2960. General Definitions and Short Form References.
Unless otherwise expressly indicated or compelled by the context in which used, words, phrases and short form
references appearing in this Article shall have meanings as ascribed herein.

(a) "Bar" - to prohibit or exclude from.
(b) "Business activities" - include, but are not limited to, all real estate business functions, activity requiring a real estate
license, any clerical activity (i.e., typing, filing, copying, reception, telephone communications), mailroom activity,
customer service, telemarketing, marketing, advertising, soliciting, processing transactions, bookkeeping, accounting,
computer activities, counseling, advising, planning, supervising or overseeing, making referrals, interviewing, intake,



entertaining clients, notary, credit report checking, any consulting services, any project management, and any activity
as an independent contractor.
(c) "Business activities of a finance lender" - any business activity set out in subsection (b) performed for any lender,
including, but not limited to, a finance lender, residential mortgage lender, bank and/or other institutional lender, credit
union, private lender, or hard money lender, whether or not the loan is secured by an interest in real property.
(d) "Date of a notice of intention" - the date the notice of intention was mailed or served.

(e) "Employment, management or control" - 1) Employment - employment as an employee or independent contractor;
2) Management - holding a position which requires or allows the supervision or management of the tasks performed by
employees and/or independent contractors; 3) Control - holding a position in a corporation as a director, officer, or
shareholder owning or controlling more than ten percent of the shares of the corporation.

(f) "In the public interest" - for the common or general welfare of the public.
(g) "Material damage to the public" - significant, not minor or inconsequential, harm or loss to any member of the
public.
(h) "On the premises" - a particular physical location and/or place of business including, but not limited to, a building
or part of a building, store, shop, apartment, house, hotel room, restaurant, condominium, mobile home, trailer, motor
home, fifth wheel, automobile, boat, yacht, airliner, airplane, or private or commuter jet.
(i) "Participating" - taking part in or sharing in any of the business activities referred to in subsection (b).

(j) "Reasonably related" - related to a moderately sufficient extent or degree; less than substantially related.
(k) "Suspend" - to temporarily prohibit or exclude from.

2961. Grounds for Issuing an Order of Suspension or Debarment.
An order of suspension or debarment pursuant to Section 10087 may be based upon a finding by the Commissioner of
one or more of the following grounds:
(a) The suspension or bar is in the public interest and the person subject to suspension or bar has committed or caused
a violation of Division 4 (Sections 10000 through 11288) of the Code or a rule or order of the Commissioner and the
violation was known or should have been known by the person committing or causing the violation.
(b) The suspension or bar is in the public interest and the person subject to suspension or bar has committed or caused
a violation of Division 4 (Sections 10000 through 11288) of the Code or a rule or order of the Commissioner and the
violation has caused material damage to the public.
(c) The person subject to suspension or bar has been convicted of or pleaded nolo contendere to any crime involving
dishonesty, fraud, or deceit, or any other crime reasonably related to the qualifications, functions, or duties of a person
engaged in the real estate business.

(d) The person subject to suspension or bar has been held liable in any civil action by final judgment, or any
administrative judgment by any public agency, if that civil or administrative judgment involved any offense involving
dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person
engaged in the real estate business.

2962. Effect of Receipt of Notice of Intention to Issue Order.
A person who is the subject of a notice of intention to issue an order of suspension or debarment under Section 10087
of the Business and Professions Code is, immediately upon receipt of the notice, prohibited from engaging in any
business activity involving real estate, within the State of California, that is subject to regulation under Division 4
(Sections 10000 through 11288) of the Code. This prohibition is subject to no exceptions. The prohibition will remain
in place until lifted via due process or until the expiration of the period of time set out in the subsequent suspension or
bar order.

2963. Effect of Issuance of Order.
An order of debarment is not a form of discipline that substitutes for another type of discipline under the Real Estate
Law. Rather, the order of debarment is an additional level of consumer protection. Debarment is imposed against a
licensee, disciplined licensee, or unlicensed person where the Bureau has identified a higher risk to the public and to
the real estate industry, necessitating the separation of the debarred individual from all practice and practitioners of real
estate, as described in (a) through (e), below.



Upon adoption of an order of debarment, any person who is the subject of the order is, for the period of time stated in
the order, prohibited from:
(a) Engaging in any business activity involving real estate that is subject to regulation under Division 4 (Sections 10000
through 11288) of the Business & Professions Code;
(b) Participating in any activity for which a real estate salesperson or a real estate broker license is required;
(c) Engaging in any real estate-related business activity on the premises where a real estate salesperson or real estate
broker is conducting business which requires a real estate license;
(d) Participating in any real estate-related business activity of a finance lender, residential mortgage lender, bank, credit
union, escrow company, title company, or underwritten title company; and
(e) Holding any position of employment, management, control, or ownership, as a real estate broker, a real estate
salesperson, or an unlicensed person, in any business involving any of the activities mentioned in subparagraphs (a)
through (d) above.

Article 21. Advance Fee Agreements