Form VCFCF-300 "Application for Payment" - California

What Is Form VCFCF-300?

This is a legal form that was released by the California Secretary of State - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on January 1, 2017;
  • The latest edition provided by the California Secretary of State;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;

Download a fillable version of Form VCFCF-300 by clicking the link below or browse more documents and templates provided by the California Secretary of State.

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Download Form VCFCF-300 "Application for Payment" - California

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State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
General Information and Overview
Introduction
are referred to as a “judgment debtor”) must be
a California corporation or a foreign
corporation registered with the California
These materials are intended to assist people with
Secretary of State.
the application process to the Victims of Corporate
The claimant must use all reasonable efforts to
Fraud Compensation Fund (“VCFCF”). The
identify and pursue collection of available
VCFCF provides limited restitution to victims of
assets from all those responsible for the fraud.
corporate fraud who have otherwise been unable to
collect on their final judgment. The law governing
The judgment and debt must not have been
payment from the VCFCF is California Corporations
discharged or be statutorily nondischargeable in
Code sections 2280 through 2296 and California
a bankruptcy proceeding. In the case of a
Code of Regulations, title 2, division 7, chapter 12,
bankruptcy proceeding that is open at or after
sections 22500 through 22507 ("Regulations").
the time of filing the application, the judgment
and debt must have been declared by the court
Conditions for Payment
or agreed by the parties to be nondischargeable.
Additionally, the claimant must have
permission from the bankruptcy court to
There are important statutory conditions that must be
proceed against the corporation;
met in order to qualify for payment from the
VCFCF:
Judgment Debtor Corporation Response
The person making the claim (“claimant”) must
have resided in California at the time the fraud
occurred.
A corporation or Agent can contest payment from
the VCFCF by providing evidence it believes shows
The final judgment may be a civil court
the judgment or application does not meet the
judgment or a criminal restitution order. The
conditions for payment, which may include, but is
final judgment may also be based upon an
not limited to the following:
arbitration award. However, the arbitration
The time for appeal has not expired;
award must first be reduced to a judgment in
civil court before it can qualify for payment
The claimant is not the aggrieved person;
from the VCFCF.
The application is not timely;
A final civil court judgment must be against a
The judgment is not from a California court;
corporation – not an individual or another type
Enforcement of the judgment is barred by court
of business entity (e.g., a limited liability
order or statute;
company). A final criminal restitution order
The claimant has been reimbursed;
must be against a corporation or against an
The judgment and debt were discharged in
officer or director of the corporation (“Agent”).
bankruptcy;
The final judgment or restitution order must be
The judgment and debt are still pending in
based on the corporation’s fraud,
bankruptcy;
misrepresentation, or deceit, made with the
The claimant has been paid by another
intent to defraud.
restitution fund;
The final judgment must be from a state or
The judgment is a default judgment that was
federal court in California.
not based on the corporation’s fraud,
The application must be delivered to the
misrepresentation or deceit; or
Secretary of State within 18 months of the
The submitted judgment is not the actual court
judgment becoming final (“final” usually means
document or otherwise contains a false or
the time to appeal has passed).
forged statement.
The corporation that the judgment is against or
against whose Agent a criminal restitution order
has been entered (both corporation and Agent
______________________________________________________________________________________________________________
VCFCF – 100 (REV. 01/2017)
Page 1 of 3
State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
General Information and Overview
Introduction
are referred to as a “judgment debtor”) must be
a California corporation or a foreign
corporation registered with the California
These materials are intended to assist people with
Secretary of State.
the application process to the Victims of Corporate
The claimant must use all reasonable efforts to
Fraud Compensation Fund (“VCFCF”). The
identify and pursue collection of available
VCFCF provides limited restitution to victims of
assets from all those responsible for the fraud.
corporate fraud who have otherwise been unable to
collect on their final judgment. The law governing
The judgment and debt must not have been
payment from the VCFCF is California Corporations
discharged or be statutorily nondischargeable in
Code sections 2280 through 2296 and California
a bankruptcy proceeding. In the case of a
Code of Regulations, title 2, division 7, chapter 12,
bankruptcy proceeding that is open at or after
sections 22500 through 22507 ("Regulations").
the time of filing the application, the judgment
and debt must have been declared by the court
Conditions for Payment
or agreed by the parties to be nondischargeable.
