Code Section Group

Financial Code - FIN

DIVISION 3. CHECK SELLERS, BILL PAYERS, AND PRORATERS [12000 - 12404]

  ( Heading of Division 3 amended by Stats. 1992, Ch. 869, Sec. 1. )

CHAPTER 1. Definitions [12000 - 12005]
  ( Chapter 1 enacted by Stats. 1951, Ch. 364. )

12000.
  

This division is known and may be cited as the Check Sellers, Bill Payers and Proraters Law.

(Amended by Stats. 1983, Ch. 660, Sec. 1.)

12001.
  

Unless the context otherwise requires, the definitions set forth in this chapter govern the construction of this division.

(Enacted by Stats. 1951, Ch. 364.)

12002.
  

A check seller is a person: (a) who, for compensation, engages, in whole or in part, in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, or receiving money as agent of an obligor for the purpose of paying to a person other than the check seller bills, invoices, or accounts of such obligor, or (b) who, without direct compensation and not as an authorized agent for a utility company, accepts money for the purpose of forwarding it to others in payment of utility bills.

(Amended by Stats. 1983, Ch. 660, Sec. 2.)

12002.1.
  

A prorater is a person who, for compensation, engages in whole or in part in the business of receiving money or evidences thereof for the purpose of distributing the money or evidences thereof among creditors in payment or partial payment of the obligations of the debtor.

(Amended by Stats. 1972, Ch. 999.)

12002.2.
  

A business agent, for the purpose of this division is a person who engages in business as a prorater as defined in Section 12002.1 as an incident to the business of advising, counseling, or directing persons in their investments, and in the organization and management of their affairs under an exclusive contract, the primary purpose of which is not the liquidation of existing indebtedness.

(Added by Stats. 1959, Ch. 1506.)

12003.
  

“Commissioner” means the Commissioner of Business Oversight, or any deputy, investigator, auditor, or any other person employed by him or her.

(Amended by Stats. 2013, Ch. 353, Sec. 59. Effective September 26, 2013. Operative July 1, 2013, by Sec. 129 of Ch. 353.)

12004.
  

“Licensee” means any individual or corporation licensed by the commissioner to engage in the business of a business agent, and any corporation licensed by the commissioner to engage in the business of selling checks, drafts or money orders, or of receiving money as agent of an obligor for the purpose of paying bills, invoices or accounts of such obligor or to accept money in payment of utility bills except as an authorized agent for a utility company pursuant to the provisions of this division.

(Amended by Stats. 1983, Ch. 660, Sec. 3.)

12005.
  

“Mobile unit” means a vehicle or other movable means from which the business of selling checks, drafts, or money orders is conducted.

(Amended by Stats. 1983, Ch. 660, Sec. 4.)

FINFinancial Code - FIN