Financial Code — Part 6 | FIN — United States — California law | Esheria

Financial Code

Part 6 of 17 · provisions 1,001–1,200

This section says the act may be cited as the Financial Code.

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About this statute

The commissioner must let certain debt collectors keep operating if they applied before January 1, 2023, and may issue a conditional license while an application is pending. Local governments in this state may not require a debt collector to be licensed or to register as a debt collector. This division is named the Debt Collection Licensing Act and may be cited by that name. A person may not do debt collection business in this state without first getting a license, and the license is tied to the principal place of business and cannot be transferred or assigned. This section defines key terms used in the Debt Collection Licensing Act.

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Provisions of Financial Code

Showing 200 of 3,273

  1. 1759.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A foreign bank licensed to maintain an office must keep its office business records at the office or at another place approved by the commissioner, in the form and for the time the commissioner provides.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1759. Each foreign (other nation) bank that is licensed to maintain an office shall make, keep, and preserve at the office or at another place that the commissioner may, by regulation or order, approve, the books, accounts, and other records relating to the business of the office, in the form, in the manner, and for the time that the commissioner may, by regulation or order, provide. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  2. 1760.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A foreign bank may not hold both a state agency/branch license and a federal agency or federal branch in California at the same time.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1760. (a) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall concurrently maintain a federal agency or federal branch in this state. (b) No foreign (other nation) bank which maintains a federal agency or federal branch in this state shall concurrently be licensed to maintain an agency or branch office in this state. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  3. 17600.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    If an escrow licensee stops doing the regulated business and wants to stop being licensed, the licensee must notify the commissioner in writing, surrender the license and other licensure indicia, and submit a closing audit report within 105 days at its own expense.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17600. (a) An escrow agent’s license remains in effect until surrendered, revoked, or suspended. (b) A licensee that ceases to engage in the business regulated by this division and desires to no longer be licensed shall notify the commissioner in writing and, at that time, tender the license and all other indicia of licensure to the commissioner. Within 105 days of the written notice to the commissioner, the licensee shall submit to the commissioner, at its own expense, a closing audit report as of the date the license is tendered to the commissioner for surrender, or for another period as the commissioner may specify, to be performed by an independent certified public accountant. The closing audit shall include, but not be limited to, information required by the commissioner, a bank reconciliation of the trust account, and a verified statement from a certified public accountant confirming lawful disbursement of funds. A license is not surrendered until the commissioner has reviewed and accepted the closing audit report, a determination has been made by the commissioner that acceptance of the surrender is in the public interest, and tender of the license is accepted in writing by the commissioner. (Amended by Stats. 2009, Ch. 568, Sec. 3. (SB 204) Effective January 1, 2010.)
  4. 17601.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    If the commissioner believes an escrow agent is violating this division, the commissioner may investigate and examine the business records, and the commissioner’s representatives may access the relevant premises and files for that examination.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17601. If the commissioner has reason to believe that any escrow agent is violating the provisions of this division, the commissioner may investigate the escrow agent’s business and examine the books, accounts, records, and files used in the business of every escrow agent and of every person who acts or claims to act as principal or agent under or without the authority of this division. For the purposes of examination the commissioner and representatives of the commissioner shall have free access to the offices and places of business, books, accounts, records, papers, files, safes, and vaults of all persons examined. The cost of any investigation, inspection, and examination of a licensee under this section shall be paid to the commissioner as provided in Section 17405.1. (Amended by Stats. 1996, Ch. 670, Sec. 4. Effective January 1, 1997.)
  5. 17602.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    If the commissioner believes a licensed escrow agent is violating applicable governing rules, the commissioner must issue a written order telling the agent to stop the violation.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17602. If it appears to the commissioner that any licensed escrow agent is violating or has violated its articles of incorporation, or any law or rule binding upon it, the commissioner shall, by written order addressed to the agent direct the discontinuance of such violation. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 17604. (Amended by Stats. 2022, Ch. 188, Sec. 10. (AB 2433) Effective January 1, 2023.)
  6. 17602.5.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    A licensed escrow agent must file required reports on time and include all required information, or the license may be suspended or revoked.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17602.5. If any licensed escrow agent fails to make any reports required by law or by the commissioner within ten (10) days from the day designated for the making of the reports, or within any extension of time granted by the commissioner, or fails to include therein any matter required by law or by the commissioner, such failure shall constitute grounds for the suspension or revocation of the license held by such escrow agent. (Added by Stats. 1961, Ch. 475.)
  7. 17603.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    If the commissioner thinks a licensed escrow agent is conducting business unsafely or injuriously, the commissioner must order the agent to stop those practices.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17603. If it appears to the commissioner that any licensed escrow agent is conducting or has conducted business in an unsafe or injurious manner, the commissioner shall, by written order addressed to the agent direct the discontinuance of such unsafe or injurious practices. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 17604. (Amended by Stats. 2022, Ch. 188, Sec. 11. (AB 2433) Effective January 1, 2023.)
  8. 17604.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    An escrow license order cannot become final until notice is given, and a hearing must be available on request.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17604. No order issued pursuant to Sections 17602 or 17603 may become final except after notice to any licensed escrow agent affected thereby of the intention of the commissioner to make such order final and of the reasons therefor and that upon receipt of a request the matter will be set down for hearing to commence within 15 business days after such receipt unless the licensed agent affected consents to a later date. If no hearing is requested within 30 days after the mailing of such notice and none is ordered by the commissioner, the order may become final without hearing and the licensed escrow agent shall immediately discontinue the practices named in the order. If a hearing is requested or ordered, it shall be held in accordance with the provisions of the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted thereunder. If upon the hearing, it appears to the commissioner that the licensed agent is conducting or has conducted business in an unsafe and injurious manner or is violating or has violated its articles of incorporation or any law of this state, or any rule binding upon it, the commissioner shall make the order of discontinuance final and the licensed escrow agent shall immediately discontinue the practices named in the order. (Amended by Stats. 2022, Ch. 188, Sec. 12. (AB 2433) Effective January 1, 2023.)
  9. 17605.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    A licensed escrow agent has 10 days after an order becomes final to start court action to stop enforcement, and must comply with the order unless that action is started and an injunction is granted within those 10 days.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17605. The licensed escrow agent has ten (10) days after an order is made final in which to commence action to restrain enforcement of such order, and unless such action is commenced, and the enforcement of such order is enjoined within ten (10) days by the court in which the suit is brought, the licensed escrow agent shall comply with the order. (Amended by Stats. 1961, Ch. 475.)
  10. 17606.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    The commissioner may immediately revoke an escrow agent’s license if the licensee fails to comply with an order, unless the escrow agent gets a court order stopping enforcement.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17606. The commissioner may immediately revoke by order the escrow agent’s license if the licensee fails to comply with any order, unless the escrow agent secures a court order restraining the enforcement of the commissioner’s revocation order. (Amended by Stats. 2002, Ch. 772, Sec. 12. Effective January 1, 2003.)
  11. 17606.1.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    An escrow agent’s license is deemed revoked when a court-approved liquidation of the business is completed or closed, unless the escrow agent gets a court order blocking the revocation within 10 days of the liquidation order.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17606.1. The license of an escrow agent shall be deemed revoked upon the completion or closure of a court approved liquidation of the business of the escrow agent, whether pursuant to Section 17635 or 17636, or otherwise, unless the escrow agent within 10 days of the court’s order approving the closing or completion of liquidation secures a court order restraining the revocation from taking effect. (Added by Stats. 1994, Ch. 423, Sec. 3. Effective January 1, 1995.)
  12. 17607.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    The commissioner may sue to stop violations and enforce compliance, and the court may grant injunctions and related relief.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17607. (a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this division or any rule or order hereunder, the commissioner may in the commissioner’s discretion bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order hereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver, monitor, conservator, or other designated fiduciary or officer of the court, which may include the commissioner, may be appointed for the defendant or the defendant’s assets, or any other ancillary relief may be granted as appropriate. A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise any or all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court, by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court. (b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award additional relief. (Repealed and added by Stats. 1990, Ch. 1186, Sec. 7.)
  13. 17608.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    The commissioner may suspend or revoke a license after notice and a reasonable opportunity to be heard if certain grounds are found.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17608. The commissioner may, after notice and a reasonable opportunity to be heard, suspend or revoke any license if he finds that: (a) The licensee has failed to maintain in effect a bond required under the provisions of this division. (b) The licensee has violated any provision of this division or any rule made by the commissioner under and within the authority of this division. (c) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license. (Amended by Stats. 1973, Ch. 705.)
  14. 17609.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    License revocation, suspension, surrender, or expiration does not affect pre-existing lawful escrows, but no new escrow funds or documents may be accepted afterward or during suspension.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17609. The revocation, suspension, surrender or expiration of an escrow agent’s license does not impair or affect pre-existing escrows lawfully contracted, but nothing contained in this division shall be deemed to authorize the acceptance of further funds or documents into escrow subsequent to such revocation, surrender or expiration or during any period of suspension. (Amended by Stats. 1955, Ch. 261.)
  15. 17609.1.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    The commissioner’s power to investigate and examine continues even if a license is surrendered, suspended, or revoked.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17609.1. The power of investigation and examination by the commissioner is not terminated by the surrender, suspension, or revocation of any license issued by him. (Added by Stats. 1973, Ch. 705.)
  16. 17609.2.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. )

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    The commissioner may exercise the powers in this division whenever the commissioner considers it necessary for the public welfare, even if no license application has been filed or a license has been issued, surrendered, suspended, or revoked.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 4. Revocation of License [17600 - 17609.2] ( Chapter 4 enacted by Stats. 1951, Ch. 364. ) ## 17609.2. Whenever the commissioner deems it necessary for the general welfare of the public, the commissioner has continuous authority to exercise the powers set forth in this division whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked. (Amended by Stats. 2002, Ch. 772, Sec. 13. Effective January 1, 2003.)
  17. 1761.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A foreign bank may not be licensed to maintain offices of different classes at the same time, with stated exceptions for representative offices.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1761. (a) No foreign (other nation) bank shall concurrently be licensed to maintain offices of different classes. (b) Subdivision (a) does not prohibit a foreign (other nation) bank that is licensed to maintain a representative office from being concurrently licensed to maintain an office of a different class or to prohibit a foreign (other nation) bank that is licensed to maintain an office other than a representative office from being concurrently licensed to maintain a representative office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  18. 17610.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. )

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    The commissioner and designated persons may administer oaths, take witness testimony, and issue subpoenas for witness attendance and document production during examinations, investigations, or hearings anywhere in the State.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. ) ## 17610. The commissioner, and all persons designated by him, may administer oaths, take the testimony of witnesses, and issue subpenas requiring the attendance of witnesses and the production of books, documents, and other things under their control, at any examination, investigation, or hearing in any part of the State. (Enacted by Stats. 1951, Ch. 364.)
  19. 17611.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. )

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    The commissioner may investigate escrow-law violations, take temporary control of business records, subpoena evidence, and publish violation information; people generally must comply, but records may not be removed during possession except by court order or with the commissioner’s consent.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. ) ## 17611. (a) The commissioner may make such investigations as he or she deems necessary to determine whether any person has violated or is about to violate any provision of this division or any rule or order hereunder or to aid in the enforcement of this division. The commissioner may publish information concerning any violation of this division or any rule or order hereunder. (b) In making any investigation authorized by subdivision (a), the commissioner may, for a reasonable time not exceeding 30 days, take possession of the books, records, accounts, and other papers pertaining to the business of any escrow agent or joint control agent and place a keeper in exclusive charge of them in the place where they are usually kept. During such possession no person shall remove or attempt to remove any of the books, records, accounts, or other papers except pursuant to a court order or with the consent of the commissioner. However, the directors, officers, partners, and employees of the escrow agent or joint control agent may examine the books, records, accounts, or other papers and the employees shall be permitted to make entries therein reflecting current transactions. (c) For the purpose of any investigation or proceeding under this division, the commissioner or any officer designated by the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry. (d) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the superior court, upon application of the commissioner, may issue to the person an order requiring him or her to appear before the commissioner, or the officer designated by the commissioner, there to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt. (e) No person is excused from attending and testifying or from producing any document or record before the commissioner, or in obedience to the subpoena of the commissioner, or any officer designated by the commissioner, or in any proceeding instituted by the commissioner, on the ground that the testimony or evidence (documentary or otherwise) required by the commissioner may tend to incriminate the person or subject him or her to a penalty or forfeiture. However, no individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she is compelled, after validly claiming his or her privilege against self-incrimination, to testify or produce evidence (documentary or otherwise), except that the individual testimony is not exempt from prosecution and punishment for perjury or contempt committed in testifying. (Repealed and added by Stats. 1982, Ch. 663, Sec. 14.)
  20. 17612.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. )

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    The commissioner may delegate examination, investigation, hearing, oath-administering, and witness-subpoena authority to appointed deputies, investigators, or auditors, but the appointment must be in writing and signed by the commissioner.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. ) ## 17612. The authority to make or conduct any examination, investigation, or hearing, including the authority to administer oaths and to subpena witnesses, and to take their testimony may be delegated by the commissioner to any deputy, investigator, or auditor appointed by him for that purpose. The appointment shall be made by an instrument in writing, signed by the commissioner. Upon any examination, investigation, or hearing the instrument shall be produced by the deputy, investigator, or auditor at any time upon demand. (Enacted by Stats. 1951, Ch. 364.)
  21. 17613.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. )

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    Hearings under this division must follow the listed Government Code procedures, and the commissioner has the powers given there, with a special rule for hearings under Section 17604.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. ) ## 17613. All hearings provided for in this division shall be conducted in accordance with the provisions of Chapter 5, Part 1, Division 3, Title 2, of the Government Code, and the commissioner has all the powers granted therein, except that a hearing held in accordance with Section 17604 may be presided over by a hearing officer qualified under Section 11502 of the Government Code, or by any deputy designated by the commissioner. (Amended by Stats. 1953, Ch. 1076.)
  22. 17614.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. )

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    The commissioner’s orders, decisions, licenses, and other official acts may be reviewed according to law.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 5. Hearings [17610 - 17614] ( Heading of Chapter 5 added by Stats. 1961, Ch. 475. ) ## 17614. Every order, decision, license or other official act of the commissioner is subject to review, in accordance with law. (Enacted by Stats. 1951, Ch. 364.)
  23. 1762.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Foreign banks need to file an appointment with the commissioner before getting certain California bank licenses, and service of process on such banks is only effective if notice and an affidavit are filed.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1762. (a) (1) No foreign (other nation) bank (other than a bank that is licensed to maintain an agency or branch office) shall be issued a license to maintain a representative office unless it shall have first filed with the commissioner, in the form that the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the bank’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the bank or any of its successors that arises out of the activities in this state of the representative office after the appointment has been filed, with the same force and validity as if served personally on the bank or its successor, as the case may be. (2) Any foreign (other nation) bank (other than a bank that is licensed to maintain an agency or branch office or that maintains a federal agency or federal branch in this state) that maintains a representative office and that has not filed with the commissioner an appointment pursuant to paragraph (1) shall be deemed by the maintenance of that office to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the bank or any of its successors that arises out of the activities in this state of the representative office with the same force and validity as if served personally on the bank or its successor, as the case may be. (b) (1) No foreign (other nation) bank shall be issued a license to maintain an agency or branch office unless it shall have first filed with the commissioner, in the form that the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the bank’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the bank or any of its successors that arises after the appointment has been filed, with the same force and validity as if served personally on the bank or its successor, as the case may be. (2) Any foreign (other nation) bank that maintains an agency or branch office (other than a federal agency or federal branch) and that has not filed with the commissioner an appointment pursuant to paragraph (1) shall be deemed by the maintenance of that office to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the bank or any of its successors with the same force and validity as if served personally on the bank or its successor, as the case may be. (c) Service may be made on a foreign (other nation) bank that has appointed or is deemed to have appointed the commissioner as its attorney for service of process by leaving a copy of the process at any office of the commissioner. However, the service is not effective unless (1) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the bank served at its last address on file with the commissioner at any of its offices in this state or at its head office, and (2) an affidavit of compliance with this subdivision by the party making service is filed in the case on or before the return date, if any, or within any further time that the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  24. 17621.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

