United States — California Code

United States — California legislation

Financial Code, 1951

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 t…

APR disclosureATM lightingATM operationsATM surcharge disclosureATM user safetyApplication hearingsApproval changesCalifornia branch officeCalifornia branch officesCalifornia facilitiesFDIC noticeHolding companiesInvestment in securitiesInvestment operationsPACE assessmentPACE assessment contractsPACE assessmentsPACE contractsPACE financingPACE program administrationPACE programsPACE solicitorPACE solicitor agentsPACE solicitorsSecretary of State filingStock acquisitionsability-to-pay verificationacceptance limitsacceptance of drafts and bills of exchangeaccess to trust fundsaccount administrationaccount assessmentaccount authorityaccount balance feesaccount chargesaccount classificationaccount closureaccount controlaccount disclosuresaccount fundingaccount governanceaccount handlingaccount holder incompetenceaccount holder liabilityaccount hypothecationaccount namingaccount payment and deliveryaccount pledgesaccount recordsaccount releasesaccount rightsaccount servicesaccount 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Jurisdiction: United States — California
Structure: 3,273 provisions
Citation: FIN
Official identity: Year 1951
Dates: Enacted 1951

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Official identity: Year 1951
Dates: Enacted 1951

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

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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An industrial loan company may collect certain court-approved costs and specified actual expenses when collecting a delinquent loan with an unpaid principal balance.

Section 18218.

A foreign bank whose office license is suspended or revoked must immediately surrender the license to the commissioner.

Section 1833.

If a company’s property is unlikely to yield anything and keeping it would likely waste money, the court may order the liquidator to abandon it.

Section 18425.12.

Certain company officers, directors, employees, or agents must not steal or misuse an industrial loan company’s money, property, funds, or credit; doing so is a felony.

Section 18457.

This section defines “premium financing” and says the advanced amount must have a reasonable relationship to the premium being financed.

Section 18563.

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Source record from leginfo.legislature.ca.gov · Enacted 1951

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Showing 200 of 3,273 provisions

Repeal 182Provision 11Commencement 5Offence

§ 18218.## 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. )Repeal

An industrial loan company may collect certain court-approved costs and specified actual expenses when collecting a delinquent loan with an unpaid principal balance.

Section 18218.Verify source

§ 18218.5.## 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. )Repeal

A licensee may charge and collect up to $15 for the return of a dishonored check, negotiable order of withdrawal, or share draft on a loan under this division.

Section 18218.5.Verify source

§ 18219.## 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. )Repeal

An industrial loan company must not help a borrower split or divide a loan to get a higher charge than this division allows.

Section 18219.Verify source

§ 18220.## 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. )Repeal

An industrial loan company must not induce spouses to take on more than one loan contract at the same time if that would lead to a higher charge than otherwise allowed.

Section 18220.Verify source

§ 18221.## 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. )Repeal

An industrial loan company may make loan contracts with different borrowers and charge up to the highest rate allowed when the loans are made, but charges on multiple outstanding loans cannot exceed the maximum that would apply if the loans were combined into one transaction.

Section 18221.Verify source

§ 18222.## 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. )Repeal

An industrial loan company must allow advance payments on a loan contract, in any amount and at any time, and must apply the payment first to charges due and then to the remaining loan balance.

Section 18222.Verify source

§ 18230.## 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 3. Disclosure and Loan Documents [18230 - 18235] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Each industrial loan company must prominently display a full and accurate schedule of maximum charges and how those charges are computed at each place of business.

Section 18230.Verify source

§ 18231.## 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 3. Disclosure and Loan Documents [18230 - 18235] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Industrial loan companies must give borrowers a written loan statement at funding, get a signed broker-disclosure statement from the borrower, and keep the required statements for two years after payoff, maturity, or charge-off.

Section 18231.Verify source

§ 18233.## 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 3. Disclosure and Loan Documents [18230 - 18235] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must give a plain, complete receipt when it receives an in-person cash payment at any office for a loan.

Section 18233.Verify source

§ 18234.## 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 3. Disclosure and Loan Documents [18230 - 18235] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must mark a loan note paid and return it after full repayment, and if the borrower owes nothing else, it must also release related security and return specified loan documents, with limited exceptions.

Section 18234.Verify source

§ 18235.## 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 3. Disclosure and Loan Documents [18230 - 18235] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must not take a note, promise to pay, or security agreement unless it fully and accurately discloses the loan amount, term, and agreed rate of charge, and it must not take any instrument left with blanks to be filled in after execution.

Section 18235.Verify source

§ 18245.## 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 4. Credit Cards [18245- 18245.] ( Article 4 added by Stats. 1998, Ch. 827, Sec. 11. )Repeal

An industrial loan company may issue credit cards and may buy or hold obligations from their use, subject to commissioner regulations.

Section 18245.Verify source

§ 1825.## 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 4. Voluntary Surrender of License [1825- 1825.] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A foreign bank with a license may surrender it by filing the license and a report with the commissioner; if it has two or more office licenses, it cannot surrender only some of them.

Section 1825.Verify source

§ 18265.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company with investment certificates outstanding may not make, buy, or discount longer-term loans or obligations unless they are secured, the collateral is eligible by commissioner regulation, and the outstanding balance stays within the commissioner’s percentage 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18265. An industrial loan company that has investment certificates outstanding shall not make any loan or purchase or discount any other obligation with a maturity of more than 60 months and 15 days unless all of the following conditions are met: (a) The loan or other obligation is secured. (b) The property, or collateral securing the loan or other obligation, is of a kind or class that has been declared eligible by regulation of the commissioner. (c) The aggregate principal balance of such loans and other obligations outstanding with a remaining maturity of more than 60 months and 15 days at any time shall not exceed a percentage of the aggregate principal balance due on all loans and other obligations owing to the industrial loan company by rule of the commissioner. (Amended by Stats. 1983, Ch. 858, Sec. 21.)

Section 18265.Verify source

§ 18266.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

Industrial loan companies with investment certificates outstanding must keep certain loans sufficiently collateralized, generally at 110% of the debt, with some exceptions and special cases.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18266. (a) Except as set forth in subdivisions (b) and (c), any loan or obligation made or acquired by an industrial loan company that has investment certificates outstanding that is secured primarily by real property and has an outstanding principal balance of ten thousand dollars ($10,000) or more shall be secured by real property having a fair market value, or real property and personal property combined having a fair market value, at the time the loan or other obligation is made or acquired, of at least 110 percent of the principal amount owing on the loan or obligation and on prior encumbrances, except nondelinquent tax liens, secured by the same real property with regard to loans secured solely by real property, or by both real property and personal property. Fair market value of the real property for purposes of this section shall be determined by a real property appraiser who meets the qualifications established pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, and any applicable regulations, guidelines, or policies thereunder. (b) Subdivision (a) does not apply to: (1) Any loan guaranteed in whole or in part by the Administrator of Veterans Affairs pursuant to the Servicemen’s Readjustment Act of 1944 or any act of Congress supplementary or amendatory thereof. (2) Any loan insured by the Federal Housing Administration pursuant to the National Housing Act or any act of Congress supplementary or amendatory thereof. (c) Subject to all other provisions of subdivision (a) and any requirements the commissioner may impose by rule or order, the following loans may be secured by real property having a fair market value of less than 110 percent of the principal amount of the loan and prior encumbrances: (1) Any loan made by an industrial loan company to facilitate the sale of real property owned by the industrial loan company resulting from foreclosure or receipt of a deed in lieu of foreclosure. (2) Any loan renewed or modified by an industrial loan company pursuant to a clearly defined and well-documented program adopted by the board of directors of the industrial loan company to achieve orderly repayment of the loan or to maximize recovery of the loan. (3) Any loan or obligation saleable in the secondary market. For purposes of this paragraph, “saleable in the secondary market” means saleable to a qualified institutional buyer, as evidenced by irrevocable commitments to buy by those qualified institutional buyers. (4) Any loan or obligation owned for less than 90 days. (d) In complying with the requirement of subdivision (a), an industrial loan company may include the principal amount of private mortgage insurance. (e) Any loan or obligation made or acquired by an industrial loan company that has investment certificates outstanding that is secured solely by motor vehicles or other personal property shall be secured by that property having a fair market value at the time the loan or other obligation is made or acquired of at least 100 percent of the principal amount owing on the loan or obligation. The personal property held as security shall be of a class or kind that has been declared eligible by regulation of the commissioner. (Amended by Stats. 1996, Ch. 227, Sec. 1. Effective January 1, 1997.)

Section 18266.Verify source

§ 18266.1.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may make or buy loans for home improvements if the loans are secured by real property meeting the stated value test.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18266.1. An industrial loan company may make loans and acquire obligations, the proceeds of which are used for home improvements that are secured by real property having a market value of at least 100 percent of the principal amount owing on the loan being made by the industrial loan company or obligation being acquired by the industrial loan company and on prior encumbrances, except nondelinquent tax liens, secured by the same real property. Home improvements means additions, alterations, or modifications to owner-occupied property consisting of one to four dwelling units and appurtenant buildings thereto or to the real property containing same. (Amended by Stats. 1998, Ch. 827, Sec. 12. Effective January 1, 1999.)

Section 18266.1.Verify source

§ 18266.2.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must file a written request to conduct business under Section 18266.1 and include specified information with the request.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18266.2. An industrial loan company shall file a written request for authorization to conduct business under Section 18266.1. The request shall include the following information: (a) A description of the company’s proposed plan of business. (b) The character, business qualifications, and other experience of the proposed officers and managers directing the line of business for which authorization is requested. (c) Any other facts and circumstances bearing on the proposal that, in the opinion of the commissioner, may be relevant. (Added by Stats. 1989, Ch. 889, Sec. 2.)

Section 18266.2.Verify source

§ 18266.3.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must approve the request within 30 days after filing unless the company fails to show required business-plan or management qualifications.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18266.3. The commissioner shall approve the request made pursuant to Section 18266.2 within 30 days after filing unless the commissioner has ascertained that the company has failed to show either of the following: (a) That the proposed plan of business has a reasonable promise of a successful operation. (b) That the company has a person with the necessary business qualifications, experience or ability to direct and manage the operations of the plan of business. (Added by Stats. 1989, Ch. 889, Sec. 3.)

