reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.12.

18415.12. The commissioner may file a petition with the court and the court shall issue such injunctions or orders, as may be deemed necessary, to prevent any of the following occurrences:
(a) Interference with the commissioner or the proceeding.
(b) The institution of any actions or proceedings, or the prosecution of any actions or proceedings already commenced.
(c) Waste of assets of the entity.
(d) The obtaining of preferences, judgments, attachments or other liens against the company or its assets.
(e) The making of any levy against the company or its assets.
(f) The sale or deed for nonpayment of taxes or assessments levied by any taxing agency of any of the following:
(1) Property owned by the company.
(2) Property upon which the company holds an encumbrance.
(3) Property upon which the company has prior thereto commenced an action to foreclose any deed of trust or mortgage or has exercised the power of sale under any trust deed or mortgage which sale or foreclosure proceedings have not yet been completed or upon which no trustee’s deed or judgment of court or sheriff’s certificate of sale has been issued.
“Taxing agency,” as used in this section, has the same meaning as defined in Section 121 of the Revenue and Taxation Code. The injunctions or orders authorized by this subdivision may be modified, dissolved, or rescinded by the court on motion of the commissioner, the Controller, or the person charged with the collection of taxes or assessments on such property. The recording in the office of the county recorder of any county in the state of an order or injunction issued pursuant to this section, shall constitute service of the order or injunction upon any taxing agency with respect to property or interest therein located in such county.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.13.

18415.13. After the taking of possession of the property and business of any company, the commissioner may terminate or adopt any executory contract to which the company may be a party, including leases of real or personal property. The termination or adoption shall be made within six months after obtaining knowledge of the existence of the contract or lease. Any provision in the contract or lease which provides for damages or cancellation fees upon termination shall not be binding on the commissioner or the company seized. The commissioner and the company shall only be liable for actual damages and in no event in excess of one thousand dollars ($1,000). Any claim must be filed within 30 days of the date of the termination.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.14.

18415.14. The commissioner may proceed against any debtor or alleged debtor by way of summary procedure or by order to show cause issued by the court upon application by the commissioner.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.15.

18415.15. The commissioner may make examinations of the seized company and review the activities of any conservator or liquidator.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.16.

18415.16. The actual cost of any examination, investigation or services, including the actual amount of salary or other compensation paid to the persons making the examination, investigation or rendering services and the overhead costs in connection therewith, as fixed by the commissioner, shall be paid out of the assets of the company.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.17.

18415.17. The determination by the commissioner to liquidate a company, evidenced by filing written notice of the determination with the court, operates to stay or dissolve all actions or attachments instituted or levied within 90 days next preceding the taking of possession of the company by the commissioner, and pending the process of liquidation, no attachment or execution shall be levied or lien created upon any of the property of the company.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.18.

18415.18. Upon taking possession of the property, and business of a company in any proceeding under this article, the commissioner shall have the power to do all of the following:
(a) Appoint one or more special deputy commissioners as his or her agent or agents with the powers specified in the certificate of appointment to assist in the duty of conservation or of liquidation and distribution.
(b) Employ the Attorney General as counsel or employ private counsel as may be deemed necessary to assist the commissioner in the performance of his or her duties under this chapter. Appointment of private counsel shall be made only with the consent of the Attorney General. The compensation of that counsel shall be fixed by the commissioner, subject to the approval of the court.
(c) Set the compensation of a special deputy commissioner.
(d) Require from each special deputy commissioner and from each assistant such security for the faithful performance of their duties as the commissioner may deem proper.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.19.

18415.19. All expenses of taking possession of, conserving, conducting, liquidating, disposing of or otherwise dealing with the business and property of any company under this article shall be paid out of the assets of that company. Those expenses shall include, among other things, the compensation of special deputy commissioners, clerks and assistants and the actual cost of any services attributable to the conservatorship or liquidation performed by the commissioner and staff, including the actual amount of salary or compensation paid to the person performing the services and overhead costs in connection therewith as fixed by the commissioner.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.21.

18415.21. Any transaction occurring within six months of the date of taking possession shall be voidable by the conservator or liquidator if the transaction has the effect of giving to, or enabling any creditor of, the company, any affiliate of the company, any officer, director, stockholder, employee or any relative thereof, to obtain a preference over any other creditor of the company.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.22.