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    If an escrow agent meets certain problem conditions, the commissioner must send written notice, and may take possession of the agent’s property and business if the agent does not comply within five days or compliance is impossible.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17621. Whenever it appears to the commissioner that any escrow agent subject to this division: (a) Is in an insolvent condition; (b) Is conducting escrow business in an unsafe or unauthorized manner; (c) Has violated its charter or any law of the State of California; (d) Refuses to submit its books, papers and affairs to the inspection of any examiner; (e) Neglects or refuses to observe any order of the commissioner made pursuant to the provisions of this division, within the time specified therein, unless the enforcement of such order is restrained in a proceeding brought by the escrow agent; (f) Any officer, director, or trustee of such escrow agent refuses to be examined upon oath touching the business of such escrow agent; (g) Any officer, director, stockholder, or trustee of such escrow agent, or attorney in fact of such escrow agent has embezzled, sequestered, or willfully diverted the assets or trust funds of such escrow agent; (h) Has permitted its tangible net worth to be lower than the minimum required by law; (i) Has failed to comply with the bonding requirements of Chapter 2 of this division the commissioner shall dispatch a written notice and summary of findings, as referred to in Section 17415, to the principal officer of the escrow agent involved or to its manager of record; and such escrow agent shall be afforded a reasonable opportunity to comply or otherwise effect such remedies as the commissioner may deem acceptable. However, should the escrow agent so notified fail to comply within five days of receipt of the notice, or as soon as it appears to the commissioner that no compliance is possible, or in the event prompt delivery of the prescribed written notice is impossible, the commissioner may forthwith take possession of the property and business of such escrow agent and retain possession until such escrow agent resumes business or its affairs be finally liquidated as provided in this chapter. The escrow agent, with the consent of the commissioner, may resume business upon such conditions as the commissioner may prescribe. (Amended by Stats. 1981, Ch. 773, Sec. 8.)
  25. 17622.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

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    If the commissioner takes possession of a licensee, the licensee may go to superior court within 10 days to ask for an order stopping further proceedings.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17622. Whenever the commissioner has taken possession of any licensee, such licensee, within 10 days after such taking, if it deems it is aggrieved thereby, may apply to the superior court in the county in which the head office of the licensee is located to enjoin further proceedings. The court, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits may dismiss such application or enjoin the commissioner from further proceeding and direct him to surrender the property and business to the licensee, or make such further order as may be just. (Added by Stats. 1963, Ch. 2130.)
  26. 17623.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

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    An appeal usually does not stay these judgments automatically; the trial court may order a stay, and the court may also enjoin the commissioner and require surrender of the business, property, and assets if an undertaking is given.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17623. An appeal from a judgment enjoining the commissioner from further proceedings and directing the commissioner to surrender the business, property, and assets to the licensee does not operate as a stay of the judgment, unless the trial court in its discretion so orders. If the judgment dismisses the action an appeal therefrom does not operate as a stay of the judgment but the court rendering the judgment may, in its discretion enjoin the commissioner pending the appeal, from further proceedings and direct the commissioner, pending the appeal, to surrender the business, property, and assets to the licensee, if an undertaking is given as required by Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure. (Amended by Stats. 1982, Ch. 517, Sec. 225.)
  27. 17625.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If a licensee does not comply with the commissioner’s possession demand within 24 hours, the commissioner may ask the county sheriff for help, and the sheriff must enforce the commissioner’s demands after written demand.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17625. If the commissioner’s demand for the possession of the property, business and assets is not complied with within 24 hours after service of the demand, the commissioner may call to his assistance the sheriff of the county in which the principal place of business of such licensee is located, by giving the sheriff written demand the sheriff shall enforce the demands of the commissioner. (Added by Stats. 1963, Ch. 2130.)
  28. 17626.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner takes possession of a licensee’s property, business, and assets, the licensee or its president and secretary must deliver verified schedules of property, assets, and escrow funds. The commissioner may also examine relevant people under oath at any time.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17626. When the commissioner takes possession of the property, business and assets of any licensee, such licensee or the president and secretary of such licensee shall make and deliver to the commissioner verified schedules of its property, assets, and funds held in escrow. The commissioner may at any time examine under oath any licensee, or any officer, director, trustee, agent, or employee of such licensee, to determine whether or not all such property, assets, and funds held in escrow have been transferred and delivered to his possession. (Amended by Stats. 1973, Ch. 705.)
  29. 17627.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The commissioner may issue subpoenas and require parties to attend for examination under this article, subject to this chapter.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17627. The commissioner may issue subpoenas and require the attendance of parties for examination under this article as provided for in this chapter. (Amended by Stats. 2002, Ch. 772, Sec. 14. Effective January 1, 2003.)
  30. 17628.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner takes possession of a licensee’s business, property, and assets, the commissioner may appoint a custodian and may require the custodian to post a sufficient bond.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17628. When the commissioner takes possession of the business, property, and assets of a licensee, he may appoint a custodian. The commissioner may require a good and sufficient bond from the custodian and place him in charge as his representative. (Added by Stats. 1963, Ch. 2130.)
  31. 17629.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. )

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    After taking possession of a licensee’s property, business, and assets, the commissioner may collect money owed to the licensee and take other necessary or expedient steps to collect, conserve, or protect those assets.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 1. Possession by Commissioner [17621 - 17629] ( Article 1 added by Stats. 1963, Ch. 2130. ) ## 17629. When the commissioner takes possession of the property, business, and assets of a licensee, he may collect all money due to such licensee and give receipt therefor. The commissioner may do such other acts as are necessary or expedient to collect, conserve, or protect the licensee’s business, property, and assets. (Added by Stats. 1963, Ch. 2130.)
  32. 1763.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A license cannot be transferred or assigned.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1763. No license shall be transferable or assignable. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  33. 17630.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. )

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    The commissioner may appoint a conservator for a licensee in certain situations, and the conservator must take and keep control of the licensee’s property, business, and assets until they are returned or the commissioner orders otherwise.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. ) ## 17630. If any facts occur which would entitle the commissioner under Section 17621 to take possession of the property, business and assets of a licensee the commissioner may appoint a conservator of a licensee and require of him such bond as the commissioner deems proper. The commissioner may also, upon the request of the board of directors of a licensee, appoint a conservator of such licensee and require of him such bond as the commissioner deems proper. The conservator, under the direction of the commissioner, shall take possession of the property, business and assets of the licensee and take such action as he may deem necessary to conserve the assets of such licensee pending further disposition of its business. The conservator shall retain such possession until the property, business and assets of the licensee are returned to the licensee or until further order of the commissioner. (Added by Stats. 1963, Ch. 2130.)
  34. 17631.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. )

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    A conservator in possession of a licensee’s property, business, and assets gets the same powers, rights, duties, and obligations as the commissioner, and also the licensee’s rights, powers, and privileges.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. ) ## 17631. Subject to the other provisions of this article, a conservator, while in possession of the property, business and assets of a licensee, has the same powers and rights and is subject to the same duties and obligations as the commissioner while in possession of the property, business and assets of a licensee; and during such time the rights of a licensee and of all persons with respect thereto, subject to the other provisions of this article, are the same as if the commissioner had taken possession of such property, business and assets. A conservator, while in possession of the property, business and assets of a licensee, shall have all the rights, powers and privileges of the licensee, its officers and directors. All expenses of any such conservatorship shall be paid out of the assets of the licensee and shall be a lien thereon which shall be prior to any other lien. The conservator shall receive a salary, fixed by the commissioners, in an amount no greater than that which would be paid by the commissioner to a special deputy in charge of the liquidation of the licensee. (Added by Stats. 1963, Ch. 2130.)
  35. 17632.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. )

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    After appointing a conservator, the commissioner must arrange and complete an examination of the licensee’s affairs as soon as possible.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. ) ## 17632. Upon appointing a conservator the commissioner shall cause to be made and completed at the earliest possible date such an examination of the affairs of the licensee as shall be necessary to inform him as to its financial condition. (Added by Stats. 1963, Ch. 2130.)
  36. 17633.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    A conservator in possession of a licensee’s property, business, and assets may call certain investor or board meetings, and must supervise each meeting.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. ) ## 17633. A conservator, while in possession of the property, business and assets of a licensee, may call, upon the notice required by the licensee’s bylaws, a meeting of the investors of the licensee who are entitled to vote, for any purpose, including without limitation the election of a board of directors, and upon the holding of a meeting for such purpose the terms of office of all directors shall expire, or may call, upon the notice required by the licensee’s bylaws, a meeting of the board of directors for any purpose, including without limitation the filling of vacancies on the board of directors or the removal and election or the removal or election of officers. Each such meeting shall be supervised by the conservator. (Added by Stats. 1963, Ch. 2130.)
  37. 17634.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The commissioner may end a conservatorship if doing so is safe and in the public interest, and may let the licensee resume business under its board of directors.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 2. Conservatorship [17630 - 17634] ( Article 2 added by Stats. 1963, Ch. 2130. ) ## 17634. If the commissioner becomes satisfied that it may be done safely and in the public interest, he may terminate the conservatorship and permit the licensee for which a conservator was appointed to resume its business under direction of its board of directors, subject to such terms, conditions, restrictions and limitations as he may prescribe. (Added by Stats. 1963, Ch. 2130.)
  38. 17635.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The commissioner may ask the superior court to order a licensee’s business liquidated and wound up, and the court may grant that order after a full hearing.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17635. If at any time after taking possession of the property and business of a licensee it shall appear to the commissioner that it would be futile to proceed as conservator with the conduct of the business of such person he may apply to the superior court of the county in which is located the principal office of such person in this State for an order to liquidate and wind up the business of said person. Upon a full hearing of such application, the court may make an order directing the winding up and liquidation of the business of such person by the commissioner, as liquidator. (Added by Stats. 1963, Ch. 2130.)
  39. 17636.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner has taken possession of a licensee’s property and business, the commissioner may ask the superior court to appoint a receiver to liquidate the licensee’s affairs.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17636. Whenever the commissioner has taken possession of the property and business of a licensee he may petition the superior court for the appointment of a receiver to liquidate the affairs of the licensee. (Added by Stats. 1963, Ch. 2130.)
  40. 17637.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The commissioner may hire and set compensation for deputies and support staff for liquidation work, and must pay those costs from the licensee’s funds in hand.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17637. The commissioner may appoint one or more special deputies to assist in the duties of liquidation and distribution under his direction and may also employ such special legal counsel, accountants, and assistants as may be needed and required and fix their salaries and compensation. All such salaries and compensation with other reasonable and necessary expenses as may be incurred in the liquidation shall be paid by the commissioner from the funds of the licensee in his hands. Such expenses shall include, among other things, that part of the salary of the commissioner and of his deputies, auditors, accountants, appraisers and other assistants, and that part of the general expenses of the commissioner’s office, as fairly represent, in the opinion of the commissioner, the proportion properly attributable to such liquidation. (Added by Stats. 1963, Ch. 2130.)
  41. 17638.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    When liquidating a licensee’s affairs, the commissioner may collect money and claims, pay valid claims, sue to enforce liquidation, and—only with a superior court order—deal with debts and property.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17638. In liquidating the affairs of a licensee the commissioner may: (a) Collect all money due to, and claims of, the licensee and give receipt therefor. (b) Approve and pay all just and equitable claims. (c) Commence and prosecute all actions and proceedings necessary to enforce liquidation. (d) Compound bad or doubtful debts or claims, borrow money, sell, convey, or transfer real or personal property, on order of the superior court of the county in this State in which the principal office of the licensee is located. The order shall be made after hearing and on such notice as the court prescribes. (Added by Stats. 1963, Ch. 2130.)
  42. 17639.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    After a liquidation order, the commissioner may void certain recent transactions that unfairly prefer one creditor over others.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17639. After the issuance of an order of liquidation under Section 17635, any of the following transactions occurring within four months prior to the application for such order shall be voidable by the commissioner if such transaction has the effect of giving to or enabling any creditor of the licensee to obtain a preference over any other creditor, or to obtain a greater percentage of his debt than any other creditor: (a) A transfer of property of the licensee. (b) The creation of a lien upon the property of the licensee. (c) The suffering of a judgment against such person. (Added by Stats. 1963, Ch. 2130.)
  43. 1764.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank with an office must display its license in a conspicuous place at that office.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1764. Each foreign (other nation) bank that is licensed to maintain an office shall post its license in a conspicuous place at the office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  44. 17640.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

