California · Financial Code

FIN §31824: It shall be unlawful for any licensee or for any associate of a licensee, directly or indirectly, to borrow money from: (a) Any person to which such licensee has provided, or has committed to provide,

Civil

What this law says, in plain English

Licensees and their associates are prohibited from borrowing money from clients they finance, their directors/officers/major owners, or close relatives of those persons.

Read the full statutory text

It shall be unlawful for any licensee or for any associate of a licensee, directly or indirectly, to borrow money from: (a) Any person to which such licensee has provided, or has committed to provide, financing assistance; (b) Any director of, officer of, or person who owns a 10 percent or greater equity interest in, any person referred to in subdivision (a); or (c) Any close relative of any person referred to in subdivision (b).

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.