28030-28049

CORPORATIONS CODE
SECTION 28030-28049




28030.  Subject to additional definitions contained in this division
which are applicable to specific provisions of this division, and
unless the context otherwise requires, the definitions in this
article apply throughout this division.


28031.  "Accredited investor" means a person who is defined in
Section 2(a)(15) of the Securities Act of 1933, or any other person
that the Securities and Exchange Commission may so designate by rule,
regulation, or order, who, by purchasing the securities of a
licensee, provides the investment funds with which the licensee will
provide financial assistance to small business firms.



28032.  "Affiliate" means any person or persons controlling,
controlled by, or under common control with, other specified persons.



28033.  "Commissioner" means the Commissioner of Corporations or his
or her designee with respect to a particular matter.



28034.  "Company" means a corporation, limited partnership, limited
liability company, or other form of business entity, which is
organized under the laws of the State of California.



28035.  "Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies
of a specified person.



28036.  "Controlling person," when used with respect to a specified
person, means any person who controls the specified person, directly
or indirectly, through one or more intermediaries.



28037.  "Insolvent," when used with respect to any person, means a
person who has ceased to pay his or her debts in the ordinary course
of business, who cannot pay his or her debts as they become due, or
whose liabilities exceed his or her assets.



28038.  "License" means a license issued under this division
authorizing a licensee to transact business as a capital access
company.


28039.  "Licensee" means a company that is licensed under this
division.


28040.  "Officer" means either of the following:
   (a) When used with respect to a corporation, any person appointed
or designated as an officer of the corporation by or pursuant to
applicable law or the articles of incorporation or bylaws of the
corporation or any person who performs with respect to the
corporation functions usually performed by an officer of a
corporation.
   (b) When used with respect to a specified person other than a
natural person or a corporation, any person who performs with respect
to the specified person functions usually performed by an officer of
a corporation with respect to the corporation.



28041.  "Order" means any approval, consent, authorization,
exemption, denial, prohibition, or requirement applicable to a
specific case issued by the commissioner. "Order" includes any
condition of a license and any agreement made by any person with the
commissioner under this division.



28042.  "Parent," when used with respect to a specified person other
than a natural person, means any person other than a natural person
that controls the specified person, directly or indirectly, through
one or more intermediaries.


28043.  "Person" means any natural person, proprietorship, joint
venture, partnership, trust, business trust, syndicate, association,
joint stock company, corporation, limited liability company,
government, agency of any government, or any other organization.
However, "person," when used with respect to acquiring control of or
controlling a specified person, includes any combination of two or
more persons acting in concert.



28044.  "Principal security holder," means any person who owns,
directly or indirectly, of record or beneficially, securities
representing 10 percent or more of the voting power of the issuer of
those securities.


28045.  "To provide financing assistance to a person" means to
purchase securities issued by the person, either directly from the
person, or indirectly through a securities underwriter.



28046.  "Security" has the meaning set forth in Section 25019.



28047.  "Small business firm" means a person that proposes to
transact, or transacts, business on a regular and continuous basis in
California and, together with its affiliates, has a net worth of not
more than eighteen million dollars ($18,000,000) and average net
income after federal income taxes, excluding any carryover losses,
for the preceding two years no greater than six million dollars
($6,000,000).



28047.1.  "Smaller business firm" means a person that proposes to
transact, or transacts, business on a regular and continuous basis in
California and, together with its affiliates, has a net worth of not
more than six million dollars ($6,000,000), and average net income
after federal income taxes, excluding any carryover losses, for the
preceding two years no greater than two million dollars ($2,000,000).




28048.  "Subsidiary," when used with respect to a specified person
other than a natural person, means any person other than a natural
person controlled by the specified person, directly or indirectly,
through one or more intermediaries.


28049.  "Voting power" has the meaning set forth in Section 194.5.