A nonprofit community service organization that meets all of the following criteria shall be exempt from any requirements imposed on proraters pursuant to this division: (a) The nonprofit community service organization incorporates in this state or any other state as a nonprofit corporation and operates pursuant to either the Nonprofit Public Benefit Corporation Law, Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code or the Nonprofit Mutual Benefit Corporation Law, Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code. (b) The nonprofit community service organization limits its membership to retailers, lenders in the consumer credit field, educators, attorneys, social service organizations, employer and employee organizations, and related groups that serve educational, benevolent, fraternal, religious, charitable, social, or reformatory purposes. (c) The nonprofit community service organization has as its principal functions all of the following: (1) Consumer credit education. (2) Counseling on consumer credit problems and family budgets via in-person, telephone, and virtual communication. (3) Arranging or administering debt management plans. âDebt management planâ means a method of paying debtorâs obligations in installments on a monthly basis. (4) Arranging or administering debt settlement plans. âDebt settlement plansâ means a method of paying debtorâs obligations in a negotiated amount to each creditor on a one-time basis. (d) (1) The nonprofit community service organization receives from a debtor no more than the following maximum amounts to offset the organizationâs actual and necessary expenses for the services described in subdivision (c): (A) For education and counseling combined in connection with debt management or debt settlement services, a one-time sum not to exceed one hundred dollars ($100). (B) For debt management plans, a sum not to exceed 15 percent of the money disbursed monthly, or seventy-five dollars ($75) per month, whichever is less. (C) For debt settlement plans, a sum not to exceed 15 percent of the amount of the debt forgiven for negotiated debt settlement plans. (2) A nonprofit community service organization shall not require any upfront payments or deposits on debt settlement plans and may require payment of fees only once the debt has been successfully settled. (3) For purposes of this subdivision, a household shall be considered one debtor. (4) The fees allowed pursuant to this subdivision shall be the only fees that may be charged by a nonprofit community service organization for any services related to a debt management plan or a debt settlement plan. (e) The nonprofit community service organization maintains and keeps current and accurate books, records, and accounts relating to its business in accordance with generally accepted accounting principles and stores them in a readily accessible place for a period of no less than five years from the end of the fiscal year in which any transactions occurred. (f) The nonprofit community service organization deposits any money received from a debtor for the services described in subdivision (c) in a noninterest-bearing trust account in a federally insured state or federal bank, savings bank, savings and loan association, or credit union, which account is maintained specifically for purposes of administering a debt management plan or debt settlement plan. The nonprofit community service organization shall provide to the commissioner both of the following before engaging in business in this state and claiming this exemption: (1) (A) A written notice with the name, address, and telephone number of the bank, savings bank, savings and loan association, or credit union where the trust account is maintained, and the name of the account and the account number. (B) The account information required by this paragraph shall be kept confidential pursuant to the laws governing disc
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