CHAPTER 1. General Provisions [22000. - 22172.]
Chapter 1 added by Stats. 1994, Ch. 1115, Sec. 2.
§§ 22000–22172 · 93 sections
ARTICLE 1. Definitions §§ 22000–22020 · 23 sections
- § 22000 This division is known and may be cited as the “California Financing Law.”
- § 22001 (a) This division shall be liberally construed and applied to promote its underlying purposes and policies, which are: (1) To ensure an adequate supply of…
- § 22002 To accomplish its underlying purposes and policies, this division creates a class of exempt persons pursuant to Section 1 of Article XV of the California…
- § 22003 Unless the context otherwise requires, the definitions given in this article govern the construction of this division.
- § 22003.5 “Assessment contract” means an agreement entered into between all property owners of record on real property and a public agency in which, for voluntary…
- § 22004 “Broker” includes any person who is engaged in the business of negotiating or performing any act as broker in connection with loans made by a finance lender.
- § 22005 “Commissioner” means the Commissioner of Financial Protection and Innovation.
- § 22006 As used in this division, the terms “security interest,” “accounts,” “chattel paper,” “documents,” “general intangibles,” “goods,” and “instruments” are as…
- § 22007 (a) “Licensee” means any finance lender, broker, or program administrator who receives a license in accordance with this division. (b) This section shall…
- § 22008 “Person” means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an…
- § 22009 “Finance lender” includes any person who is engaged in the business of making consumer loans or making commercial loans. The business of making consumer loans…
- § 22010 (a) “Finance lender,” “broker,” and “program administrator” do not include employees regularly employed at the location specified in the license of the finance…
- § 22011 A “regulatory ceiling provision” is a statement in a section or subdivision that specifies an original bona fide principal loan amount at or above which that…
- § 22012 (a) “Branch office license” means a license to engage in business as a finance lender or broker at a location other than the location identified in a finance…
- § 22013 (a) “Mortgage loan originator” means an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage…
- § 22014 (a) A loan processor or underwriter who does not represent to the public, through advertising or other means of communicating or providing information,…
- § 22015 “PACE assessment” means a voluntary contractual assessment, voluntary special tax, or special tax, as described in subdivisions (a), (b), and (c) of Section…
- § 22016 “PACE program” means a program in which financing is provided for the installation of efficiency improvements on real property and funded through the use of…
- § 22017 (a) “PACE solicitor” means a person authorized by a program administrator to solicit a property owner to enter into an assessment contract. (b) “PACE solicitor…
- § 22018 (a) “Program administrator” means a person administering a PACE program on behalf of, and with the written consent of, a public agency. “Program administrator”…
- § 22018.5 “Property owner” means all property owners of record on the property subject to the PACE assessment.
- § 22019 “Efficiency improvement” means one or more permanent improvements fixed to real property financed through a PACE assessment.
- § 22020 “Public agency” means a city, including a charter city, county, city and county, municipal utility district, community services district, community facilities…
ARTICLE 2. Exemptions §§ 22050–22068 · 20 sections
- § 22050 (a) This division does not apply to any person doing business under any law of any state or of the United States relating to banks, trust companies, savings…
- § 22050.5 This division does not apply to any person who makes no more than one loan in a 12-month period if that loan is a commercial loan as defined in Section 22502.
- § 22051 This division does not apply to the following: (a) Any nonprofit cooperative association organized under Chapter 1 (commencing with Section 54001) of Division…
- § 22052 This division does not apply to any loan of credit made by a person not licensed under this division pursuant to a plan having all of the following…
- § 22053 In any proceeding under this law, the burden of proving an exemption is upon the person claiming it.
- § 22054 This division does not apply to bona fide conditional contracts of sale involving the disposition of personal property when these forms of sales agreements are…
- § 22055 This division does not apply to premium financing as defined in Section 18563.