Section 18266.3.Verify source

§ 18268.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company with investment certificates outstanding may not make certain secured loans above specified limits, unless the collateral or security falls within listed exceptions or is 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 3. Loans and Purchased Obligations [18190 - 18303] ( Chapter 3 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18268. An industrial loan company that has investment certificates outstanding shall not lend in the aggregate more than 5 percent of its capital stock and surplus not available for dividends as provided in Section 18319 upon the security of the stock of any one corporation and that stock may not exceed 10 percent of the outstanding stock of the corporation, or upon the security of the bonds of any one obligor except bonds of the United States or for the payment of which the credit of the United States is pledged, bonds of the State of California, or for the payment of which the credit of the State of California is pledged, and any security authorized in writing by the commissioner or any security authorized by rule of the commissioner. (Amended by Stats. 1989, Ch. 663, Sec. 6. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Section 18268.Verify source

§ 18269.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company with outstanding investment certificates must not make certain real-property-secured loans above specified percentage 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18269. An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by improved real property in a principal amount in excess of 20 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319. An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by unimproved real property in a principal amount in excess of 10 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319. (Amended by Stats. 1989, Ch. 663, Sec. 7. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Section 18269.Verify source

§ 18270.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may require a borrower to sign security-related documents for property used to secure a loan.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18270. An industrial loan company may require the borrower to sign a contract of pledge, assignment, mortgage, security agreement, deed of trust, or trust receipt relating to real or personal property given by the borrower as security for the repayment of the loan and interest and charges thereon. (Added by Stats. 1976, Ch. 964.)

Section 18270.Verify source

§ 18271.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

Industrial loan companies with investment certificates outstanding may not exceed specified lending and obligation concentration limits for any one person.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18271. An industrial loan company that has investment certificates outstanding shall not make loans to, or hold the obligations of, any one person as primary obligor in an aggregate principal amount in excess of 20 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319. Unsecured loans or obligations of any person as primary obligor made or held by a company may not, in any event, exceed in the aggregate principal amount 5 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319. (Amended by Stats. 1989, Ch. 663, Sec. 8. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Section 18271.Verify source

§ 18272.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must diversify its loans, lease obligations, and other obligations, but it may still specialize in its lending and leasing activities. The commissioner may issue rules under this section.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18272. An industrial loan company shall diversify the loans and lease obligations it makes and other obligations it acquires, both as to the types of debtors and obligors, types of collateral, and as to terms and types of repayment schedules. The requirement for diversification notwithstanding, an industrial loan company may specialize in its lending, leasing, and other authorized practices under this division. The commissioner may promulgate rules and regulations pursuant to this section. (Amended by Stats. 1984, Ch. 873, Sec. 4.)

Section 18272.Verify source

§ 18274.## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company with investment certificates outstanding must not let certain unimproved-real-property loans or purchased obligations exceed 5% of its assets, unless the commissioner consents to collateral being taken to protect an existing jeopardized obligation.

## 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 5. Limitations and Regulations of Loans and Purchased Obligations [18265 - 18274] ( Article 5 added by Stats. 1976, Ch. 964. ) ## 18274. The principal balances of loans made, or obligations purchased, by an industrial loan company that has investment certificates outstanding, which loans or obligations are secured by unimproved real property, shall not in the aggregate exceed 5 percent of the company’s assets unless the commissioner consents to the taking of collateral to protect an existing jeopardized obligation. (Amended by Stats. 1986, Ch. 296, Sec. 4.)

Section 18274.Verify source

§ 18290.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may offer certain loan-related insurance only with borrower consent and Insurance Commissioner approval, and the charge to the borrower is capped.

Section 18290.Verify source

§ 18291.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

If covered credit life, disability, or loss-of-income insurance is provided, it must be in force when the loan is made and must cover the loan amounts stated; an industrial loan company may not require that coverage as a loan condition.

Section 18291.Verify source

§ 18292.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

Credit disability insurance sold under this division must cover at least 14 days of disability, and certain pricing and benefit rules apply.

Section 18292.Verify source

§ 18292.5.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Commencement

If credit loss-of-income insurance is offered under this division, it must meet specified coverage, disclosure, cancellation, minimum benefit, and anti-denial conditions.

Section 18292.5.Verify source

§ 18293.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

If an industrial loan company offers certain insurance with a loan, it must give the borrower a clear written statement explaining claim conditions and how to file a claim.

Section 18293.Verify source

§ 18294.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may collect insurance costs for property securing a loan if the insurance and policy conditions in the section are met.

Section 18294.Verify source

§ 18295.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may collect title insurance costs for certain real-property-secured loans if the listed conditions are met.

Section 18295.Verify source

§ 18296.## 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 6. Insurance Sold With Loans [18290 - 18296] ( Article 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may collect certain insurance costs, and those costs are not counted in the division’s maximum charges.

Section 18296.Verify source

§ 183.## 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. )Repeal

This section defines “law of the domicile” differently depending on whether the bank is a national bank, a state bank, or a foreign bank.

## 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. ) ## 183. “Law of the domicile” means: (a) When used with respect to a national bank, the law of the United States. (b) When used with respect to a state bank, the law of the state of the United States under which the bank is organized. (c) When used with respect to a foreign (other nation) bank, the law of the foreign nation under which the bank is organized. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Section 183.Verify source

§ 1830.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Offence

If the commissioner finds a violation of this chapter, related regulations, or an order issued under this chapter, the commissioner may order the person to pay a civil penalty to the commissioner.

Section 1830.Verify source

§ 18300.## 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 6.5. Open-End Loans [18300 - 18303] ( Article 6.5 added by Stats. 1977, Ch. 939. )Repeal

This section defines “open-end loan” and sets rules for industrial loan companies that make them, including approval, disclosures, payment terms, insurance limits, recordkeeping, and several prohibitions.

## 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 6.5. Open-End Loans [18300 - 18303] ( Article 6.5 added by Stats. 1977, Ch. 939. ) ## 18300. (a) As used in this article, “open-end loan” means a loan or loans made by an industrial loan company pursuant to a loan agreement which expressly states that it is made pursuant to this section and pursuant to which: (1) The industrial loan company may permit the borrower to obtain advances of money from the industrial loan company from time to time or the industrial loan company may advance money on behalf of the borrower from time to time as directed by the borrower. (2) The amount of each advance and the charges and other permitted costs are debited to an account. (3) The charges are computed from time to time on the unpaid balances of the borrower’s account, excluding from the computation any unpaid charges other than permitted fees, costs and expenses. (4) The borrower has the privilege of paying the account in full at any time or in monthly installments. (b) Subject to the written approval of the commissioner of the industrial loan company’s plan of business for making open-end loans as not being misleading or deceptive and subject to regulations the commissioner may promulgate with respect to open-end loans under Section 18347, an industrial loan company may make open-end loans pursuant to this section and may contract for and receive thereon charges as set forth in Section 18212. Such charges may be calculated on an amount not exceeding the greater of: (1) The actual daily unpaid balances of the open-end account in the billing cycle for which the charge is made, in which case one-thirtieth of the monthly rate may be charged for each day the unpaid balance is outstanding. (2) The average daily unpaid balance of the open-end account in the billing cycle for which the charge is made, which is the sum of the amount unpaid each day during that cycle divided by the number of days in that cycle. The amount unpaid on a day is determined by adding to the balance unpaid as of the beginning of that day all advances and other debits and deducting all payments and other credits made or received as of that day. The billing cycle shall be monthly. A billing cycle is monthly if the closing date of that cycle is the same date each month or does not vary by more than four days from the regular date. (c) No industrial loan company shall enter into any agreement for an open-end loan that provides for a minimum payment that would result in the full repayment of principal over more than the maximum periods set forth below opposite the respective size of loans. Principal amount of loan Maximum period Less than $1,500 ........................ 24 months and 15 days $1,500 but less than $2,500 ........................ 36 months and 15 days $2,500 but less than $4,000 ........................ 48 months and 15 days $4,000 but less than $6,000 ........................ 60 months and 15 days $6,000 but less than $10,000 ........................ 84 months and 15 days The minimum payment shall be determined by the amount of the initial loan advance and shall continue at that amount until a subsequent loan advance is made, at which time the minimum payment shall be determined by the amount of the unpaid balance of the loan after the advance and including the advance. Minimum payments after each advance shall be determined in the same manner. (d) On open-end loans the industrial loan company may contract for and receive the fees, costs and expenses permitted on other loans, including those permitted by Sections 18215, 18218, 18290, 18294, and 18412, subject to all of the conditions and restrictions set forth in those sections with the following variations: (1) The charge for credit life insurance shall be on a monthly basis. No credit life insurance written in connection with an open-end loan shall be cancelled by the lender because of delinquency of the borrower in the making of the minimum payments thereon unless one or more of such payments is past due for a period of 90 days or more, and the lender shall advance to the insurer the amounts required to keep the insurance in force during such period, which amounts may be debited to the borrower’s account. (e) An industrial loan company shall not make an open-end loan in excess of ten thousand dollars ($10,000) principal amount. (f) The loan contract shall provide for payment of minimum payments complying with subdivision (c). All loans made pursuant to this section shall be repayable by equal or substantially equal monthly payments during the term of the loan. (g) In lieu of applying the provisions of Section 18290, the provisions contained herein shall apply to open-end loans. An industrial loan company may provide insurance on the life of one or more borrowers with the borrower’s consent. The form of the insurance shall be approved by the Insurance Commissioner and shall be in an amount not in excess of the indebtedness. The amount charged to the borrower for such insurance shall not exceed the amount provided in paragraph (1) or (2) following, whichever is less: (1) The premium rate filed with the Insurance Commissioner for the coverage provided pursuant to Article 5.9 (commencing with Section 779.1) of Chapter 1 of Part 2 of Division 1 of the Insurance Code and which has not been disapproved by the Insurance Commissioner. (2) Fifty cents ($0.50) per year per one hundred dollars ($100) of indebtedness (and in the same proportion for longer or shorter maturities and larger or smaller amounts) or such different maximum as is fixed by the Insurance Commissioner by a valid and effective regulation hereafter adopted. Notwithstanding Section 18291, any such life insurance shall be in force as soon as the loan is made or coverage is agreed upon, whichever is later. (h) The open-end loan agreement shall contain the name and address of the industrial loan company and shall disclose the nature of the security taken, if any, the method of determining the minimum payments which will be required to repay the initial advance, and any subsequent advances on the loan, and the agreed rate of charge. (i) At the time the open-end loan agreement is made the industrial loan company shall obtain from the borrower a signed statement as to whether any person has performed any act as a broker in connection with the making of the loan. If such statement discloses a broker or other person has participated, the company shall obtain a full statement of all sums paid or payable to the broker or other person. The open-end loan agreement and the statement required by this subdivision shall be kept for a period of two years after the date the loan has been paid in full, or has matured according to its terms, or has been charged off. (j) Except in the case of an account which the industrial loan company deems to be uncollectible, or with respect to which delinquency collection procedures have been instituted, the company shall deliver or cause to be delivered to the borrower, or any one thereof, for each billing cycle at the end of which there is an outstanding balance in the account or with respect to which a finance charge is imposed, a statement setting forth the outstanding balance in the account at the beginning of the billing cycle, the date and amount of any subsequent loan advance during the period, the amounts and dates of crediting to the account during the billing cycle for payments, the amount of any finance charge debited to the account during the billing cycle, the annual percentage rate of finance charged determined under Regulation Z promulgated by the Board of Governors of the Federal Reserve System (12 C.F.R. 226), the balance on which the finance charge was computed, the closing date of the billing cycle, the outstanding balance on that date, and the minimum monthly payment required in the absence of any additional advance. If there has been any change in the nature of the security for the loan since the next preceding advance, the statement shall contain or be accompanied by a statement of the nature of the security for the loan after such change. (k) An industrial loan company shall not take any instrument in connection with an open-end loan in which blanks are left to be filled in after execution. (l) Subdivision (a) of Section 18205, and Sections 18206, 18214, 18222, 18231, and 18235 shall not apply to open-end loans. (m) An industrial loan company shall not make an open-end loan secured by real property in whole or in part. (n) An industrial loan company shall not charge for, offer or provide credit disability insurance in connection with an open-end loan. (o) This section shall not apply to loans other than open-end loans. (Amended by Stats. 1985, Ch. 297, Sec. 2.)