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    If the commissioner has possession of a licensee’s business, property, and assets, the commissioner may ask the superior court for approval of actions or authority to do acts not otherwise authorized, and may pay secured claims subject to a cap tied to the value of the security.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17640. If the commissioner is in possession of the business, property, and assets of a licensee, whether or not he is liquidating the affairs of such licensee, the commissioner may: (a) Apply to the superior court of the county in this State in which the principal office of the licensee is located for an order confirming any action taken by the commissioner, or authorizing the commissioner to do any act or execute any instrument not expressly authorized by this part. The order shall be given after a hearing on such notice as the court prescribes. (b) Pay and discharge any secured claims against the licensee, whether or not such claims have been presented for payment. No secured claim shall be paid in an amount larger than the value of the security at the time of payment. (Added by Stats. 1963, Ch. 2130.)
  45. 17641.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    Claims for damages from the commissioner’s disaffirmance of an executory contract or lease may be filed and allowed, but must be filed within 30 days. Landlord claims from disaffirmance of an unexpired real-property lease are capped.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17641. Claims for damages resulting from the disaffirmance of an executory contract or lease by the commissioner may be filed and allowed. No claim of a landlord for damages resulting from the disaffirmance of an unexpired lease of real property or under any covenant of such lease shall be allowed in an amount exceeding the rent reserved by the lease, without acceleration, for the year succeeding the date of the surrender of the premises plus the amount of any unpaid accrued rent without acceleration. Any such claim must be filed within 30 days of the date of such disaffirmance. (Added by Stats. 1963, Ch. 2130.)
  46. 17642.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner decides to liquidate a licensee, the commissioner must have all assets inventoried in duplicate, file the original with the court, and keep the duplicate in the commissioner’s office.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17642. When the commissioner determines to liquidate a licensee, he shall cause an inventory of all the assets of the licensee to be made in duplicate, file the original with the court, and file the duplicate in his office. (Added by Stats. 1963, Ch. 2130.)
  47. 17643.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner decides to liquidate a licensee, the commissioner must publish notice for four weeks and mail a copy of the notice within 10 days after first publication. Claimants must then file and prove their claims within the time and place stated in the notice, and that time cannot be less than six months after first publication.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17643. When the commissioner determines to liquidate a licensee he shall cause notice to be given by publication once a week for four successive weeks in some newspaper of general circulation published at or near the principal place of business in this State of such licensee, to all persons having claims against the licensee as creditors, investors, or otherwise, requiring them to present and file their claims and make legal proof thereof at a place and within a time designated in such publication. The time shall be not less than six months after the first publication. Within 10 days after the first publication the commissioner shall cause a copy of such notice to be mailed to all persons whose names appear of record upon the licensee’s books as creditors, or as parties to an uncompleted escrow transaction. (Added by Stats. 1963, Ch. 2130.)
  48. 17644.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    Claims against the licensee or related trust property must be filed in writing with the commissioner, verified, and filed within the notice period.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17644. All claims, demands, or causes of action of creditors, and persons other than the parties to an escrow transaction against the licensee or against any property owned or held by it in trust or otherwise, must be presented to the commissioner in writing, verified by the claimant, or someone in his behalf, within the period specified in the notice for the presentation of claims, whether or not an action is pending to enforce any such claim or demand. The commissioner shall not approve any claim not so presented, and any such claim, demand or cause of action not so presented is forever barred. (Added by Stats. 1963, Ch. 2130.)
  49. 17645.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    After the claims period ends, the commissioner must prepare a duplicate schedule of all claims, identify which claims are approved or disapproved by class, and file the original with the court and the duplicate in the commissioner’s office.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17645. Upon the expiration of the time fixed for the presentation of claims, the commissioner shall prepare in duplicate a full and complete schedule of all claims presented, specifying by classes those that have been approved and those that have been disapproved and shall file the original with the court and the duplicate in his office. (Added by Stats. 1963, Ch. 2130.)
  50. 17646.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    Rejected-claim notice must be mailed within 5 days, and any action to enforce or establish a rejected claim must be brought and served within 4 months of filing the claims schedule.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17646. Not later than five days after the time of filing the schedule of claims with the court, written notice shall be mailed to all claimants whose claims have been rejected. Action to enforce the payment of or to establish any rejected claim must be brought and service had within four months from and after the date of filing of the schedule of claims with the proper court or all such actions are forever barred. (Added by Stats. 1963, Ch. 2130.)
  51. 17647.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

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    Superior court judges in the county where the licensee’s principal office is located may hold hearings about selling, exchanging, or otherwise disposing of the licensee’s real or personal property, even if the property is elsewhere.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17647. Regardless of any law of this state, the judges of the superior court of the county in this state in which the principal office of the licensee is located may, whenever the judges deem it necessary or advisable, hold hearings relating to the sale, exchange, or other disposition of any real property or any personal property of the licensee regardless of the location of the property. The hearings shall be held at the county seat of any county in this state or at the places in the home county of the superior court at which sessions are held. (Amended by Stats. 2003, Ch. 149, Sec. 12. Effective January 1, 2004.)
  52. 17648.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The court may order the commissioner to abandon property if it seems unlikely that anything can be recovered from it and keeping it would probably waste money.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17648. If it appears improbable that anything can be realized from any property of the licensee and that the cost of maintaining, preserving, or protecting the property would probably be lost, the court may direct the commissioner to abandon the property. (Added by Stats. 1963, Ch. 2130.)
  53. 17649.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    The commissioner may bring or defend lawsuits and sign needed property-transfer documents when carrying out this article’s powers and duties.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17649. For the purpose of executing and performing any of the powers and duties conferred upon him by this article, the commissioner may in the name of the licensee or in his own name prosecute and defend any suit or other legal proceeding and may in the name of the licensee or in his own name as commissioner execute, acknowledge, and deliver any and all deeds, assignments, releases, requests for reconveyance, and other instruments necessary and proper to effectuate any sale of real or personal property or other transaction in connection with the liquidation of the licensee. Any deed, assignment, release, request for reconveyance, or other instrument executed pursuant to this section is valid and effectual for all purposes as though it was executed by the officers of such licensee with the authority of its board of directors. (Added by Stats. 1963, Ch. 2130.)
  54. 1765.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Foreign banks licensed to maintain an office must give the office a designated popular name and post it, must include “representative office” in a representative office name, and must not use “branch” for an agency name unless modified by words like “foreign” or “overseas.”

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1765. (a) Each foreign (other nation) bank that is licensed to maintain an office shall assign to the office a popular name that consists of a specific designation by name or number and shall post the popular name and the name of the bank in a conspicuous place at the office. (b) The popular name that a foreign (other nation) bank assigns to a representative office that it is licensed to maintain shall include the term “representative office.” (c) The popular name that a foreign (other nation) bank assigns to an agency that it is licensed to maintain shall not include the term “branch” unless the term is modified by the word “foreign” or “overseas” or by a similar word. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  55. 17650.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    If the commissioner sells a licensee’s real property in a different county, the commissioner must record a certified copy of the sale order in the county where the property is located.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17650. If any real property of the licensee sold by the commissioner is located in a county other than the county in which the application to the court for permission to sell the property was made, the commissioner shall cause a certified copy of the order authorizing or ratifying such sale to be recorded in the office of the recorder of the county in which the real property is located. (Added by Stats. 1963, Ch. 2130.)
  56. 17651.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    After liquidation conditions are met and the majority stockholders request it in writing, the commissioner must deliver any remaining surplus, records, and effects to the licensee or its trustees.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17651. When the commissioner has (a) fully liquidated all claims other than claims of stockholders, and (b) made due provision for any and all known but unclaimed liabilities, excepting claims of stockholders, and (c) paid all expenses of liquidation, then upon the written request of the holders of a majority of the stock of such licensee he shall deliver to the licensee or its trustees any surplus that then remains in his hands, together with all the records and effects. The licensee or its trustees shall have title to such surplus, records, and effects free from any claim of the commissioner. (Added by Stats. 1963, Ch. 2130.)
  57. 17652.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    After a final dividend is paid in liquidation, the commissioner must file a full final statement with the court and keep a duplicate in the commissioner’s office. The liquidation closes after court hearing and approval.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17652. 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, including a summary of the receipts and disbursements, and a duplicate of such statement shall be filed in the office of the commissioner. After hearing and approval by the court, the liquidation shall be closed. (Added by Stats. 1963, Ch. 2130.)
  58. 17653.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    When approving the commissioner’s final liquidation statement, the court must determine unpaid or unclaimed liquidating dividends and order the commissioner to deposit them with the Controller.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17653. In making its order approving the commissioner’s final statement of the liquidation of a licensee, the court shall determine the amounts of the liquidating dividends to which claimants and investors are entitled but that then remain unpaid or unclaimed in the hands of the commissioner. The order of the court shall direct the commissioner to deposit the amounts with the Controller. All amounts so deposited shall be deemed to be deposited with the Controller under Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, and may be recovered in the manner prescribed in that chapter. (Amended by Stats. 1996, Ch. 860, Sec. 6. Effective January 1, 1997.)
  59. 17654.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. )

    Verify source ↗

    When the court approves the final liquidation statement, it must order the licensee’s books and records to be destroyed or otherwise disposed of, and it may declare the licensee dissolved as a corporation.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 6. Liquidation and Conservatorship [17621 - 17654] ( Chapter 6 added by Stats. 1963, Ch. 2130. ) ## ARTICLE 3. Liquidation by the Commissioner [17635 - 17654] ( Article 3 added by Stats. 1963, Ch. 2130. ) ## 17654. 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 licensee or pertaining to the liquidation of the licensee, and the court may declare the licensee dissolved as a corporation. (Added by Stats. 1963, Ch. 2130.)
  60. 1766.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank with two or more agencies or branch offices must designate one of them as its primary office.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1766. Whenever a foreign (other nation) bank is licensed to maintain two or more agencies or branch offices, it shall designate one of such offices as its primary office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  61. 1767.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank must run all office business in one building or adjoining buildings, unless it has good cause and the commissioner approves part of the business being done elsewhere nearby.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1767. Each foreign (other nation) bank that is licensed to maintain an office shall conduct all of the business of the office in a single building or in adjoining buildings. However, for good cause and with the approval of the commissioner, the bank may conduct part of the business of the office elsewhere in the same vicinity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  62. 1768.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Certain foreign banks meeting specified conditions are exempt from California’s constitutional interest-rate restriction for loans or forbearances.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1750 - 1768] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1768. Any foreign (other nation) bank that, at the time it makes a loan or forbearance or executes a contract therefor, has assets equal to at least one hundred million dollars ($100,000,000), is licensed to maintain an office in California, is licensed or otherwise authorized by another state of the United States to maintain an agency or branch office in that state, or maintains a federal agency or federal branch in any state of the United States is exempted from the restrictions of Section 1 of Article XV of the Constitution relating to rates of interest upon the loan or forbearance of any money, goods, or things in action or on accounts after demand. This section does not exempt a foreign (other nation) bank or a subsidiary thereof from complying with all other laws and regulations governing the business in which such a bank or subsidiary is engaged. This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the Constitution. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  63. 177.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “state of the United States” and “Foreign (other nation)” for use in this section, with different meanings depending on whether the term is used for a bank, a bank office, or another corporation.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 177. (a) The definition of “state of the United States” in Section 207 does not apply to this section. In this section, “state of the United States” means any state of the United States or the District of Columbia. (b) “Foreign (other nation)”: (1) When used with respect to a bank, means any bank (including, without limitation, any commercial bank, merchant bank, or other institution that engages in banking activities that are usual in connection with the business of banking in the nation in which the institution is organized or operating) other than (A) a bank that is organized under the laws of a state of the United States or (B) a national bank that maintains its main office in a state of the United States. (2) When used with respect to an office of a bank, means an office that is located in a place other than a state of the United States. (3) When used with respect to any corporation other than a bank, means a corporation that is organized under the laws of a foreign nation. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  64. 17700.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. )

    Verify source ↗

    A person who willfully violates this division, or a rule or order under it, can be fined or jailed on conviction.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. ) ## 17700. Any person who willfully violates any provision of this division, or who willfully violates any rule or order under this division, shall, upon conviction, be fined not more than ten thousand dollars ($10,000), imprisoned in a county jail for not more than one year, imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or be punished by both that fine and imprisonment, but no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority provided in Section 17423. (Amended by Stats. 2011, Ch. 15, Sec. 109. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  65. 17701.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. )

    Verify source ↗

    A person who violates this division or its rules or orders can face a civil penalty of up to $2,500 for each violation.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. ) ## 17701. (a) Any person who violates any provision of this division, or who violates any rule or order under this division, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction. (b) As applied to the penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce the provisions of this division. (Added by Stats. 1985, Ch. 1560, Sec. 42. Effective October 2, 1985.)
  66. 17702.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. )

    Verify source ↗

    It is unlawful for any person to knowingly make a false material statement, or knowingly omit a required material fact, in certain filings with the commissioner.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. ) ## 17702. It is unlawful for any person to willfully make any untrue statement of a material fact in any application, notice, or report filed with the commissioner under this division or the regulations issued thereunder, or to willfully omit any material fact which is required to be stated in any application, notice, or report. (Added by Stats. 1988, Ch. 1300, Sec. 2.)
  67. 17703.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. )

    Verify source ↗

    A person must not knowingly tamper with records or make false statements to the commissioner if the intent is to obstruct enforcement of this division.

    ## Financial Code - FIN ## DIVISION 6. ESCROW AGENTS [17000 - 17703] ( Division 6 enacted by Stats. 1951, Ch. 364. ) ## CHAPTER 7. Crimes and Civil Penalties [17700 - 17703] ( Chapter 7 added by Stats. 1985, Ch. 1560, Sec. 42. ) ## 17703. (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 object with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division. (b) It is unlawful for any person to knowingly make an untrue statement to the commissioner during the course of licensing, investigation, or examination, with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division. (Added by Stats. 2007, Ch. 101, Sec. 17. Effective January 1, 2008.)
  68. 1780.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Foreign banks generally may not open or keep a representative office in this state unless licensed; a person also may not operate an office here as the bank’s representative unless the bank is licensed.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1780. (a) No foreign (other nation) bank shall establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. (b) (1) No person shall establish or maintain an office in this state as representative of a foreign (other nation) bank unless the bank is licensed to maintain the office as a representative office. (2) For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) bank, the bank shall be deemed to establish and maintain the office as a representative office. (c) Neither subdivision (a) nor subdivision (b) shall be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  69. 1781.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank may not establish or keep a representative office unless the commissioner approves it and issues a license, with a narrow exception for certain banks that already maintain a federal agency or federal branch in the state.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1781. (a) (1) No foreign (other nation) bank shall establish or maintain a representative office unless the commissioner shall have first approved the establishment of the office and issued a license authorizing the bank to maintain the office. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state. (b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to establish a representative office, the commissioner shall approve the application: (1) That the bank, any controlling person of the bank, the directors and executive officers of the bank or of any controlling person of the bank, and the proposed management of the office are each of good character and sound financial standing. (2) That the financial history and condition of the bank are satisfactory. (3) That the management of the bank and the proposed management of the office are adequate. (4) That it is reasonable to believe that, if licensed to maintain the office, the bank will operate the office in compliance with all applicable laws, regulations, and orders. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to establish a representative office has been approved and all conditions precedent to the issuance of a license authorizing the bank to maintain the office have been fulfilled, the commissioner shall issue the license. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  70. 1782.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank licensed to operate a representative office may not move it unless the commissioner first approves the move and issues a new license.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1782. (a) No foreign (other nation) bank that is licensed to maintain a representative office shall relocate the office unless the commissioner shall have first approved the relocation and issued a license authorizing the bank to maintain the office at the new site. (b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to relocate a representative office, the commissioner shall approve the application: (1) In case the new site of the office is in the same vicinity as the old site, that the relocation of the office will not be substantially detrimental to the public convenience and advantage; or (2) In case the new site of the office is not in the same vicinity as the old site: (A) That the relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area that is primarily served by the office at the old site; and (B) That the relocation of the office to the new site will promote the public convenience and advantage. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to relocate a representative office has been approved and all conditions precedent to the issuance of a license authorizing the bank to maintain the office at the new site have been fulfilled, the commissioner shall issue the license. (d) Promptly after a foreign (other nation) bank that is licensed to maintain a representative office relocates the office, the bank shall surrender to the commissioner the license that authorized it to maintain the office at the old site. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  71. 1783.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank may do representational work at its representative office, but it may not solicit or accept deposits or otherwise conduct business there, subject to regulations the commissioner may prescribe.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1783. A foreign (other nation) bank that is licensed to maintain a representative office may, subject to any regulations that the commissioner may prescribe, engage in representational functions at the office but shall not solicit or accept deposits or otherwise transact business at the office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  72. 1784.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank with a licensed representative office may close it only after the commissioner approves the closing, unless the closure is handled under Article 4.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Representative Offices [1780 - 1784] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1784. (a) (1) No foreign (other nation) bank that is licensed to maintain a representative office shall close the office unless the commissioner shall have first approved the closing. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) bank that is licensed to maintain a representative office from closing the office in accordance with Article 4 (commencing with Section 1825). (b) If the commissioner finds, with respect to an application by a foreign (other nation) bank for approval to close a representative office, that the closing of the office will not be substantially detrimental to the public convenience and advantage, the commissioner shall approve the application. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to close a representative office has been approved and all conditions precedent to the closing have been fulfilled, the bank may close the office and shall promptly thereafter surrender to the commissioner the license that authorized it to maintain the office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  73. 179.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “foreign (other state)” for banks, bank offices, and certain corporations.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 179. “Foreign (other state)”: (a) When used with respect to a bank, means a bank that is organized under the laws of any state of the United States other than this state, or a national bank that maintains its main office in any state of the United States other than this state, and includes any savings bank, as defined in Section 3(g) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(g)), that is organized under the laws of a state other than this state. (b) When used with respect to an office of a bank, means an office that is located in a state other than this state. (c) When used with respect to a corporation other than a bank, means a corporation that is organized under the laws of any state of the United States other than this state or under the laws of the United States. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  74. 18.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

