DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000. - 18707.]
Division 7 repealed and added by Stats. 1976, Ch. 964.
§§ 18000–18707 · 410 sections
CHAPTER 1. General Provisions §§ 18000–18063 · 58 sections
ARTICLE 1. Definitions §§ 18000–18019 · 34 sections
- § 18000 This division shall be known and may be cited as the “Industrial Loan Law,” the “Industrial Banking Law,” or the “Thrift and Loan Law.”
- § 18001 The definitions given in this article govern the construction of this division unless the context otherwise requires.
- § 18002 “Commissioner” means the Commissioner of Financial Protection and Innovation.
- § 18002.5 “Department” means the Department of Financial Protection and Innovation.
- § 18003 “Industrial loan company,” “thrift and loan company,” or “company” as used in this division means a premium finance agency as defined in Section 18560.…
- § 18003.1 “Investment and loan” means an industrial loan company.
- § 18003.2 (a)Any reference in a provision of any statute or regulation of this state to an industrial loan company or a thrift and loan company means an insurance…
- § 18003.5 (a) When used with respect to an industrial loan company, “insured” means an industrial loan company that is insured by the Federal Deposit Insurance…
- § 18003.6 “Certificate of deposit” as that term is used by an industrial loan company licensed under this division means an investment certificate representing the…
- § 18003.7 “Demand deposit” means investment or thrift certificates in account, passbook, or certificate form which are redeemable and payable upon demand to the owner.
- § 18004 “Borrower” means the person receiving the proceeds or benefits of a loan.
- § 18005 “Consumer loan or consumer obligation” means a loan made to, or an obligation incurred by, a natural person in which the money loaned, or the property…
- § 18006 “Primarily secured by real property”, as used in this division, means the fair market value of the real property less prior encumbrances, at the time the loan…
- § 18007 “Charges”, as used in this division, include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs…
- § 18008 “Charges” also include any profit or advantage of any kind that any person may contract for, collect, receive, or in any manner obtain by a collateral sale,…
- § 18009 “Principal amount”, as used in this division, means the net amount of money, credit, goods, or things in action received by the debtor or borrower or disbursed…
- § 18010 “Principal balance”, and “face amount” as used in this division, means the unpaid balance of a loan or other obligation.
- § 18011 “Affiliated company”, as used in this division, is a company under substantially the same management or control, directly or indirectly, as the industrial loan…
- § 18011.1 “Affiliate” means an affiliated company or a person who, directly or indirectly, controls over 10 percent of the voting stock of an industrial loan company.
- § 18012 “Corporate Securities Law” means the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code.
- § 18013 “Outstanding loans and obligations,” as used in this division, means total outstanding loans and obligations, including lease obligations, less unearned…
- § 18014 “Obligation” as used in Sections 18265, 18271, 18272, and 18343 includes lease obligations as authorized by Section 18310.
- § 18015 “Lease obligation” as used in this division, means a lease contract entered into by an industrial loan company as lessor.
- § 18016 “Investment certificates ratio”, as used in this division, means the ratio of the aggregate sum of all of the outstanding investment certificates, exclusive of…
- § 18016.5 “Premium finance agency” has the meaning set forth in Section 18560.
- § 18017 “Assets,” as used in this division, means all assets excluding intangibles.
- § 18018 “Capital,” as used in this division, consists of all of the following: (a) Capital stock. (b) Primary capital to the extent not included in capital stock. (c)…
- § 18018.1 “Primary capital,” as used in this division, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves,…
- § 18018.2 “Secondary capital,” as used in this division, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred…
- § 18018.3 “Perpetual preferred stock,” as used in this division, means a preferred stock that does not have a stated maturity date or that can not be redeemed at the…
- § 18018.4 “Mandatory convertible debt,” as used in this division, means a subordinated debt instrument which requires the issuer to convert that instrument into common…
- § 18018.5 “Limited life preferred,” as used in this division, means preferred stock which has a maturity or which may be redeemed at the option of the holder.
- § 18018.6 “Subordinated notes and debentures,” as used in this division, means an obligation other than an investment certificate obligation that: (a) Bears on its face,…
- § 18019 “Capital Stock,” as used in this division, means one-class voting common stock.
ARTICLE 2. General Provisions §§ 18020–18030 · 12 sections
- § 18020 An industrial loan company shall not appoint or continue in office any officer, director or management personnel who do not have the qualifications required by…
- § 18021 (a) An industrial loan company shall not deposit its funds except with a bank, trust company, or savings association authorized to do business in this state,…
- § 18022 No industrial loan company shall invest any of its funds, except as authorized in this division. Industrial loan companies may invest their funds in…
- § 18022.5 (a) An industrial loan company may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or…
- § 18023 If an industrial loan company has investment or thrift certificates outstanding, then such company shall not borrow, except by the sale of investment or thrift…
- § 18023.1 In addition to the borrowings under Section 18023, an industrial loan company may borrow funds from the Federal Home Loan Bank, the Federal Deposit Insurance…
- § 18024 An industrial loan company shall not transact business or make any loan provided for by this division under any other name than that set forth in the articles…
- § 18025 No person shall use a holding company or any other device for the purpose of evading or avoiding any of the provisions of this division. This section shall not…
- § 18027 Corporations subject to this division are not subject to the provisions or regulations of the California Financing Law (Division 9 (commencing with Section…
- § 18028 All corporations formed under the provisions of this division are taxed in the same manner and at the same rates as other corporations are taxed pursuant to…
- § 18029 Each industrial loan company shall keep and use in its business, books, accounts, and records which will enable the commissioner to determine if the company is…
- § 18030 Each industrial loan company shall preserve the books, accounts, and records, including cards used in the card system, if any, for a least two years after…
ARTICLE 3. Real Property Held §§ 18040–18043 · 4 sections
- § 18040 An industrial loan company may purchase, hold and convey real property for the following purposes only: (a) Real property conveyed to it in satisfaction of…
- § 18041 (a) The commissioner may establish rules and regulations regarding the sale of any real property acquired pursuant to subdivision (a) or (b) of Section 18040,…
- § 18042 The authority of a three-fourths vote of all the directors is necessary to authorize the purchase of a lot and building necessary as premises for the…
- § 18043 Real property held by an industrial loan company shall be conveyed by an instrument under the corporate seal of the corporation, signed by the president or…
ARTICLE 4. Advertising §§ 18055–18063 · 8 sections
- § 18055 No person shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed,…
- § 18056 An industrial loan company shall not use any advertising which refers to the supervision of such company by the state or any department or official thereof.