Section 18300.Verify source

§ 18301.## 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 6.5. Open-End Loans [18300 - 18303] ( Article 6.5 added by Stats. 1977, Ch. 939. )Repeal

A qualifying industrial loan company may make a secured line of credit loan only when authorized by the commissioner, and the loan’s security must be of a kind and class the commissioner has declared eligible.

Section 18301.Verify source

§ 18302.## 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 6.5. Open-End Loans [18300 - 18303] ( Article 6.5 added by Stats. 1977, Ch. 939. )Repeal

An industrial loan company must file a written request to be authorized to conduct business under Section 18301(a).

Section 18302.Verify source

§ 18303.## 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 6.5. Open-End Loans [18300 - 18303] ( Article 6.5 added by Stats. 1977, Ch. 939. )Repeal

The commissioner must approve the Section 18302 request within 30 days after filing, unless the commissioner finds the company failed to show one of the required business conditions.

Section 18303.Verify source

§ 1831.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

After notice and a hearing, the commissioner may suspend or revoke a foreign bank’s license if specified problems are found.

## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1831. If, after notice and a hearing, the commissioner finds any of the following with respect to a foreign (other nation) bank that is licensed to maintain an office, the commissioner may issue an order suspending or revoking the license of the bank: (a) That the bank has violated any provision of this division or of any regulation or order issued under this division or any provision of any other applicable law, regulation, or order; (b) That the bank, in case it is licensed to transact business in this state, is transacting the business in an unsafe or unsound manner or, in any case, is transacting business elsewhere in an unsafe or unsound manner; (c) That the bank is in unsafe or unsound condition; (d) That the bank has ceased to operate its office; (e) That the bank is insolvent in that it has ceased to pay its debts in the ordinary course of business, it cannot pay its debts as they become due, or its liabilities exceed its assets; (f) That the bank has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due; (g) That the bank is the subject of an order for relief in bankruptcy or has sought other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for any such relief under any such law against the bank and the bank has by any affirmative act approved of or consented to the action or the relief has been granted; (h) That a receiver, liquidator, or conservator has been appointed for the bank or that any proceeding for such an appointment or any similar proceeding has been initiated in the place where the bank is domiciled; (i) That the existence of the bank or the authority of the bank to transact banking business under the laws of the place where the bank is domiciled has been suspended or terminated; or (j) That any fact or condition exists that, if it had existed at the time when the bank applied for its license to transact business in this state, would have been grounds for denying the application. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Section 1831.Verify source

§ 18315.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may sell and issue investment certificates if authorized, while the commissioner may impose and change terms on those certificates.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18315. (a) When authorized to conduct business pursuant to this division, an industrial loan company may sell and issue its investment certificates subject to the provisions of this division. The commissioner may, by written order directed to a company or by rule or regulation, impose terms and conditions upon investment certificates and the sale or redemption thereof or the payment of interest thereon, as he or she deems reasonable and necessary or advisable for the protection of the company or the public, and he or she may from time to time in his or her discretion amend, alter or revoke any such order or regulation or any condition or provision thereof. (b) Any change in the form, terms, or provisions of outstanding investment certificates or in the rights, privileges, or restrictions upon the holder or issuer thereof is deemed a sale and issuance of investment certificates. (c) The company named in any order issued pursuant to subdivision (a) of this section may, within 15 days after receipt thereof, file with the commissioner its written request for hearing. The filing of the request shall not operate to postpone or suspend the effectiveness of any order issued by the commissioner unless otherwise directed by the commissioner. The commissioner shall, within 15 days after the receipt of the written request or at such later time as may be mutually agreed with the company, cause the matter to be heard and shall thereafter issue his final decision. The decision may be amended or set aside by the commissioner at any time. (d) Every order or decision of the commissioner made pursuant to this section is subject to judicial review in accordance with law. (Amended by Stats. 1998, Ch. 827, Sec. 14. Effective January 1, 1999.)

Section 18315.Verify source

§ 18316.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may sell or negotiate investment certificates and may structure payment terms in the certificates and collect payments in installments or otherwise, with or without interest on installments.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18316. An industrial loan company may, in addition to the sale of installment investment certificates with loans, sell or negotiate investment certificates either in certificates, or in receipt book form. The certificates may provide for the payment of money at any time, either fixed or uncertain. The company may receive payments therefor in installments or otherwise, with or without an allowance of interest upon such installments. (Added by Stats. 1976, Ch. 964.)

Section 18316.Verify source

§ 18317.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

A company must not have investment certificates outstanding with a person or related persons above 20% of its unimpaired capital stock and surplus not available for dividends, except as provided in Section 18319.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18317. No company may have investment certificates outstanding with a person or related persons in an aggregate amount in excess of 20 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319. (Amended by Stats. 1989, Ch. 663, Sec. 10. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Section 18317.Verify source

§ 18318.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

A minor can hold an investment or thrift certificate, and the certificate is for the minor’s exclusive benefit.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18318. Investment or thrift certificates may be issued to or in the name of a minor and as such shall be for the exclusive right and benefit of such minor and may be redeemed in whole or part by said minor or his order and payment so made is a valid release and discharge to the company for such payment. (Added by Stats. 1976, Ch. 964.)

Section 18318.Verify source

§ 18318.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

A multiple-party investment or thrift certificate is governed by the Probate Code provisions on multiple-party accounts.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18318.5. An investment or thrift certificate that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2 (commencing with Section 5100) of Division 5 of the Probate Code. (Amended by Stats. 1990, Ch. 79, Sec. 11. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)

Section 18318.5.Verify source

§ 18319.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may not have investment certificates outstanding above a 20-times capital-and-surplus cap, and the commissioner may further limit that amount by rule or order.

Section 18319.Verify source

§ 1832.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Commencement

The commissioner may suspend or revoke a foreign bank’s license if certain factors are true and immediate action is needed for creditor protection or the public interest.

Section 1832.Verify source

§ 18320.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company is limited in how many investment certificates it may have outstanding, with higher limits available only after certain operating periods and subject to application and reserve requirements.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18320. Notwithstanding Section 18319, an industrial loan company shall in no event: (a) Have outstanding at any time during its first 12 months of operation as an industrial loan company under this division, its investment certificates (exclusive of those hypothecated with the company issuing them) in an aggregate sum in excess of six times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319. (b) After 12 months of operation as an industrial loan company under this division and during the next 12 months of operation the industrial loan company may file an application with the commissioner seeking authority to increase the aggregate sum of its investment certificates which (exclusive of those investment certificates hypothecated with the company issuing them) in no event shall exceed eight times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319. (c) After 24 months of operation as an industrial loan company under this division and during the next 24 months of operation the company may file an application with the commissioner seeking authority to increase the aggregate sum of its investment certificates which (exclusive of those investment certificates hypothecated with the company issuing them) in no event shall exceed 12 times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319. (d) If after 36 months of operation as an industrial loan company under this division the outstanding investment certificates of a company are insured by the Federal Deposit Insurance Corporation, the company may file an application with the commissioner seeking authority to increase the aggregate sum of its investment certificates which it may have outstanding to the extent authorized by the capital-adequacy requirements of the federal Deposit Insurance Corporation. An industrial loan company that is authorized to increase the aggregate sum of its investment certificates to the extent authorized by the capital-adequacy requirements of the Federal Deposit Insurance Corporation also shall meet the requirements of subdivisions (e) and (f). (e) After 48 months of operation as an industrial loan company under this division and during the next 12 months of operation the company may file an application with the commissioner seeking authority to increase the aggregate sum of its investment certificates which, exclusive of those investment certificates hypothecated with the company issuing them, in no event shall exceed 15 times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319, only if both of the following requirements are met: (1) A company shall maintain a liquidity reserve in cash, or cash equivalent, equal to 11/2 percent of its total investment certificates outstanding. “Cash equivalent” means investments legal for commercial banks under the laws of this state, with a maturity of not more than 12 months. (2) In addition to the reserve for losses required by the commissioner pursuant to Section 18343, a company shall establish and maintain such special reserves for losses as the commissioner, by rule or order, may require. (f) After 60 months of operation as an industrial loan company under this division, the company may file an application with the commissioner seeking authority to increase the aggregate sum of its investment certificates which it may have outstanding, which, exclusive of those investment certificates hypothecated with the company issuing them, in no event shall exceed 20 times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319, and which may exceed 15 times the amount of its paid-up and unimpaired capital and unimpaired surplus not available for dividends pursuant to Section 18319 only if the requirements of subdivision (e) are met and the capital stock is not less than one million two hundred fifty thousand dollars ($1,250,000) and the unimpaired paid-in surplus is not less than seven hundred fifty thousand dollars ($750,000). (g) Whenever the commissioner deems it reasonable and necessary or advisable for the protection of the public (including the fact that an industrial loan company is not a member of the Federal Deposit Insurance Corporation), the commissioner may at any time by order authorize said industrial loan company to have its investment certificates outstanding in either a lesser aggregate sum than the maximum aggregate amounts permitted by subdivision (a), (b), (c), (d), (e), or (f), or none at all. (h) The request for authority filed with the commissioner pursuant to subdivisions (b), (c), (d), (e), and (f) shall be set forth in an application in such form and containing such information as the commissioner may require. (i) The commissioner shall by rule or regulation set forth the criteria that must be met before an industrial loan company can be granted authority to increase the aggregate sum of its outstanding investment certificates. (j) If the commissioner does not within 60 days of the filing of an application grant a request by an industrial loan company operating under this division, for authority to increase the aggregate sum of its outstanding investment certificates to the requested amount, or issues an order pursuant to subdivision (g), the company may file with the commissioner its written request for hearing in accordance with subdivisions (c) and (d) of Section 18315. (Amended by Stats. 1987, Ch. 787, Sec. 3.)