    Verify source ↗

    This section defines “person” broadly to include individuals and many business or organizational forms.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 18. “Person” includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. (Amended by Stats. 1994, Ch. 1010, Sec. 108. Effective January 1, 1995.)
  75. 1800.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Foreign banks may do business in this state only through a licensed agency or branch office, subject to listed exceptions.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1800. (a) No foreign (other nation) bank shall transact business in this state except at an agency or branch office that it is licensed to maintain and at which it is permitted by this chapter to transact the business transacted. (b) Subdivision (a) shall not be deemed to prohibit: (1) Any foreign (other nation) bank that maintains a federal agency or federal branch in this state from transacting at the federal agency or federal branch any business that it may be authorized to transact under applicable federal laws and regulations; (2) Any foreign (other nation) bank from carrying on the activities described in subdivision (d) of Section 191 of the Corporations Code; (3) Any foreign (other nation) bank that does not maintain an agency or branch office from making in this state loans secured by liens on real property located in this state; or (4) Any foreign (other nation) bank that does not maintain an agency or branch office from transacting trust business as permitted under Section 1555. (c) For purposes of subdivision (a), no foreign (other nation) bank shall be deemed to be transacting business in this state merely because a majority-owned subsidiary transacts business in this state. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  76. 18000.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This division is named the Industrial Loan Law, Industrial Banking Law, or Thrift and Loan Law.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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.” (Amended by Stats. 1998, Ch. 827, Sec. 2. Effective January 1, 1999.)
  77. 18001.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The definitions in this article control how this division is read, unless the context requires a different meaning.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18001. The definitions given in this article govern the construction of this division unless the context otherwise requires. (Repealed and added by Stats. 1976, Ch. 964.)
  78. 18002.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “Commissioner” as the Commissioner of Financial Protection and Innovation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18002. “Commissioner” means the Commissioner of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 127. (SB 1498) Effective January 1, 2023.)
  79. 18002.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “Department” as the Department of Financial Protection and Innovation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18002.5. “Department” means the Department of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 128. (SB 1498) Effective January 1, 2023.)
  80. 18003.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “industrial loan company,” “thrift and loan company,” and “company” in this division as a premium finance agency, and excludes certain industrial banks from these terms and this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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. Notwithstanding any other provision of this chapter, these terms and this division do not apply to an industrial bank subject to, and governed by, Chapter 15 (commencing with Section 1530) of Division 1.1. (Amended by Stats. 2013, Ch. 334, Sec. 66. (SB 537) Effective January 1, 2014.)
  81. 18003.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    In this section, “investment and loan” means an industrial loan company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18003.1. “Investment and loan” means an industrial loan company. (Added by Stats. 1990, Ch. 623, Sec. 2.)
  82. 18003.2.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section says that references to an industrial loan company or thrift and loan company mean an insurance premium finance agency, except in specified cases.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 premium finance agency as defined in Section 18560. (b) Subdivision (a) does not apply in any of the following cases: (1) In case the provision or a related provision expressly provides otherwise. (2) In the case of any provision of Division 1 (commencing with Section 99) or Division 1.5 (commencing with Section 4800). (Added by Stats. 2000, Ch. 1015, Sec. 52. Effective September 30, 2000.)
  83. 18003.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “insured” for industrial loan companies and investment certificates as being insured by the FDIC under the Federal Deposit Insurance Act.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (b) When used with respect to an investment certificate, “insured” means an investment certificate that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (Repealed and added by Stats. 1998, Ch. 827, Sec. 4. Effective January 1, 1999.)
  84. 18003.6.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “certificate of deposit” for industrial loan companies licensed under this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 obligation of an industrial loan company to repay a nondemand deposit as deposit is defined in Section 3(1) of the Federal Deposit Insurance Act. (Added by Stats. 1994, Ch. 129, Sec. 1. Effective January 1, 1995.)
  85. 18003.7.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “demand deposit.”

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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. (Added by Stats. 1999, Ch. 345, Sec. 1. Effective January 1, 2000.)
  86. 18004.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “Borrower” as the person who receives the proceeds or benefits of a loan.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18004. “Borrower” means the person receiving the proceeds or benefits of a loan. (Repealed and added by Stats. 1976, Ch. 964.)
  87. 18005.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “consumer loan or consumer obligation” as a loan to, or obligation incurred by, a natural person for primarily personal, family, or household purposes.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 delivered or service rendered under the obligation is primarily for personal, family, or household purposes. (Added by Stats. 1976, Ch. 964.)
  88. 18006.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines when a loan or other obligation is “primarily secured by real property.”

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 is made or other obligation is acquired, is more than 50 percent of the principal amount owing on the loan or obligation. (Added by Stats. 1976, Ch. 964.)
  89. 18007.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “Charges” broadly to include various costs connected with loan-related services and forbearance.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18007. “Charges”, as used in this division, include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by an industrial loan company or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, or enforcing of a loan, or for forbearance of money, credit, goods, things in action, or any other service or services rendered. (Added by Stats. 1976, Ch. 964.)
  90. 18008.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “charges” to include profits or advantages obtained in connection with a loan, with an exception for certain insurance commissions.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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, purchase, or agreement, in connection with the negotiating, arranging, making, or otherwise in connection with any loan, except commissions received on insurance sold as provided in this division. (Added by Stats. 1976, Ch. 964.)
  91. 18009.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “principal amount” for this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 on the borrower’s instructions at the time of entering into the transaction. (Added by Stats. 1976, Ch. 964.)
  92. 1801.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank cannot be licensed to keep an agency or branch office unless it is qualified to do intrastate business in the state.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1801. No foreign (other nation) bank shall be licensed to maintain any agency or branch office unless it is qualified to transact intrastate business in this state under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  93. 18010.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    In this division, “principal balance” and “face amount” mean the unpaid balance of a loan or other obligation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18010. “Principal balance”, and “face amount” as used in this division, means the unpaid balance of a loan or other obligation. (Amended by Stats. 1979, Ch. 270.)
  94. 18011.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    “Affiliated company” means a company under substantially the same management or control as the industrial loan company, directly or indirectly.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 company. (Added by Stats. 1976, Ch. 964.)
  95. 18011.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “affiliate” for industrial loan companies.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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. (Added by Stats. 1996, Ch. 467, Sec. 1. Effective January 1, 1997.)
  96. 18012.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “Corporate Securities Law” as the Corporate Securities Law of 1968 in Division 1 of Title 4 of the Corporations Code.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18012. “Corporate Securities Law” means the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code. (Added by Stats. 1976, Ch. 964.)
  97. 18013.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “outstanding loans and obligations” for this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18013. “Outstanding loans and obligations,” as used in this division, means total outstanding loans and obligations, including lease obligations, less unearned interest or charges, unearned discount, reserve or allowance for losses, and other applicable allowances or deductions as determined by regulation of the commissioner. (Amended by Stats. 1979, Ch. 911.)
  98. 18014.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    For these sections, “obligation” also includes lease obligations authorized by Section 18310.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18014. “Obligation” as used in Sections 18265, 18271, 18272, and 18343 includes lease obligations as authorized by Section 18310. (Added by Stats. 1979, Ch. 911.)
  99. 18015.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “lease obligation” for this division as a lease contract entered into by an industrial loan company as lessor.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18015. “Lease obligation” as used in this division, means a lease contract entered into by an industrial loan company as lessor. (Added by Stats. 1979, Ch. 911.)
  100. 18016.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “investment certificates ratio” for use in this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 those hypothecated with the company issuing them, of a company to the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus declared not available for dividends pursuant to Section 18319. (Added by renumbering Section 18373 by Stats. 1985, Ch. 142, Sec. 7. Effective July 1, 1985.)
  101. 18016.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    “Premium finance agency” is defined by Section 18560.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18016.5. “Premium finance agency” has the meaning set forth in Section 18560. (Added by Stats. 1998, Ch. 827, Sec. 5. Effective January 1, 1999.)
  102. 18017.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    In this division, “assets” means all assets except intangibles.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18017. “Assets,” as used in this division, means all assets excluding intangibles. (Added by Stats. 1986, Ch. 680, Sec. 1.)
  103. 18018.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “capital” for this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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) Secondary capital. (Added by Stats. 1989, Ch. 663, Sec. 1. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  104. 18018.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “primary capital” for this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18018.1. “Primary capital,” as used in this division, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, and mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of that debt). (Added by Stats. 1989, Ch. 663, Sec. 1.1. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  105. 18018.2.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “secondary capital” and sets limits and maturity requirements for certain instruments included in it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 stock, and subordinated notes and debentures, all in an amount up to 50 percent of primary capital. Issues of limited life preferred stock and subordinated notes and debentures, except mandatory convertible debt, shall have original weighted average maturities of at least seven years to be included within capital surplus under primary capital. (Added by Stats. 1989, Ch. 663, Sec. 1.2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  106. 18018.3.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “perpetual preferred stock” for this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 option of the holder. It includes those issues of preferred stock that automatically convert into common stock at a stated date. It excludes those issues, the rate on which increases, or can increase, in such a manner that would effectively require the issuer to redeem the issue. (Added by Stats. 1989, Ch. 663, Sec. 1.3. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  107. 18018.4.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “mandatory convertible debt” as a subordinated debt instrument that the issuer must convert into common or perpetual preferred stock by maturity or earlier.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 or perpetual preferred stock by a date at or before the maturity of the debt instrument. The maturity of those instruments shall be 12 years or less. (Added by Stats. 1989, Ch. 663, Sec. 1.4. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  108. 18018.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    “Limited life preferred” means preferred stock that has a maturity or can be redeemed at the holder’s option.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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. (Added by Stats. 1989, Ch. 663, Sec. 1.5. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  109. 18018.6.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines when an obligation counts as a subordinated note or debenture, including required legend, maturity, subordination wording, unsecured status, and a possible waiver requirement.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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, in boldface type no smaller than the largest size type used in the obligation, the following: “this obligation is not a deposit and is not insured by the Federal Deposit Insurance Corporation.” (b) (1) Has a maturity of at least seven years, or (2) in the case of an obligation or issue that provides for scheduled repayments of principal, has an average maturity of at least seven years; however, the commissioner may permit the issuance of an obligation or issue with a shorter maturity or average maturity if the commissioner has determined that exigent circumstances require the issuance of that obligation or issue. This subdivision shall not apply to mandatory convertible obligations or issues. (c) States expressly that the obligation is subordinated and junior in right of payment to the issuing industrial loan company’s obligations to its investment certificate holders and to the industrial loan company’s other obligations to its general and secured creditors, and is ineligible as collateral for a loan by the issuing industrial loan company. (d) Is unsecured. (e) States expressly that the issuing industrial loan company may not retire any part of its obligation without the prior written consent of the commissioner. (f) Includes, if the obligation is issued to a depository institution, a specific waiver of the right of offset by the lending depository institution. (Added by Stats. 1989, Ch. 663, Sec. 1.6. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  110. 18019.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section defines “capital stock” for this division as one-class voting common stock.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18000 - 18019] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18019. “Capital Stock,” as used in this division, means one-class voting common stock. (Added by Stats. 1989, Ch. 663, Sec. 2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  111. 1802.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank may not be licensed to maintain a retail branch office unless the deposits in that office are insured by the FDIC under the Federal Deposit Insurance Act.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1802. No foreign (other nation) bank shall be licensed to maintain a retail branch office unless the deposits in such office are insured by the Federal Deposit Insurance Corporation in accordance with the provisions of the Federal Deposit Insurance Act. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  112. 18020.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may not appoint or keep in office officers, directors, or management personnel who lack the qualifications required by Section 18117(d).