Additionally, the claimant must have
permission from the bankruptcy court to
There are important statutory conditions that must be
proceed against the corporation;
met in order to qualify for payment from the
VCFCF:
Judgment Debtor Corporation Response
The person making the claim (“claimant”) must
have resided in California at the time the fraud
occurred.
A corporation or Agent can contest payment from
the VCFCF by providing evidence it believes shows
The final judgment may be a civil court
the judgment or application does not meet the
judgment or a criminal restitution order. The
conditions for payment, which may include, but is
final judgment may also be based upon an
not limited to the following:
arbitration award. However, the arbitration
The time for appeal has not expired;
award must first be reduced to a judgment in
civil court before it can qualify for payment
The claimant is not the aggrieved person;
from the VCFCF.
The application is not timely;
A final civil court judgment must be against a
The judgment is not from a California court;
corporation – not an individual or another type
Enforcement of the judgment is barred by court
of business entity (e.g., a limited liability
order or statute;
company). A final criminal restitution order
The claimant has been reimbursed;
must be against a corporation or against an
The judgment and debt were discharged in
officer or director of the corporation (“Agent”).
bankruptcy;
The final judgment or restitution order must be
The judgment and debt are still pending in
based on the corporation’s fraud,
bankruptcy;
misrepresentation, or deceit, made with the
The claimant has been paid by another
intent to defraud.
restitution fund;
The final judgment must be from a state or
The judgment is a default judgment that was
federal court in California.
not based on the corporation’s fraud,
The application must be delivered to the
misrepresentation or deceit; or
Secretary of State within 18 months of the
The submitted judgment is not the actual court
judgment becoming final (“final” usually means
document or otherwise contains a false or
the time to appeal has passed).
forged statement.
The corporation that the judgment is against or
against whose Agent a criminal restitution order
has been entered (both corporation and Agent
______________________________________________________________________________________________________________
VCFCF – 100 (REV. 01/2017)
Page 1 of 3
State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
General Information and Overview
The claimant and judgment debtor will be notified of
The defendant named in the criminal restitution
the final decision on the application. The claimant
order was not an officer or director of the
has 60 calendar days to accept an award or offer to
corporation at the time the fraud occurred.
compromise. If the claimant does not accept the
That the fraudulent conduct of the defendant
award or offer to compromise, the application will
named in the criminal restitution order was not
automatically be denied.
within the defendant’s capacity as the officer or
director of the corporation.
Submitting the Initial Application
A judgment debtor has 35 days to file a response
The original application and supporting
with the Secretary of State from the date the
documentation must be delivered in person or by
Secretary of State mails notice that the claimant has
submitted an application for payment. The Secretary
certified mail to the Secretary of State. The
of State will provide the notice by certified mail to
application must be delivered within 18 months of
the judgment becoming final to the following
the corporation’s last designated agent for service of
address:
process and to the Agent, if any, named in a criminal
restitution order. The judgment debtor must also
mail a copy of any response it chooses to file to the
Secretary of State
claimant. If a judgment debtor does not file a timely
Business Programs Division
Victims of Corporate Fraud
response, the corporation, or Agent, cannot present
Compensation Fund
objections to payment and will not be entitled to any
th
1500 11
Street, 3rd Floor
further notice of any action taken or proposed to be
Sacramento, CA 95814
taken on the application. The corporation’s response
must be signed by an officer or director of the
Subsequent Correspondence and Notices
corporation and must include a proof of service
showing that a copy of the corporation’s response
was sent or delivered to the claimant.
All correspondence and notices submitted
subsequent to the initial application must be mailed
Length of Time For Decision
by first-class mail to the Secretary of State, the
claimant and a judgment debtor that has filed a
timely response to the application. Mail to the
Once an application is received, the Secretary of
Secretary of State must be directed to the following
State has 21 calendar days for a single claimant or
address:
40 calendar days for multiple claimants to notify the
claimant(s) of any deficiencies in the application or
to request additional documents and information.
Secretary of State
Business Programs Division
The claimant has 30 calendar days to respond to the
Victims of Corporate Fraud
deficiency notice. If no response is received, the
Compensation Fund
Secretary of State will send a final notice. If there is
P.O. Box 15659
still no response, the application will be denied.