Section 18320.Verify source

§ 18321.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may not receive demand deposits, and it may use the term “certificate of deposit” for certain investment certificates if the stated conditions are met.

Section 18321.Verify source

§ 18322.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must get the commissioner’s written consent before accepting money under Section 17409.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18322. An industrial loan company shall obtain the written consent of the commissioner prior to accepting any moneys pursuant to Section 17409. The commissioner may, by regulation or order, impose or revise limitations and requirements, including, but not limited to, liquidity and reserve requirements, as, in the opinion of the commissioner, are necessary for safety and soundness. The commissioner shall rescind that consent if, at any time, the industrial loan company exceeds the limitations or fails to adhere to the requirements imposed or, if in the opinion of the commissioner, the continued acceptance of those moneys would pose a threat to the safety and soundness of the company. (Added by Stats. 1990, Ch. 1306, Sec. 3.)

Section 18322.Verify source

§ 18325.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company may not charge a customer for failing to make, or making late, a periodic installment investment on a periodic investment or thrift certificate, and must pay interest at the same annual rate as comparable non-periodic certificates.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 4. Investment Certificates [18315 - 18325] ( Chapter 4 added by Stats. 1976, Ch. 964. ) ## 18325. (a) An industrial loan company shall not impose any charge on a periodic investment or thrift certificate, or on an investor in an account evidenced by such certificate, for the failure of an investor to invest, or for the late investment of, any agreed periodic installment investment into such an account. An industrial loan company shall pay interest on periodic investment or thrift certificates at the same rate of interest per annum as is paid on investment or thrift certificates as to which an investor has not agreed to make periodic installment investments. (b) As used in this section “periodic investment or thrift certificate” means an investment arrangement under which an investor undertakes to make periodic investments of a specified amount into one account, except, however, a periodic investment or thrift certificate shall not mean an impound account established for the purposes of the payment of taxes or other expenses and obligations in connection with a loan secured by real property, or a certificate of investment issued in connection with a loan pursuant to Section 18322. (Added by Stats. 1976, Ch. 964.)

Section 18325.Verify source

§ 1833.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A foreign bank whose office license is suspended or revoked must immediately surrender the license to the commissioner.

Section 1833.Verify source

§ 1834.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A foreign bank subject to an order under Sections 1831 or 1832 may ask the commissioner to modify or rescind the order, and its right to seek judicial review is not lost if it does not make that request first.

Section 1834.Verify source

§ 1835.## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )Amendment

The commissioner may take possession of a foreign bank’s property and business if the stated conditions are met, and later liquidate it or return remaining assets. The bank can ask the superior court to stop further proceedings, and the court can issue orders after a hearing.

## 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 5. Enforcement [1830 - 1835] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1835. (a) If the commissioner finds that any of the factors set forth in Section 1831 is true with respect to any foreign (other nation) bank which is licensed to transact business in this state and that it is necessary for the protection of the interests of the creditors of such bank’s business in this state or for the protection of the public interest that he or she take immediate possession of the property and business of the bank, the commissioner may by order forthwith take possession of the property and business of the bank and retain possession until the bank resumes business in this state or is finally liquidated. The bank may, with the consent of the commissioner, resume business in this state upon such conditions as the commissioner may prescribe. (b) (1) Whenever the commissioner takes possession of the property and business of a foreign (other nation) bank pursuant to subdivision (a), such bank may, within 10 days, apply to the superior court in the county in which the primary office of the bank is located to enjoin further proceedings. The court may, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing, dismiss such application or enjoin the commissioner from further proceedings and order him or her to surrender the property and business of the bank to the bank or make such further order as may be just. (2) The judgment of the court may be appealed by the commissioner or by the bank in the manner provided by law for appeals from the judgment of a superior court to the court of appeal. In case the commissioner appeals the judgment of the court, such appeal shall operate as a stay of the judgment, and the commissioner shall not be required to post any bond. (c) Whenever the commissioner takes possession of the property and business of a foreign (other nation) bank pursuant to subdivision (a), the commissioner shall conserve or liquidate the property and business of the bank pursuant to Chapter 6 (commencing with Section 550) and Chapter 7 (commencing with Section 600) of Division 1, and the provisions of those chapters shall apply, except Sections 592, 593, and 690, as if the bank were a bank organized under the laws of this state. (d) When the commissioner has completed the liquidation of the property and business of a foreign (other nation) bank, the commissioner shall transfer any remaining assets to such bank in accordance with such orders as the court may issue. However, in case the bank has an office in another state of the United States which is in liquidation and the assets of such office appear to be insufficient to pay in full the creditors of the office, the court shall order the commissioner to transfer to the liquidator of the office such amount of any such remaining assets as appears to be necessary to cover such insufficiency; if there are two or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of such offices in such manner as the court finds equitable. (Amended by Stats. 2013, Ch. 334, Sec. 44. (SB 537) Effective January 1, 2014.)

Section 1835.Verify source

§ 18390.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner may investigate and examine covered industrial loan company businesses and related records, and may access their business premises and records.

Section 18390.Verify source

§ 18391.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner may conduct extra examinations or investigations, and do necessary related services, when an industrial loan company’s condition appears to need extraordinary attention.

Section 18391.Verify source

§ 18392.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company that is examined must pay the commissioner’s examination, investigation, and service costs, including related compensation and overhead.

Section 18392.Verify source

§ 18393.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must examine the affairs and records of certain industrial loan companies at least once a year after receiving written notice that they intend to engage in permitted transactions.

Section 18393.Verify source

§ 18394.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

These reports are not public records. They may be disclosed to the officers and directors of the affected company for corrective action.

Section 18394.Verify source

§ 18396.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. Examinations [18390 - 18396] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner may give information to certain governmental agencies in several situations.

Section 18396.Verify source

§ 18405.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Industrial loan companies must file an annual audit report with the commissioner by March 15 and follow required accounting and auditing standards.

Section 18405.Verify source

§ 18406.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Industrial loan companies with outstanding investment certificates must display and provide key financial statements, and any person may inspect the statement during business hours on request.

Section 18406.Verify source

§ 18407.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must submit unaudited financial statements to the commissioner when requested, using GAAP and including at least a balance sheet and statement of income.

Section 18407.Verify source

§ 18408.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must make special reports to the commissioner when the commissioner requires them.

Section 18408.Verify source

§ 18409.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must annually file with the department a public record combining reports from industrial loan companies and any public-interest comments.

Section 18409.Verify source

§ 18410.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must provide the commissioner with reasonably required statistical information for the composite report.

Section 18410.Verify source

§ 18411.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

The commissioner may set the form and contents of required financial statements, reports, certificates, and opinions, and may require those reports and statements to be verified.

Section 18411.Verify source

§ 18412.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Reports and Financial Statements [18405 - 18412] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Required reports must be filed with the commissioner when the commissioner requires, and late or incomplete reports trigger a $100-per-day penalty.

Section 18412.Verify source

§ 18415.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may take possession of an industrial loan company’s property and business if listed grounds exist.

Section 18415.Verify source

§ 18415.1.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After the commissioner takes possession of an industrial loan company’s property and business, the company may ask the superior court to stop further proceedings within 10 days if it claims to be aggrieved.

Section 18415.1.Verify source

§ 18415.10.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may, at any time, examine under oath certain company personnel to check whether all property and assets have been transferred to the commissioner’s possession.

Section 18415.10.Verify source

§ 18415.11.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

When the commissioner takes possession of a company’s property and business, the commissioner must collect money due and take necessary or expedient steps to conserve or protect assets, property, and business, and must proceed to conserve or liquidate the company’s affairs under the chapter.

Section 18415.11.Verify source

§ 18415.12.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Commencement

The commissioner may ask the court for an injunction, and the court must issue orders needed to stop specified harmful actions.

Section 18415.12.Verify source

§ 18415.13.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After taking possession of a company’s property and business, the commissioner may terminate or adopt the company’s executory contracts, including leases, but must do so within six months of learning about the contract or lease.

Section 18415.13.Verify source

§ 18415.14.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may take action against a debtor or alleged debtor using summary procedure or by asking the court for an order to show cause.

Section 18415.14.Verify source

§ 18415.15.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may examine the seized company and review what any conservator or liquidator is doing.

Section 18415.15.Verify source

§ 18415.16.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The company must pay the actual cost of examinations, investigations, or services, as fixed by the commissioner, from its assets.

Section 18415.16.Verify source

§ 18415.17.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If the commissioner files written notice to liquidate a company with the court, certain recent actions are stayed or dissolved, and no new attachment, execution, or lien may be created during liquidation.

Section 18415.17.Verify source

§ 18415.18.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

When the commissioner takes possession of a company’s property and business in a proceeding, the commissioner may appoint special deputy commissioners, hire legal counsel, set a special deputy commissioner’s pay, and require security from deputies and assistants.

Section 18415.18.Verify source

§ 18415.19.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

A company covered by this article must pay the costs of possession, conservatorship, liquidation, and related dealings out of its assets.

Section 18415.19.Verify source

§ 18415.2.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner or the industrial loan company may appeal the court’s judgment as provided by law.

Section 18415.2.Verify source

§ 18415.21.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

A conservator or liquidator may void certain transactions made within six months before possession was taken if they give a preference to specified insiders or creditors.

Section 18415.21.Verify source

§ 18415.22.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After possession is taken, the company may not buy or discount obligations under these agreements, and related reserves or security cannot be used to offset those obligations.

Section 18415.22.Verify source

§ 18415.23.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

Attachment or execution may not be issued against a company's property before final judgment.

Section 18415.23.Verify source

§ 18415.3.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

An industrial loan company must cure a net-worth deficiency if its net worth falls below the stated 90% threshold, and the commissioner may or must take possession if the deficiency is not cured within the allowed time.