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 Section 18117 (d). (Added by Stats. 1976, Ch. 964.)
  113. 18021.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Industrial loan companies generally may deposit funds only with authorized in-state institutions, with limited exceptions for certain insured companies and out-of-state institutions.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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, except as provided in subdivision (b). (b) An industrial loan company which is insured, as that term is defined in Section 18003.5, may also deposit its funds in an out-of-state financial institution, the accounts of which are insured by the Federal Deposit Insurance Corporation. (c) Funds deposited in an out-of-state financial institution shall not in any case exceed the applicable amount of federal deposit insurance. (d) The depository shall be approved by a majority vote of the board of directors or the executive committee, exclusive of the vote of any director who is an officer, director, trustee, or shareholder of the depository so designated. An out-of-state savings association subject to the Management Consignment Program of the Office of Thrift Supervision shall not be used as a depository. (e) An industrial loan company shall furnish an authorization for disclosure to the commissioner of the financial records of deposits pursuant to Section 7473 of the Government Code. No deposit shall be made in an out-of-state financial institution unless that institution agrees in writing to disclose financial records of the industrial loan company to the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 583. Effective January 1, 1997. Operative July 1, 1997.)
  114. 18022.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Industrial loan companies may invest only as this division allows, including certain bank-legal investments and investment in other industrial loan company choses in action.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 investments that are legal investments for commercial banks, including the capital stock, obligations, or other securities of one or more corporations, subject to rules and orders prescribed by the commissioner. Companies may also invest their funds in the choses in action issued by any other industrial loan company. (Amended by Stats. 1996, Ch. 223, Sec. 1. Effective January 1, 1997.)
  115. 18022.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may provide certain investment-company services and sell securities if its selling officers and employees meet standards set by the commissioner or the commissioner’s designee.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18022.5. (a) An industrial loan company may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to Part 2 (commencing with Section 25100) of Division 1, Title 4 of the Corporations Code, if the officers and employees of the industrial loan company who sell these securities meet such standards with respect to training experience, and sales practices as established by the commissioner or the commissioner’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.). (b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026. (Amended by Stats. 2026, Ch. 28, Sec. 19. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.)
  116. 18023.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company with investment or thrift certificates outstanding may not borrow above a 300% limit unless it is by selling those certificates or the commissioner gives written consent.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 certificates, in an amount in excess of 300 percent of the amount represented by its outstanding capital stock, surplus and undivided profits, without the written consent of the commissioner. All sums so borrowed in excess of 150 percent of outstanding capital stock, surplus and undivided profits shall be unsecured borrowings or, if secured, approved in writing by the commissioner in advance of the borrowings, and be included as investment or thrift certificates for purposes of computing the ratio allowed under Sections 18319 and 18320. (Amended by Stats. 1985, Ch. 142, Sec. 1. Effective July 1, 1985.)
  117. 18023.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may borrow from certain federal lending institutions, and those borrowed funds do not count toward the Section 18023 borrowing limits.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 Corporation, or a Federal Reserve Bank, which borrowed funds shall not be included in the borrowing limitations contained in Section 18023. (Amended by Stats. 1998, Ch. 827, Sec. 6. Effective January 1, 1999.)
  118. 18024.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not do business or make loans under any name other than the name shown in its articles of incorporation filed with the commissioner.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 of incorporation as filed with the commissioner. (Added by Stats. 1976, Ch. 964.)
  119. 18025.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A person must not use a holding company or other device to evade this division’s rules. The section also preserves a holding company’s right to issue preferred stock or debentures when the Corporate Securities Law of 1968 allows it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 affect the right of a holding company to issue preferred stock or debentures when permitted to do so under the Corporate Securities Law of 1968. “Holding company” means any company which directly or through one or more intervening subsidiaries, whether or not wholly owned, controls or has the power to control a majority of the shares of an industrial loan company. (Amended by Stats. 1980, Ch. 418, Sec. 1.)
  120. 18027.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Corporations subject to this division are exempt from the California Financing Law provisions and regulations.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18027. Corporations subject to this division are not subject to the provisions or regulations of the California Financing Law (Division 9 (commencing with Section 22000)). (Amended by Stats. 2020, Ch. 370, Sec. 117. (SB 1371) Effective January 1, 2021.)
  121. 18028.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Corporations formed under this division are taxed the same way and at the same rates as other corporations.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 Section 27 of Article XIII of the Constitution of this state. (Amended by Stats. 1983, Ch. 725, Sec. 1.)
  122. 18029.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Each industrial loan company must keep and use books, accounts, and records that let the commissioner check compliance.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 complying with the provisions of this division and with the rules and regulations made by the commissioner. (Added by Stats. 1976, Ch. 964.)
  123. 1803.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank may not establish or keep an agency or branch office unless the commissioner first approves it and issues a license.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1803. (a) (1) No foreign (other nation) bank shall establish or maintain an agency or branch office unless the commissioner shall have first approved the establishment of that office and issued a license authorizing the bank to maintain the office. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) bank from establishing or maintaining a federal agency or federal branch in this state. (b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to establish an agency or branch office, the commissioner shall approve the application: (1) That the bank, any controlling person of the bank, the directors and executive officers of the bank or of any controlling person of the bank, and the proposed management of the office are each of good character and sound financial standing. (2) That the financial history and condition of the bank are satisfactory. (3) That the management of the bank and the proposed management of the office are adequate. (4) That it is reasonable to believe that, if licensed to maintain the office, the bank will operate the office in a safe and sound manner and in compliance with all applicable laws, regulations, and orders. (5) That the bank’s plan to establish and to maintain the office affords reasonable promise of successful operation. (6) That the bank’s establishment and maintenance of the office will promote the public convenience and advantage. (7) In case the office is to be a branch office, that the foreign nation where the bank is domiciled permits banks organized under the laws of this state and national banks headquartered in this state to establish and maintain in those foreign nation offices substantially equivalent to agencies, offices substantially equivalent to branch offices, or wholly (except for directors’ qualifying shares) owned banks organized under the laws of the foreign nation. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to establish an agency or branch office has been approved and all conditions precedent to the issuance of a license authorizing the bank to maintain the office have been fulfilled, the commissioner shall issue the license. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  124. 18030.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Each industrial loan company must keep its books, accounts, records, and any card-system cards for at least two years after the final entry on a loan or purchased obligation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General Provisions [18020 - 18030] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 making the final entry on any loan or purchased obligation recorded therein. (Added by Stats. 1976, Ch. 964.)
  125. 1804.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank licensed to keep an agency or branch office may relocate it only after the commissioner approves the move and issues a new license.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1804. (a) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall relocate such office unless the commissioner shall have first approved such relocation and issued a license authorizing such bank to maintain the office at the new site. (b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to relocate any agency or branch office, the commissioner shall approve such application: (1) In case the new site of the office is in the same vicinity as the old site: (A) That it will not be unsafe or unsound for the bank to relocate the office; and (B) That the relocation of the office will not be substantially detrimental to the public convenience and advantage, or that the relocation is necessary in the interests of the safety and soundness of the bank; or (2) In case the new site of the office is not in the same vicinity as the old site: (A) That the bank’s plan to relocate the office and to maintain the office at the new site affords reasonable promise of successful operation; (B) That the relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area which is primarily served by the office at the old site, or that the relocation is necessary in the interests of the safety and soundness of the bank; and (C) That the relocation of the office to the new site will promote the public convenience and advantage. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to relocate an agency or branch office has been approved and all conditions precedent to the issuance of a license authorizing such bank to maintain such office at the new site have been fulfilled, the commissioner shall issue such license. (d) Promptly after a foreign (other nation) bank which is licensed to maintain an agency or branch office relocates such office, such bank shall surrender to the commissioner the license which authorized it to maintain such office at the old site. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  126. 18040.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may buy, hold, and sell real property only for stated business-related purposes, and it faces limits on bid amounts and on how much it may invest in related property and items.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 debts previously contracted in the course of its business. (b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees’ sales under deeds of trust under securities held by it. No company shall bid at any such sale a larger amount than is necessary to satisfy its debt and costs. (c) Real property necessary as premises for the transaction of its business. No company shall invest directly or indirectly an amount exceeding one-third of its paid-up capital stock and surplus not available for dividends as provided in Section 18319 in the lot and building in which the business of the company is carried on, leasehold improvements, furniture, fixtures, vaults, automobiles, and other personal property, necessary and proper to carry on its business. (d) The provisions of this section shall not apply to property acquired and held for lease pursuant to Section 18310. (Amended by Stats. 1989, Ch. 663, Sec. 3. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
  127. 18041.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner may set rules for selling certain real property, and that property cannot be held more than five years unless the commissioner gives written consent.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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, consistent with what constitutes sound business practices for industrial loan companies. (b) Real property acquired pursuant to subdivision (a) or (b) of Section 18040 shall not be held for a longer period than five years without the written consent of the commissioner. (Amended by Stats. 1984, Ch. 873, Sec. 1.)
  128. 18042.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. )

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    A three-fourths vote of all directors is required to authorize buying or building the premises for an industrial loan company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 transaction of business as an industrial loan company or to authorize the construction of such building. (Added by Stats. 1976, Ch. 964.)
  129. 18043.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must convey real property it holds by a corporate instrument signed by specified officers.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Real Property Held [18040 - 18043] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 vice president, and the secretary or assistant secretary. (Added by Stats. 1976, Ch. 964.)
  130. 1805.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank may do commercial banking at its agency or branch, but deposit-taking is tightly limited by office type and trust business is generally barred unless another section allows it.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1805. (a) A foreign (other nation) bank that is licensed to maintain an agency or branch office may transact commercial banking business at the office, subject to the following: (1) In case the office is a nondepositary agency, the bank shall not transact the business of accepting deposits. (2) In case the office is a depositary agency, the bank shall not transact the business of accepting any deposits other than deposits of (A) a foreign nation, (B) an agency or instrumentality of a foreign nation, or (C) a person which resides, is domiciled, and maintains its principal place of business in a foreign nation. For purposes of this paragraph, “person” means any individual, proprietorship, joint venture, partnership, trust, business trust, syndicate, association, joint stock company, corporation, limited liability company, or any other organization or any branch or division thereof. (3) In case the office is a limited branch office, the bank shall not transact the business of accepting any deposits other than (A) deposits of the kind described in paragraph (2), or (B) deposits that a corporation organized under Section 25A of the Federal Reserve Act (12 U.S.C. Sec. 612 et seq.) is permitted to accept. (4) In case the office is a wholesale branch office, the bank shall not transact the business of accepting any deposits other than (A) deposits of the kind described in paragraph (2), (B) deposits of two hundred fifty thousand dollars ($250,000) or more, or (C) deposits the acceptance of which the commissioner determines by regulation or order do not constitute engaging in domestic retail deposit activities requiring deposit insurance protection. (5) In case the office is an agency, limited branch office, or wholesale branch office, the bank may, subject to any regulations that the commissioner may prescribe, maintain credit balances. (6) In any case, the bank shall not transact any business that it is not authorized to transact or is prohibited from transacting under the law of its domicile or that commercial banks organized under the laws of this state are not authorized to transact or are prohibited from transacting. (b) No foreign (other nation) bank that is licensed to maintain an agency or branch office shall transact any trust business at the office except as permitted under Section 1555. (Amended by Stats. 2013, Ch. 334, Sec. 42. (SB 537) Effective January 1, 2014.)
  131. 18055.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    No person may make or spread false, misleading, or deceptive statements about loan rates, terms, conditions, or investment certificates when advertising for an industrial loan company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 18055. No person shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner in connection with the business of an industrial loan company any statement or representation with regard to the rates, terms, or conditions for making or negotiating loans, or with regard to investment certificates, which is false, misleading, or deceptive. (Added by Stats. 1976, Ch. 964.)
  132. 18056.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not use advertising that refers to supervision by the state, a department, or an official.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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. (Added by Stats. 1976, Ch. 964.)
  133. 18057.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not use advertising or make representations that would make people think it is a savings association.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 is a savings association. (Amended by Stats. 1996, Ch. 1064, Sec. 585. Effective January 1, 1997. Operative July 1, 1997.)
  134. 18058.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not advertise or make statements that suggest investment certificates are insured unless they really are.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 certificates are insured unless such is the fact. (Added by Stats. 1976, Ch. 964.)
  135. 1806.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section tells which banking code provisions apply to foreign banks operating in California through nondepositary agencies, depositary agencies, or branch offices, and how to interpret certain terms.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1806. (a) In addition to other provisions of this division and Division 1 (commencing with Section 99) that are otherwise applicable to or with respect to foreign (other nation) banks licensed to maintain nondepositary agencies, the following provisions of this division shall apply to or with respect to each foreign (other nation) bank licensed to maintain a nondepositary agency with respect to its business in this state as if the bank were a commercial bank organized under the laws of this state: (1) Article 6 (commencing with Section 405) of Chapter 3 of Division 1. (2) Chapter 6 (commencing with Section 550) of Division 1. (3) Chapter 4.5 (commencing with Section 1090). (4) Chapter 17 (commencing with Section 1620). (5) Chapter 19 (commencing with Section 1670). (b) In addition to other provisions of this division and Division 1 (commencing with Section 99) which are otherwise applicable to or with respect to foreign (other nation) banks licensed to maintain depositary agencies or branch offices, the following provisions of this division and Division 1 (commencing with Section 99) shall apply to or with respect to each foreign (other nation) bank licensed to maintain a depositary agency or branch office with respect to its business in this state as if the bank were a commercial bank organized under the laws of this state: (1) Article 6 (commencing with Section 405) of Chapter 3 of Division 1. (2) Chapter 6 (commencing with Section 550) of Division 1. (3) Chapter 4.5 (commencing with Section 1090). (4) Chapter 10 (commencing with Section 1320). (5) Chapter 12 (commencing with Section 1400). (6) Chapter 13 (commencing with Section 1450). (7) Chapter 14 (commencing with Section 1460). (8) Chapter 17 (commencing with Section 1620). (9) Chapter 19 (commencing with Section 1670). (10) Section 1864 and Article 2 (commencing with Section 1900), Article 3 (commencing with Section 1905), and Article 4 (commencing with Section 1910) of Chapter 21. (c) Whenever any provision of this chapter or of any regulation or order issued under this chapter that is applicable to or with respect to foreign (other nation) banks licensed to transact business in this state is inconsistent with any provision of any other chapter of this division and Division 1 (commencing with Section 99) that is applicable to or with respect to foreign (other nation) banks licensed to transact business in this state, the former provision shall apply, and the latter provision shall not apply. (d) (1) Whenever any provision of this division (other than the provisions of this chapter) and Division 1 (commencing with Section 99) is applicable to or with respect to foreign (other nation) banks licensed to transact business in this state, the provision shall be applied with any changes in points of detail as may be necessary or appropriate. (2) Without limiting the provisions of paragraph (1), for purposes of any provision of this division (other than the provisions of this chapter) and Division 1 (commencing with Section 99) that is applicable to or with respect to a foreign (other nation) bank licensed to transact business in this state: (A) “Approved by (or approval of) the board” means approved or ratified by the board of the bank, by a committee of the board authorized to exercise the powers of the board with respect to the particular matter, or by an officer of the bank who is assigned to the head office of the bank and who has authority over the bank’s business in this state, including authority to approve or ratify the particular matter. (B) “Head office” means the primary office of the bank. (C) “Shareholders’ equity” means the shareholders’ equity of the bank or, if the bank has no shareholders’ equity, the closest equivalent account or accounts. (e) Whenever any provision of this division (other than the provisions of this chapter) and Division 1 (commencing with Section 99) that is applicable to or with respect to a foreign (other nation) bank licensed to transact business in this state limits the amount of any assets or liabilities of the bank (including, by way of example, the amount of borrowings of, obligations to, or investments of the bank), for purposes of calculating the amount of the assets or liabilities, only the assets or liabilities of the agencies or branch offices of the bank shall be included, and the assets and liabilities of offices of the bank outside this state shall be excluded. (Amended by Stats. 2013, Ch. 334, Sec. 43. (SB 537) Effective January 1, 2014.)
  136. 18060.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company issuing thrift certificates generally may not use an ad that mentions its ownership or affiliation with another entity unless the ad also discloses that relationship as prominently and in as large a type size as stated originally.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 industrial loan company’s ownership by, or affiliation with, any other entity unless the advertisement also discloses in as prominent a manner and as large a type size as the referenced ownership or affiliation was stated, whether or not the owner or affiliate so named guarantees thrift certificates issued by the industrial loan company. (b) (1) Subdivision (a) applies to an insured company when the other entity guarantees the thrift certificates issued by the insured company. (2) Subdivision (a) does not apply to an insured company when the other entity does not guarantee the thrift certificates issued by the insured company and the advertisement referring to the insured company’s ownership by, or affiliation with, the other entity does not state or imply that the assets or reserves of the other entity may be used to guarantee thrift certificates of the insured company. (Amended by Stats. 1986, Ch. 1011, Sec. 2. Effective September 23, 1986.)
  137. 18061.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Industrial loan companies advertising loan rates or costs must disclose them fully and clearly, and must clearly say when the advertised rates or costs do not apply to all loan classes.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 clearly in a manner as may be necessary to prevent misunderstanding thereof by prospective borrowers and to give adequate information to prospective borrowers. If the rates or costs advertised do not apply to loans of all classes, this fact shall be clearly indicated in the advertisement. (Amended by Stats. 1998, Ch. 827, Sec. 8. Effective January 1, 1999.)
  138. 18062.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may not use an advertisement after the commissioner has disapproved it and given written notice. The commissioner may also require prior approval of certain advertisements for investment or thrift certificates.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 notified in writing of the disapproval. Commencing July 1, 1990, the commissioner may require a company to obtain written or oral approval of any advertisement for investment or thrift certificates prior to publication thereof in order to avoid false, misleading, or deceptive advertising. (Amended by Stats. 2006, Ch. 538, Sec. 173. Effective January 1, 2007.)
  139. 18063.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner may require an industrial loan company to keep all advertising copy on file for 12 months, and the file must be available to the commissioner on request.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 1. General Provisions [18000 - 18063] ( Chapter 1 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Advertising [18055 - 18063] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 shall be available to the commissioner upon request. (Added by Stats. 1976, Ch. 964.)
  140. 1807.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Foreign banks licensed in this state must post a notice about financial reports, provide the report promptly on request, and give the first report free. The commissioner also must call for reports from these banks when reports are sought under Section 453 from state-chartered commercial banks.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1807. (a) Whenever the commissioner calls for a report under Section 453 from commercial banks organized under the laws of this state, the commissioner shall call for a report from each foreign (other nation) bank that is licensed to transact business in this state. (b) (1) A foreign (other nation) bank that is licensed to transact business in this state shall prominently display in the lobby of each agency and branch office, except an automated teller machine branch office (as defined in Section 1330), a notice that any person may obtain a financial report from the bank. The notice shall include the address and telephone number of the person or office to be contacted for a financial report. The bank shall, promptly after receiving a request for a financial report, mail or otherwise furnish the financial report to the requester. The first financial report shall be provided without charge. (2) The financial report called for in this subdivision shall contain either (A) the information that the commissioner may require by regulation or (B) in the absence of a regulation, the last balance sheet and income statement, each without any schedules, that the bank filed with the commissioner pursuant to Section 453. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  141. 1808.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Licensed foreign banks operating certain agencies or branch offices must give notice that deposits there are not FDIC-insured.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1808. Each foreign (other nation) bank which is licensed to maintain a depositary agency, limited branch office, or wholesale branch office shall, in accordance with such regulations as the commissioner may prescribe, give notice that deposits in such office are not insured by the Federal Deposit Insurance Corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  142. 1809.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank operating a depositary agency or branch office must follow commissioner-prescribed rules on deposit interest rates, time-deposit prepayment, and related matters when the office is outside certain federal regulations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1809. (a) In case a foreign (other nation) bank is licensed to maintain a depositary agency or branch office and such office is not subject to the regulations of the Depository Institutions Deregulation Committee, Regulation Q of the Board of Governors of the Federal Reserve System, or Part 329 of the regulations of the Federal Deposit Insurance Corporation, such bank shall, with respect to deposits accepted at the office, comply with such regulations regarding maximum interest rates on deposits, prepayment of time deposits, and related matters as the commissioner may prescribe as being necessary and appropriate to maintain competitive equality between foreign (other nation) banks and banks organized under the laws of this state which are subject to the regulations of the Depository Institutions Deregulation Committee, Regulation Q of the Board of Governors of the Federal Reserve System, or Part 329 of the regulations of the Federal Deposit Insurance Corporation. (b) For purposes of, and notwithstanding any contrary provisions of, Chapter 3.5 (commencing with Section 11340), Part 1 of Division 3 of Title 2 of the Government Code, whenever the commissioner adopts a regulation or order of repeal of a regulation under subdivision (a), the commissioner may, without describing specific facts showing the need for immediate action, find that adoption of such regulation or order of repeal is necessary for the immediate preservation of the public peace, health and safety, or general welfare, and such regulation or order of repeal shall be deemed to be necessary for the immediate preservation of the public peace, health and safety, or general welfare. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  143. 181.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “insured” for banks, offices of banks, and deposits by reference to FDIC insurance.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 181. “Insured”: (a) When used with respect to a bank or an office of a bank, means a bank or office the deposits of which are insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (b) When used with respect to a deposit, means a deposit that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  144. 1810.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank in the state must keep its in-state business assets separate from its out-of-state business assets, and in-state creditors get priority over other creditors as to in-state assets.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1810. (a) Each foreign (other nation) bank which is licensed to transact business in this state shall keep the assets of such business separate and apart from the assets of its business outside this state. (b) The creditors of the business in this state of a foreign (other nation) bank which is licensed to transact business in this state shall be entitled to priority over other creditors with respect to the assets of such bank’s business in this state. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  145. 18100.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A corporation may be organized, or an existing California corporation may amend its articles, to engage in an industrial loan business if authorized by the commissioner.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 corporation may amend its articles of incorporation, to engage in an industrial loan business. Except as otherwise provided in this division, an industrial loan company may be incorporated pursuant to Division 1 (commencing with Section 100), Title 1, of the Corporations Code. (Added by Stats. 1976, Ch. 964.)
  146. 18100.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Certain industrial loan companies must be members of the FDIC to conduct business under this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 authority to conduct business under this division, participate as a member of the Federal Deposit Insurance Corporation. (Amended by Stats. 1998, Ch. 827, Sec. 9. Effective January 1, 1999.)
  147. 18101.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    If the commissioner approves an application to operate as an industrial loan company, the commissioner must issue a duplicate certificate authorizing organization or amendment of the corporation’s articles.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 this chapter, he shall issue a certificate in duplicate authorizing the organization of the corporation, or the amendment of its articles of incorporation, and specifying the date on which, and the conditions under which, it may commence business as an industrial loan company, including the place where it will be located. (Added by Stats. 1976, Ch. 964.)
  148. 18101.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