- § 18057 An industrial loan company shall not use any advertising nor make any representations which indicate, imply or might lead a person to believe that the company…
- § 18058 An industrial loan company shall not use any advertising nor make any representations which indicate, infer or might lead a person to believe that investment…
- § 18060 (a) Except as provided in subdivision (b), industrial loan company which issues thrift certificates shall not use any thrift advertisement which refers to the…
- § 18061 If an industrial loan company refers in any advertisement to rates of charge, discount, charges or costs of loans, those charges shall be stated fully and…
- § 18062 An industrial loan company shall not use any advertisement after its use has been disapproved by the commissioner and the industrial loan company has been…
- § 18063 The commissioner may require an industrial loan company to maintain a file of all advertising copy for a period of 12 months from the date of its use. The file…
CHAPTER 2. Formation and Organization §§ 18100–18166 · 33 sections
ARTICLE 1. General §§ 18100–18104 · 8 sections
- § 18100 When authorized by the commissioner as provided in this chapter, a corporation may be organized under the laws of this state, or an existing California…
- § 18100.5 Each industrial loan company, other than a premium finance agency, that has issued and has outstanding thrift obligations shall, as a condition to its…
- § 18101 If the commissioner approves an application to engage in business as an industrial loan company filed pursuant to Article 2 (commencing with Section 18115) of…
- § 18101.5 Upon filing an application for approval of proposed articles of incorporation with the commissioner, or upon filing an amendment to the articles of a proposed…
- § 18101.6 Companies authorized to engage in the industrial loan business after the effective date of the act which added this section shall have the words “industrial…
- § 18102 The articles of incorporation of an industrial loan company, in addition to the statement required by subdivision (b) of Section 202 of the Corporations Code,…
- § 18103 An industrial loan company’s certificate to engage in the industrial loan business is not transferable or assignable.
- § 18104 Except as otherwise authorized under existing law, no person, unless lawfully authorized to do business in this state under the provisions of this division and…
ARTICLE 2. Applications §§ 18115–18120 · 5 sections
- § 18115 An application for authority to engage in the industrial loan business shall be in such form and contain such information as the commissioner may require and…
- § 18116 Upon the filing of an application, the commissioner shall make or cause to be made a careful investigation and examination relative to the following: (a) The…
- § 18117 The commissioner, upon reasonable notice and opportunity to be heard, may deny the application for any of the following reasons: (a) The public convenience and…
- § 18119 Within 30 days after an application is filed for authorization to establish an industrial loan company which intends to sell and issue its investment…
- § 18120 Before the commissioner issues a certificate of authorization to operate as an industrial loan company, there must be paid in cash for the benefit of the…
ARTICLE 3. Capitalization §§ 18130–18139 · 6 sections
- § 18130 The capital stock of an industrial loan company incorporated under this division shall not be less than: (a) Five hundred thousand dollars ($500,000), if…
- § 18131 In addition to the capital stock required by Section 18130, an industrial loan company which has branch offices or which opens an additional branch office or…
- § 18132 An industrial loan company may declare a dividend on its capital stock only if the company has minimum unimpaired capital of seven hundred fifty thousand…
- § 18137 An industrial loan company shall not reduce its capital stock to an amount less than is required by this article to be maintained by such company or less than…
- § 18138 (a) No person may acquire in the aggregate 10 percent or more of the capital stock of, or the capital of, an industrial loan company through purchase,…
- § 18139 A sale, merger, or conversion involving an industrial loan company and another industrial loan company, a bank, or a savings association is subject to Division…
ARTICLE 4. Branch Offices §§ 18145–18154 · 11 sections
- § 18145 Subject to Section 18145.1, when authorized by the commissioner as provided in this division, an industrial loan company, pursuant to a resolution of its board…
- § 18145.1 (a) The commissioner may, by order or regulation, exempt from the requirement of authorization by the commissioner set forth in Section 18145 any establishment…
- § 18146 The request for authority to establish a branch office shall be set forth in an application in such form and containing such information as the commissioner…
- § 18147 The commissioner shall not approve an application for a branch office until the commissioner has ascertained to the commissioner’s satisfaction that the facts…
- § 18148 The failure of an industrial loan company to open and operate a branch office within six months after the commissioner has issued an order approving the…
- § 18149 When the commissioner has approved an application for permission to establish a branch office and the applicant pays to the commissioner an additional fee of…
- § 18150 An industrial loan company shall keep posted in a conspicuous place in each branch office the certificate of authorization to transact business issued by the…
- § 18151 An industrial loan company which opens a branch office without first obtaining a certificate of authorization to transact business shall forfeit to the people…
- § 18152 The provisions of Sections 18146, 18147, 18148, 18149, 18150, and 18151 shall not affect branch offices which are opened and operating prior to September 18,…
- § 18153 An industrial loan company which maintains a branch office or branch offices shall give to each branch office maintained by it a specified designation by name…
- § 18154 With the prior written approval of the commissioner, an industrial loan company may close or discontinue the opertion of any branch office provided public…
ARTICLE 5. Change of Location §§ 18165–18166 · 3 sections
- § 18165 (a) Except as otherwise provided for in this division, an industrial loan company shall not transact business or make any loan provided for by this division at…
- § 18165.1 (a) The commissioner may, by order or regulation, exempt from the requirement of authorization by the commissioner set forth in Section 18165 any establishment…
- § 18166 (a) If an industrial loan company desires to change its place of business to a street address other than that designated in its authorization, it shall give…
CHAPTER 3. Loans and Purchased Obligations §§ 18190–18303 · 55 sections
ARTICLE 1. General §§ 18190–18192 · 4 sections
- § 18190 An industrial loan company may: (a) Loan money, secured or unsecured, with or without the pledge of its installment investment certificates. (b) Collect and…
- § 18191 Sections 18008, 18009, 18010, 18212, 18212.1, 18214, 18219, 18220, 18222, 18230 through 18234, 1829
- § 18191.5 Sections 18008, 18009, 18010, 18212, 18212.1, and 18214 do not apply to: (a) Any bona fide loan of a principal amount of five thousand dollars ($5,000) or…
- § 18192 The payment of money, credit, goods, or things in action as consideration for any sale or assignment of, or order for, the payment of wages, salary,…
ARTICLE 2. Terms and Maximum Charges §§ 18205–18222 · 22 sections
- § 18205 Except as otherwise provided for in this division, an industrial loan company shall not make any loan or purchase or discount any other obligation that…
- § 18205.5 Notwithstanding any other provision of this division, an industrial loan company may make a loan or acquire an obligation that is repayable in unequal periodic…
- § 18206 Consumer loans made and obligations acquired that are secured by a motor vehicle and repayable other than in equal periodic payments during its term shall not…
- § 18207 An industrial loan company may make a consumer loan that is not secured primarily by real property or other type of loan which is repayable at maturity by a…
- § 18208 An industrial loan company may make a consumer loan in which the principal and charges are payable at any time during the loan, provided that the loan is…
- § 18209 An industrial loan company may make loans, purchase or discount notes, mortgages, contracts or other commercial paper insured by the Federal Housing…
- § 18210 (a) Except as provided in Sections 18205.5 and 18209 and subject to subdivisions (b) and (c), an industrial loan company shall not make any loan or purchase or…
- § 18211 No charge shall be collected unless a loan is made, except that an industrial loan company may charge, contract for, and receive a fee in connection with…
- § 18212 (a) The charges by an industrial loan company, broker, and all other persons on any loan, forbearance of money, credit, goods, or things in action under this…
- § 18212.1 As an alternative to the charges authorized by Section 18212 a licensee may contract for and receive charges at a rate not exceeding five-sixths of 1 percent…
- § 18212.2 In addition to the charges authorized by Section 18212 or 18212.1 an industrial loan company may contract for and receive an administrative fee, which shall be…
- § 18213 Notwithstanding any other provision of law not within this division, industrial loan companies making loans pursuant to this division may not precompute…
- § 18214 For the purpose of computing the charges set forth in this article, a month is any period of 30 consecutive days.
