BlackletterCalifornia law

CHAPTER 1. General Provisions [18000. - 18063.]

Chapter 1 added by Stats. 1976, Ch. 964.

§§ 18000–18063 · 58 sections

  1. 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.
  2. 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…
  3. 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…
  4. 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…