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    Incorporators must file a name-reservation application with the Secretary of State, and the Secretary of State must issue the certificate if the application and required fee are submitted.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 industrial loan company changing the name of an existing corporation, the incorporators shall file an application for a certificate of reservation of the name of the proposed company as set forth in the articles of incorporation with the Secretary of State pursuant to Section 201 of the Corporations Code. The application filed with the Secretary of State shall recite the fact of the pendency of the application and the Secretary of State shall issue a certificate of reservation upon such an application for a certificate and upon payment of any required fee. Notwithstanding the provisions of Section 201 of the Corporations Code, the name contained in the certificate of reservation shall be reserved to the applicant until the commissioner refuses to issue a certificate of approval or, if a certificate is issued, as long as a certificate continues in force or effect, or for a period of up to one year from the date when the application is filed in accordance with this article, pending the applicant’s fulfillment of any requirements precedent to opening for business. The Secretary of State may, upon the request of the applicant and the approval of the commissioner, extend the reservation of the name for an additional six months. (Added by Stats. 1980, Ch. 428, Sec. 1.)
  149. 18101.6.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Companies authorized to engage in the industrial loan business after the effective date of the act must include one of several specified words in the company name in the articles of incorporation.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 loan company,” “investment and loan,” “thrift company,” “thrift and loan company,” or “bank” as part of the company name included in the articles of incorporation. (Amended by Stats. 1996, Ch. 1064, Sec. 586. Effective January 1, 1997. Operative July 1, 1997.)
  150. 18102.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company’s articles must state its purpose, and the Secretary of State may not file the articles or related amendments unless a duplicate commissioner’s certificate is filed.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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, shall expressly state that its purpose is to engage in an industrial loan business pursuant to this division. The Secretary of State shall not file articles for the incorporation of an industrial loan company or an amendment to the articles of an existing corporation to engage in an industrial loan business unless there is filed with the Secretary of State a duplicate of the certificate issued by the commissioner pursuant to Section 18101. (Amended by Stats. 1980, Ch. 478, Sec. 4.)
  151. 18103.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company’s certificate to do industrial loan business cannot be transferred or assigned.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18103. An industrial loan company’s certificate to engage in the industrial loan business is not transferable or assignable. (Added by Stats. 1976, Ch. 964.)
  152. 18104.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. )

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    A person who is not lawfully authorized and actually engaged in an industrial loan business must not use certain industrial-loan-related names or mislead the public about the nature of the business.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18100 - 18104] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 who is actually engaged in carrying on an industrial loan business, shall: (a) Do business under any name or title that contains the following terms: (1) “Industrial Loan Company.” (2) “Investment and Loan Company.” (3) “Thrift Company.” (4) “Thrift and Loan Company.” (b) Use any name or sign, or circulate or use any letterhead, billhead, circular, or paper, whatever, or advertise or represent in any manner that indicates or reasonably implies that the business is the character or kind of business carried on or transacted by an industrial loan business or is likely to lead any person to believe that the business is that of an industrial loan company. (Amended by Stats. 1992, Ch. 427, Sec. 35. Effective January 1, 1993.)
  153. 1811.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Foreign banks must deposit and keep eligible assets with an approved depository in at least the applicable minimum amount, and they generally cannot withdraw those assets without the commissioner’s prior approval.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1811. (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) bank, means the liabilities of such bank’s business in this state, excluding (A) accrued expenses, (B) any liability to an office (whether in or outside of this state) or majority-owned subsidiary of the bank, and (C) such other liabilities as the commissioner may by regulation or order exclude. (2) “Applicable minimum,” when used with respect to eligible assets deposited or to be deposited with an approved depository by a foreign (other nation) bank, means such amount as the commissioner may from time to time by regulation or order determine to be necessary for the maintenance of sound financial condition, for the protection of the interests of creditors of the bank’s business in this state, or for the protection of the public interest. However, in the case of a foreign (other nation) bank which is licensed to maintain a branch office, the applicable minimum shall in no event be less than 1 percent of the adjusted liabilities of such bank. (3) “Approved depository,” when used with respect to a foreign (other nation) bank, means a bank organized under the laws of this state or a national bank headquartered in this state which has been selected by such foreign (other nation) bank and approved by the commissioner for the purpose of acting as the approved depository of the foreign (other nation) bank and which has filed with the commissioner, in such form as the commissioner may by regulation or order prescribe, an agreement to comply with all applicable provisions of this section and of any regulation or order issued under this section. (4) “Eligible assets” when used with respect to a foreign (other nation) bank, means any of the following: (A) Cash. (B) Any security of the type described in Section 1572. (C) Any negotiable certificate of deposit which (i) has a maturity of not more than one year, (ii) is payable in the United States, and (iii) is issued by a bank organized under the laws of a state of the United States, by a national bank, or by a branch office of a foreign (other nation) bank which is located in the United States. (D) Any commercial paper which is payable in the United States and which is rated P-1 or its equivalent by a nationally recognized rating service; provided, however, that any conflict in rating shall be resolved in favor of the lower rating. (E) Any banker’s acceptance which is payable in the United States and which is eligible for discount with a Federal Reserve bank. (F) Any other asset which the commissioner by regulation or order determines to be eligible. Notwithstanding the foregoing provisions of this paragraph, “eligible asset,” when used with respect to a foreign (other nation) bank, does not include any instrument the issuer of which (i) is, or is affiliated with, such foreign (other nation) bank, (ii) is domiciled in, or controlled by a bank or other person domiciled in, the same foreign nation as the foreign (other nation) bank, or (iii) is, or is controlled by, such foreign nation. For purposes of the foregoing provision, to be “affiliated” means to control, to be controlled by, or to be under common control with; and to “control” has the meaning set forth in subdivision (b) of Section 1250. (b) For purposes of this section: (1) The amount of adjusted liabilities of a foreign (other nation) bank’s business in this state shall be computed for such period, in such manner, and on such basis as the commissioner may by regulation or order prescribe. (2) Any eligible asset shall be valued at the lesser of market or par. (c) (1) Before any foreign (other nation) bank is licensed to transact business in this state, such bank shall deposit, and each foreign (other nation) bank which is licensed to transact business in this state shall maintain on deposit, with an approved depository eligible assets having a value in an amount not less than the applicable minimum. (2) Whenever a foreign (other nation) bank which is licensed to transact business in this state ceases to be so licensed, such bank shall thereafter maintain on deposit with an approved depository eligible assets having a value in an amount not less than the applicable minimum for such period of time as the commissioner may determine to be necessary for the protection of creditors of the bank’s business in this state or for the protection of the public interest. (d) (1) No foreign (other nation) bank which maintains eligible assets on deposit with an approved depository pursuant to this section shall withdraw any such eligible assets except with the prior approval of the commissioner. (2) No approved depository which holds eligible assets on deposit from a foreign (other nation) bank pursuant to this section shall release any such eligible assets except with the prior approval of the commissioner or as otherwise provided in subdivision (h). (e) Any foreign (other nation) bank which maintains eligible assets on deposit with an approved depository pursuant to this section shall, unless the commissioner shall have suspended or revoked its license to transact business in this state or taken possession of its property and business in this state, be entitled to receive any income paid on such eligible assets. (f) (1) Whenever a foreign (other nation) bank deposits eligible assets with, or withdraws eligible assets from, an approved depository pursuant to this section, such bank shall do so in accordance with such procedures and requirements as the commissioner may by regulation or order prescribe. (2) Whenever an approved depository receives, holds, or releases eligible assets pursuant to this section, such approved depository shall do so in accordance with such procedures and requirements as the commissioner may by regulation or order prescribe and shall file with the commissioner such reports as and when the commissioner may by regulation or order require. (g) Whenever a foreign (other nation) bank maintains eligible assets on deposit with an approved depository pursuant to this section: (1) The eligible assets shall be deemed to be pledged to the commissioner for the benefit of the creditors of the bank’s business in this state; and, notwithstanding any provision of the Uniform Commercial Code to the contrary, the commissioner, for the benefit of such creditors, shall be deemed to have a security interest in such eligible assets. (2) The eligible assets shall be free from any lien, charge, right of setoff, credit, or preference in connection with any claim of the approved depository against the bank. (h) (1) In case the commissioner takes possession of the property and business of a foreign (other nation) bank which maintains eligible assets on deposit with an approved depository pursuant to this section, such approved depository shall, upon order of the commissioner, release such eligible assets to the commissioner, as liquidator of the property and business of such bank. (2) In case a foreign (other nation) bank which maintains eligible assets on deposit with an approved depository pursuant to this section fails to pay any judgment creditor of its business in this state and the commissioner has not taken possession of the property and business of such bank, such approved depository shall release such eligible assets to the commissioner, and the commissioner shall make such disposition of the eligible assets, as a court of competent jurisdiction of this state or of the United States may order for the benefit of such judgment creditor. For purposes of this paragraph, “judgment creditor of its business in this state” means a person to whom the bank is required to pay money under a judgment which (A) arose out of the bank’s business in this state, (B) has been entered by a court of this state or of the United States, (C) has become final, in that all possibility of direct attack on such judgment by way of appeal, motion for new trial, motion to vacate, or petition for extraordinary writ has been exhausted, and (D) has remained unpaid for a period of not less than 60 days after becoming final. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  154. 18115.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. )

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    An applicant must use the form and provide the information the commissioner requires, and must include a $400 filing fee.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 shall be accompanied by a filing fee of four hundred dollars ($400). (Amended by Stats. 1983, Ch. 725, Sec. 2.)
  155. 18116.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. )

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    When an application is filed, the commissioner must carefully investigate and examine specified matters about the proposed industrial loan company.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 background and experience of the organizers or incorporators, the proposed officers and managers, and the proposed stockholders and directors. (b) The need for industrial loan facilities or additional industrial loan facilities, as the case may be, in the community where the proposed industrial loan company is to be located, giving particular consideration to the adequacy of existing industrial loan facilities in the community. (c) The ability of the community to support the proposed industrial loan company, giving consideration to (1) the competition offered by existing industrial loan companies; (2) the previous industrial loan history of the community; and (3) the opportunities for profitable employment of industrial loan funds as indicated by the average demand for credit, the number of potential investors, the volume of industrial loan transactions and the business and industries of the community with particular regard to their stability, diversification and size. (d) Such other facts and circumstances bearing on the proposed industrial loan company as in the opinion of the commissioner may be relevant. (Amended by Stats. 1980, Ch. 974, Sec. 8.)
  156. 18117.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. )