- § 18215 An industrial loan company may contract for, collect, and receive at the time of making the loan or at any time thereafter, any of the following: (a) Any cost…
- § 18216 (a) Notwithstanding Section 18211, an appraisal fee may be charged to an applicant or borrower by an industrial loan company in connection with an application…
- § 18217 An escrow fee of a reasonable amount may be charged for any loan made which is secured primarily by real property when such services are actually performed.…
- § 18218 Notwithstanding any other provision of this division, an industrial loan company, in the collection of a delinquent loan of an unpaid principal balance, may do…
- § 18218.5 With respect to a loan under this division, a fee not to exceed fifteen dollars ($15) for return by a depository institution of a dishonored check, negotiable…
- § 18219 An industrial loan company shall not induce or permit any borrower to split up or divide any loan and thereby contract for or receive a higher rate of charge…
- § 18220 An industrial loan company shall not induce any spouses, jointly or severally, to become obligated, directly or contingently or both, under more than one…
- § 18221 Nothing in this division shall prevent an industrial loan company from transacting loan contracts with different borrowers and from contracting for and…
- § 18222 An industrial loan company shall permit payment to be made in advance in any amount on any contract of loan at any time. The industrial loan company shall…
ARTICLE 3. Disclosure and Loan Documents §§ 18230–18235 · 5 sections
- § 18230 Each industrial loan company shall display prominently in each place of business a full and accurate schedule of the maximum charges to be made and the method…
- § 18231 Each industrial loan company shall: (a) Deliver or cause to be delivered to the borrowers, or any one thereof, at the time the loan is made, a written…
- § 18233 An industrial loan company shall deliver or cause to be delivered to the person making any payment in person in cash at any office of the company, at the time…
- § 18234 An industrial loan company shall upon repayment of any loan in full, cancel or plainly mark “paid” and return to the borrower or person making final payment,…
- § 18235 An industrial loan company shall not take any note, promise to pay, or security agreement that does not accurately disclose the actual amount of the loan, the…
ARTICLE 4. Credit Cards § 18245 · 1 section
- § 18245 (a) Subject to any regulations that the commissioner may issue, an industrial loan company may issue credit cards and may acquire or hold obligations resulting…
ARTICLE 5. Limitations and Regulations of Loans and Purchased Obligations §§ 18265–18274 · 11 sections
- § 18265 An industrial loan company that has investment certificates outstanding shall not make any loan or purchase or discount any other obligation with a maturity of…
- § 18266 (a) Except as set forth in subdivisions (b) and (c), any loan or obligation made or acquired by an industrial loan company that has investment certificates…
- § 18266.1 An industrial loan company may make loans and acquire obligations, the proceeds of which are used for home improvements that are secured by real property…
- § 18266.2 An industrial loan company shall file a written request for authorization to conduct business under Section 18266.1. The request shall include the following…
- § 18266.3 The commissioner shall approve the request made pursuant to Section 18266.2 within 30 days after filing unless the commissioner has ascertained that the…
- § 18268 An industrial loan company that has investment certificates outstanding shall not lend in the aggregate more than 5 percent of its capital stock and surplus…
- § 18269 An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by improved real property in a principal…
- § 18270 An industrial loan company may require the borrower to sign a contract of pledge, assignment, mortgage, security agreement, deed of trust, or trust receipt…
- § 18271 An industrial loan company that has investment certificates outstanding shall not make loans to, or hold the obligations of, any one person as primary obligor…
- § 18272 An industrial loan company shall diversify the loans and lease obligations it makes and other obligations it acquires, both as to the types of debtors and…
- § 18274 The principal balances of loans made, or obligations purchased, by an industrial loan company that has investment certificates outstanding, which loans or…
ARTICLE 6. Insurance Sold With Loans §§ 18290–18296 · 8 sections
- § 18290 (a) As used in this division: (1) “Credit life insurance” and “credit disability insurance” have the same meanings as defined in Section 779.2 of the Insurance…
- § 18291 (a) If credit life or disability insurance is provided pursuant to this division, and if the insured borrower dies or becomes disabled during the term of the…
- § 18292 (a) If credit disability insurance is provided pursuant to this division, it shall not provide indemnity against the risk of a borrower becoming disabled for a…
- § 18292.5 If credit loss-of-income insurance is provided pursuant to this division, it shall be subject to the following conditions: (a) The insurance shall provide…
- § 18293 If credit disability or loss-of-income insurance is provided pursuant to this division, the industrial loan company shall also deliver an understandable…
- § 18294 An industrial loan company may collect the costs for insurance of tangible personal or real property offered as security for a loan, reasonably insured against…
- § 18295 An industrial loan company may collect the costs of title insurance for loans secured primarily by real property. The costs for such insurance may be collected…
- § 18296 An industrial loan company may collect the costs of insurance of the type defined by subdivision (a) of Section 12640.02 of the Insurance Code. Costs…
ARTICLE 6.5. Open-End Loans §§ 18300–18303 · 4 sections
- § 18300 (a) As used in this article, “open-end loan” means a loan or loans made by an industrial loan company pursuant to a loan agreement which expressly states that…
- § 18301 (a) Whenever authorized by the commissioner, an industrial loan company whose thrift obligations are insured by the Federal Deposit Insurance Corporation may…
- § 18302 An industrial loan company shall file a written request for authorization to conduct business under subdivision (a) of Section 18301. The request shall include…
- § 18303 The commissioner shall approve the request made pursuant to Section 18302 within 30 days after filing unless the commissioner has ascertained that the company…
CHAPTER 4. Investment Certificates §§ 18315–18325 · 10 sections
- § 18315 (a) When authorized to conduct business pursuant to this division, an industrial loan company may sell and issue its investment certificates subject to the…
- § 18316 An industrial loan company may, in addition to the sale of installment investment certificates with loans, sell or negotiate investment certificates either in…
- § 18317 No company may have investment certificates outstanding with a person or related persons in an aggregate amount in excess of 20 percent of the unimpaired…
- § 18318 Investment or thrift certificates may be issued to or in the name of a minor and as such shall be for the exclusive right and benefit of such minor and may be…
- § 18318.5 An investment or thrift certificate that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2 (commencing with…
- § 18319 In no event shall an industrial loan company have outstanding at any time its investment certificates (exclusive of those hypothecated with the company issuing…
