DIVISION 9. CALIFORNIA FINANCING LAW [22000. - 22780.1.]
Heading of Division 9 amended by Stats. 2017, Ch. 475, Sec. 3.
§§ 22000–22780.1 · 258 sections
CHAPTER 1. General Provisions §§ 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…
CHAPTER 2. Consumer Loans §§ 22200–22470 · 101 sections
ARTICLE 1. Definitions §§ 22200–22204 · 5 sections
- § 22200 “Charges” include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or…
- § 22201 “Charges” include any profit or advantage of any kind that a licensee may contract for, collect, receive, or obtain by a collateral sale, purchase, or…
- § 22202 “Charges” do not include any of the following: (a) Commissions received as a licensed insurance agent or broker in connection with insurance written as…
- § 22203 “Consumer loan” means a loan, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower…
- § 22204 (a) In addition to the definition of consumer loan in Section 22203, a “consumer loan” also means a loan of a principal amount of less than five thousand…
ARTICLE 2. Exemptions §§ 22250–22252 · 3 sections
- § 22250 (a) The following sections do not apply to any loan of a bona fide principal amount of ten thousand dollars ($10,000) or more, or to a duly licensed finance…
- § 22251 Any section that refers to this section does not apply to any loan of the bona fide principal amount specified in the regulatory ceiling provision of that…
- § 22252 This chapter does not apply to a program administrator or a PACE solicitor.
ARTICLE 3. Loan Regulations §§ 22300–22347 · 53 sections
- § 22300 No licensee shall directly or indirectly charge, contract for, or receive any interest or charge of any nature unless a loan is made.
- § 22301 (a) No licensee shall directly or indirectly charge, contract for, or receive any interest or charge of any nature with respect to a loan of five thousand…
- § 22302 (a) Section 1670.5 of the Civil Code applies to the provisions of a loan contract that is subject to this division. (b) A loan found to be unconscionable…
- § 22303 Every licensee who lends any sum of money may contract for and receive charges at a rate not exceeding the sum of the following: (a) Two and one-half percent…
- § 22304 As an alternative to the charges authorized by Section 22303, a licensee may contract for and receive charges at the greater of the following: (a) A rate not…
- § 22304.5 (a) For any loan of a bona fide principal amount of at least two thousand five hundred dollars ($2,500) but less than ten thousand dollars ($10,000), as…
- § 22305 In addition to the charges authorized by Section 22303, 22304, or 22304.5, a licensee may contract for and receive an administrative fee, which shall be fully…
- § 22306 No amount in excess of that allowed by this article shall be directly or indirectly charged, contracted for, or received by any person, and the total charges…
- § 22307 (a) Except as provided in Section 22305 and Article 4 (commencing with Section 22400), all charges on loans made under this division shall be computed and paid…
- § 22307.5 A licensee shall not charge, impose, or receive any penalty for the prepayment of a loan. This section does not apply to a loan secured by real property.
- § 22308 Notwithstanding Section 22307, a licensee may contract for and receive charges on the unpaid principal balance at a single annual percentage rate, applied on…
- § 22309 Except as provided in Section 22305 and Article 4 (commencing with Section 22400), no charges on loans made pursuant to this division shall be paid, deducted,…
- § 22310 (a) Except for a rebate or refund pursuant to any administrative, civil, or criminal action, or any act of the commissioner, a rebate or refund required to be…
- § 22311 No person in connection with or incidental to the making of any loan regulated by this division may require the borrower to contract for purchase, or agree to…
- § 22312 No person in connection with or incidental to the making of a loan shall require the borrower to enter into any collateral sales agreements or contracts, other…
- § 22313 Insurance on tangible personal or real property offered as security shall not be deemed to be a collateral sale, purchase, or agreement within the terms of…
- § 22314 (a) Credit insurance shall not be deemed to be a collateral sale, purchase, or agreement within the terms of Section 22201, 22311, or 22312 when the insurance…
- § 22315 (a) Credit disability insurance written pursuant to Section 22314 shall not provide indemnity against the risk that the borrower will become disabled for a…
- § 22316 A licensee may collect the cost of a lot book report purchased in lieu of the title insurance provided for in Section 22313. The cost is not included in…
- § 22317 On any loan made that is secured by real property, an appraisal fee not to exceed the actual cost of the appraisal may be charged by the licensee if a written…
- § 22317.2 (a) A licensee may collect a fee for use of an automated valuation model result prepared by a third party not to exceed the actual cost paid to the third party…
- § 22317.5 On any loan secured by real property, a licensee may not do either of the following: (a) Fail to disburse funds in accordance with a commitment to make a loan…
- § 22318 On any loan made that is secured by real property, an escrow fee of a reasonable amount may be charged. The fee shall be considered reasonable when paid to a…