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    The commissioner may deny an industrial loan company application after notice and a hearing if one of the listed reasons applies.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 advantage will not be promoted by the establishment of the proposed industrial loan company. (b) The industrial loan company is being formed for a purpose other than the legitimate objectives contemplated by this division. (c) The proposed capital structure is inadequate. (d) Any proposed officer, director, or shareholder of the applicant has, within the last 10 years, (1) been convicted of or pleaded nolo contendere to a crime, or (2) committed any act involving dishonesty, fraud, or deceit, which crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with the provisions of this division. (e) The applicant has not complied with all the applicable provisions of this division. (f) The proposed officers and directors do not have sufficient banking, industrial loan, finance company, or other experience to afford reasonable promise of successful operation. (g) A false statement of a material fact has been made in the application. (h) The applicant or any officer, director, or incorporator of the applicant has violated any provision of this division or the rules thereunder or any similar regulatory scheme of a foreign jurisdiction. (Amended by Stats. 1980, Ch. 974, Sec. 9.)
  157. 18119.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner must give written notice of an application filing within 30 days after the application is filed, if the application is for authorization to establish an industrial loan company that plans to sell and issue investment certificates.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 certificates, the commissioner shall give written notice of the filing of the application to each industrial loan company subject to this division. (Amended by Stats. 1986, Ch. 1011, Sec. 3. Effective September 23, 1986.)
  158. 1812.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A foreign bank branch licensee must hold eligible assets at approved locations, subject to a cap of 108% of adjusted liabilities.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1812. (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) bank which is licensed to maintain a branch office in this state, means the liabilities of such bank’s business in this state, excluding (A) accrued expenses, (B) any liability to an office (whether in or outside of this state) or majority-owned subsidiary of the bank, and (C) such other liabilities as the commissioner may by regulation or order exclude. (2) “Eligible assets” means any asset which the commissioner by regulation or order determines to be eligible for purposes of this section. However, “eligible asset,” when used with respect to a foreign (other nation) bank which is licensed to maintain a branch office, includes (A) any asset which such bank maintains on deposit pursuant to Section 1811 and (B) any reserves which the bank maintains with respect to its business in this state in accordance with requirements prescribed by the Board of Governors of the Federal Reserve System. (b) For purposes of this section, the amount of eligible assets and the amount of adjusted liabilities of a foreign (other nation) bank which is licensed to maintain a branch office in this state shall each be computed for such period, in such manner, and on such basis as the commissioner may by regulation or order prescribe. (c) A foreign (other nation) bank licensed to maintain a branch office in this state shall hold at its branch offices in this state or at such other places as the commissioner may approve, eligible assets in such amount, if any, as the commissioner may from time to time by regulation or order determine to be necessary for the maintenance of sound financial condition, for the protection of the interests of creditors of the bank’s business in this state, or for the protection of the public interest. However, in no event shall such amount exceed 108 percent of the adjusted liabilities of the bank’s business in this state. (d) If the commissioner finds, with respect to a foreign (other nation) bank licensed to maintain a branch office in this state, that such action is necessary for the maintenance of sound financial condition, for the protection of the interests of creditors of such bank’s business in this state, or for the protection of the public interest, the commissioner may order the bank to place all or part of the eligible assets which the bank is required to hold under subdivision (c) in the custody of such bank organized under the laws of this state or such national bank headquartered in this state as the commissioner may designate. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  159. 18120.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. )

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    The commissioner may issue an authorization certificate for an industrial loan company only after the required minimum capital stock and paid-in surplus or reserve have been paid in cash for the corporation’s benefit.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Applications [18115 - 18120] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 corporation, the minimum capital stock and minimum paid-in surplus or reserve required pursuant to Article 3 (commencing with Section 18130) of this chapter. (Amended by Stats. 1977, Ch. 264.)
  160. 1813.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A licensed foreign bank may not close an agency or branch office unless the commissioner first approves it.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 20. Foreign (Other Nation) Banks [1750 - 1835] ( Chapter 20 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Agencies and Branch Offices [1800 - 1813] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1813. (a) (1) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall close such office unless the commissioner shall have first approved such closing. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) bank which is licensed to maintain an agency or branch office from closing such office in accordance with Article 4 (commencing with Section 1825). (b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to close an agency or branch office, the commissioner shall approve such application: (1) That it will not be unsafe or unsound for the bank to close the office; and (2) That the closing of the office will not be substantially detrimental to the public convenience and advantage or that the closing of the office is necessary in the interests of the safety and soundness of the bank. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) bank for approval to close an agency or branch office has been approved and all conditions precedent to such closing have been fulfilled, such bank may close such office and shall promptly thereafter surrender to the commissioner the license which authorized it to maintain the office. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  161. 18130.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Industrial loan companies must keep capital stock above the minimum amounts set by the section, with different amounts depending on when they were incorporated or began business.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 incorporated or commencing business on or before July 8, 1975. (b) Seven hundred fifty thousand dollars ($750,000), and a paid-in surplus of five hundred thousand dollars ($500,000), at the time business is commenced, if incorporated or commencing business on or after July 9, 1975. (c) Industrial loan companies which commenced business prior to July 9, 1975, and which do not meet the capital stock and paid-in surplus requirements of this section shall be governed until January 1, 1987, by Sections 18130, 18131, 18132, 18133, 18134, and 18135 of the Financial Code, as in effect on December 31, 1983. (Amended by Stats. 1983, Ch. 858, Sec. 4.)
  162. 18131.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company with branch offices must keep an extra $50,000 of capital stock for each branch office, in addition to the capital required by Section 18130.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 place of business shall have additional capital stock of fifty thousand dollars ($50,000) for each branch office. (Repealed and added by Stats. 1983, Ch. 858, Sec. 6.)
  163. 18132.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

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    An industrial loan company may pay a dividend on its capital stock only if it meets specified capital requirements.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 dollars ($750,000) plus additional capital stock of fifty thousand dollars ($50,000) for each branch office. (Repealed and added by Stats. 1983, Ch. 858, Sec. 8.)
  164. 18137.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not reduce its capital stock below the amount required by this article or below its non-investment-certificate indebtedness.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 any indebtedness of such company other than its investment certificates. (Added by Stats. 1976, Ch. 964.)
  165. 18138.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    A person may not acquire 10% or more of certain industrial loan company or holding company interests without the commissioner’s written consent.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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, foreclosure pursuant to a pledge or hypothecation, or other devices without the written consent of the commissioner. Prior to any person acquiring 10 percent or more of the capital stock of, or the capital of, an industrial loan company, or prior to any person acquiring additional capital stock or capital of an industrial loan company which would result in an aggregate acquisition of 10 percent or more of the capital stock or of the capital, that person seeking the acquisition shall make written application to the commissioner requesting written consent for the acquisition. (b) No person may acquire in the aggregate 10 percent or more of the capital stock or other securities that have voting power or control over the management of a holding company as defined in Section 18025 through purchase, foreclosure pursuant to a pledge or hypothecation, or otherwise without the written consent of the commissioner. Prior to any person acquiring 10 percent or more of the capital stock or other securities that have voting power or control over the management of a holding company as described herein, or prior to any person acquiring additional capital stock or other securities that have voting power or control over the management of a holding company as described herein which would result in an aggregate acquisition of 10 percent or more of the capital stock or other securities, or prior to any person acquiring 10 percent or more of the capital stock or other securities that have voting power or control over the management of a holding company as described herein, through the conversion of a security into another security or through the exercise of a right to purchase or subscribe to another security, that person seeking the acquisition shall make written application to the commissioner requesting written consent for the acquisition notwithstanding subdivision (e) of Section 25017 of the Corporations Code. (c) With respect to the application required to be filed under subdivisions (a) and (b), the commissioner shall consent in writing or decline to consent within 60 days of the filing of a completed application. (d) An application for consent under subdivision (a) or (b) shall be in the form and contain information as the commissioner may by rule or order require and shall be accompanied by a fee of four hundred dollars ($400). (Amended by Stats. 1995, Ch. 479, Sec. 1. Effective October 2, 1995.)
  166. 18139.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Certain sales, mergers, or conversions involving an industrial loan company must follow Division 1.6.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Capitalization [18130 - 18139] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 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 1.6 (commencing with Section 4800). (Amended by Stats. 2016, Ch. 277, Sec. 10. (AB 2907) Effective January 1, 2017.)
  167. 18145.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may open and operate one or more branch offices within the state if it is authorized by the commissioner and acts under a board resolution, subject to Section 18145.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 of directors, may establish and maintain one or more branch offices within the state. (Amended by Stats. 1997, Ch. 190, Sec. 1. Effective January 1, 1998.)
  168. 18145.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner may exempt certain offices or places of business from Section 18145 authorization requirements and may attach conditions to the exemption.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 of an office or place of business that the commissioner finds not necessary or appropriate to regulate under that section. (b) In granting an exemption under this section, the commissioner may impose any conditions that the commissioner finds necessary or appropriate. (Added by Stats. 1997, Ch. 190, Sec. 2. Effective January 1, 1998.)
  169. 18146.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An application to open a branch office must be in the form and include the information the commissioner requires, and it must be accompanied by a $100 fee for each new branch office.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 may require and shall be accompanied by an application fee of one hundred dollars ($100) for each new branch office. (Added by Stats. 1976, Ch. 964.)
  170. 18147.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner may not approve a branch office application until specified facts and conditions are satisfied.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 set forth in the application are true and: (a) That the public convenience and advantage will be promoted by the establishment of the proposed branch office. (b) That the industrial loan company has the capital required by this division. (c) That the industrial loan company has established branch operational controls. (d) That the financial condition of the industrial loan company justifies the establishment of the proposed branch office. (e) (1) As to an industrial loan company transacting business before October 1, 1985, that the industrial loan company is a member of the Federal Deposit Insurance Corporation, or (2) as to an industrial loan company commencing business on or after October 1, 1985, that the industrial loan company is a member of the Federal Deposit Insurance Corporation. (Amended by Stats. 1987, Ch. 787, Sec. 2. Operative January 1, 1989, by Sec. 7 of Ch. 787.)
  171. 18148.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must open and operate an approved branch office within six months, unless the commissioner grants a timely extension for good cause.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 application for a branch office shall automatically terminate the right of the industrial loan company to open the branch office. However, the commissioner may for good cause on written application made before the expiration of the six months’ period, extend for additional periods, not in excess of six months each, the time within which the branch office may be opened. (Added by Stats. 1976, Ch. 964.)
  172. 18149.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    If the commissioner approves a branch-office application and the applicant pays a $100 fee, the commissioner must issue a certificate authorizing the branch office.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 one hundred dollars ($100) for a certificate of authorization to transact business, the commissioner shall issue a certificate of authorization to transact business authorizing the opening and operation of the branch office and specifying the date on which and the conditions under which it may be opened and the place where it will be located. (Added by Stats. 1976, Ch. 964.)
  173. 18150.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must display, in a conspicuous place at each branch office, the certificate of authorization to transact business issued by the commissioner.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 commissioner permitting the operation of the branch office. (Added by Stats. 1976, Ch. 964.)
  174. 18151.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may not open a branch office without first getting a certificate of authorization to transact business, and doing so triggers a $100 per day forfeiture.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 of the state the sum of one hundred dollars ($100) for every day during which the branch office is maintained without authority. (Added by Stats. 1976, Ch. 964.)
  175. 18152.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Sections 18146 to 18151 do not affect branch offices that were opened and operating before September 18, 1959.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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, 1959. (Added by Stats. 1976, Ch. 964.)
  176. 18153.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company with branch offices must give each branch a specified name or number, include “branch” or “office” in that designation, and display it prominently at the branch location.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 or number and include in the designation the word “branch” or the word “office” and shall prominently display the designation at the place of business of the branch. (Added by Stats. 1976, Ch. 964.)
  177. 18154.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may close or stop operating a branch office only with prior written approval from the commissioner and must give public notice at least 30 days before closing or discontinuing it.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Branch Offices [18145 - 18154] ( Article 4 added by Stats. 1976, Ch. 964. ) ## 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 notice thereof is given in such manner as the commissioner directs at least 30 days before the date of closing or discontinuance. After a branch office has been closed or discontinued, it may not be reopened without the approval of the commissioner and compliance with the applicable provisions of this division. (Added by Stats. 1976, Ch. 964.)
  178. 18165.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company generally cannot operate or make loans at another place of business without prior written approval from the commissioner, but it may do so if approved and the listed conditions are met.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 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 any other place of business than that designated in its certificate of authorization issued pursuant to Section 18101 or 18149, without having obtained the prior written approval of the commissioner. (b) An industrial loan company may solicit and make loans and acquire obligations at a place of business other than designated in its certificate of authorization upon written request to and written approval of the commissioner, except as set forth in Section 18165.1, without obtaining a certificate of authorization to conduct business at a branch office pursuant to Article 4 (commencing with Section 18145), subject to the provisions of subdivision (d). The written request for approval to conduct business shall be accompanied by a processing fee of two hundred dollars ($200) for each place of business and shall include the following: (1) The proposed location of the place of business. (2) A description of the industrial loan company’s proposed plan of business, including a description of the manner and extent to which the industrial loan company proposes to direct and supervise the place of business. (3) The character, business qualifications, and other experience of the proposed officers and managers directing the line of business for which authorization is requested. (4) If the place of business is to be located outside of this state, a description of the regulation of the place of business by the state of the United States where the place of business is proposed to be located, including: (A) A summary of the laws, administrative policies, and rules or regulations of the state relating to the proposed establishment and operation of the place of business. (B) The name, address, and telephone number of the state agency having jurisdiction over the proposed establishment and operation of the place of business. (C) A description of the extent and manner in which the establishment and operation of the place of business will be regulated by the state agency. (D) Whether or not any law, administrative policy, or rule or regulation of the state of the United States where the place of business is proposed to be located would prohibit the commissioner from, or restrict the commissioner in, examining or regulating the place of business, and, if so, a citation to and summary of the law, administrative policy, rule, or regulation. (5) Any other information bearing on the proposal that, in the opinion of the commissioner, may be relevant. (c) The commissioner shall approve the request made pursuant to subdivision (b) within 30 days after filing unless the commissioner has ascertained that the company has failed to show any of the following: (1) Compliance with all applicable requirements of subdivision (b). (2) That the proposed plan of business would not violate any of the laws or the regulations of the state in which the office is proposed to conduct its business. (3) That the company has adequate internal controls to manage the conduct of the business proposed to be conducted. (4) That the company has a person with the necessary business qualifications, experience, or ability to direct and manage the operations of the proposed plan of business. (d) An industrial loan company that has given notice or has been approved by the commissioner pursuant to subdivision (b) to solicit and make loans and acquire obligations at a place of business other than designated in its certificate of authorization shall comply with the following: (1) No investment certificates shall be solicited, offered, or sold at the place of business. (2) Loan files for loans originating at the place of business shall be retained at the main or licensed branch location of the industrial loan company, and all loans originating at the place of business shall be coded in a manner so as to easily identify that place of business. (3) The place of business shall not be identified in any manner as a branch location or as a licensed location of the industrial loan company. (4) If the place of business is outside of this state, the industrial loan company shall, not less than five business days before commencing business at that place of business, file with the commissioner a report stating that the industrial loan company has complied with all laws of that state applicable to the establishment and operation of the place of business, and which contains a copy of any document issued by the state agency having jurisdiction over the proposed establishment and operation of the place of business authorizing the industrial loan company to establish the place of business. (5) All books, accounts, papers, records, and files of the place of business shall, upon request, be made available to the commissioner or the commissioner’s representatives in this state within the time specified in the request. (6) Any other conditions and limitations the commissioner may require. (e) An industrial loan company that opens a place of business for which approval is required under subdivision (b) without first obtaining the commissioner’s written approval shall be liable for a civil penalty of one hundred dollars ($100) for every day during which the place of business is maintained without approval. (f) The commissioner may by rule, order, or regulation permit loans to be made or entered into and loans and obligations solicited and acquired at places other than designated by an industrial loan company in its certificate of authorization if those loans can be so made consistent with the purposes of the Industrial Loan Law. (Amended by Stats. 1997, Ch. 190, Sec. 3. Effective January 1, 1998.)
  179. 18165.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    The commissioner may exempt certain offices or places of business from the authorization requirement for Section 18165 and may attach conditions.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 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 of an office or place of business that the commissioner finds not necessary or appropriate to regulate under that section. (b) In granting an exemption under this section, the commissioner may impose any conditions that the commissioner finds necessary or appropriate. (Added by Stats. 1997, Ch. 190, Sec. 4. Effective January 1, 1998.)
  180. 18166.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must give written notice to the commissioner before moving its business address to a different street address, and the commissioner must then issue written authorization if the stated finding is satisfied.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 2. Formation and Organization [18100 - 18166] ( Chapter 2 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Change of Location [18165 - 18166] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 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 written notice to the commissioner who shall issue his or her written authorization of the change, provided the commissioner finds the change would not justify a negative finding with respect to any matters set forth in Section 18117 or 18147. (b) The commissioner may, by order or regulation, exempt from the requirement of authorization by the commissioner set forth in subdivision (a) any change of location of a place of business that the commissioner finds not necessary or appropriate to regulate under that section. (Amended by Stats. 1997, Ch. 190, Sec. 5. Effective January 1, 1998.)
  181. 18190.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may make and handle several types of loans and obligations, including secured or unsecured loans, loan charges, and certain purchases, sales, discounts, and origination of lease obligations.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 receive charges for loans in advance or otherwise. (c) Purchase, sell, or discount the following obligations: bona fide trust receipts, secured or unsecured choses in action, conditional sales contracts, or security agreements. (d) Purchase, sell, discount, or originate lease obligations. (Amended by Stats. 1998, Ch. 827, Sec. 10. Effective January 1, 1999.)
  182. 18191.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    This section says certain listed provisions do not apply to some loans and related amounts that meet specified conditions.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18191. Sections 18008, 18009, 18010, 18212, 18212.1, 18214, 18219, 18220, 18222, 18230 through 18234, 18290 through 18295, and 18439 do not apply to: (a) Any bona fide loan of a principal amount of ten thousand dollars ($10,000) or more or to an industrial loan company in connection with any such loan if the provisions of the section are not used for the purpose of evading this division. (b) An amount due from a contingent guarantor on his or her obligations purchased under the provisions of this division. (c) A loan to a primary borrower who has pledged accounts receivable or installment accounts to secure loans which taken in the aggregate amount to ten thousand dollars ($10,000) or more. (Amended by Stats. 1983, Ch. 858, Sec. 13.)
  183. 18191.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Several sections do not apply to certain bona fide loans of $5,000 or more, related industrial loan company transactions, contingent guarantor amounts, and some secured loans involving pledged receivables.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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 more, or to an industrial loan company in connection with any bona fide loan of a principal amount of five thousand dollars ($5,000) or more if the provisions of the section are not used for the purpose of evading this division. (b) An amount due from a contingent guarantor on his or her obligations purchased under the provisions of this division. (c) A loan to a primary borrower who has pledged accounts receivable or installment accounts to secure loans which taken in the aggregate amount to five thousand dollars ($5,000) or more. (Amended by Stats. 1984, Ch. 68, Sec. 1. Effective April 5, 1984.)
  184. 18192.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    For this division, certain payments made for wage or salary assignments are treated as loans secured by the assignment, and any excess over the amount paid is treated as interest and charges.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. General [18190 - 18192] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 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, commissions, or other compensation for services, whether earned or to be earned, is, for the purposes of regulation under this division, a loan secured by such assignment, and the amount by which the assigned compensation exceeds the amount of consideration actually paid is interest and charges upon or for such loan from the date of payment to the date the compensation is payable. This section does not modify or affect existing statutes governing wage assignments in this state, or authorize such assignments. (Added by Stats. 1976, Ch. 964.)
  185. 18205.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company must not make, purchase, or discount a loan or other obligation if repayment of principal runs for more than 120 months and 30 days, unless another rule in the division says otherwise.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 provides for a repayment of principal over more than 120 months and 30 days. (Amended by Stats. 1988, Ch. 427, Sec. 1.)
  186. 18205.5.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may make certain secured loans with unequal payments, but loans over 10 years must be repaid in equal installments; some nonconsumer personal-property loans are capped at 15 years and 30 days.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 payments during its term and that is secured by either real property or personal property. In order to ensure the safety and soundness of industrial loan companies and to avoid an unreasonable concentration of loans and obligations that could result in balloon payments, all these loans and obligations with a term in excess of 10 years shall be repaid in substantially equal weekly, semimonthly, monthly, or quarterly installments during the term. For purposes of this section, “real property” means real property other than home loans and other residential real property loans subject to Title VIII (Alternative Mortgage Transaction Parity Act of 1982) of the Garn-St. Germain Depository Institutions Act of 1982, as those terms are defined in Part 541 of Title 12 of the Code of Federal Regulations, as amended. For purposes of this section, the term of a nonconsumer loan or a nonconsumer obligation secured solely or primarily by personal property shall not exceed 15 years and 30 days from the date the loan is made or obligation is acquired by the industrial loan company. For purposes of this section, the term of a nonconsumer loan or a nonconsumer obligation secured primarily by real property shall be as set forth in subdivision (a) of Section 18210. (Amended by Stats. 1997, Ch. 201, Sec. 1. Effective January 1, 1998.)
  187. 18206.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Certain motor-vehicle-secured consumer loans and obligations that are not repayable in equal periodic payments must stay within a stated portfolio limit, unless the loan is to a qualifying graduate student.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 exceed 50 percent of all consumer loans and obligations that are secured by motor vehicles or 20 percent of assets, whichever is less. This section shall not apply to a loan made to a graduate student while attending an accredited college or university and for the purpose of actively pursuing a study program leading to a postbaccalaureate degree. (Amended by Stats. 1997, Ch. 201, Sec. 2. Effective January 1, 1998.)
  188. 18207.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may make certain consumer loans, but the loans cannot run longer than one year or be structured to evade this division.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 single payment which includes principal and charges. In no event shall such loans have a term in excess of one year or be made for the purpose of evading or avoiding this division. (Repealed and added by Stats. 1976, Ch. 964.)
  189. 18208.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may make a consumer loan payable at any time during the loan if the loan is secured at all times by at least 100% in the specified collateral.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 secured at all times at least 100 percent by either investment certificates of an industrial loan company authorized to conduct business in the State of California under this division or traded securities. (Repealed and added by Stats. 1976, Ch. 964.)
  190. 18209.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may make, purchase, or discount certain insured loans and commercial paper, and insured loans may run only up to the maximum term allowed by the insuring agency.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18209. An industrial loan company may make loans, purchase or discount notes, mortgages, contracts or other commercial paper insured by the Federal Housing Administrator, Veterans Administration, other federal agency or an agency of the state. Loans so insured may be made for a term up to but not to exceed the maximum permitted by such agencies. (Repealed and added by Stats. 1976, Ch. 964.)
  191. 18210.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    Industrial loan companies may make certain real-property-secured loans only if repayment terms and installment requirements fit the section’s limits.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 discount any note secured primarily by real property unless the loan or other obligation is repayable in substantially equal weekly, semimonthly, monthly, or quarterly installments during its term, which shall not exceed 30 years and 30 days from the date the loan or other obligation is made or acquired by the company. Equal installment requirements shall not apply to adjustable or variable rate loans or obligations made or purchased by the industrial loan company in accordance with Title VIII of the Garn-St. Germaine Depository Institutions Act of 1982 and any applicable regulations, guidelines, and policies adopted thereunder. However, an industrial loan company may make loans secured by first trust deeds on real property containing single family, or one to four residential, units provided that the repayment period for each loan does not exceed 40 years and 30 days from the date the loan is made by the company. All loans with repayment periods in excess of 30 years and 30 days shall not exceed in the aggregate 5 percent of all outstanding loans and obligations of the company. (b) Any consumer loan or any purchase or discount of any consumer obligation having a term in excess of three years from the date the loan or other obligation is made or acquired by the company shall be secured solely by real property or solely by personal property. However, if the original principal amount of the consumer loan or obligation is twenty thousand dollars ($20,000) or more, then the loan or obligation shall be secured solely by real property or solely by personal property, or by both real property and personal property. All loans and obligations made and purchased pursuant to this subdivision shall be repayable in installments and within a term not to exceed the limitations set forth in subdivision (a), except that consumer loans or obligations secured solely by personal property shall have a term not to exceed the term provided for in Section 18205 and except as otherwise may be provided for in Sections 18207, 18208, and 18209. The equal installment requirements set forth in subdivision (a) shall not apply to loans or obligations made or purchased by the industrial loan company in accordance with Title VIII of the Garn-St. Germaine Depository Institutions Act of 1982 and any applicable regulations, guidelines, and policies adopted thereunder. (c) In order to ensure the safety and soundness of industrial loan companies and to avoid an unreasonable concentration of loans and obligations that could result in balloon payments, all loans and obligations with a term in excess of 15 years and 30 days shall be repaid in substantially equal weekly, semimonthly, monthly, or quarterly installments during their term. (Amended by Stats. 2000, Ch. 135, Sec. 61. Effective January 1, 2001.)
  192. 18211.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