- § 18320 Notwithstanding Section 18319, an industrial loan company shall in no event: (a) Have outstanding at any time during its first 12 months of operation as an…
- § 18321 (a) Nothing in this division authorizes an industrial loan company to receive demand deposits. (b) Subject to Section 18315, an industrial loan company that is…
- § 18322 An industrial loan company shall obtain the written consent of the commissioner prior to accepting any moneys pursuant to Section 17409. The commissioner may,…
- § 18325 (a) An industrial loan company shall not impose any charge on a periodic investment or thrift certificate, or on an investor in an account evidenced by such…
CHAPTER 5. Administration and Powers of the Commissioner §§ 18339–18427.11 · 104 sections
ARTICLE 1. General §§ 18339–18368 · 31 sections
- § 18339 As of the operative date of this section: (a) There is established an Industrial Loan Account in the Financial Institutions Fund in the State Treasury. (b) All…
- § 18340 All money received or collected by the commissioner under this division or any other law relating to industrial loan companies or the industrial loan business…
- § 18340.5 All expenses of the department in administering this division and other laws relating to industrial loan companies or the industrial loan business shall be…
- § 18342 Industrial loan companies have the powers specified in this division. In addition, industrial loan companies have the general powers conferred upon…
- § 18343 The commissioner may require an industrial loan company to establish and maintain reasonable reserves for loans made, and contracts or other obligations…
- § 18344 An industrial loan company shall not conduct the business of making loans under this division, within any office, room, or place of business in which any other…
- § 18345 An industrial loan company shall notify the commissioner of every change in the officers, directors and management personnel of the company and of each branch…
- § 18346 The commissioner may require each industrial loan company to file with the commissioner a fidelity bond indemnifying the industrial loan company against loss…
- § 18346.1 (a) In lieu of providing a bond required pursuant to Section 18346, a licensee may deposit with the commissioner security in an amount as the commissioner may…
- § 18347 The commissioner may establish rules and regulations which are reasonable and necessary to carry out the purposes and provisions of this division, including…
- § 18349 The commissioner may, upon reasonable notice and opportunity to be heard, suspend or revoke the license of an industrial loan company if the commissioner finds…
- § 18349.5 (a) For the purposes of this section, the following definitions are applicable: (1) “Account holder” includes, in the case of an investment certificate…
- § 18350 Each industrial loan company shall pay to the commissioner its pro rata share of all costs and expenses of the department in administering this division and…
- § 18351 On or before the 30th day of November in each year, the commissioner shall notify each industrial loan company by mail of the amount assessed and levied…
- § 18352 In the levying and collection of an assessment pursuant to Section 18350, an industrial loan company shall not be assessed for nor be permitted to pay less…
- § 18353 If an industrial loan company fails to pay the assessment provided in Section 18350 on or before the 30th day of December following the day upon which payment…
- § 18354 The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he requires relative to the affairs of an…
- § 18355 Whenever, after an examination, investigation or hearing under this division, the commissioner deems it of public interest or advantage, he may certify a…
- § 18356 The commissioner may order any industrial loan company to desist from any conduct which the commissioner finds in violation of this division or any rule or…
- § 18357 (a) If it appears to the commissioner that an industrial loan company has violated or failed to comply with the provisions of its articles of incorporation, or…
- § 18358 If it appears to the commissioner that an industrial loan company is conducting business in an unsafe, unsound, or injurious manner, the commissioner may, by…
- § 18359 Whenever the commissioner is authorized to issue an order pursuant to Section 18357 or Section 18358 of this division, the commissioner may issue an order…
- § 18360 The company named in any order issued pursuant to this division for which no express hearing right is provided, including Sections 18356, 18357, 18358, 18359,…
- § 18361 After any order is made final, the industrial loan company shall have 10 days in which suit may be commenced to restrain enforcement of such order and unless…
- § 18362 (a) If the commissioner believes that an industrial loan company or its directors, officers, agents, or employees have violated or are about to violate any of…
- § 18363 The commissioner may order an industrial loan company to suspend the redemption of investment certificates or the payment of the liabilities of the company or…
- § 18364 After an order of suspending or limiting the payment of liabilities is effective and until that order is rescinded, the industrial loan company shall make no…
- § 18365 The authority granted to the commissioner by Section 18363, may be exercised by him in conjunction with all other powers granted by this chapter, or…
- § 18366 Every order, decision, license, or other official act of the commissioner is subject to review in accordance with law. Upon review, the burden of proof lies…
- § 18367 (a) If at any time the commissioner is of the opinion that the further sale of investment certificates by an industrial loan company would be unfair, unjust or…
- § 18368 (a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers. (b) (1) The agreements authorized…
ARTICLE 2. Examinations §§ 18390–18396 · 6 sections
- § 18390 For the purpose of discovering violations of this division or securing information required, the commissioner may at any time investigate the affairs and…
- § 18391 Whenever in the judgment of the commissioner the condition of any industrial loan company renders it necessary or expedient to devote any extraordinary…
- § 18392 The industrial loan company examined shall pay to the commissioner the cost of any examination, investigation or services, including the salary or other…
- § 18393 The commissioner shall, upon receipt of written notification by an industrial loan company that it intends to engage in or is engaging in transactions…
- § 18394 Investigation and examination reports prepared by the commissioner’s duly designated representatives shall not be public records. Those reports may be…
- § 18396 (a) In this section, “governmental agency” includes, without limitation, any agency of this state, of any other state of the United States, of the United…
ARTICLE 3. Reports and Financial Statements §§ 18405–18412 · 8 sections
- § 18405 (a) On or before the 15th day of March of every year, each industrial loan company shall file with the commissioner an audit report containing audited…
- § 18406 Each industrial loan company which has issued and which has outstanding investment certificates shall: (a) Post in a conspicuous and prominent place in each…
- § 18407 An industrial loan company shall, when requested by the commissioner, submit its unaudited financial statements, prepared in accordance with generally accepted…
- § 18408 An industrial loan company shall make other special reports to the commissioner as the commissioner may from time to time require.