- § 22319 On any loan that is secured by real property, the fee to be paid to the trustee for reconveyance of the trust deed may be collected by the licensee for…
- § 22320 With respect to a loan under this division, a fee not to exceed fifteen dollars ($15) for the return by a depository institution of a dishonored check,…
- § 22320.5 (a) A licensee may contract for and receive a delinquency fee not in excess of one of the following amounts: (1) For a period in default of not less than 10…
- § 22321 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…
- § 22322 A loan lawfully made outside the state may be enforced in this state as to the unpaid principal balance of the loan together with the interest, consideration,…
- § 22323 Any person who collects or attempts to collect in this state the unpaid principal balance of a loan made outside the state and a greater aggregate amount of…
- § 22324 Any person who contracts for or negotiates in this state a loan to be made outside the state for the purpose of evading or avoiding the provisions of this…
- § 22325 Every licensee shall display prominently in each licensed place of business a full and accurate schedule of the charges to be made and the method of computing…
- § 22326 No person, except as authorized by this division, shall directly or indirectly charge, contract for, or receive any interest, discount, or consideration…
- § 22327 No licensee shall knowingly induce any borrower to split up or divide any loan with any other licensee. No licensee shall induce or permit any borrower to be…
- § 22328 (a) This section applies to a loan secured in whole or in part by a lien on a motor vehicle as defined by subdivision (k) of Section 2981 of the Civil Code.…
- § 22329 (a) This section applies to a loan secured in whole or in part by a lien on a motor vehicle as defined by subdivision (k) of Section 2981 of the Civil Code.…
- § 22329.5 A licensee, or the agent of a licensee, that has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a subsequent…
- § 22330 No licensee shall take a deed of trust, mortgage, or lien upon real property as security for any loan made under this division, except any lien as is created…
- § 22331 No licensee shall take any confession of judgment or any power of attorney, except a power of attorney taken to effectuate the transfer of the ownership of any…
- § 22332 No licensee shall take any note or promise to pay that does not accurately disclose the actual amount of the loan, the time for which it is made, and the…
- § 22333 No licensee shall take any instrument in which blanks are left to be filled in after execution.
- § 22334 (a) Except as provided in subdivision (b), a licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal over…
- § 22335 The payment by any person in money, credit, goods, or things in action as consideration for any sale or assignment of, or order for, the payment of wages,…
- § 22336 This article does not prohibit any licensee from contracting for, collecting, or receiving the following: (a) The statutory fee paid by the licensee to any…
- § 22337 Each licensed finance lender shall: (a) Deliver or cause to be delivered to the borrower, or any one thereof, at the time the loan is made, a statement showing…
- § 22338 Each licensed broker shall: (a) Deliver to the borrower, or any one thereof, at the time the final negotiation or arrangement is made, a statement showing in…
- § 22339 Nothing contained in this article shall be construed to deny to any licensee hereunder the right of taking and using a security agreement that, in addition to…
- § 22340 (a) A licensee may sell promissory notes evidencing the obligation to repay loans made by the licensee pursuant to this division or evidencing the obligation…
- § 22340.1 (a) A licensee that is a finance lender may sell to (1) an institutional lender, or (2) an institutional investor described in paragraph (6) of subdivision (b)…
- § 22341 (a) No licensee may make a loan to refinance a retail installment contract subject to Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division…
- § 22342 (a) As used in this section, “instant loan check” or “live check” means any loan or extension of credit that is made available in the form of a check, draft,…
- § 22345 (a) Any person who violates any provision of Section 987 of Title 10 of the United States Code, as amended by 126 Stat. 1785 (Public Law 112-239), or any…
- § 22346 Any licensee that violates any provision of any of the following federal acts or regulations violates this division: (a) The federal Real Estate Settlement…
- § 22347 The unique identifier of any licensed mortgage loan originator shall be clearly shown on all residential mortgage loan application forms, solicitations, or…
ARTICLE 3.6. Pilot Program for Increased Access to Responsible Small Dollar Loans §§ 22365–22381 · 18 sections
- § 22365 (a) The Pilot Program for Increased Access to Responsible Small Dollar Loans is hereby established. (b) For purposes of this article: (1) “Commissioner” means…
- § 22366 (a) Any entity licensed under this chapter that wishes to participate in the program, that is in good standing with the commissioner and has no outstanding…
- § 22367 Every entity approved by the commissioner to participate in the program shall file with the commissioner on or before March 15 an annual report consistent with…
- § 22368 Except as otherwise provided, nothing in this article shall exempt any licensee from any of the provisions of this division or Section 1632 of the Civil Code.
