DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS 31000-31952›CHAPTER 12. Crimes and Criminal Penalties 31800-31881›ARTICLE 2. Conflicts of Interest 31820-31829

§ 31825

California Financial Code · 2018-11 edition · updated 2026-10-04 · California

It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to discharge, or to free other funds for use in discharging, in whole or in part, an obligation to any associate of such licensee; provided, however, that this section shall not apply to any transaction effected by an associate of a licensee in the normal course of such associate’s business involving a line of credit or short-term financing assistance.

(Added by Stats. 1977, Ch. 1164.)

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California Financial Code

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