- § 18409 The commissioner shall make and file annually with the department as a public record a composite of reports filed by industrial loan companies, and any…
- § 18410 For the purposes of the composite report provided for by Section 18409, an industrial loan company shall furnish statistical information as is reasonably…
- § 18411 The commissioner may by rule or regulation specify the form and contents of the financial statements, reports, certificates and opinions required to be filed…
- § 18412 Each report required under this article shall be filed with the commissioner at the time that the commissioner by regulation or order may require. If any…
ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner §§ 18415–18425.17 · 47 sections
- § 18415 The commissioner may take possession of the property and business of any industrial loan company and retain possession until the company resumes business or…
- § 18415.1 Whenever the commissioner has taken possession of the property and business of an industrial loan company, that industrial loan company, within 10 days after…
- § 18415.2 An appeal may be taken from the judgment of the court by the commissioner or by the industrial loan company in the manner provided by law for appeals from the…
- § 18415.3 (a) Whenever the net worth of an industrial loan company, exclusive of its good will, is less than 90 percent of the aggregate sum of its outstanding…
- § 18415.4 The commissioner may also, upon the request of the board of directors of a company, take possession of the property and business of a company and as…
- § 18415.5 Upon taking possession of the property and business of any industrial loan company, the commissioner shall give notice of that fact to all persons holding or…
- § 18415.6 Any officer, agent, employee, director, or stockholder of a company who refuses to comply with the demand for possession issued under Section 18415 shall be…
- § 18415.7 On demand of the commissioner, it shall be the duty of the sheriff of any county of the state, and of the police department of any municipal corporation…
- § 18415.8 Upon taking possession of the property and business of any company, the superior court for the county in which the head office of the company is located shall…
- § 18415.9 At any time after the order taking possession issued under Section 18415 has been filed with the court, the commissioner may remove the principal office of the…
- § 18415.10 The commissioner may, at any time, examine under oath any officer, director, agent, employee or stockholder of a company to determine whether or not all…
- § 18415.11 Upon taking possession of the property and business of any company, the commissioner has authority and the duty to collect all moneys due to the company and to…
- § 18415.12 The commissioner may file a petition with the court and the court shall issue such injunctions or orders, as may be deemed necessary, to prevent any of the…
- § 18415.13 After the taking of possession of the property and business of any company, the commissioner may terminate or adopt any executory contract to which the company…
- § 18415.14 The commissioner may proceed against any debtor or alleged debtor by way of summary procedure or by order to show cause issued by the court upon application by…
- § 18415.15 The commissioner may make examinations of the seized company and review the activities of any conservator or liquidator.
- § 18415.16 The actual cost of any examination, investigation or services, including the actual amount of salary or other compensation paid to the persons making the…
- § 18415.17 The determination by the commissioner to liquidate a company, evidenced by filing written notice of the determination with the court, operates to stay or…
- § 18415.18 Upon taking possession of the property, and business of a company in any proceeding under this article, the commissioner shall have the power to do all of the…
- § 18415.19 All expenses of taking possession of, conserving, conducting, liquidating, disposing of or otherwise dealing with the business and property of any company…
- § 18415.21 Any transaction occurring within six months of the date of taking possession shall be voidable by the conservator or liquidator if the transaction has the…
- § 18415.22 No obligation may be purchased or discounted under any agreement between the company and any person involving the purchase or discount of obligation from the…
- § 18415.23 No attachment or execution shall be issued against the property of any company before final judgment in any action or proceeding in any court.
- § 18420 The commissioner, as conservator or liquidator, after taking possession of the company, shall, in his or her name, in the name of the company, in the name of…
- § 18420.1 No transaction involving real or personal property, investment or reinvestment of funds or assets, or settlement or compromise of pending lawsuits shall be…
- § 18420.2 The commissioner may, with ex parte approval of the court, sell all or any part of the company’s assets to another industrial loan company, to a bank, to a…
- § 18420.5 The commissioner may appoint a person to act as conservator or liquidator of the company. The person appointed may be Thrift Guaranty Corporation of…
- § 18420.6 The commissioner shall have the authority to terminate the appointment of a conservator or liquidator whenever the commissioner deems it in the best interest…
- § 18420.7 The commissioner may require a conservator or liquidator to provide such bond as the commissioner deems proper. The conservator or liquidator shall receive a…
- § 18425 If at any time after taking possession of the property and business of a company it shall appear to the commissioner that it would be futile to proceed as…
- § 18425.1 The liquidator shall cause notice to be given by publication for four successive weeks in a newspaper of general circulation at or near the principal place of…
- § 18425.2 All claims, demands, or causes of action of creditors, and persons other than investors against any property owned or held by it in trust, or otherwise, must…
- § 18425.3 If the liquidator doubts the validity of any claim, the liquidator may reject the claim and serve notice of rejection upon the claimant either by certified…
- § 18425.4 A claim shall set forth, under oath, on the form prescribed by the commissioner, all of the following: (a) The particulars of the claim, and the consideration…
- § 18425.5 When an investment certificate holder is also a debtor, the liquidator may offset any balance due the investment certificate holder against the debt and the…
- § 18425.6 The amount of a claim of an investment certificate holder shall be the amount which the investment certificate holder would have been entitled to withdraw as…
- § 18425.7 When the time fixed for the presentation of claims has expired, the liquidator shall make in duplicate a full and complete list of all claims presented,…
- § 18425.8 Objections to any claim not rejected by the liquidator may be made by any person interested by filing his or her objections, in writing, with the liquidator,…
- § 18425.9 The liquidator, with the approval of the court, may pay one or more dividends to investment certificate holders prior to the expiration of the time for filing…
- § 18425.10 (a) Claims allowed in a proceeding under this article shall be given preference in the following order: (1) All costs and expenses of administration of…
- § 18425.11 Whenever the commissioner determines to liquidate a company, the commissioner shall cause an inventory of all the assets of the company to be made in…
- § 18425.12 If it appears improbable that anything can be realized from any property of the company and that the cost of maintaining, preserving, or protecting the…
- § 18425.13 If a purchaser of any property or any bad or doubtful debt or claim of a company cannot be obtained and it appears improbable that recovery thereon can be had,…
- § 18425.14 When the liquidator has fully liquidated all claims other than claims of stockholders, made due provision for any and all known but unclaimed liabilities,…
- § 18425.15 Upon the payment of a final dividend in liquidation, the commissioner shall prepare and file with the court a full and final statement of the liquidation,…
- § 18425.16 In making its order approving the commissioner’s final statement of the liquidation of the company, the court shall determine the amounts of the liquidating…
- § 18425.17 The order of the court approving the final statement on liquidation shall provide for the destruction or other disposition of the books and records of the…
ARTICLE 5. Securities Transactions §§ 18427–18427.11 · 12 sections
- § 18427 Unless the context otherwise requires, in this article: (a) “Offer” or “offer to sell” includes every attempt or offer to dispose of, or solicitation of an…
- § 18427.1 No industrial loan company organized under the laws of this state shall offer or sell any security issued by it unless the commissioner has issued a permit…
- § 18427.2 An application for a permit shall be in such form and contain such information as the commissioner may prescribe.
- § 18427.3 The commissioner shall charge and collect fees for applications filed under this article as fixed in this section. (a) The fee for a negotiating permit shall…
- § 18427.4 If the commissioner finds that the proposed sale of securities is fair, just, and equitable, he or she shall issue to the applicant a permit authorizing it to…
- § 18427.5 The commissioner may impose conditions in any permit issued under Section 18427.4, requiring the deposit in escrow of securities, imposing a legend condition…
- § 18427.6 Every permit issued pursuant to Section 18427.4 shall recite that it is permissive only and does not constitute a recommendation or endorsement of the…
- § 18427.7 The commissioner may amend, alter, suspend, or revoke any permit issued pursuant to Section 18427.4.
