California Government Code 5971 – In selecting any person to provide underwriting services, including …
In selecting any person to provide underwriting services, including financial, advisory or other financial services, involving the issuance of securities, the state or the legislative body of any local governmental entity may consider, among other things, prior conduct of the person, or any employee of the person, including, but not limited to, acts constituting fraud or a violation of state or federal securities law and that resulted in the issuance by, or on behalf of, a governmental regulatory agency of a cease and desist order, a preliminary injunction that has not been dissolved by court order or replaced by a permanent injunction or a permanent injunction, censure, or any other administrative or judicial enforcement order.
(Added by Stats. 1996, Ch. 309, Sec. 1. Effective January 1, 1997.)
Terms Used In California Government Code 5971
- Fraud: Intentional deception resulting in injury to another.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Person: means any broker, dealer, municipal securities dealer, investment advisor, or investment firm. See California Government Code 5970
- Regulatory agency: means the Department of Financial Protection and Innovation, the securities administrators or other similar regulatory authority in any other state, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Municipal Securities Rulemaking Board, the Commodity Futures Trading Commission, or any other self-regulatory organization. See California Government Code 5970
- State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18