§ 31408 Licensee Debt Guarantee Limits

• •A licensed business can't promise to pay someone else's debt unless the boss (commissioner) says it's okay.
• •If the business sells a debt (like a loan) it owns to someone else, it can promise that the debt will get paid.
• •This rule is about making sure businesses don't take on risky promises without checking first.

A bank sells a car loan to another company.

The bank can promise the new company that the person will pay back the car loan, but it can't randomly promise to pay someone else's credit card bill without asking the boss first.