California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 3 — Representations to the PublicChapter 1 — AdvertisingArticle 2 — Particular OffensesSection 17530.1
(a) It shall be unlawful for a person to recommend to a prospective trustor any person to serve as trustee with knowledge or having reason to believe that the proposed trustee is insolvent or is about to become insolvent.
For purposes of this section, “insolvent” means a person who has ceased to pay that person’s debts as they become due or whose liabilities exceed that person’s assets.
(b) The provisions of this section shall not apply to any trustee named in any deed of trust or mortgage which secures a note or evidence of indebtedness on real property when such trustee acts solely in that capacity.
Notes
Prohibits recommending a person to a prospective trustor as trustee when the recommender knows or has reason to believe the proposed trustee is insolvent or about to become insolvent. Insolvent means having stopped paying debts as due or having liabilities exceeding assets; the rule exempts a trustee named in a real-property deed of trust or mortgage acting solely as trustee.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 17530.1 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-3/chapter-1/article-2/section-17530-1