California Code
TITLE 4 - SECURITIES
DIVISION 1 - CORPORATE SECURITIES LAW OF 968

PART 1 - DEFINITIONS

Section 25000. - 25000. This division may be known as the “Corporate Securities...

Section 25001. - 25001. Unless the context otherwise requires, the definitions in this...

Section 25002. - 25002. “Advertisement” means any written or printed communication or any...

Section 25003. - 25003. (a) “Agent” means any individual, other than a broker-dealer...

Section 25003.5. - 25003.5. “Business days” are all days other than every Saturday,...

Section 25004. - 25004. (a) “Broker-dealer” means any person engaged in the business...

Section 25005. - 25005. “Commissioner” means the Commissioner of Financial Protection and Innovation....

Section 25005.1. - 25005.1. “Entity conversion transaction” means a conversion pursuant to Section...

Section 25006. - 25006. “Fraud,” “deceit,” and “defraud” are not limited to common...

Section 25007. - 25007. “Guaranteed” means guaranteed as to payment of principal, interest,...

Section 25008. - 25008. (a) An offer or sale of a security is...

Section 25009. - 25009. (a) “Investment adviser” means any person who, for compensation,...

Section 25009.1. - 25009.1. “Investment adviser” does not include persons excepted from the...

Section 25009.5. - 25009.5. (a) “Investment adviser representative” or “associated person of an...

Section 25010. - 25010. “Issuer” means any person who issues or proposes to...

Section 25011. - 25011. “Nonissuer transaction” means any transaction not directly or indirectly...

Section 25012. - 25012. “Owners’ association” means a nonprofit corporation or association created...

Section 25013. - 25013. “Person” means an individual, a corporation, a partnership, a...

Section 25014. - 25014. “Publish” means publicly to issue or circulate by newspaper,...

Section 25014.5. - 25014.5. “Rollup participant” means a finite-life limited partnership. (a) Except...

Section 25014.6. - 25014.6. “Rollup transaction” means any transaction or series of transactions...

Section 25014.7. - 25014.7. (a) “Eligible rollup transaction” means a rollup transaction in...

Section 25015. - 25015. “Real estate development” means a development (a) which consists...

Section 25016. - 25016. “Rule” means any published regulation or standard of general...

Section 25017. - 25017. (a) “Sale” or “sell” includes every contract of sale...

Section 25018. - 25018. “Securities Act of 1933,” “Securities Exchange Act of 1934,”...

Section 25019. - 25019. “Security” means any note; stock; treasury stock; membership in...

Section 25020. - 25020. “State” means any state, territory, or possession of the...

Section 25021. - 25021. “Subdivided lands” and “subdivision” have the meanings prescribed in...

Section 25022. - 25022. “Underwriter” means a person who has agreed with an...

Section 25023. - 25023. (a) Except as provided in subdivision (b), “viatical settlement...

PART 2 - QUALIFICATION OF AND FILING REQUIREMENTS FOR THE SALE OF SECURITIES

CHAPTER 1 - Exemptions and Certain Securities and Transactions Not Subject to Qualification

Section 25100. - 25100. The following securities are exempted from Sections 25110, 25120,...

Section 25100.1. - 25100.1. The following securities are not subject to Sections 25110,...

Section 25101. - 25101. The following securities are exempt from the provisions of...

Section 25101.1. - 25101.1. The following securities are not subject to Sections 25110,...

Section 25102. - 25102. The following transactions are exempted from the provisions of...

Section 25102.1. - 25102.1. The following transactions are not subject to Sections 25110,...

Section 25102.2. - 25102.2. The commissioner shall require any issuer that is engaged...

Section 25102.5. - 25102.5. There shall be exempted from Section 25110 a transaction...

Section 25103. - 25103. The following transactions are exempted from the provisions of...

Section 25104. - 25104. The following transactions are exempted from the provisions of...

Section 25105. - 25105. There shall be exempted from the provisions of Section...

CHAPTER 2 - Issuer Transactions

Section 25110. - 25110. It is unlawful for any person to offer or...

Section 25111. - 25111. (a) Any security for which a registration statement has...

Section 25112. - 25112. (a) Any security issued by a person which is...

Section 25113. - 25113. (a) All securities, whether or not eligible for qualification...

Section 25114. - 25114. Every qualification under this chapter is effective for 12...