Section 18415.3.Verify source

§ 18415.4.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may, if the company’s board of directors requests it, take possession of the company’s property and business and, as conservator, take whatever action the commissioner considers proper.

Section 18415.4.Verify source

§ 18415.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

When the commissioner takes possession of an industrial loan company’s property and business, the commissioner must notify persons holding its assets. A notified person, or a person who knows of the taking, may not place a lien or charge on the company’s assets for later payments, advances, clearances, or liabilities.

Section 18415.5.Verify source

§ 18415.6.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

Certain company officers, agents, employees, directors, or stockholders who refuse to comply with a possession demand under Section 18415 commit a misdemeanor and may be fined or jailed.

Section 18415.6.Verify source

§ 18415.7.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

When the commissioner asks, county sheriffs and municipal police departments must provide deputies, patrolmen, or officers needed to help the commissioner carry out seizures under Section 18415.

Section 18415.7.Verify source

§ 18415.8.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After taking possession of a company’s property and business, the superior court for the county where the company’s head office is located has exclusive original jurisdiction over related proceedings. Certain possession papers must be filed and made part of the record within 45 days, and no extra filing fees may be charged for papers filed with the court.

Section 18415.8.Verify source

§ 18415.9.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Commencement

After a possession order has been filed with the court, the commissioner may move the principal office to San Francisco or Los Angeles, and the court must then direct transfer of the filed papers if the commissioner applies.

Section 18415.9.Verify source

§ 18420.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If the commissioner takes possession of a company as conservator or liquidator, the commissioner may exercise broad authority to collect debts, use the company’s rights and powers, and handle legal proceedings and other related acts.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. ) ## 18420. The commissioner, as conservator or liquidator, after taking possession of the company, shall, in his or her name, in the name of the company, in the name of both, or otherwise, have authority to do all of the following: (a) Collect all obligations and money due the company. (b) Exercise and possess all the rights, powers and privileges of the company, its officers and directors. (c) Institute, prosecute, maintain, defend, intervene, and otherwise participate in any and all actions, suits, or other legal proceedings by and against the conservator or liquidator or company, or in which the conservator, the company or its creditors or debtors, or any of them, have an interest, and in every way to represent the company, its creditors, and debtors. (d) Execute, acknowledge, and deliver any and all deeds, contracts, leases, assignments, bills of sale, releases, extensions, satisfactions, and other instruments necessary or proper for any purposes. (e) Be the custodian of all moneys collected by the commissioner or coming into his or her possession in the course of any proceeding under this chapter, but he or she may deposit those moneys, or any part thereof, in a bank insured by the Federal Deposit Insurance Corporation. (f) Invest or reinvest such portions of funds and assets of the company, in a manner as he or she may deem suitable for the best interests of the creditors of the company. (g) To revise, refinance, extend, or settle any loan or obligation upon those terms and conditions as he or she may deem to be most advantageous to the company. (h) To sell, compound, compromise or assign for the purpose of collection upon those terms and conditions he or she deems best, any bad or doubtful debts due the company. (i) To compound, compromise, or in any manner negotiate settlements of claims against the company upon those terms and conditions as he or she shall deem to be most advantageous to the company. (j) To sell, acquire, hypothecate, encumber, lease, improve, abandon, or otherwise dispose of or deal with any real or personal property which has come into ownership of the company by way of repossession, foreclosure, execution, suit or by other such means on a basis of reasonable market value, without notice, for cash, on terms, or upon such other terms and conditions as he or she may deem proper. (k) To settle, compromise, or obtain the release of, for cash or other consideration, claims and demands against the company or the conservator. (l) To sell for cash or on terms, exchange, or otherwise dispose of, in whole or in part, any or all the assets and property of the company, real, personal, and mixed, tangible and intangible, of any nature. (m) Execute, acknowledge, and deliver any and all deeds, contracts, leases, assignments, bills of sale, releases, extensions, satisfactions, and any other instruments necessary or proper for any purposes, including, but not limited to, the effectuation, termination, or modification of any sale, lease, or transfer of real, personal, or mixed property, or that shall be necessary or proper to liquidate or carry on the business of the company. Any deed or other instrument executed pursuant to the authority hereby given shall be as valid and effectual for all purposes as if it had been executed as the act and deed of the company. (n) Pay out and expend such sums as the commissioner deems necessary or advisable including the following: (1) To pay off or discharge any taxes, assessments, liens, claims, or charges of any nature against the company, the conservator or liquidator, any asset or property of any nature of the company, or upon any asset or property on which the company or conservator or liquidator has an interest of a value of any nature. (2) For or in connection with the preservation, maintenance, conservation, protection, remodeling, repair, rehabilitation, or improvement of any asset or property of any nature of the company. (3) To pay all costs and expenses of the conservatorship or liquidation and all costs of carrying out or exercising the commissioner’s rights, powers, privileges, and duties as conservator. (4) To pay valid creditor obligations, interest owed on debts, debts incurred during conservatorship or liquidation and all other debts of the company or conservatorship or liquidation of any nature. (5) To pay all costs and expenses in the operation of the conservatorship or liquidation of the company. (o) Do such things, and have such rights, powers, privileges, immunities and duties, whether or not otherwise granted in this chapter, as shall be authorized, directed, conferred, or imposed from time to time in specific cases by order of the court. (Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)

Section 18420.Verify source

§ 18420.1.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

Certain transactions need court permission first if the stated dollar thresholds are exceeded.

Section 18420.1.Verify source

§ 18420.2.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may, with ex parte court approval, sell company assets and may also borrow money from specified institutions to help transfer investment certificate liabilities, using company assets as security.

Section 18420.2.Verify source

§ 18420.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may appoint a conservator or liquidator for the company, and that appointee gets the same powers, rights, duties, and obligations as the commissioner while in possession.

Section 18420.5.Verify source

§ 18420.6.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may terminate a conservator or liquidator appointment if doing so is in the best interest of the company, its creditors, and investors, and must file the termination notice with the court.

Section 18420.6.Verify source

§ 18420.7.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The commissioner may require a conservator or liquidator to post a bond, and the commissioner sets the salary for a conservator or liquidator within a stated cap.

Section 18420.7.Verify source

§ 18425.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If the commissioner has already taken possession and thinks conservatorship would be futile, the commissioner may order the company liquidated.

Section 18425.Verify source

§ 18425.1.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The liquidator must notify claimants by publication and by mail, and claimants must file and prove their claims within the stated time.

Section 18425.1.Verify source

§ 18425.10.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

In a commissioner-administered liquidation proceeding, claims are paid in a set priority order, approved claims earn interest if funds are available, and any leftover funds go to stockholders.

Section 18425.10.Verify source

§ 18425.11.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If the commissioner decides to liquidate a company, the commissioner must make a duplicate inventory of all company assets and file the original with the court and the duplicate in the commissioner’s office.

Section 18425.11.Verify source

§ 18425.12.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If a company’s property is unlikely to yield anything and keeping it would likely waste money, the court may order the liquidator to abandon it.

Section 18425.12.Verify source

§ 18425.13.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The superior court may decide that a lawsuit on a company’s debt or claim does not need to be brought if a purchaser cannot be found and recovery appears unlikely.

Section 18425.13.Verify source

§ 18425.14.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After liquidation requirements are met, the liquidator may seek an order to liquidate a domestic corporation, and the commissioner may apply for an order dissolving it.

Section 18425.14.Verify source

§ 18425.15.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After a final dividend is paid in liquidation, the commissioner must file a full and final liquidation statement with the court and also file a duplicate in the commissioner’s office. The liquidation closes only after the court hears and approves it.

Section 18425.15.Verify source

§ 18425.16.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

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

Section 18425.16.Verify source

§ 18425.17.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

After a liquidation order is approved, the court must provide for disposal of the company’s books and records, may declare the company dissolved, and the liquidator must file the dissolution order with the Secretary of State.

Section 18425.17.Verify source

§ 18425.2.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

Claims against covered property must be presented to the liquidator in writing and verified within the notice period.

Section 18425.2.Verify source

§ 18425.3.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The liquidator may reject a doubtful claim and give notice of rejection; a challenge to the rejected claim must be filed within 30 days, or it is forever barred.

Section 18425.3.Verify source

§ 18425.4.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

A claimant must file a claim under oath on the commissioner’s form and include specified details about the claim.

Section 18425.4.Verify source

§ 18425.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

If an investment certificate holder is also a debtor, the liquidator may set off amounts owed against that person’s debt and related interest, subject to a cap.

Section 18425.5.Verify source

§ 18425.6.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

A liquidator must notify each investment certificate holder of the claim amount, and the holder usually does not need to file a claim unless they dispute that amount.

Section 18425.6.Verify source

§ 18425.7.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The liquidator must prepare and file claim lists, including rejected claims, and keep those lists open for inspection.

Section 18425.7.Verify source

§ 18425.8.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

People interested in a claim may file written objections, and the liquidator must pass them to the court.

Section 18425.8.Verify source

§ 18425.9.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Possession, Conservatorship, and Liquidation by the Commissioner [18415 - 18425.17] ( Article 4 added by Stats. 1985, Ch. 140, Sec. 1. )Repeal

The liquidator may pay dividends and a final distribution only with court approval and subject to the timing and fund-set-aside rules in this section.

Section 18425.9.Verify source

§ 18427.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

This section defines “offer,” “sale,” and “security” for this article, and it excludes certain stock dividends from the definitions of offer and sale.

Section 18427.Verify source

§ 18427.1.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

An industrial loan company in this state may not offer or sell its own securities unless the commissioner has issued a permit for that sale.

Section 18427.1.Verify source

§ 18427.10.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

This article does not change or affect the Corporate Securities Law of 1968.

Section 18427.10.Verify source

§ 18427.11.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

The commissioner may use regulation or order to restrict, limit, prohibit, or condition certain securities-related uses and calculations.

Section 18427.11.Verify source

§ 18427.2.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

A permit application must be in the form and include the information the commissioner requires.

Section 18427.2.Verify source

§ 18427.3.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

The commissioner must charge and collect application fees set by this section.

Section 18427.3.Verify source

§ 18427.4.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

If the commissioner finds a proposed securities sale fair, just, and equitable, the commissioner must issue the applicant a permit; otherwise, the application must be denied.

Section 18427.4.Verify source

§ 18427.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

The commissioner may place conditions on permits issued under Section 18427.4.

Section 18427.5.Verify source

§ 18427.6.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

A permit issued under Section 18427.4 must state that it is permissive only and is not a recommendation or endorsement of the securities that may be sold.

