You are here: California / Food and Agricultural Code - FAC / ARTICLE 6. Financing Charges and Financial Statements [56251. - 56255.] / Section 56252.2.

Section 56252.2. (Added by Stats. 1987, Ch. 662, Sec. 17.)
Cite as: Cal. Food & Agric. Code §56252.2.

(a)If the director is not satisfied that an applicant or licensee is financially responsible, the director may, in lieu of denying, suspending, or revoking the license, accept an irrevocable guarantee of the obligations of the licensee to all California farm products creditors. The guarantee shall be for any periods and in any amounts that the director may from time to time require. The director may, as a condition of accepting and maintaining the guarantee, require the guarantor to supply financial information to the director at times and to the extent the director deems advisable.

(b)A guarantee placed with the director pursuant to subdivision (a) shall support an action in a court of competent jurisdiction by a farm products creditor for obligations of the licensee to the creditor and by a state officer for the obligations of the licensee to the state related to transactions subject to the guarantee.

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