18415.22. No obligation may be purchased or discounted under any agreement between the company and any person involving the purchase or discount of obligation from the person, with or without recourse, from the moment of taking possession pursuant to Section 18415. Any guarantees, recourse or repurchase agreements given at the time of purchase, or discount of any obligation prior to the date of taking possession, shall continue to be binding on the person. Any reserves, withholds or other security held by the company under the terms of the agreement shall be considered liabilities of the company in the general creditor classification and may not be used as offset against any obligation purchased or discounted under the agreement. No distribution of assets shall be made on these liabilities until the obligations purchased or discounted under the agreement have been satisfied.
In case of sale of the obligations by the liquidator, the reserves, withholds or other security shall remain as a liability to be paid off in the normal course of liquidation.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18415.23.

18415.23. No attachment or execution shall be issued against the property of any company before final judgment in any action or proceeding in any court.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18420.1.

18420.1. No transaction involving real or personal property, investment or reinvestment of funds or assets, or settlement or compromise of pending lawsuits shall be made without first obtaining permission of the court, and then only in accordance with such terms as the court may prescribe, when either of the following exist:
(a) The principal sum of any obligation due the company or settlement or compromise of a pending lawsuit exceeds the sum of fifteen thousand dollars ($15,000).
(b) The market value of any real or personal property, except obligations due the company, exceeds the sum of ten thousand dollars ($10,000).
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18420.2.

18420.2. The commissioner may, with ex parte approval of the court, sell all or any part of the company’s assets to another industrial loan company, to a bank, to a savings and loan association, to Guaranty Corporation, or to an instrumentality of the United States government. In like manner, the commissioner may borrow from Guaranty Corporation, an instrumentality of the United States government, or a private insurer which insures or guarantees the company’s investment certificates, any amount necessary to facilitate the assumption of investment certificate liabilities by a newly chartered or existing industrial loan company, assigning any part or all of the assets of the company as security for that loan.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18420.5.

18420.5. The commissioner may appoint a person to act as conservator or liquidator of the company. The person appointed may be Thrift Guaranty Corporation of California. If the company’s outstanding thrift obligations are insured by an instrumentality of the United States government, the commissioner may appoint that instrumentality to act as conservator or liquidator of the company. Subject to the other provisions of this division, a conservator or liquidator, while in possession of the property and business of a company, has the same powers and rights and is subject to the same duties and obligations as the commissioner while in possession of the property and business of a company. During such time, the rights of the company and of all persons with respect thereto, subject to the other provisions of this chapter, are the same as if the commissioner had taken possession of such properties and business, except that the commissioner may limit those powers and rights as he or she may deem necessary.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18420.6.

18420.6. The commissioner shall have the authority to terminate the appointment of a conservator or liquidator whenever the commissioner deems it in the best interest of the company, its creditors, and investors. The commissioner shall file a copy of the notice of termination with the court.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18420.7.

18420.7. The commissioner may require a conservator or liquidator to provide such bond as the commissioner deems proper. The conservator or liquidator shall receive a salary, fixed by the commissioner, in an amount no greater than that which would be paid by the commissioner to a special deputy commissioner in charge of the liquidation of the company.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.

18425. If at any time after taking possession of the property and business of a company it shall appear to the commissioner that it would be futile to proceed as conservator with the conduct of the business of the company, the commissioner may order the company to be liquidated. A copy of the liquidation order shall be filed with the clerk of the superior court.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.1.

18425.1. The liquidator shall cause notice to be given by publication for four successive weeks in a newspaper of general circulation at or near the principal place of business in the state of the company, to all persons having claims against the company, other than investment certificate holders, whether or not an action is pending to enforce any claim for demand, requiring them to present and file their claims and make legal proof thereof at a place and within a time designated in the notice. The time shall not be less than 90 days after the first publication of the notice. The notice shall also state that all claims other than those of investment certificate holders appearing upon the books or records of the company and any claims, whether or not an action is pending to enforce any such claim or demand, shall be forever barred if not filed within the time designated. The liquidator shall also mail a similar notice to all persons whose names appear as creditors upon the books of the company and any person who has an action pending to enforce a claim or demand whose address appears upon the books or records of the company and shall enclose therewith a printed form or notice of claim.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.2.

18425.2. All claims, demands, or causes of action of creditors, and persons other than investors against any property owned or held by it in trust, or otherwise, must be presented to the liquidator in writing, verified by the claimant, or someone on his or her behalf, within the period specified in the notice for the presentation of claims, whether or not an action is pending to enforce any such claim or demand. The liquidator shall not approve any claim not so presented, and any such claim, demand, or cause of action not so presented is forever barred.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.3.

18425.3. If the liquidator doubts the validity of any claim, the liquidator may reject the claim and serve notice of rejection upon the claimant either by certified mail or personally. A notice of rejection given by mail, addressed to the claimant at the address set forth in the claim, shall constitute sufficient notice of the rejection. Any action upon a claim so rejected must be brought within 30 days after the mailing of the notice or personal service of the notice in the court in which the liquidation proceeding is pending for an order to show cause why the claim should not be allowed. Failure to bring such action within 30 days to enforce the payment of or establish any rejected claim shall forever bar any such action.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.4.