Sacramento, CA 95852
If the application cannot meet the conditions for
Mail to the claimant must be directed to the address
payment, the application will be denied. If the
specified in the application, or if represented by an
application meets all of the statutory requirements or
attorney, to the address of the attorney specified in
all of the deficiencies have been corrected, the
the application. Mail to the judgment debtor must be
application will be deemed complete. Then, the
Secretary of State has 90 calendar days to render a
directed to the address specified in the response, or if
represented by an attorney, at the address of the
final decision on the completed application, unless
attorney as specified in the response. A party must
there is a prior written agreement to extend the time.
______________________________________________________________________________________________________________
VCFCF – 100 (REV. 01/2017)
Page 2 of 3
State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
General Information and Overview
immediately notify the other parties by first class
Application for Payment and Attachment A
mail if they wish to receive mail at another address.
forms.
Payment from the VCFCF is limited to $50,000
Application Decision, Appeals and Writs
for any one claimant per single judgment.
A claimant should make a least one additional
The Secretary of State will notify the claimant and
copy of the completed application and the
any judgment debtor that has filed a timely response
supporting documentation for their own
of the decision on the application.
records.
Decision to Make Payment – If the decision is
to award the claim or make an offer to
compromise, the claimant has 60 calendar days
to accept the award or offer, or the application
will automatically be denied.
Payment of an Award or Offer – If the
Secretary of State pays any amount in
settlement of a claim, the judgment debtor has
Attachments
30 days following the notice of payment to pay
the VCFCF the amount paid plus interest at the
prevailing rate applicable to the judgment or the
This application packet includes the following in
judgment debtor corporation will be suspended
addition to this Overview:
on the Secretary of State’s records until
payment is made.
Application Instructions
Decision to Deny the Application – If the
Application for Payment
decision is to deny payment, the claimant may
pursue the action in court. To do so, the
claimant must file a verified application with
the court no later than six months after mailing
of the notice of denial of the application. If the
underlying judgment is from a California state
court, the application must be filed in the court
in which the underlying judgment was entered.
If the underlying judgment is a federal court
judgment, the application must be filed in the
superior court of any county within California
that would have been a proper venue if the
underlying lawsuit had been filed in a
California state court, or alternatively,
Sacramento County Superior Court.
Additional Information
All applications must be submitted using the
attached Application for Payment form.
Applications based upon a criminal restitution
order against an officer or director of a
corporation must include both the attached
______________________________________________________________________________________________________________
VCFCF – 100 (REV. 01/2017)
Page 3 of 3
State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
Application Instructions
Introduction
exhausted or for which the period for appeal has
expired, enforcement of which is not barred by the
order of any court or by any statutory provision,
Please review these instructions and the
which has not been nullified or rendered void by any
application completely before filling out the
court order or statutory provision. . . .” (See,
form.
California Corporations Code section 2281(g).)
Information provided on the application may
be typed or printed using black or blue ink.
The final judgment may be a civil court judgment or
All typewritten and handwritten documents
a criminal restitution order. The final judgment may
and copies of documents must be clear and
also be based upon an arbitration award. However,
legible.
the arbitration award must first be reduced to a
Additional pages may be attached to the
judgment in civil court before it will qualify for
application if more space is needed. Please
payment from the VCFCF. If the final judgment is a
identify the application section and question
criminal restitution order against an officer or
number on any attached pages.
director of a corporation, Attachment A must be
Please inform the Secretary of State in writing
completed and submitted with the Application for
of any change in address or telephone number
Payment form.
during the application process.
Finally, identify the type of final judgment (civil
General Information
court judgment, judgment based on an arbitration
award, or a criminal restitution order), and provide
Sections 1 & 2
the court name and the court file number or case
Please provide contact information for the claimant
number. Also provide the date of the arbitration
and, if applicable, the claimant’s attorney. Any
award or criminal restitution order, if applicable.
telephone number provided must be the number
The court issuing the judgment must be a state or
where that person is available during normal
federal court in California. (See, California
business hours. Fax numbers are optional, but may
Corporations Code section 2281(f).)
assist in expediting communication. Only provide
attorney information if the attorney is representing
Explanation of Claim Computation
the claimant for the application to the VCFCF.