- § 18427.8 Whenever an industrial loan company applies for a permit to issue any security or to deliver any other consideration (whether or not such security or such…
- § 18427.9 There shall be exempted from the provisions of Section 18427.1 all of the following: (a) (1) Any offer, not involving a public offering, to an affiliate or to…
- § 18427.10 Nothing contained in this article shall affect the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations…
- § 18427.11 The commissioner may by regulation or order restrict, limit, prohibit or otherwise condition the uses of the proceeds from the sale of securities, the extent…
CHAPTER 6. Prohibited Practices and Penalties §§ 18435–18457 · 24 sections
- § 18435 Except as otherwise provided in this division, any person who willfully violates any provision of this division, or who willfully violates any rule or order…
- § 18436 An industrial loan company shall not, directly or indirectly, make any loan of money or property to or guarantee the obligation of any of its directors or…
- § 18437 (a) Except as provided in subdivision (b), an industrial loan company shall not make loans to, or purchase any obligations from, persons who do not reside or…
- § 18438 If a loan is made or other thing is purchased or discounted in violation of Section 18271, 18272, 18273, 18274, or 18437, the officers, directors and…
- § 18439 If any amount in excess of the charges permitted by this division, including interest, is charged, contracted for, or received in the making or collection of a…
- § 18440 An industrial loan company shall not take any confession of judgment or any power of attorney at the time of making the loan except a power of attorney taken…
- § 18441 No person in connection with or incidental to the making of any loan under this division, shall require the borrower to contract for, purchase, or agree to…
- § 18442 An industrial loan company shall not make any loan of money or property to or guarantee the obligation of any person upon the security of its capital…
- § 18443 If any loan or guaranty is made in violation of Section 18436 or 18442, the directors and officers who authorize it or assent thereto are jointly and severally…
- § 18444 Any officer or director held liable under Section 18443, who satisfies such liability is entitled to contribution from any other officer or director who…
- § 18445 Any director, officer, or employee of an industrial loan company, its holding company, or its affiliates who asks for or receives, or consents or agrees to…
- § 18446 Any director, officer, or employee of an industrial loan company, its holding company, or its affiliates who knowingly receives or possesses himself of any of…
- § 18447 Any director, officer, or employee of an industrial loan company, its holding company, or its affiliates who knowingly makes or concurs in making or publishing…
- § 18448 No director, officer, stockholder, or employee of an industrial loan company, its holding company, or its affiliates shall purchase, directly or indirectly, or…
- § 18449 Every director of an industrial loan company who: (a) In the case of the fraudulent insolvency of such company, shall have participated in such fraud; or (b)…
- § 18450 A director, officer, or employee of an industrial loan company, its holding company, or its affiliates who concurs in any vote or act by which it is intended…
- § 18451 A director, officer, or employee of an industrial loan company, its holding company, or its affiliates who makes or maintains, or attempts to make or maintain,…
- § 18452 Every officer or employee of an industrial loan company, its holding company, or its affiliates who sells investment or thrift certificates knowing that the…
- § 18453 Any person who knowingly sells investment certificates in violation of any provision of this division or any order or regulation of the commissioner, is guilty…
- § 18454 Any director, officer, agent or employee of an industrial loan company, its holding company, or its affiliates who willfully makes a false or untrue entry in…
- § 18454.5 It is unlawful for any person to willfully make any untrue statement of a material fact in any document filed with the commissioner under this division, or to…
- § 18455 An industrial loan company shall not, directly or indirectly, make any loan to, or purchase a contract, loan, or chose in action from, hold a lease obligation…
- § 18456 The provisions of this chapter shall be applicable to lease obligations.
- § 18457 Any officer, director, employee, or agent of any company who abstracts or willfully misapplies any of the money, funds, or property of the industrial loan…
CHAPTER 7. Guarantee of Thrift Accounts §§ 18475–18538 · 38 sections
ARTICLE 1. Definitions §§ 18475–18481 · 7 sections
- § 18475 “Guaranty corporation” means Thrift Guaranty Corporation of California which exists under the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with…
- § 18476 (a) “Member” means an industrial loan company required by Section 18100.5 to be a member of Guaranty Corporation. “Member” includes “special member” except…
- § 18477 “Thrift obligations” as used in this chapter include principal invested in investment or thrift certificates however evidenced, and unpaid interest thereon…
- § 18478 “Fund” means the Guaranty Corporation Fund established pursuant to Section 18535.
- § 18479 “Capital contribution” means the amount each member is required to maintain as an investment in the corporation pursuant to Section 18535.
- § 18480 “Member account” means the total of all amounts credited to a member for paid-in capital contributions, and other credits, net of any charges to that…
- § 18481 “Guaranteed investment certificate” means a thrift obligation guaranteed by Guaranty Corporation pursuant to Section 18523.
ARTICLE 2. General §§ 18490–18512 · 23 sections
- § 18490 When the property and business of a member, other than a special member, has been liquidated or is in the process of liquidation by the commissioner and the…
- § 18491 (a) When the property and business of a member, other than a special member, is being liquidated, the commissioner may direct Guaranty Corporation to pay each…
- § 18493 Whenever it appears to the commissioner that Guaranty Corporation has: (a) Violated its articles of incorporation or any law of this state; (b) Not paid…
- § 18494 Whenever the commissioner has taken possession of the property and business of Guaranty Corporation, Guaranty Corporation within 10 days after such taking, if…
- § 18495 An appeal may be taken from the judgment of the court by the commissioner or by Guaranty Corporation in the manner provided by law for appeals from the…
- § 18496 (a) Guaranty Corporation shall have independent authority to approve membership, or suspend or revoke the right to participate in Guaranty Corporation by any…
- § 18496.1 (a) A director, officer, employee, or agent of Thrift Guaranty Corporation shall be subject to liability for acts of fraud, willful misconduct, or reckless or…
- § 18497 Guaranty Corporation may invest its funds only in readily marketable securities as provided by rules of the commissioner. Upon request of the commissioner,…
- § 18498 Income from investments shall be recorded in an income account and be used to defray expenses of administration. Income from investments that exceeds an amount…
- § 18499 Expenses of administration that exceed income from investments at year end shall be charged to members’ accounts. Each member’s account shall be charged…
- § 18500 Guaranty Corporation shall have authority to: (a) Borrow funds when necessary to effectuate the provisions of this chapter. (b) Make loans to, deposits in,…
- § 18501 The commissioner shall give prompt notice to Guaranty Corporation when the commissioner takes possession of the property and business of a member and shall…
- § 18502 Memberships issued by Guaranty Corporation shall be nontransferable and shall be exempt from the provisions of the Corporate Securities Law of 1968.
- § 18503 The commissioner and the commissioner’s duly designated representatives may at any time investigate the affairs and examine the books, accounts, records and…
- § 18504 Any member or industrial loan company making application to participate in Guaranty Corporation aggrieved by any action or decision of Guaranty Corporation may…
- § 18505 (a) After consultation with, and approval by, the Thrift Guaranty Corporation, the commissioner shall adopt rules and regulations regarding information to be…
- § 18506 No person shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed,…
- § 18507 In order to permit Guaranty Corporation to fulfill its obligations under this chapter, the commissioner shall furnish to Guaranty Corporation a list of all…
- § 18508 An industrial loan company or its successor shall not be entitled to receive a refund, return, withdrawal, or distribution of the amount in its member’s…
- § 18509 (a) Guaranty Corporation may elect to wind up and dissolve upon approval of the commissioner, the board, and the members in accordance with Section 8610 of the…
- § 18510 The Board of Directors of Guaranty Corporation shall be composed of five members, at least two of which shall be public members. The five members shall be…
- § 18511 Guaranty Corporation shall establish a permanent office in this state.