Section 18427.6.Verify source

§ 18427.7.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

The commissioner may amend, alter, suspend, or revoke any permit issued under Section 18427.4.

Section 18427.7.Verify source

§ 18427.8.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

If an industrial loan company applies for a permit to issue securities or other consideration in exchange for certain outstanding securities, claims, or property interests, the commissioner may approve the terms and fairness of the exchange and may hold a hearing.

Section 18427.8.Verify source

§ 18427.9.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 5. Administration and Powers of the Commissioner [18339 - 18427.11] ( Chapter 5 added by Stats. 1976, Ch. 964. ) ## ARTICLE 5. Securities Transactions [18427 - 18427.11] ( Article 5 added by Stats. 1989, Ch. 663, Sec. 17. )Repeal

This section exempts certain securities offers and related transactions from Section 18427.1, and allows the commissioner to exempt others by regulation or order.

Section 18427.9.Verify source

§ 18435.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A person who willfully violates this division or a rule or order under it may be fined, jailed, or both.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18435. Except as otherwise provided in this division, any person who willfully violates any provision of this division, or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment in a county jail for not more than one year or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment. However, 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 18349.5. (Amended by Stats. 2011, Ch. 15, Sec. 111. (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.)

Section 18435.Verify source

§ 18436.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must not make loans or guarantee obligations for its directors, officers, or the directors and officers of its holding company or affiliates.

Section 18436.Verify source

§ 18437.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company generally may not make or buy loans or obligations involving non-California residents or businesses unless the listed conditions or exceptions are met.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18437. (a) Except as provided in subdivision (b), an industrial loan company shall not make loans to, or purchase any obligations from, persons who do not reside or have a place of business in the State of California, unless those loans or obligations comply with all of the following conditions: (1) If the loan or obligation is unsecured, then only if the loan or obligation bears the unqualified written guaranty of a financially responsible person, considering the amount of the obligation, who resides or has a place of business in the State of California. (2) If the documents and security for the loan or obligation and all records relating to the transaction are in California at the time the loan or obligation is made or acquired and are thereafter kept in California while the loan or obligation remains unsatisfied, except that where the security is aircraft, the security need not be in California at the time the loan or obligation is made or acquired, nor need it thereafter be held in California while the loan or obligation remains unsatisfied. (b) Notwithstanding subdivision (a), an industrial loan company may make loans to, or purchase any obligations from, persons who do not reside or have a place of business in the State of California not to exceed 25 percent, in the aggregate, of an industrial loan company’s total assets. Upon application to and approval by the commissioner, an industrial loan company may increase its loans to, or purchases of obligations from, persons who do not reside or have a place of business in this state not to exceed 50 percent, in the aggregate, of an industrial loan company’s total assets. The application shall include all of the following information: (1) A description of the company’s proposed plan of business. (2) The character, business qualifications, and other experience of the proposed officers and managers directing the line of business for which authorization is requested. (3) Any other facts and circumstances bearing on the proposal that, as determined by the commissioner, may be relevant. (c) This section does not apply to loans made to, or acquired from, persons who do not reside or have a place of business in this state if all of the following conditions are met: (1) The loans are for the purchase or refinance of single- or multi-family residential property or nonresidential property. (2) The loans are salable in the secondary market as evidenced by commitments to buy by a buyer in the secondary market. (3) The loans are owned by the industrial loan company for 90 days or less. (Amended by Stats. 1999, Ch. 345, Sec. 4. Effective January 1, 2000.)

Section 18437.Verify source

§ 18438.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain officers, directors, and shareholders can be personally liable for losses caused by specified loan-related violations.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18438. If a loan is made or other thing is purchased or discounted in violation of Section 18271, 18272, 18273, 18274, or 18437, the officers, directors and shareholders of the industrial loan company, its holding company, or its affiliates participating therein or knowingly approving the same shall be personally liable for any loss suffered by the industrial loan company by reason thereof. (Amended by Stats. 1980, Ch. 418, Sec. 5.)

Section 18438.Verify source

§ 18439.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

If a loan contract includes charges above the amount allowed by this division, the contract is void unless the excess results from an accidental and bona fide computation error.

Section 18439.Verify source

§ 18440.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must not take a confession of judgment or a power of attorney when making a loan, except for certain powers of attorney tied to vehicle transfers, securities transfers, or cancelling an insurance policy in a loan default situation.

Section 18440.Verify source

§ 18441.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A person involved in making a loan under this division must not require the borrower to buy or agree to buy anything connected to the loan, and must not require a collateral sales agreement or contract unless expressly permitted. Certain specified insurance policies are not prohibited.

Section 18441.Verify source

§ 18442.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company must not make loans or guarantee obligations secured by its own capital, its holding company’s capital, or its affiliates’ capital.

Section 18442.Verify source

§ 18443.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

If a loan or guaranty violates Section 18436 or 18442, the directors and officers who authorized or assented to it are liable to the company as guarantors, including 6% yearly interest until paid.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18443. If any loan or guaranty is made in violation of Section 18436 or 18442, the directors and officers who authorize it or assent thereto are jointly and severally liable to the company as guarantors for the repayment or return of the sum or value so loaned with interest thereon at the rate of 6 percent per year until paid. (Added by Stats. 1976, Ch. 964.)

Section 18443.Verify source

§ 18444.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An officer or director who is liable under Section 18443 and pays that liability may seek contribution from other participating officers or directors and takes over the corporation’s rights against the borrower or principal obligor.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18444. Any officer or director held liable under Section 18443, who satisfies such liability is entitled to contribution from any other officer or director who participates in authorizing, making or allowing any such loan or guaranty, and is subrogated to all rights of the corporation against the borrower or principal obligor. (Added by Stats. 1976, Ch. 964.)

Section 18444.Verify source

§ 18445.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain directors, officers, and employees of industrial loan companies and related entities must not ask for or accept value for helping procure loans or related purchases/discounts; doing so is a felony.

Section 18445.Verify source

§ 18446.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Directors, officers, or employees of an industrial loan company, its holding company, or its affiliates commit a felony if they knowingly misappropriate company property or falsify/omit material book entries.

Section 18446.Verify source

§ 18447.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain directors, officers, and employees of industrial loan companies and related entities must not make false entries or false statements in books, records, or reports, and must cooperate with commissioner inspections of the books; violating this section is a felony.

Section 18447.Verify source

§ 18448.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain insiders of an industrial loan company and its related entities may not buy company assets below current market value, unless the board expressly approves the purchase, and title cannot pass until cash is fully received.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18448. No director, officer, stockholder, or employee of an industrial loan company, its holding company, or its affiliates shall purchase, directly or indirectly, or be interested in the purchase of, any of the company’s assets for an amount less than the then current market value thereof and any such purchase may not be made without the express approval of the board of directors of the company. Title and possession of assets shall not be transferred to the purchaser until full consideration in cash has been received by the industrial loan company. Every person violating this section shall be liable to the company for twice the market value of the assets so purchased. (Amended by Stats. 1980, Ch. 418, Sec. 10.)

Section 18448.Verify source

§ 18449.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A director of an industrial loan company commits a misdemeanor if they participate in fraudulent insolvency, willfully do an act forbidden by law, or willfully fail to perform a legal duty as director.

Section 18449.Verify source

§ 18450.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A director, officer, or employee of an industrial loan company, its holding company, or its affiliates is guilty of a misdemeanor if they concur in a vote or act intended to make a loan or buy a contract that violates this division.

Section 18450.Verify source

§ 18451.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain directors, officers, and employees of industrial loan companies, their holding companies, and affiliates must not place company funds with a person if that deposit is tied to a loan or advance back to them.

Section 18451.Verify source

§ 18452.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Officers or employees of an industrial loan company, its holding company, or affiliates must not sell investment or thrift certificates if they know the company is insolvent.

Section 18452.Verify source

§ 18453.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A person who knowingly sells investment certificates in violation of this division or of any commissioner order or regulation commits a felony.

Section 18453.Verify source

§ 18454.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain directors, officers, agents, and employees of industrial loan companies and related entities must not make false entries, omit required entries, or alter, hide, or destroy company records when intending to deceive specified examiners or officers; doing so is a felony.

Section 18454.Verify source

§ 18454.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

A person must not willfully make a false material statement, or willfully leave out a required material fact, in a document filed with the commissioner under this division.

Section 18454.5.Verify source

§ 18455.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company is generally prohibited from making or acquiring loans and related contracts with certain insiders and related persons, but several exceptions apply.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18455. An industrial loan company shall not, directly or indirectly, make any loan to, or purchase a contract, loan, or chose in action from, hold a lease obligation of, or purchase a lease contract from, any of the following: (a) A person who is an officer or director of the industrial loan company or of its holding or affiliated company. (b) A person who is a holder of record or beneficiary of the shares of the industrial loan company or of any holding or affiliated company. This restriction shall not apply to persons holding less than 10 percent of the shares of a holding company or affiliated company that is exempt from the qualification requirements of the Corporate Securities Law of 1968 contained in Section 25130 of the Corporations Code, pursuant to subdivision (a) or (b) of Section 25101 of the Corporations Code. (c) A person in which an officer or director of the industrial loan company or of any holding or affiliated company directly or indirectly is financially interested, directly or indirectly. (d) A person in which the holder of record or beneficiary of the shares of the industrial loan company or of any holding or affiliated company directly or indirectly is financially interested, directly or indirectly. This restriction shall not apply to persons holding less than 10 percent of the shares of a holding company or affiliated company that is exempt from the qualification requirements of the Corporate Securities Law of 1968 contained in Section 25130 of the Corporations Code, pursuant to subdivision (a) or (b) of Section 25101 of the Corporations Code. (e) A person who acquired those contracts directly or indirectly or through intervening assignments from a person described in subdivision (a), (b), (c), or (d). Any officer, director, or shareholder of an industrial loan company who directly or indirectly makes or procures, or participates in making or procuring, a loan or contract in violation of this section or knowingly approves the same is personally liable for any loss resulting to an industrial loan company from the loan or contract, in addition to any other penalties provided by law. (f) The prohibition contained in this section shall not apply to the purchase by an industrial loan company of a contract, loan, or chose in action from a finance lender, as described in Section 22009, a mortgage broker, a mortgage banker, a real estate broker or other licensed lender, provided written authorization for the purchase is obtained from the commissioner. (g) The prohibition contained in this section shall not apply to the purchase of life insurance by an industrial loan company on behalf of an officer or director as part of the officer’s or director’s employee benefit plan package. (h) The prohibition contained in this section shall not apply to the following transactions: (1) A transaction between an industrial loan company and a subsidiary corporation or other entity in which the industrial loan company is the owner of 50 percent or more of the common stock or equity interest, or directly controls the management of the corporation or other entity. (2) The purchase of loans or other obligations by an industrial loan company from an affiliated company pursuant to a sale and repurchase agreement. (Amended by Stats. 1997, Ch. 201, Sec. 6. Effective January 1, 1998.)