- § 22056 This division does not apply to the California Infrastructure and Economic Development Bank, any program authorized pursuant to Chapter 1 (commencing with…
- § 22057 This division does not apply to any loan that is made or arranged by any person licensed as a real estate broker by the state and secured by a lien on real…
- § 22058 This division does not apply to any cemetery broker licensed under the Cemetery Act (Chapter 19 (commencing with Section 9600) of Division 3 of the Business…
- § 22059 A license to act as a broker under this division does not authorize the licensee to negotiate or perform any act as a broker in connection with loans made or…
- § 22060 This division does not apply to a loan made or arranged by a licensed residential mortgage lender or servicer when acting under the authority of that license.
- § 22061 (a) This division does not apply to any nonprofit church extension fund. (b) For purposes of this section: (1) “Nonprofit church extension fund” means a…
- § 22062 (a) This division does not apply to either of the following: (1) A commercial bridge loan made by a venture capital company to an operating company. (2) A…
- § 22063 (a) This division does not apply to a franchise loan made by a franchisor to a franchisee or a subfranchisor or by a subfranchisor to a franchisee. (b) For…
- § 22064 (a) This division does not apply to the following: (1) A program-related investment defined in subsection (c) of Section 4944 of the Internal Revenue Code and…
- § 22065 (a) Persons not subject to this division may apply to the commissioner for an exempt company registration for the purpose of sponsoring one or more individuals…
- § 22066 (a) The Legislature finds and declares that nonprofit organizations have an important role to play in helping individuals obtain access to affordable,…
- § 22067 (a) On or before July 1 of each year, the commissioner shall post a report on the department’s internet website summarizing the information described in…
- § 22068 (a) The exemptions and exclusions in this article are not applicable to a person engaged in business as a program administrator or a PACE solicitor. (b) This…
ARTICLE 3. Licensing §§ 22100–22112 · 25 sections
- § 22100 (a) No person shall engage in the business of a finance lender or broker without obtaining a license from the commissioner. (b) Every licensee engaging in the…
- § 22100.5 (a) A person shall not engage in the business of a program administrator without obtaining a license from the commissioner. (b) This section shall become…
- § 22101 (a) An application for a license as a finance lender, broker, or program administrator under this division shall be in the form and contain the information…
- § 22101.5 (a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all finance…
- § 22102 (a) A finance lender, broker, or program administrator licensee seeking to engage in business at a new location shall submit an application for a branch office…
- § 22103 (a) At the time of filing the application for a finance lender, broker, program administrator, or branch office license, the applicant shall pay to the…
- § 22104 (a) The applicant shall file with the application for a finance lender, broker, or program administrator license financial statements prepared in accordance…
- § 22105 (a) Upon the filing of an application pursuant to Section 22101 and the payment of the fees, the commissioner shall investigate the applicant and its general…
- § 22105.1 (a) An applicant for a mortgage loan originator license shall apply by submitting the uniform form prescribed for such purpose by the Nationwide Mortgage…
- § 22105.2 (a) The commissioner is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities…
- § 22105.3 (a) Except as otherwise provided in Section 1512 of the SAFE Act, the requirements under any federal or state law regarding the privacy or confidentiality of…
- § 22105.4 The commissioner shall regularly report violations of this division, as well as enforcement actions and other relevant information, to the Nationwide Mortgage…
- § 22106 (a) The finance lender, broker, or program administrator license shall state the name of the licensee, and if the licensee is a partnership, the names of its…
- § 22107 (a) Each finance lender, broker, or program administrator licensee shall pay to the commissioner its pro rata share of all costs and expenses, including the…
- § 22108 (a) The commissioner may by rule require licensees to file, at the times that he or she may specify, the information that he or she may reasonably require…
- § 22109 (a) Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for a finance lender, broker, or program administrator…
- § 22109.1 (a) The commissioner shall deny an application for a mortgage loan originator license unless the commissioner makes, at a minimum, the following findings: (1)…
- § 22109.2 (a) An applicant for a mortgage loan originator license shall complete at least 20 hours of education approved in accordance with subdivision (b). The…