    Verify source ↗

    An industrial loan company may charge certain fees for qualifying loan commitments and lease transactions, and may charge an application fee for qualifying loans or leases above $5,000, subject to a disclosure statement and a consumer-loan cost limit.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 making a written commitment to make a loan, secured by real property having a face amount in excess of five thousand dollars ($5,000) whether or not the loan is consummated, or in connection with the purchase, sale, or origination of a lease as lessor and may charge, contract for, and receive an application fee for a loan having an original principal balance in excess of five thousand dollars ($5,000) or for a lease which payments are in excess of five thousand dollars ($5,000), provided, however, that a disclosure statement setting forth the amount of the fee, which may be reviewed by the commissioner as to form and content, shall be provided to each person to whom an application fee is charged. The commitment fee or the loan application fee with respect to a consumer loan shall be limited to the actual expenses incurred. (Amended by Stats. 1987, Ch. 790, Sec. 2.)
  193. 18212.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    This section caps charges on covered loans and allows one alternative monthly rate.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 division, shall not exceed in the aggregate: (1) Two percent per month on that part of the unpaid principal balance of any loan up to, including, but not in excess of, one thousand dollars ($1,000). (2) One percent per month on any remainder of such unpaid principal balance in excess of one thousand dollars ($1,000). (b) As an alternative to the charges authorized by subdivision (a), a company may contract for and receive charges at a rate not exceeding 1.6 percent per month on the unpaid principal balance. (Amended by Stats. 1979, Ch. 270.)
  194. 18212.1.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A licensee may charge an alternative monthly rate, capped by the formula in this section, and must calculate charges on the unpaid principal balance.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 per month plus a percentage per month equal to one-twelfth of the annual rate prevailing on the 25th day of the second month of the quarter preceding the quarter in which the loan is made as established by the Federal Reserve Bank of San Francisco on advances to member banks under Section 13 and 13a of the Federal Reserve Act as now in effect or hereafter from time to time amended, or if there is no such single determinable rate for advances, the closest counterpart of such rate as shall be designated by the commissioner. Charges shall be calculated on the unpaid principal balance. (Amended by Stats. 1996, Ch. 1064, Sec. 588. Effective January 1, 1997. Operative July 1, 1997.)
  195. 18212.2.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    An industrial loan company may charge an administrative fee on certain small loans, but the fee is capped and special refinancing limits apply.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 fully earned immediately upon making the loan, with respect to a loan of a principal amount of not more than two thousand five hundred dollars ($2,500) at a rate not in excess of 5 percent of the principal amount or fifty dollars ($50), whichever is lesser. No administrative fee may be contracted for or received in connection with refinancing a loan unless at least one year has elapsed since receipt of a previous administrative fee paid by the borrower. (Amended by Stats. 1984, Ch. 890, Sec. 4.)
  196. 18213.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    Industrial loan companies making loans under this division may not precompute interest on those loans.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18213. Notwithstanding any other provision of law not within this division, industrial loan companies making loans pursuant to this division may not precompute interest on such loans. (Repealed and added by Stats. 1979, Ch. 270.)
  197. 18214.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    For calculating charges under this article, a month means 30 consecutive days.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 18214. For the purpose of computing the charges set forth in this article, a month is any period of 30 consecutive days. (Added by Stats. 1976, Ch. 964.)
  198. 18215.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    An industrial loan company may charge and collect certain publication costs, statutory public-officer fees, and specified insurance premiums when making a loan or later.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 of publication as required by law. (b) The statutory fee paid by it to any public officer for acknowledging, filing, recording, or releasing in any public office any instrument securing the loan or executed in connection with a loan. (c) Premiums of the kind and to the extent described in paragraph (2) of subsection (e) of Section 226.4 of Regulation Z promulgated by the Board of Governors of the Federal Reserve System (12 C.F.R. 226.1 et seq.). These amounts are not included in computing the maximum charges which may be made under this division. (Amended by Stats. 1984, Ch. 199, Sec. 2.)
  199. 18216.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    An industrial loan company may charge an appraisal fee on certain real-property-secured loans over $5,000, but the fee cannot exceed actual appraisal cost and generally only one fee may be collected for the same property and borrower unless a new or additional loan is obtained after more than one year. If requested, the company must provide the appraisal report copy by closing.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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 or request for any loan having a face amount in excess of five thousand dollars ($5,000) that is secured primarily by real property whether or not the loan is made. That fee shall not exceed the actual cost of the appraisal. The appraisal shall be rendered to the industrial loan company in writing by a qualified appraiser approved pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, and any applicable regulations, guidelines, and policies adopted thereunder. Only one fee for appraising the same real property made in connection with the same applicant or borrower may be collected unless the applicant or borrower has obtained a new or additional loan and more than one year has elapsed since the prior appraisal. The fee is not included in charges as defined in this division or in computing the maximum charges that may be made under this division. (b) If an appraisal fee is charged, a copy of the appraisal report shall be provided by the industrial loan company upon the request of the borrower or applicant at or before the closing of a loan transaction. (Amended by Stats. 1995, Ch. 272, Sec. 1. Effective January 1, 1996.)
  200. 18217.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. )

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    A reasonable escrow fee may be charged for a loan secured primarily by real property when the services are actually performed.

    ## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Terms and Maximum Charges [18205 - 18222] ( Article 2 added by Stats. 1976, Ch. 964. ) ## 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. Such fee shall be considered reasonable when paid to a company licensed to do business under the Escrow Law, Division 6 (commencing with Section 17000), or any person exempted by the Escrow Law, provided that such fees are comparable to fees being charged by escrow companies so authorized to do business in this state. Such fee is not included in computing the maximum charges which may be made under this division. (Added by Stats. 1976, Ch. 964.)

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