- § 22369 No licensee may offer or make a loan, nor impose any charges or fees pursuant to Section 22370, nor use a finder pursuant to Section 22371, without prior…
- § 22370 (a) A loan made pursuant to this section shall comply with the following requirements: (1) The loan shall be unsecured. (2) Interest on the loan shall accrue…
- § 22371 (a) A licensee who is approved by the commissioner to participate in the program may use the services of one or more finders as provided in this article. In…
- § 22372 (a) A finder may perform one or more of the following services for a licensee at the finder’s physical location for business: (1) Distributing, circulating,…
- § 22373 (a) At the time the finder receives or processes an application for a program loan, the finder shall provide the following statement to the applicant, on…
- § 22374 (a) A finder may be compensated by the licensee pursuant to the written agreement between the licensee and the finder, as described in Section 22376.…
- § 22375 A licensee that utilizes the service of a finder shall do all of the following: (a) Notify the commissioner within 15 days of entering into a contract with a…
- § 22376 All arrangements between a licensee and a finder shall be set forth in a written agreement between the parties. The agreement shall contain a provision…
- § 22377 (a) The commissioner may examine the operations of each licensee and each finder to ensure that the activities of the licensee and the finder are in compliance…
- § 22378 Notwithstanding the requirements of Section 22102 and its implementing regulations, a licensee accepted to participate in the program may appoint one or more…
- § 22379 (a) Notwithstanding any other law, the commissioner shall examine each licensee that is accepted into the program, and each finder whose services were used by…
- § 22380 (a) On or before July 1, 2015, and annually on or before July 1, 2017, to July 1, 2026, inclusive, the commissioner shall post a report on the commissioner’s…
- § 22380.5 (a) The Pilot Program for Affordable Credit-Building Opportunities as described in Article 3.5 (commencing with Section 22348) is abolished. (b) All powers,…
- § 22381 This article shall remain in effect only until January 1, 2028, and as of that date is repealed.
ARTICLE 4. Charges On Scheduled Balances §§ 22400–22402 · 3 sections
- § 22400 This article applies only to loan contracts payable in substantially equal and consecutive monthly installments of principal and charges combined, the first of…
- § 22401 With respect to precomputed loans, licensees shall be subject only to, comply only with, and derive authority only from Sections 22400 and 22402,…
- § 22402 When charges on a loan of an original bona fide principal amount of five thousand ($5,000) or more have been precomputed in a manner similar to that provided…
ARTICLE 5. Open-End Loan Programs §§ 22450–22467 · 18 sections
- § 22450 As used in this division, “open-end credit program” means a licensee’s plan for making open-end loans pursuant to a loan agreement that sets forth the terms…
- § 22451 If an open-end credit program is not primarily for the purpose of purchasing or leasing goods or services from the licensee, then all credit extended through…
- § 22452 Subject to the written approval of the commissioner of the licensee’s plan of business for making open-end loans as not being misleading or deceptive and…
- § 22453 The minimum monthly payment shall be determined by any of the following: (a) The amount calculated by multiplying the unpaid principal balance, after an…
- § 22454 On open-end loans, the licensee may contract for and receive the fees, costs, and expenses permitted on other loans, including those permitted by subdivisions…
- § 22455 (a) In lieu of subdivisions (b), (c), (d), (e), and (f) of Section 22314, with respect to open-end loans, a licensee may provide credit insurance with the…
- § 22456 Section 22309 shall apply to open-end loans with the following variations: (a) To comply with Section 22309, in the case of open-end loan advances directly to…
- § 22457 In lieu of Section 22332, the open-end loan agreement shall contain the name, address, and license number of the finance lender and shall disclose the nature…
- § 22458 In lieu of subdivision (a) of Section 22337, with respect to open-end loans, except in the case of an account that the licensee deems to be uncollectible, or…
- § 22459 Subdivision (e) of Section 22337 shall not apply to an open-end loan that has no balance outstanding if the open-end loan agreement continues in effect.
- § 22460 Section 22333 shall not apply to a change in terms of an open-end loan if notice is given to the borrower in accordance with subsection (c) of Section 226.9 of…
- § 22461 Subdivision (a) of Section 22151, Sections 22154 and 22325, and subdivision (b) of Section 22337 shall not apply to a licensee with respect to advances made…
- § 22462 The payment of fees for participation in an open-end credit program, the acceptance by a borrower of the form of the licensee’s program, and the borrower’s…
- § 22463 Nothing in this article limits the authority of the commissioner to disapprove advertising with respect to open-end loans pursuant to Section 22165.