- § 18512 The commissioner may require Guaranty Corporation to obtain a bond, insurance, or reinsurance which provides additional protection against losses to its…
ARTICLE 3. Purpose and Scope of Guaranty Corporation §§ 18520–18525 · 5 sections
- § 18520 It shall be the purpose of Guaranty Corporation to guarantee full payment of guaranteed accounts of members, exclusive of special members, up to fifty thousand…
- § 18521.5 (a) Notwithstanding Section 18521 or 18100.5, until July 1, 1990, each industrial loan company, other than a premium finance agency, which has issued and has…
- § 18521.6 No industrial loan company which fails to comply with the requirements of subdivision (b) of Section 18521.5 by June 30, 1990, may continue to sell and issue…
- § 18523 The following described thrift obligations will be guaranteed by Guaranty Corporation in the amounts hereinafter set forth below: (a) Single ownership…
- § 18525 Notwithstanding any other provision of this division, Guaranty Corporation, with the written consent of the commissioner, shall have the power to assume…
ARTICLE 4. Assessments §§ 18535–18538 · 3 sections
- § 18535 Guaranty Corporation shall establish and maintain a guarantee fund as follows: (a) Each new member, other than a new special member, shall pay one hundred…
- § 18536 Guaranty Corporation shall send a written notice of assessment to each member assessed within 10 days after the levy of any assessment. Amounts assessed shall…
- § 18538 In the event any member fails to pay an assessment when due, Guaranty Corporation shall report such default in writing to the commissioner and the defaulting…
CHAPTER 8. Insurance Premium Financing §§ 18560–18643 · 47 sections
ARTICLE 1. Definitions §§ 18560–18567 · 8 sections
- § 18560 “Premium finance agency” means any industrial loan company incorporated under this division which, by the terms of its authority to engage in the industrial…
- § 18561 Such terms relating to insurance as are used in this chapter shall have the meaning ascribed to them in the Insurance Code and in the practices of the…
- § 18562 As used in this chapter, “insured” means the person who has purchased or arranged to purchase an insurance contract and who enters into a premium finance…
- § 18563 As used in this chapter, “premium financing” means the activities of a company engaging in the business of advancing money directly or indirectly to an insurer…
- § 18564 As used in this chapter, “premium finance agreement” means a loan contract, note, agreement or obligation by which an insured agrees to pay to a company in…
- § 18565 As used in this chapter, “company” means a premium finance agency.
- § 18566 As used in this chapter, “principal balance” means the difference between the amount of the premium and fees charged by the insurer or producer and the…
- § 18567 As used in this chapter, “finance charge” means any amount which the insured agrees to pay the company in excess of the premium and fees charged by the insurer…
ARTICLE 2. General §§ 18580–18596 · 17 sections
- § 18580 A premium finance agency desiring the full authority which may be conferred by this division, shall, in respect to any lending operations other than insurance…
- § 18581 The articles of incorporation of any corporation organized under this division as a premium finance agency shall include reference to that fact.
- § 18582 Capital stock of any premium finance agency shall not be less than seventy-five thousand dollars ($75,000) and need not exceed that sum regardless of the…
- § 18583 Before a premium finance agency commences business or opens a branch office or place of business, there must be paid in cash, for the benefit of the agency,…
- § 18584 An insurance premium finance agreement, as defined in Section 18564, may be prepared in the office of an insurance producer licensed by the Department of…
- § 18585 In the event of any conflict in the provisions of this chapter with the provisions of any other chapter in this division, the provisions of this chapter shall…
- § 18586 The provisions of Sections 18023, 18024, 18120, 18205, 18268, 18269, 18271, 18272, 18274, and 18455 shall not apply to a premium finance agency.
- § 18587 The provisions of Sections 18607, 18625, and 18626 shall not apply to any bona fide loan with a principal amount of two thousand five hundred dollars ($2,500)…
- § 18588 Unless the insured has notice of the assignment of a premium finance agreement, payment thereunder by him to the last known assignee of the agreement shall be…
- § 18589 At any time during the term of the premium finance agreement, but not later than one year after the last payment thereunder, the company shall upon written…
- § 18590 Upon payment of a loan in full the company upon request shall return the premium finance agreement marked “Paid” to the insured.
- § 18591 No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors,…
- § 18592 Any downpayment which is made and which is received by the company from the insured, or from the insurance producer on behalf of the insured, shall be held by…
- § 18593 The downpayments received by the company under the provisions of Section 18592, may be held by the company in trust in a separate bank account or depository,…
- § 18594 Any corporation organized as an industrial loan company other than a premium finance agency shall conduct any insurance premium financing business under the…
- § 18595 A premium finance agency shall not incorporate the words “industrial loan company” in its corporate name, on its loan forms, or in its advertising.
- § 18596 A premium finance company may issue or sell investment certificates only (a) to its customers directly in connection with the financing of premiums for those…
ARTICLE 3. Provisions of Premium Finance Agreements §§ 18605–18611 · 7 sections
- § 18605 A premium finance agreement shall be in writing and the printed portion thereof shall be in at least eight-point type. The agreement shall set forth: 1. The…
- § 18606 A premium finance agreement shall not be executed by or on behalf of the insured when it contains any blank space to be filled in thereafter; however, if any…
- § 18607 Upon receipt of the loan form the company shall promptly mail to the insured at the address shown in the agreement, or deliver to the insured personally,…
- § 18608 (a) A premium finance agreement may contain a power of attorney or other authority enabling the company to cancel the insurance contract or contracts listed in…
- § 18609 All statutory, regulatory and contractual restrictions providing that the insured or the insurer shall not cancel the insurance contract unless the insured or…
- § 18610 The insurer within a reasonable time after the effective date of cancellation shall return whatever gross unearned premiums or accrued dividends are payable…
- § 18611 At the time of mailing the notice required by Section 18606 or 18608, the employee of the company who is doing the mailing shall prepare and sign an affidavit…
ARTICLE 4. Limitation on Finance Charges §§ 18625–18631 · 7 sections
- § 18625 A premium finance agency shall not, except as otherwise provided by law, impose, take, receive, reserve or charge a finance charge which in the aggregate is…
- § 18626 A premium finance agency may, in a premium finance agreement, contract for, charge, receive, and collect a finance charge which shall not exceed in the…
- § 18627 If the finance charge computed under Section 18626 is less than twenty-five dollars ($25), a minimum finance charge of twenty-five dollars ($25) may be imposed.
