CHAPTER 3. Loans and Purchased Obligations [18190. - 18303.]
Chapter 3 added by Stats. 1976, Ch. 964.
§§ 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…