- § 22464 This article does not apply to loans other than open-end loans.
- § 22465 Section 22400 does not apply to open-end loans.
- § 22466 An open-end loan is in compliance with Section 22330 if it is an open-end loan of a bona fide principal amount of five thousand dollars ($5,000) or more as…
- § 22467 (a) Any section that refers to this section or that is subject to Section 22251 does not apply to any open-end loan of the bona fide principal amount specified…
ARTICLE 6. Disclosure of Loan Applications § 22470 · 1 section
- § 22470 (a) (1) Upon the request of a person who has obtained a police report pursuant to Section 530.6 of the Penal Code, a finance lender engaged in the business of…
CHAPTER 3. Commercial Loans §§ 22500–22650 · 13 sections
ARTICLE 1. Definitions §§ 22500–22502 · 3 sections
- § 22500 “Charges” include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or…
- § 22501 “Charges” do not include commissions received as a licensed insurance agent or broker.
- § 22502 “Commercial loan” means a loan of a principal amount of five thousand dollars ($5,000) or more, or any loan under an open-end credit program, whether secured…
ARTICLE 2. Exemptions §§ 22550–22552 · 3 sections
- § 22550 Sections 22152, 22154, 22155, 22163, and 22164 do not apply to any commercial loan of a bona fide principal amount of five thousand dollars ($5,000) or more,…
- § 22551 In determining whether a loan is a loan of a bona fide principal amount of the specified amount or more, the following principles shall apply: (a) If a…
- § 22552 This chapter does not apply to a program administrator or a PACE solicitor.
ARTICLE 3. Loan Regulations §§ 22600–22604 · 6 sections
- § 22600 (a) A licensee may sell promissory notes evidencing the obligation to repay loans made by the licensee pursuant to this division or evidencing the obligation…
- § 22600.1 (a) A licensee that is a finance lender may sell to (1) an institutional lender, or (2) an institutional investor described in paragraph (6) of subdivision (b)…
- § 22601 With respect to a loan under this division, a fee not to exceed fifteen dollars ($15) for the return by a depository institution of a dishonored check,…
- § 22602 (a) A licensee that is a finance lender may pay compensation to a person that is not licensed pursuant to this division in connection with the referral of one…
- § 22603 A licensee that is a finance lender shall provide a prospective borrower who has been referred by an unlicensed person the following written statement, in…
- § 22604 (a) Any person that receives compensation in connection with a referral, as described in Section 22602, that leads to the consummation of a commercial loan…
ARTICLE 4. Open-End Credit Programs § 22650 · 1 section
- § 22650 As used in this division, “open-end credit program” means a licensee’s plan for making open-end loans pursuant to a loan agreement that sets forth the terms…
CHAPTER 3.5. Program Administrators §§ 22680–22697 · 19 sections
- § 22680 (a) A person shall not engage in the business of a PACE solicitor unless that person is enrolled with a program administrator pursuant to the requirements of…
- § 22681 (a) A program administrator shall establish and maintain a training program for PACE solicitor agents that is acceptable to the commissioner. (b) A program…
- § 22682 (a) A program administrator shall, in the manner prescribed by the commissioner, timely notify the commissioner of each PACE solicitor and PACE solicitor agent…
- § 22683 A program administrator shall develop and implement policies and procedures for responding to questions and addressing complaints as soon as reasonably…
- § 22684 A program administrator shall not execute an assessment contract, and no work shall commence under a home improvement contract that is financed by that…
- § 22685 (a) A program administrator shall derive market value using one of the following: (1) Automated valuation models, using the following criteria: (A) Each…
- § 22686 A program administrator shall not execute an assessment contract, and no work shall commence under a home improvement contract that is financed by that…
- § 22687 (a) A program administrator shall determine before executing an assessment contract, and no work shall commence under a home improvement contract that is…
- § 22688 A program administrator shall be subject to all provisions of the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050))…
- § 22689 (a) A program administrator shall not permit a PACE solicitor to do any of the following: (1) Solicit a property owner to enter into an assessment contract…
- § 22690 (a) A program administrator is subject to an inspection, examination, or investigation in accordance with Section 22701. (b) If, in the course of an…
- § 22690.5 (a) The department shall maintain, on its Internet Web site, the identities of enrolled PACE solicitors and PACE solicitor agents. The Internet Web site shall…
- § 22691 The commissioner may by any rules he or she deems necessary or appropriate in the public interest or for the protection of property owners, either…
- § 22692 (a) The commissioner shall require a program administrator to submit the following information in the annual report filed under Section 22159: (1) Information…
- § 22693 (a) The commissioner may, by rule, require a program administrator to use a real-time registry or database system for tracking PACE assessments in order to…
- § 22694 This chapter does not apply to a finance lender, mortgage loan originator, or broker licensee, unless they engage in the business of a program administrator,…
- § 22695 (a) A violation of this chapter by any person is not subject to the criminal penalties established pursuant to Sections 22753 and 22780. (b) Notwithstanding…
- § 22696 Except as provided in Sections 22684, 22685, 22686, 22687, 22688, and 22695, this chapter shall become operative on January 1, 2019.
