take possession of all of its books, records, property, real and personal, and assets, and to conduct, as conservator, the business of said person, or so much thereof as to the commissioner may seem appropriate, and enjoining said person and its officers, directors, agents, servants, and employees from the transaction of its business or disposition of its property until further order of said court:

(a)That such person has refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the commissioner or his deputy or examiner.

(b)That such person has neglected or refused to observe an order of the commissioner made pursuant to authority granted by this division.

(c)That such person, without first obtaining the consent in writing of the commissioner, has transferred, or attempted to transfer, substantially its entire property or business or, without such consent, has entered into any transaction the effect of which is to merge, consolidate, or reinsure substantially its entire property or business in or with the property or business of any other person.

(d)It appears to the commissioner that the dealer is in an unsafe condition or is conducting his business in an unsafe or injurious manner such as to render its further proceeding hazardous to the public or to any or all persons dealing with him.

(e)The dealer or any manager or any managing officer, partner, or managing representative or agent thereof refuses to be examined upon oath concerning the affairs of his business.

(f)The dealer or any officer or representative or agent of the dealer has embezzled, sequestered, or wrongfully diverted any of the assets of the dealer, or funds of others held in trust by the dealer.

(g)The commissioner finds that the dealer, after investigation, is insolvent in that assets are impaired to such an extent that they are inadequate to pay debts as they fall due in the general course of business or insolvent in that the aggregate of his business property subject to legal process without his consent, exclusive of property transferred, removed, concealed, or permitted to have been so done, shall not at a fair market value be sufficient in amount to pay all business debts.



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