- § 18628 The finance charge may be computed from the effective date of the insurance coverage, provided that the company shall pay the premium due the insurer, either:…
- § 18629 Notwithstanding the provisions of any premium finance agreement to the contrary, any insured may pay the obligation in full at any time before maturity of the…
- § 18630 In the event that the insurance policy or policies which are the subject of a premium finance agreement are canceled by the insured or by the insurer, for any…
- § 18631 (a) A premium finance agreement may provide for the payment of a default charge of one dollar ($1) to a maximum of 5 percent of the delinquent installment, in…
ARTICLE 5. Charges on Scheduled Balances §§ 18634–18643 · 8 sections
- § 18634 This article is applicable only to premium finance agencies.
- § 18635 Whenever the interest or charges, or interest and charges deducted in advance exceed the maximum provided by this division, by reason of subsequent repayment…
- § 18636 (a) As an alternative to the provisions of Section 18635, if a loan is repayable in substantially equal and consecutive monthly installments of principal and…
- § 18637 If a loan contract made under Section 18636 is prepaid in full by cash, a new loan, refinancing or otherwise before the final installment date, the borrower…
- § 18638 A special rebate of precomputed charges shall be made if three or more, but not all, installments are prepaid in full at any one time either in one transaction…
- § 18640 A deferment charge may be charged and collected on a loan made under Section 18636 if the payment date of all wholly unpaid installments on which no default…
- § 18642 If the maturity of a loan made under Section 18636 is accelerated for any reason, the company shall make the same refund or credit as would be required if the…
- § 18643 Notwithstanding any other provision of law not within this article, with respect to precomputed loans, premium finance agencies derive authority only from this…
CHAPTER 9. Interstate Acquisitions §§ 18650–18654 · 5 sections
- § 18650 This chapter does not apply to any of the following transactions: (a) An acquisition of control of a California industrial loan company that requires the…
- § 18651 Each application filed with the commissioner for an approval under this chapter shall be in the form, shall contain the information, shall be signed in the…
- § 18652 The fee for filing with the commissioner an application for an approval under this chapter is four hundred dollars ($400).
- § 18653 (a) The definitions that are set forth in or are applicable to Section 44 of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u) apply to this section.…
- § 18654 The commissioner is authorized to adopt rules to implement this chapter similar to regulations adopted under similar provisions of law contained in Chapter…
CHAPTER 10. Foreign (Other State) Industrial Loan Companies: Agency Activities §§ 18660–18707 · 36 sections
ARTICLE 1. General Provisions §§ 18660–18666 · 7 sections
- § 18660 In this chapter, unless the context otherwise requires: (a) “Authorized agency activities” means issuing investment certificates, renewing certificates of…
- § 18661 Each application filed with the commissioner under this chapter or under any rule or order issued under this chapter shall be in the form, shall contain the…
- § 18662 (a) Each foreign (other state) industrial loan company that maintains a facility or a California branch office shall file with the commissioner such reports as…
- § 18663 Each foreign (other state) industrial loan company that maintains a facility or a California branch office shall make, keep, and preserve at the facility or…
- § 18664 Fees shall be paid to, and collected by, the commissioner as follows: (a) Each foreign (other state) industrial loan company that on July 1 of any year…
- § 18665 (a) Any foreign (other state) industrial loan company is exempted from the restrictions of Section 1 of Article XV of the California Constitution relating to…
- § 18666 The commissioner is authorized to adopt rules to implement this chapter similar to regulations adopted by the Superintendent of Banks under similar provisions…
ARTICLE 2. Facilities of Insured Foreign (Other State) Industrial Loan Companies §§ 18670–18675 · 6 sections
- § 18670 No provision of this article applies to an insured foreign (other state) industrial loan company that maintains a California branch office.
- § 18671 (a) No foreign (other state) industrial loan company may establish or maintain an office in this state at which it engages in noncore industrial loan company…
- § 18672 Not less than 30 days before an insured foreign (other state) industrial loan company establishes a facility, it shall file with the commissioner a report and…
- § 18673 (a) Not less than 30 days before establishing a facility, an insured foreign (other state) industrial loan company shall file with the commissioner, in the…
- § 18674 Not less than 30 days before an insured foreign (other state) industrial loan company relocates a facility, it shall file a report with the commissioner.
- § 18675 Not less than 30 days before an insured foreign (other state) industrial loan company closes a facility, it shall file a report with the commissioner.
ARTICLE 3. California Branch Offices §§ 18680–18687 · 7 sections
- § 18680 No foreign (other state) industrial loan company may transact core business in this state except at a branch office established in accordance with federal law…
- § 18681 Section 18680 does not prohibit: (a) Any foreign (other state) industrial loan company which does not maintain a California branch office from carrying on the…
- § 18682 No foreign (other state) industrial loan company may establish or maintain a California branch office unless it is qualified to transact intrastate business in…
- § 18683 No foreign (other state) industrial loan company may establish or maintain a California branch office unless the industrial loan company is insured.
- § 18684 (a) (1) No foreign (other state) industrial loan company may merge as the surviving corporation (Section 148) with a California industrial loan company or…
- § 18685 (a) No foreign (other state) industrial loan company that does not already maintain a California branch office may: (1) Merge as the surviving corporation…
- § 18687 (a) No foreign (other state) industrial loan company that maintains a California branch office may transact at the branch office any business that it is not…
ARTICLE 4. California Industrial Loan Company as Principal §§ 18690–18697 · 8 sections
- § 18690 Notwithstanding the provisions of Sections 18147 and 18165, a California industrial loan company may, with the prior approval of the commissioner and subject…
- § 18691 An application by a California industrial loan company for approval to have an insured depository institution engage in authorized agency activities as its…
- § 18692 An application by a California industrial loan company for approval to have an insured depository institution engage in authorized agency activities as its…
- § 18693 In determining whether to approve or deny an application by a California industrial loan company for approval to have an insured depository institution engage…
- § 18694 No California industrial loan company may have an insured depository institution conduct as its agent any activity that the California industrial loan company…
- § 18695 No office of an insured depository institution that is performing authorized agency activities as agent for a California industrial loan company in accordance…
- § 18696 If the commissioner finds that any activity performed by an insured depository institution as agent for a California industrial loan company is not an…
- § 18697 This article does not apply to a California industrial loan company’s having an insured depository institution engage in authorized agency activities as its…
ARTICLE 5. California Industrial Loan Company as Agent §§ 18700–18707 · 8 sections
- § 18700 Notwithstanding the provisions of Sections 18147 and 18165, a California industrial loan company may, with the prior approval of the commissioner and subject…
- § 18701 An application by a California industrial loan company for approval to engage in authorized agency activities as agent for an insured depository institution…
- § 18702 An application by a California industrial loan company for approval to engage in authorized agency activities as agent for an insured depository institution…
- § 18703 In determining whether to approve or deny an application by a California industrial loan company for approval to engage in authorized agency activities as…
- § 18704 No California industrial loan company may conduct any activity as an agent for an insured depository institution that the California industrial loan company…
- § 18705 (a) No office of a California industrial loan company that conducts authorized agency activities as agent for an insured depository institution in accordance…
- § 18706 If the commissioner finds that any activities performed by a California industrial loan company as agent for an insured depository institution are not…
- § 18707 This article does not apply to a California industrial loan company’s engaging in authorized agency activities as agent for an insured depository institution…