- § 22697 This chapter does not preclude or reduce any rights and remedies established under any other laws.
CHAPTER 4. Revocation and Penalties §§ 22700–22780.1 · 32 sections
ARTICLE 1. Revocation and Suspension of License §§ 22700–22718 · 21 sections
- § 22700 (a) Finance lender, broker, and program administrator licenses issued under this division shall remain in effect until they are surrendered, revoked, or…
- § 22701 (a) For the purpose of discovering violations of this division or securing information required by him or her in the administration and enforcement of this…
- § 22702 In making any examination or investigation, the commissioner may, for a reasonable time not to exceed 30 days, take possession of the books, records, accounts,…
- § 22703 The officers, employees, partners, directors, and stockholders may inspect and examine the books, accounts, papers, records, files, safes, and vaults while…
- § 22704 The power of investigation and examination by the commissioner is not terminated by the surrender, suspension, or revocation of any license issued by him or…
- § 22705 Whenever the commissioner deems it necessary for the general welfare of the public, he or she has continuous authority to exercise the powers set forth in this…
- § 22705.1 (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an…
- § 22706 The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony relates to activities and businesses regulated by…
- § 22707 (a) The cost of each examination of a licensee or a person subject to this division shall be paid to the commissioner by the licensee or person examined, and…
- § 22707.5 (a) If, upon inspection, examination, or investigation, the commissioner has cause to believe that a licensee or other person is violating or has violated any…
- § 22708 After an examination, investigation, or hearing under this division, if the commissioner deems it of public interest or advantage, he or she may certify a…
- § 22709 The commissioner may require the production for examination in this state of all books, records, and supporting data used by the licensee in the preparation of…
- § 22710 The commissioner may upon three days’ notice and a hearing, suspend any license for a period not exceeding 30 days, pending investigation.
- § 22711 Any licensee may surrender any license by delivering to the commissioner written notice that the licensee surrenders that license. Surrender of the license…
- § 22712 (a) Whenever, in the opinion of the commissioner, any person is engaged or has engaged in business as a finance lender, broker, program administrator, or…
- § 22713 (a) Whenever the commissioner believes from evidence satisfactory to the commissioner that any person has violated or is about to violate a provision of this…
- § 22714 (a) The commissioner shall suspend or revoke any license, upon notice and reasonable opportunity to be heard, if the commissioner finds any of the following:…
- § 22715 (a) The commissioner may by order summarily suspend or revoke the license of any licensee if that person fails to file the report required by Section 22159…
- § 22716 (a) The revocation, suspension, expiration, or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the…
- § 22717 Except in cases in which the time for setting the hearing is shortened as provided in this division, the proceedings under this article shall be conducted in…
- § 22718 Every order, decision, license, or other official act of the commissioner is subject to judicial review in accordance with law.
ARTICLE 2. Consumer Loan Penalties §§ 22750–22758 · 9 sections
- § 22750 (a) If any amount other than, or in excess of, the charges permitted by this division is willfully charged, contracted for, or received, the contract of loan…
- § 22751 (a) If any amount other than or in excess of the charges permitted by this division is charged or contracted for, or received, for any reason other than a…
- § 22752 (a) If any provision of this division is violated in the making or collection of a loan, for any reason other than a willful act of the licensee, the licensee…
- § 22753 Except as provided in Section 22696, any person who willfully violates any provision of this division or who willfully violates any rule or order adopted…
- § 22754 No provision imposing liability under this division, including the provisions of subdivision (a) of Section 22751 and subdivision (a) of Section 22752, shall…
- § 22755 It is a violation of this division for a mortgage loan originator to do any of the following: (a) Directly or indirectly employ any scheme, device, or artifice…
- § 22756 Notwithstanding any other law, any application for licensure, amendment to the application or registration document or notice filed under any of the laws…
- § 22757 A finance lender, broker, or mortgage loan originator licensed under this division shall not pay any commission, fee, or other compensation to an unlicensed…
- § 22758 This article does not apply to a program administrator or a PACE solicitor.
ARTICLE 3. Commercial Loan Penalties §§ 22780–22780.1 · 2 sections