18425.4. A claim shall set forth, under oath, on the form prescribed by the commissioner, all of the following:
(a) The particulars of the claim, and the consideration for the claim.
(b) Whether the claim is secured or unsecured, and, if secured, the nature and amount of the security.
(c) The payments, if any, made thereon.
(d) That the sum claimed is justly owing from such person to the claimant.
(e) That there is no offset to the claim.
(f) Such other data or supporting documents as the liquidator requires.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.5.

18425.5. When an investment certificate holder is also a debtor, the liquidator may offset any balance due the investment certificate holder against the debt and the interest due on that debt up to the date of offset, in an amount not to exceed the amount of the debt or the amount of the thrift obligation guaranteed by the Thrift Guaranty Corporation of California, whichever is less.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.6.

18425.6. The amount of a claim of an investment certificate holder shall be the amount which the investment certificate holder would have been entitled to withdraw as of the date of taking possession, pursuant to Section 18415, plus interest thereon accrued to that date, without regard to whether the account is subject to any pledge. In the case of an account with a fixed or minimum term or a qualifying or notice period that has not expired as of the date of taking possession, interest shall be computed as if the account had been withdrawn on that date without penalty or reduction in interest.
The liquidator shall give notice to each investment certificate holder of the amount of his or her claim and the investment certificate holder shall not be required to file a claim unless he or she disputes the amount of the liquidator’s determination.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.7.

18425.7. When the time fixed for the presentation of claims has expired, the liquidator shall make in duplicate a full and complete list of all claims presented, including and specifying those claims that have been rejected by the liquidator, and a list of all claims of investment certificate holders as shown by the books or records of the company, and shall file one copy of the list in the commissioner’s office and one with the clerk of the superior court in which the liquidation proceedings are being held. Before each application to the court for leave to declare a dividend, the liquidator shall file a supplemental list of claims presented since the last preceding list was filed, including and specifying the claims as have been rejected by the liquidator. The list of claims and of claims of investment certificate holders as shown by the books or records of the company shall be open for inspection at all reasonable times.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.8.

18425.8. Objections to any claim not rejected by the liquidator may be made by any person interested by filing his or her objections, in writing, with the liquidator, who shall present the objections to the court. The court shall dispose of the objections or may order reference for that purpose, and should the objections to any claim be sustained by the court or by the referee, that claim shall not be allowed by the liquidator until the claimant has established his or her claim by judgment. Any objections to a claim shall be filed within 60 days from the date of filing of the schedule of claims as required by this article with the court or be forever barred.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.9.

18425.9. The liquidator, with the approval of the court, may pay one or more dividends to investment certificate holders prior to the expiration of the time for filing claims. After the time for filing of claims has elapsed, the liquidator, after obtaining approval of the court, may pay one or more dividends upon all approved claims out of the funds remaining in the liquidator’s possession after the payment of expenses and after setting aside an amount to pay creditors whose claims have been rejected and whose time for filing an application to show cause under this article has not yet elapsed or whose application is still pending. At any time after the expiration of one year from the date of the first publication of notice of creditors, and with court approval, the liquidator may pay a final distribution which shall consist of the remaining funds available for distribution, being distributed pro rata to all approved creditor claims.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.10.

18425.10. (a) Claims allowed in a proceeding under this article shall be given preference in the following order:
(1) All costs and expenses of administration of conservatorship and liquidation.
(2) Taxes due to the State of California.
(3) Claims having preference by the laws of the United States and by laws of this state.
(4) All claims of creditors, including contractual claims for interest to the date of payment, whose claims are fully secured.
(5) Claims of investment certificate holders.
(6) Claims of general creditors.
(7) Claims on obligations subordinated to the claims of investment certificate holders and general creditors.
Paragraphs (5) and (6) apply only in liquidation proceedings, where the commissioner has taken possession of the property and business of the company on or after the effective date of this section, and paragraph (6) shall apply only with respect to persons who become general creditors on or after that date. It is the intent of the Legislature that no change in the law contained in this section shall be construed to affect the rights and obligations of parties with regard to transactions occurring prior to the effective date of this section. It is the intent of the Legislature that the rights and obligations of parties existing prior to the effective date of this section shall be determined by the law in effect prior to the effective date of this section and without application of changes in the law effected by this section.
(b) All approved claims shall bear interest at the rate provided by law or judgments from the date that the commissioner takes possession of the property and business of the company, to the extent funds are available to pay such interest, otherwise interest shall be prorated.
Interest shall be given the same preference as the claim on which it is based, but no interest on any claim shall be paid until all claims within the same class have received the full principal amount of the claim.
(c) Any funds remaining shall be returned to the stockholders of the company pursuant to the provisions of this article.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.11.

