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HomeFinancial CodeDiv. 1.2Ch. 7§ 2122 Licensee Financial Distress Reporting

§ 2122 Licensee Financial Distress Reporting

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2122 Licensee Financial Distress Reporting

Key Takeaways

  • •If a licensed business has big money problems (like going bankrupt), they must tell the government within 5 work days.
  • •If the business or its boss gets in serious legal trouble (like being charged with a big crime), they must report it fast.
  • •If the business’s license or special permission to work is in danger in any state, they have to let the government know quickly.
  • •If the business’s safety net (like a special bond or insurance) is canceled or weakened, they must report it.

Example

A money-lending company’s boss gets arrested for stealing.

The company must tell the government within 5 work days that their boss is in trouble, or they could get in more trouble themselves.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2122 Licensee Financial Distress Reporting

A licensee shall file a report with the commissioner within five business days after the licensee has reason to know of the occurrence any of the following events: (a) The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 U.S.C. Secs. 101-110, incl.) for bankruptcy or reorganization. (b) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors. (c) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed. (d) The cancellation or other impairment of the licensee’s bond or other security. (e) A charge or conviction of the licensee or of an executive officer, manager, director, or person in control of the licensee for a felony. (f) A charge or conviction of an agent for a felony. (Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

licenseecommissionerfive business daysbankruptcyreceivershiplicense revocationbond impairmentfelony charges§ 2122

Related Statutes

  • § 2120 Money Transmission Examinations
  • § 2124 Payment Instrument Recordkeeping Requirements
  • § 2125 Key Individual Notification Requirements
  • § 608 Liquidation Expense Compensation Rules
  • § 1253 Bank Control Application Fees

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 2122.
View Official Source