Section 5
Section 3
Provide the total amount of the final judgment
Please provide the name and current address of the
award, including all costs, fees, interest,
judgment debtor corporation. If the current address
compensatory damages, punitive damages, or any
is unknown, addresses for corporations may be
other amounts.
obtained online by visiting the Secretary of State’s
Business Search at BusinessSearch.sos.ca.gov. If
Section 6
the application is based upon a criminal restitution
Provide the total amount of the final judgment,
order against an officer or director of a corporation,
minus all cash or the cash value of all items received
please identify the corporation here, and identify the
toward payment of the judgment.
officer or director in section 2 of Attachment A.
Section 7
Section 4
Payment from the VCFCF is limited to the awarded
Please indicate the date the civil court judgment,
actual and direct loss together with any awarded
judgment based on an arbitration award, or a
compensatory damages and awarded costs up to a
criminal restitution order was issued and the date
cumulative total of $50,000. (See, California
such judgment or order was finalized. A judgment,
Corporations Code section 2282(a).)
award, or order is final when “. . . appeals have been
______________________________________________________________________________________________________________
VCFCF – 200 (REV. 01/2017)
Page 1 of 3
State of California
Secretary of State
Victims of Corporate Fraud Compensation Fund
Application Instructions
the civil court judgment, judgment based on the
In (a) provide an itemized list detailing the amount
arbitration award, or criminal restitution order.
awarded for actual and direct loss, compensatory
damages, and costs. When itemizing the amount
Section 9
awarded, use the same itemization made by the court
Please state whether the corporation has filed or
or arbitrator. Make sure that each element is listed
intends to file for bankruptcy protection, as well as
separately. If the final judgment does not state the
the applicable follow-up questions.
amount awarded for actual and direct loss and
Declarations
compensatory damages, then provide an explanation
of how these amounts have been calculated and
Section 10
attach documentation to the application in support of
Pursuant to California Corporations Code section
the claimed amount.
2282(c)(8), the claimant must verify that each of the
statements in section 10 of the application are true
In (b) please itemize all assets (money or other
and correct. Please respond to each question by
items) received that have been applied toward
checking “yes” or “no” and providing any follow-up
payment of the final judgment. If assets other than
information.
cash have been collected, please identify the item,
the dollar value and provide an explanation of how
In (a) and (b), “immediate family member” includes,
the dollar value was calculated.
but is not limited to, parents, grandparents, children,
grandchildren, siblings, aunts, uncles, and any such
In (c) please describe all searches and inquiries
relationship by marriage (e.g., in-laws or step-
performed to identify and locate the corporation’s
relationships).
assets that are available to be sold or applied to pay
the final judgment. If a court has determined or
The claimant has a duty to protect the underlying
found the corporation to be insolvent or to lack the
judgment in bankruptcy proceedings by filing a
assets to pay the final judgment, please provide a
claim with the bankruptcy court to have the
copy of the court documentation related to that
judgment and debt declared nondischargeable. If the
finding.
bankruptcy proceeding is ongoing and the court has
not made a final decision as to the underlying
Information Regarding Assignment and
judgment being declared nondischargeable, the
Bankruptcy
application cannot be processed.
If the claimant becomes aware that a judgment
Section 8
debtor has filed for bankruptcy protection, the
If any interest in the civil court judgment, judgment
claimant agrees to notify the Secretary of State in
based on the arbitration award, or criminal
writing and file a claim to protect the judgment.
restitution order has been assigned or transferred,
please identify the amount of any assignment or
Please provide all information relating to whether
transfer in both percentage and dollar amounts.
the claimant and judgment are eligible for any other
Also, identify the name and address of the recipient
restitution fund or if a claim has been made to
of the assignment or transfer and a detailed
another restitution fund.
description of the circumstances of the assignment
or transfer.
Documentation
If the assignment or transfer occurs after the
application has been submitted, the Secretary of
Section 11
State must be notified in writing of any assignment
Please attach the required documents to the
or transfer of any part of the claimant’s interest in
application.
______________________________________________________________________________________________________________
VCFCF – 200 (REV. 01/2017)
Page 2 of 3