Section 25115. - 25115. Every application for qualification of an issuer transaction under...

Section 25116. - 25116. (a) An evidence of indebtedness issued pursuant to a...

Section 25117. - 25117. (a) An evidence of indebtedness, and the purchasers or...

Section 25118. - 25118. (a) An evidence of indebtedness issued by an entity...

CHAPTER 3 - Recapitalizations and Reorganizations

Section 25120. - 25120. (a) Except as provided in subdivision (b), it is...

Section 25121. - 25121. The securities qualified for sale under this chapter shall...

Section 25122. - 25122. Qualification of securities under this chapter becomes effective upon...

CHAPTER 4 - Nonissuer Transactions

Section 25130. - 25130. It is unlawful for any person to offer or...

Section 25131. - 25131. (a) The securities to be offered or sold in...

Section 25132. - 25132. Every qualification under this chapter and every qualification of...

Section 25133. - 25133. It is unlawful for any person without the written...

Section 25134. - 25134. Every applicant seeking qualification for the sale of securities...

CHAPTER 5 - Authority of the Commissioner

Section 25140. - 25140. (a) (1) The commissioner may issue a stop order...

Section 25141. - 25141. The commissioner may impose as a condition of qualification...

Section 25142. - 25142. When application is made for a permit to issue...

Section 25143. - 25143. (a) The commissioner may by order summarily postpone or...

Section 25144. - 25144. The commissioner may vacate or modify a stop order...

Section 25145. - 25145. Every issuer qualifying securities for sale in this state...

Section 25146. - 25146. For a period of 18 months after the qualification...

Section 25147. - 25147. The commissioner may by rule or order require as...

Section 25148. - 25148. Except in cases where the delivery of a prospectus...

Section 25149. - 25149. The commissioner may act as escrow holder for securities...

Section 25150. - 25150. The commissioner may accept and act upon the opinions,...

Section 25151. - 25151. (a) Upon the filing of a written request for...

CHAPTER 6 - General Provisions

Section 25160. - 25160. Every application for qualification shall state (1) the maximum...

Section 25161. - 25161. Any document filed under this law or a predecessor...

Section 25162. - 25162. An amendment to an application filed after the effective...

Section 25163. - 25163. In any proceeding under this law, the burden of...

Section 25164. - 25164. (a) Neither (1) the fact that an application for...

Section 25165. - 25165. Every applicant for qualification of the sale of securities...

Section 25166. - 25166. It is unlawful for any person willfully to make...

PART 3 - REGULATION AND NOTICE FILING REQUIREMENTS OF AGENTS, BROKER-DEALERS, INVESTMENT ADVISER REPRESENTATIVES, AND INVESTMENT ADVISERS

CHAPTER 1 - Exemptions

Section 25200. - 25200. A broker-dealer registered under the Securities Exchange Act of...

Section 25202. - 25202. (a) An investment adviser shall not be subject to...

Section 25203. - 25203. A person whose only clients are insurance companies shall...

Section 25204. - 25204. The commissioner may by such rules as he deems...

Section 25206. - 25206. A broker licensed by the Real Estate Commissioner is...

Section 25206.1. - 25206.1. (a) For purposes of this section, a “finder” is...

Section 25207. - 25207. A financial institution that undertakes activities with respect to...

Section 25208. - 25208. A person licensed as a capital access company under...

Section 25209. - 25209. Section 25210 shall not apply to an agent of...

CHAPTER 2 - Licensing of Agents and Broker-Dealers

Section 25210. - 25210. (a) Unless exempted under the provisions of Chapter 1...

Section 25211. - 25211. (a) The application for a certificate as a broker-dealer...

Section 25211.5. - 25211.5. A broker-dealer acting pursuant to a certificate which is...

Section 25212. - 25212. The commissioner may, after appropriate notice and opportunity for...

Section 25212.1. - 25212.1. The commissioner may immediately revoke by order the certificate...

Section 25213. - 25213. The commissioner may, after appropriate notice and opportunity for...

Section 25213.3. - 25213.3. The commissioner shall, after appropriate notices and opportunity for...

Section 25214. - 25214. (a) It is unlawful for any person, as to...

Section 25215. - 25215. No order may be entered under Section 25212, 25213,...

Section 25216. - 25216. (a) No broker-dealer or agent shall effect any transaction...