Section 18455.Verify source

§ 18456.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

This chapter applies to lease obligations.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18456. The provisions of this chapter shall be applicable to lease obligations. (Added by Stats. 1979, Ch. 911.)

Section 18456.Verify source

§ 18457.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. )Repeal

Certain company officers, directors, employees, or agents must not steal or misuse an industrial loan company’s money, property, funds, or credit; doing so is a felony.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 6. Prohibited Practices and Penalties [18435 - 18457] ( Chapter 6 added by Stats. 1976, Ch. 964. ) ## 18457. Any officer, director, employee, or agent of any company who abstracts or willfully misapplies any of the money, funds, or property of the industrial loan company, or willfully misapplies its credit, is guilty of a felony. Upon conviction, the court shall, in addition to any other punishment imposed, order the person to make full restitution to the industrial loan company. Nothing in this section shall be deemed or construed to repeal, amend, or impair any existing provision of law prescribing a punishment for such an offense. (Added by Stats. 1990, Ch. 947, Sec. 5.)

Section 18457.Verify source

§ 18475.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “guaranty corporation” as Thrift Guaranty Corporation of California.

Section 18475.Verify source

§ 18476.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “Member” and “Special member” for the chapter.

Section 18476.Verify source

§ 18477.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “thrift obligations” for this chapter.

Section 18477.Verify source

§ 18478.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

“Fund” means the Guaranty Corporation Fund established under Section 18535.

Section 18478.Verify source

§ 18479.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “capital contribution” as the amount each member must maintain as an investment in the corporation under Section 18535.

Section 18479.Verify source

§ 18480.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “member account” as the total amounts credited to a member for paid-in capital contributions and other credits, minus any charges.

Section 18480.Verify source

§ 18481.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18475 - 18481] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “guaranteed investment certificate” as a thrift obligation guaranteed by Guaranty Corporation under Section 18523.

Section 18481.Verify source

§ 18490.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

If liquidation proceeds are not enough, the commissioner must direct Guaranty Corporation to pay the shortfall, and Guaranty Corporation must pay it within 10 days after demand.

Section 18490.Verify source

§ 18491.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

If a member is being liquidated, the commissioner may direct Guaranty Corporation to pay covered thrift obligations, and Guaranty Corporation must pay within 10 days after demand.

Section 18491.Verify source

§ 18493.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

If the commissioner finds certain violations or refusals by Guaranty Corporation, the commissioner may take possession of its property and business, and while doing so must carry out Guaranty Corporation’s duties and obligations.

Section 18493.Verify source

§ 18494.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

If the commissioner takes possession of Guaranty Corporation’s property and business, Guaranty Corporation may ask the superior court within 10 days to stop further proceedings.

Section 18494.Verify source

§ 18495.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner or Guaranty Corporation may appeal the court’s judgment, and the appeal does not automatically stay the judgment unless the court orders a stay for good cause.

Section 18495.Verify source

§ 18496.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation can approve, suspend, or revoke member participation, and it can obtain and use member financial information for its duties. Certain reports and information are confidential, and misuse of the information can be a misdemeanor.

Section 18496.Verify source

§ 18496.1.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The board of directors must try to obtain errors and omissions liability insurance and, if it is available, report the coverage terms and costs to the commissioner within 30 days after each fiscal year end.

Section 18496.1.Verify source

§ 18497.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation may invest only in readily marketable securities under the commissioner’s rules and must provide a disclosure authorization if the commissioner asks.

Section 18497.Verify source

§ 18498.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Investment income must be recorded in an income account and used for administration expenses. Excess income may be credited to members’ accounts, and Guaranty Corporation’s income may be demanded by the commissioner except for the amount reserved for administration expenses during the calendar year.

Section 18498.Verify source

§ 18499.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Year-end administration expenses that exceed investment income must be charged to members’ accounts.

Section 18499.Verify source

§ 185.## 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. )Repeal

This section defines “licensee” to include several categories of institutions and persons licensed or authorized by the commissioner.

## 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. ) ## 185. “Licensee” has the following meanings: (a) Any bank authorized by the commissioner pursuant to Section 1042 to transact banking or trust business. (b) Any industrial bank authorized by the commissioner pursuant to Section 1042 to transact industrial banking business. (c) Any trust company authorized by the commissioner pursuant to Section 1042 to transact trust business. (d) Any foreign (other nation) bank that is licensed under Article 2 (commencing with Section 1780) of Chapter 20 or under Article 3 (commencing with Section 1800) of Chapter 20. (e) Any person licensed by the commissioner as a money transmitter pursuant to Division 1.2 (commencing with Section 2000). (f) Any person authorized by the commissioner to conduct the business of a savings association pursuant to Division 2 (commencing with Section 5000). (g) Any credit union authorized by the commissioner to conduct business pursuant to Section 14154. (h) Any foreign (other state) credit union licensed by the commissioner to conduct business pursuant to Chapter 11 (commencing with Section 16000) of Division 5. (i) Any foreign (other nation) credit union licensed by the commissioner to conduct business pursuant to Chapter 12 (commencing with Section 16500) of Division 5. (j) Any industrial loan company authorized by the commissioner to conduct insurance premium finance business pursuant to Division 7 (commencing with Section 18000). (k) Any corporation licensed by the commissioner as a business and industrial development corporation pursuant to Section 31154. (Amended by Stats. 2013, Ch. 334, Sec. 12. (SB 537) Effective January 1, 2014.)

Section 185.Verify source

§ 1850.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

This section defines “corporation” for this article.

Section 1850.Verify source

§ 18500.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation has authority to borrow, make financial transactions with members, organize a new thrift company, act as conservator or receiver, use the fund, and hire help; the commissioner may waive Industrial Loan Law provisions needed for the new thrift company.

Section 18500.Verify source

§ 18501.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must give prompt notice to Guaranty Corporation when taking possession of a member’s property and business, and must give further prompt notice when deciding to liquidate it.

Section 18501.Verify source

§ 18502.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Memberships issued by Guaranty Corporation cannot be transferred and are exempt from the Corporate Securities Law of 1968.

Section 18502.Verify source

§ 18503.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner and designated representatives may investigate Guaranty Corporation and inspect its books and records at any time.

Section 18503.Verify source

§ 18504.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Certain members or industrial loan companies may appeal Guaranty Corporation decisions to the commissioner within 30 days if they are aggrieved.

Section 18504.Verify source

§ 18505.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must adopt emergency rules and regulations about information given to industrial loan company investment certificate holders, including references to guarantees or insurance, payment timing and conditions, and how holders are informed of their rights.

Section 18505.Verify source

§ 18506.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

A person must not advertise or distribute statements claiming membership in Guaranty Corporation or saying thrift obligations are guaranteed.

Section 18506.Verify source

§ 18507.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner must give Guaranty Corporation, by April 1 each year, a list of certain industrial loan companies and a copy of each company’s independent audit report.

Section 18507.Verify source

§ 18508.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company or its successor may not receive certain refunds, returns, withdrawals, or distributions from member accounts or paid assessments, except when Guaranty Corporation is being liquidated.

Section 18508.Verify source

§ 18509.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation may choose to wind up and dissolve if it gets the required approvals and the stated member/guarantee conditions are met.

Section 18509.Verify source

§ 1851.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

This section says the Chapter 1 rules that apply to banks also apply to corporations.

Section 1851.Verify source

§ 18510.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The Board of Directors of Guaranty Corporation must have five members, at least two of whom are public members. The commissioner appoints the five members and must consult the President of Thrift Guaranty Corporation before making an appointment.

Section 18510.Verify source

§ 18511.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation must establish a permanent office in this state.

Section 18511.Verify source

§ 18512.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 2. General [18490 - 18512] ( Article 2 added by Stats. 1976, Ch. 964. )Repeal

The commissioner may require Guaranty Corporation to get a bond, insurance, or reinsurance to protect members’ thriftholders from losses.

Section 18512.Verify source

§ 1852.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

One or more persons may organize a corporation if they first get the commissioner’s written consent, as provided by Chapter 3.

Section 1852.Verify source

§ 18520.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

The Guaranty Corporation’s purpose is to guarantee full payment of members’ guaranteed accounts, except special members, up to $50,000 per account and subject to chapter limitations.

Section 18520.Verify source

§ 18521.5.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. )Commencement

Industrial loan companies with outstanding thrift obligations must keep those obligations insured/guaranteed or in federal deposit insurance coverage, with a transition to FDIC membership after July 1, 1990.

Section 18521.5.Verify source

§ 18521.6.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

An industrial loan company that does not comply with subdivision (b) of Section 18521.5 by June 30, 1990, may not continue selling or issuing investment certificates after that date.