- § 22109.3 (a) An applicant for a mortgage loan originator license shall pass a qualified written test developed or otherwise deemed acceptable by the Nationwide Mortgage…
- § 22109.4 (a) A mortgage loan originator shall comply with the requirements of this section on or before December 31 of every year. (b) The minimum standards for license…
- § 22109.5 (a) A licensed mortgage loan originator shall complete at least eight hours of continuing education approved in accordance with subdivision (b). The continuing…
- § 22109.6 In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered…
- § 22110 The proceedings for a denial of a license shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of…
- § 22111 All money paid or collected under this division shall be deposited in the State Treasury to the credit of the State Corporations Fund. The administration of…
- § 22112 (a) A licensee shall maintain a surety bond in accordance with this subdivision in a minimum amount of twenty-five thousand dollars ($25,000). The bond shall…
ARTICLE 4. Regulations §§ 22150–22172 · 25 sections
- § 22150 The commissioner may make general rules and regulations and specific rulings, demands, and findings for the enforcement of this division, in addition to, and…
- § 22151 (a) A finance lender license, broker license, program administrator license, and the license of every mortgage loan originator employed by a lender or finance…
- § 22152 (a) A finance lender, broker, or program administrator licensee shall maintain only one place of business under a duplicate or original license issued pursuant…
- § 22153 (a) If a finance lender, broker, or program administrator licensee seeks to change its place of business to a street address other than that designated in its…
- § 22154 (a) Subject to Section 22157.1, a licensee shall not conduct the business of making loans or administering a PACE program under this division within any…
- § 22155 Subject to Section 22157.1, a finance lender, broker, mortgage loan originator, or program administrator licensee shall not transact the business licensed or…
- § 22156 (a) Finance lender, broker, program administrator, and mortgage loan originator licensees shall keep and use in their business, books, accounts, and records…
- § 22157 (a) Finance lender, broker, and mortgage loan originator licensees shall preserve their books, accounts, and records, if any, for at least three years after…
- § 22157.1 (a) For purposes of this section: (1) “Encrypted” has the same meaning as provided in paragraph (4) of subdivision (i) of Section 1798.82 of the Civil Code.…
- § 22158 Nothing contained in Sections 22156 and 22157 shall require the maintenance or preservation of original records, provided that any information requested by the…
- § 22159 (a) Each finance lender, broker, and program administrator licensee shall file an annual report with the commissioner, on or before March 15th, giving the…
- § 22159.5 (a) The commissioner may, as the commissioner deems necessary, require licensees to provide reports concerning their residential mortgage loan servicing…
- § 22160 The commissioner shall make and file annually with the Department of Financial Protection and Innovation as a public record a composite of the annual reports…
- § 22161 (a) A person subject to this division shall not do any of the following: (1) Make a materially false or misleading statement or representation to a borrower…
- § 22162 (a) A finance lender, broker, or mortgage loan originator licensee shall not place an advertisement disseminated primarily in this state for a loan unless the…
- § 22163 (a) The commissioner may require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the commissioner deems necessary…
- § 22164 (a) If any person engaged in the business regulated by this division refers in any advertising to rates of interest, charges, or cost of loans or assessment…
- § 22165 No advertising copy shall be used after its use has been disapproved by the commissioner and the licensee is notified in writing of the disapproval. The…
- § 22166 The commissioner may require licensees to maintain a file of all advertising copy for a period of two years from the date of its use. The file shall be…
- § 22167 A licensed finance lender may act as a broker as defined in Section 22004 at its licensed place of business without obtaining an additional license as a broker…
- § 22168 (a) The commissioner may, after appropriate notice and opportunity for hearing, suspend for a period not to exceed 12 months or bar a person from any position…
- § 22169 (a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar a…
- § 22170 (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible…
- § 22171 (a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank…
- § 22172 (a) The commissioner may do one or more of the following: (1) Deny, suspend, revoke, condition, or decline to renew a mortgage loan originator license for a…