Section 25217. - 25217. (a) A broker-dealer licensed under this chapter shall not...

Section 25218. - 25218. No broker-dealer licensed under this chapter shall effect any...

Section 25219. - 25219. Notwithstanding any other provision of this division, if in...

Section 25220. - 25220. At any time after the issuance of an order...

Section 25221. - 25221. (a) Notwithstanding any other provision of law, a broker-dealer,...

CHAPTER 3 - Licensing and Notice Filing Requirements of Investment Adviser Representatives and Investment Advisers

Section 25230. - 25230. (a) It is unlawful for any investment adviser to...

Section 25230.1. - 25230.1. (a) A person that is registered under Section 203...

Section 25231. - 25231. (a) Any investment adviser, or any person who contemplates...

Section 25232. - 25232. The commissioner may, after appropriate notice and opportunity for...

Section 25232.1. - 25232.1. The commissioner may, after appropriate notice and opportunity for...

Section 25232.2. - 25232.2. (a) It is unlawful for any person, as to...

Section 25232.3. - 25232.3. The commissioner may immediately revoke the certificate of any...

Section 25233. - 25233. No order may be entered under Section 25232, 25232.1,...

Section 25234. - 25234. (a) No investment adviser licensed under this chapter shall...

Section 25235. - 25235. It is unlawful for any investment adviser, directly or...

Section 25236. - 25236. (a) No investment adviser licensed under this chapter shall...

Section 25237. - 25237. The commissioner shall prescribe rules with respect to investment...

Section 25238. - 25238. No investment adviser licensed under this chapter and no...

CHAPTER 4 - General Provisions

Section 25240. - 25240. Every applicant for a certificate as a broker-dealer or...

Section 25241. - 25241. (a) Every broker-dealer and every investment adviser licensed under...

Section 25242. - 25242. (a) Surrender of a certificate as a broker-dealer or...

Section 25243. - 25243. It is unlawful for any person holding a certificate...

Section 25243.5. - 25243.5. (a) A broker-dealer or investment adviser, or an agent...

Section 25244. - 25244. Any person whose certificate as a broker-dealer or investment...

Section 25245. - 25245. It is unlawful for any person willfully to make...

Section 25246. - 25246. It is unlawful for any agent or broker-dealer to...

Section 25247. - 25247. (a) Upon written or oral request, the commissioner shall...

Section 25248. - 25248. (a) If the commissioner finds, as a result of...

Section 25249. - 25249. If, after examination or investigation, the commissioner has reasonable...

Section 25250. - 25250. If, after examination or investigation, the commissioner has reasonable...

Section 25251. - 25251. (a) No order issued pursuant to Section 25249 or...

Section 25252. - 25252. The commissioner may, after appropriate notice and opportunity for...

Section 25253. - 25253. (a) Whenever it appears to the commissioner that any...

Section 25254. - 25254. (a) If the commissioner determines it is in the...

Section 25255. - 25255. The civil, criminal, and administrative remedies available to the...

Section 25256. - 25256. (a) For any broker-dealer or investment adviser, a disciplinary...

PART 4 - ADVERTISING SECURITIES

Section 25300. - 25300. (a) No person shall publish any advertisement in this...

Section 25301. - 25301. All advertisements published by any broker-dealer that are exempted...

Section 25302. - 25302. (a) A person shall not publish any advertisement concerning...

PART 5 - FRAUDULENT AND PROHIBITED PRACTICES

Section 25400. - 25400. It is unlawful for any person, directly or indirectly,...

Section 25401. - 25401. It is unlawful for any person to offer or...

Section 25402. - 25402. It is unlawful for an issuer or any person...

Section 25403. - 25403. (a) Every person who with knowledge directly or indirectly...

Section 25404. - 25404. (a) It is unlawful for any person to knowingly...

PART 6 - ENFORCEMENT

CHAPTER 1 - Civil Liability

Section 25500. - 25500. Any person who willfully participates in any act or...

Section 25501. - 25501. Any person who violates Section 25401 shall be liable...

Section 25501.5. - 25501.5. (a) (1) A person who purchases a security from...

Section 25502. - 25502. Any person who violates Section 25402 shall be liable...

Section 25502.5. - 25502.5. (a) Any person other than the issuer who violates...

Section 25503. - 25503. Any person who violates Section 25110, 25130, or 25133,...

Section 25504. - 25504. Every person who directly or indirectly controls a person...