Section 18521.6.Verify source

§ 18523.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation guarantees specified thrift obligations, generally up to $50,000 in the aggregate for each covered category.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. ) ## 18523. The following described thrift obligations will be guaranteed by Guaranty Corporation in the amounts hereinafter set forth below: (a) Single ownership investment certificates. Funds owned by an individual and invested in the manner set forth below shall be added together and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (1) Individual investment certificates (or investment certificates of the marital or domestic partnership community of which the individual is a member) and invested in one or more investment certificates in his or her own name shall be guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (2) Funds owned by a principal and invested in one or more investment certificates in the name or names of agents or nominees shall be added to any individual investment certificates of the principal and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (3) Investment certificates held by guardians, custodians, or conservators for the benefit of their wards or for the benefit of a minor under a Uniform Gifts to Minors Act and invested in one or more investment certificates in the name of the guardian, custodian, or conservator shall be added to any individual investment certificates of the ward or minor and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (b) Testamentary investment certificates. (1) Funds owned by an individual and invested in a revocable trust investment certificate, tentative trust investment certificate, payable-on-death investment certificate, or similar investment certificate evidencing an intention that on his or her death the funds shall belong to his or her spouse, child, or grandchild, shall be guaranteed up to fifty thousand dollars ($50,000) in the aggregate, as to each such named beneficiary, separately from any other investment certificates of the owner. (2) If the named beneficiary of such an investment certificate is other than the owner’s spouse, child, or grandchild, the funds in the investment certificate shall be added to any individual investment certificates of such owner and guaranteed up to fifty thousand dollars ($50,000) in the aggregate, separately from the individual investment certificates of the beneficiaries of the estate or of the executor or administrator. (c) Investment certificates held by executors or administrators. Funds of a decedent held in the name of the decedent or in the name of the executor or administrator of his or her estate and invested in one or more investment certificates shall be guaranteed up to fifty thousand dollars ($50,000) in the aggregate, separately from the individual investment certificates of the beneficiaries of the estate or of the executor or administrator. (d) Corporation or partnership investment certificates. Investment certificates of a corporation or partnership engaged in any independent activity shall be guaranteed up to fifty thousand dollars ($50,000) in the aggregate. An investment certificate of a corporation or partnership not engaged in an independent activity shall be deemed to be owned by the person or persons owning such corporation or comprising such partnership and, for guarantee purposes, the interest of each person in the investment certificate shall be added to any other investment certificates individually owned by such person and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. The term “independent activity” means any activity other than one directed solely at increasing guarantee coverage under this chapter. (e) Unincorporated associations. Investment certificates of an unincorporated association engaged in any independent activity shall be guaranteed up to fifty thousand dollars ($50,000) in the aggregate. An investment certificate of an unincorporated association not engaged in an independent activity shall be deemed to be owned by the persons comprising such association and, for guarantee purposes, the interest of each owner in the investment certificate shall be added to any other investment certificates individually owned by such person and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (f) Joint investment certificates. (1) Investment certificates owned jointly, whether as joint tenants with right of survivorship, as tenants by the entireties, as tenants in common, or by spouses as community property, shall be guaranteed separately from investment certificates individually owned by the coowners. (2) A joint investment certificate shall be deemed to exist, for purposes of guarantee of investment certificates, only if each coowner has personally executed an investment certificate signature card and possesses redemption rights. (3) An investment certificate owned jointly which does not qualify as a joint investment certificate for purposes of guarantee of investment certificates shall be treated as owned by the named persons as individuals and the actual ownership interest of each such person in such investment certificate shall be added to any other investment certificates individually owned by such person and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (4) All joint investment certificates owned by the same combination of individuals shall first be added together and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (5) The interest of each coowner in all joint investment certificates owned by different combinations of individuals shall then be added together and guaranteed up to fifty thousand dollars ($50,000) in the aggregate. (g) Trust investment certificates. All trust interests for the same beneficiary invested in investment certificates established pursuant to valid trust arrangements created by the same settlor (grantor) shall be added together and guaranteed up to fifty thousand dollars ($50,000) in the aggregate, separately from other investment certificates of the trustee of such trust funds or the settlor or beneficiary of such trust arrangements. (h) Thrift obligations withdrawn by checks that have not cleared a member’s bank account at the time the commissioner has taken possession of the property and business of a member. The owner of the funds represented by such a check shall be recognized for all purposes of a claim for guaranteed thrift obligations to the same extent as if his or her name and interest were disclosed on the records of the member. (Amended by Stats. 2016, Ch. 50, Sec. 39. (SB 1005) Effective January 1, 2017.)

Section 18523.Verify source

§ 18525.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 3. Purpose and Scope of Guaranty Corporation [18520 - 18525] ( Article 3 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation may take on obligations, make contracts, borrow and lend money, use credit, and secure its obligations and liabilities, but only with the commissioner’s written consent.

Section 18525.Verify source

§ 1853.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A corporation’s articles must state that its purpose is to conduct international and foreign banking and other permitted financial activities.

Section 1853.Verify source

§ 18535.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Assessments [18535 - 18538] ( Article 4 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation must maintain a guarantee fund, and members must make required payments or assessments based on member status, stock transfers, fund levels, and mergers.

Section 18535.Verify source

§ 18536.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Assessments [18535 - 18538] ( Article 4 added by Stats. 1976, Ch. 964. )Repeal

Guaranty Corporation must send each assessed member a written notice of assessment within 10 days after the assessment is levied, and each assessed member must pay the assessed amount within 90 days after that notice.

Section 18536.Verify source

§ 18538.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 7. Guarantee of Thrift Accounts [18475 - 18538] ( Chapter 7 added by Stats. 1976, Ch. 964. ) ## ARTICLE 4. Assessments [18535 - 18538] ( Article 4 added by Stats. 1976, Ch. 964. )Repeal

If a member misses an assessment, Guaranty Corporation must notify the commissioner and the member within 24 hours, suspend the member’s membership rights, stop the member from selling or issuing investment certificates until arrears are paid, and start an enforcement action within 30 days.

Section 18538.Verify source

§ 1854.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A corporation must submit its articles of incorporation to the commissioner for approval before filing them with the Secretary of State, then file a certified copy of the articles and later a certified copy of its bylaws with the commissioner.

Section 1854.Verify source

§ 1855.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

Corporations covered by this section may carry out specified international and foreign banking activities, subject to rules and approvals from the commissioner.

## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1855. Each corporation shall have power, under such rules and regulations as the commissioner may prescribe: (a) To purchase, sell, discount, and negotiate, with or without its endorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers’ acceptances, cable transfers, and other evidences of indebtedness; to purchase and sell, with or without its endorsement or guaranty, securities, including the obligations of the United States or of any state thereof but not including shares of stock in any corporation except as herein provided; to accept bills or drafts drawn upon it subject to such limitations and restrictions as the commissioner may impose; to issue letters of credit; to purchase and sell coin, bullion, and exchange; to borrow and to lend money; to issue debentures, bonds, and promissory notes under such general conditions as to security and such limitations as the commissioner may prescribe; to receive deposits outside of the United States and to receive only such deposits in this state or in any other state of the United States as may be incidental to or for the purpose of carrying out transactions in foreign countries or dependencies or insular possessions of the United States. (b) Generally, to exercise such powers as are incidental to the powers conferred by this article or as may be usual, in the determination of the commissioner, in connection with the transaction of the business of banking or other financial operations in the countries, colonies, dependencies, or possessions in which it shall transact business and not inconsistent with the power specifically granted herein. Nothing contained in this article shall be construed to prohibit the commissioner, under his or her power to prescribe rules and regulations, from limiting the aggregate amount of liabilities of any or all classes incurred by the corporation and outstanding at any one time. (c) To establish and maintain for the transaction of its business branches or agencies in foreign countries, their dependencies or colonies, and in any state of the United States, and in the dependencies or insular possessions of the United States, at such places as may be approved by the commissioner and under such rules and regulations as he or she may prescribe, including any state of the United States, or countries or dependencies not specified in the original organization certificate. (d) With the consent of the commissioner to purchase and hold stock or other certificates of ownership in any other corporation organized under the laws of this state for the purpose of transacting business pursuant to this article, or under the laws of the United States, or under the laws of any foreign country or a colony of dependency thereof, or under the laws of any state, dependency or insular possession of the United States but not engaged in the general business of buying or selling goods, wares, merchandise, or commodities in the United States, and not transacting any business in the United States except such as in the judgment of the commissioner may be incidental to its international or foreign business. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Section 1855.Verify source

§ 1856.## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 21. International and Foreign Banking and Financing [1850 - 1910] ( Chapter 21 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. International and Foreign Banking and Financing Corporations [1850 - 1897] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )Provision

A corporation generally may not invest more than 10% of its shareholders’ equity in any one corporation unless the commissioner approves; investments in a banking corporation may go up to 15%.

Section 1856.Verify source

§ 18560.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “premium finance agency.”

Section 18560.Verify source

§ 18561.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

Insurance-related terms used in this chapter are given the meaning set by the Insurance Code and insurance business practices.

Section 18561.Verify source

§ 18562.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “insured” for this chapter.

Section 18562.Verify source

§ 18563.## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. )Repeal

This section defines “premium financing” and says the advanced amount must have a reasonable relationship to the premium being financed.

## Financial Code - FIN ## DIVISION 7. INDUSTRIAL LOAN COMPANIES [18000 - 18707] ( Division 7 repealed and added by Stats. 1976, Ch. 964. ) ## CHAPTER 8. Insurance Premium Financing [18560 - 18643] ( Chapter 8 added by Stats. 1976, Ch. 964. ) ## ARTICLE 1. Definitions [18560 - 18567] ( Article 1 added by Stats. 1976, Ch. 964. ) ## 18563. As used in this chapter, “premium financing” means the activities of a company engaging in the business of advancing money directly or indirectly to an insurer or producer at the request of an insured pursuant to the terms of a premium finance agreement, wherein the insured has assigned the unearned premiums, accrued dividends or loss payments as security for such advancement in payment of premiums on insurance contracts only, and acquiring premium finance agreements, and does not include the financing of insurance contract premiums purchased in connection with the financing of goods and services. The amount of such advancement in payment of premiums must bear a reasonable relationship to the premium or premiums being financed. (Amended by Stats. 1998, Ch. 827, Sec. 16. Effective January 1, 1999.)

Section 18563.Verify source

Legislative relationships

21 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

9 instruments

a law or regulations
Section 18521.5.
Chapter 1 of Part 2 of Division 1 of the Insurance Code
Section 18300.
Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code
Section 18425.16.
Corporate Securities Law of 1968 by subdivision (a) or (b) of Section 25101 of the Corporations Code
Section 18535.
Corporate Securities Law of 1968 contained in Section 25130 of the Corporations Code
Section 18455.
Corporations Code
Sections 18427.8., 18509.
Division 1 of the Unemployment Insurance Code
Section 18292.5.
Division 2 of Title 1 of the Corporations Code
Section 18475.
Division 26 of the Health and Safety Code
Section 18218.

G–M

4 instruments

Garn-St. Germain Depository Institutions Act
Section 18301.
Government Code
Sections 18394., 18497.
Industrial Loan Law necessary to enable Guaranty Corporation to organize a new thrift company. (d) Act
Section 18500.
Insurance Code
Section 18290.

N–S

6 instruments

Probate Code
Section 18318.5.
Revenue and Taxation Code
Section 18415.12.
Section 1170 of the Penal Code
Section 18435.
Section 12640.02 of the Insurance Code
Section 18296.
Section 25102 of the Corporations Code
Section 18427.9.
State pursuant to the Corporations Code
Section 1854.

T–Z

2 instruments

Title 4 of the Corporations Code
Section 18427.10.
Veterans Affairs pursuant to the Servicemen’s Readjustment Act
Section 18266.

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