Section 25504.1. - 25504.1. Any person who materially assists in any violation of...

Section 25504.2. - 25504.2. (a) Any accountant, engineer, appraiser, or other person whose...

Section 25505. - 25505. A corporation which is liable under this chapter shall...

Section 25506. - 25506. (a) For proceedings commencing before January 1, 2005, no...

Section 25506.1. - 25506.1. No action shall be maintained to enforce any liability...

Section 25507. - 25507. (a) No action shall be maintained to enforce any...

Section 25508. - 25508. No action shall be maintained to enforce any right...

Section 25508.5. - 25508.5. In addition to any other rights provided for under...

Section 25509. - 25509. Every cause of action under this chapter survives the...

Section 25510. - 25510. Except as explicitly provided in this chapter, no civil...

CHAPTER 2 - Powers of the Commissioner

Section 25530. - 25530. (a) Whenever it appears to the commissioner that any...

Section 25530.1. - 25530.1. In any proceeding under Section 25530, the court may...

Section 25531. - 25531. (a) The commissioner in his discretion (1) may make...

Section 25532. - 25532. (a) If, in the opinion of the commissioner, (1)...

Section 25533. - 25533. The commissioner may refer any evidence available concerning any...

Section 25533.5. - 25533.5. The commissioner shall send a copy of a desist...

Section 25534. - 25534. Whenever any securities are issued which the commissioner determines...

Section 25535. - 25535. (a) Any person who violates any provision of this...

Section 25536. - 25536. (a) The commissioner may take such actions as are...

CHAPTER 3 - Crimes

Section 25540. - 25540. (a) Except as provided for in subdivision (b), any...

Section 25541. - 25541. (a) Any person who willfully employs, directly or indirectly,...

Section 25542. - 25542. Nothing in this law limits the power of the...

CHAPTER 4 - Service of Process

Section 25550. - 25550. When any person, including any nonresident of this state,...

PART 7 - ADMINISTRATION

Section 25604. - 25604. The administration and enforcement of, and the education of...

Section 25605. - 25605. (a) The commissioner may publish any information filed with...

Section 25606. - 25606. (a) The Attorney General shall render to the commissioner...

Section 25607. - 25607. (a) Neither the commissioner nor any of the commissioner’s...

Section 25608. - 25608. (a) The commissioner shall charge and collect the fees...

Section 25608.1. - 25608.1. (a) The fee for an investment company filing a...

Section 25608.2. - 25608.2. Commencing July 1, 2000, the fee provisions of subdivision...

Section 25608.3. - 25608.3. (a) Notwithstanding Sections 25608 and 25608.1, the commissioner may...

Section 25609. - 25609. Every final order, decision, license, or other official act...

Section 25610. - 25610. The commissioner may from time to time make, amend...

Section 25611. - 25611. The commissioner may prepare and make available to interested...

Section 25612. - 25612. No rule, form or order may be made, amended,...

Section 25612.3. - 25612.3. Unless otherwise provided by rule, the commissioner shall require...

Section 25612.5. - 25612.5. (a) To encourage uniform interpretation and administration of this...

Section 25613. - 25613. The commissioner may by rule or order prescribe (1)...

Section 25614. - 25614. All rules of the commissioner (other than those relating...

Section 25615. - 25615. A document is filed when it is received by...

Section 25616. - 25616. The commissioner shall keep an index of all qualifications...

Section 25617. - 25617. Upon request and at such reasonable charges as he...

Section 25618. - 25618. The commissioner in his discretion may honor requests from...

Section 25619. - 25619. (a) The commissioner may destroy any applications, notices, orders,...

Section 25620. - 25620. (a) Notwithstanding any other law, the commissioner may by...

PART 8 - GENERAL PROVISIONS

Section 25700. - 25700. No provision of this law imposing any liability applies...

Section 25701. - 25701. Any condition, stipulation or provision purporting to bind any...

Section 25702. - 25702. Whenever a person is entitled under this law to...

Section 25703. - 25703. If any provision of this law or the application...

Section 25704. - 25704. (a) Except as expressly provided in this section, prior...

Section 25705. - 25705. All references to “the Corporate Securities Law” in any...

Section 25706. - 25706. (a) All effective permits, orders, and consents under the...

Section 25707. - 25707. (a) All permits and orders issued under Article 6...