18425.11. Whenever the commissioner determines to liquidate a company, the commissioner shall cause an inventory of all the assets of the company to be made in duplicate, file the original with the court, and file the duplicate in the commissioner’s office.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.12.

18425.12. If it appears improbable that anything can be realized from any property of the company and that the cost of maintaining, preserving, or protecting the property would probably be lost, the court may direct the liquidator to abandon the property.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.13.

18425.13. If a purchaser of any property or any bad or doubtful debt or claim of a company cannot be obtained and it appears improbable that recovery thereon can be had, and that the cost of action to enforce collection of the same would probably be lost, the superior court may direct that suit on the debt or claim need not be brought.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.14.

18425.14. When the liquidator has fully liquidated all claims other than claims of stockholders, made due provision for any and all known but unclaimed liabilities, excepting claims of stockholders, and paid all expenses of liquidation, the liquidator may file an application for an order for the liquidation of a domestic corporation, or at any time thereafter, the commissioner may apply for, and the court shall make, an order dissolving the corporation.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.15.

18425.15. Upon the payment of a final dividend in liquidation, the commissioner shall prepare and file with the court a full and final statement of the liquidation, including a summary of the receipts and disbursements, and a duplicate of the statement shall be filed in the office of the commissioner. After hearing and approval by the court, the liquidation shall be closed.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.16.

18425.16. In making its order approving the commissioner’s final statement of the liquidation of the company, the court shall determine the amounts of the liquidating dividends to which claimants are entitled but which then remain unpaid or unclaimed in the hands of the commissioner. The order of the court shall direct the commissioner to deposit those amounts with the Treasurer. All amounts so deposited shall be deemed to be deposited in the State Treasury under the provisions of Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, and shall be subject to claim or disposition as provided in that chapter.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 4 - Possession, Conservatorship, and Liquidation by the Commissioner › Section 18425.17.

18425.17. The order of the court approving the final statement on liquidation shall provide for the destruction or other disposition of the books and records of the company or pertaining to the liquidation of the company, and the court may declare the company dissolved as a corporation. The liquidator shall file a copy of the order of dissolution with the Secretary of State.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.

18427. Unless the context otherwise requires, in this article:
(a) “Offer” or “offer to sell” includes every attempt or offer to dispose of, or solicitation of an offer to buy, a security for value.
(b) “Sale” or “sell” includes every contract of sale of, contract to sell, or disposition of, a security for value. “Sale” or “sell” includes any exchange of securities and any change in the rights, preferences, privileges, or restrictions of or on outstanding securities.
(c) “Security” means any stock or debenture, or any warrant, right, or option to subscribe to or purchase any of the foregoing.
(d) The terms defined in subdivisions (a) and (b) of this section do not include any stock dividend payable with respect to common stock of an industrial loan company solely (except for any cash or script paid for fractional shares) in shares of such common stock, if such industrial loan company has no other class of voting stock outstanding; provided, that shares issued in any such dividend shall be subject to any conditions previously imposed by the commissioner applicable to the shares with respect to which they are issued.
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 598. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.1.

18427.1. No industrial loan company organized under the laws of this state shall offer or sell any security issued by it unless the commissioner has issued a permit authorizing such sale.
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 600. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.2.

18427.2. An application for a permit shall be in such form and contain such information as the commissioner may prescribe.
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 602. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.3.

18427.3. The commissioner shall charge and collect fees for applications filed under this article as fixed in this section.
(a) The fee for a negotiating permit shall be fifty dollars ($50).
(b) The fee for a permit to exchange a security or to make any change in the rights, preferences, privileges, or restrictions of or on outstanding securities shall be fifty dollars ($50).
(c) The fee for any permit to sell securities other than as specified in subdivision (b) shall be one hundred dollars ($100) plus one-tenth of one percent of the aggregate value of the securities sought to be sold, up to a maximum aggregate fee of one thousand seven hundred fifty dollars ($1,750).
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 604. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.4.

18427.4. If the commissioner finds that the proposed sale of securities is fair, just, and equitable, he or she shall issue to the applicant a permit authorizing it to offer and sell the securities in such amount and upon such terms and conditions as he or she may provide in the permit. If the commissioner finds otherwise, he or she shall deny the application.
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 606. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.5.

18427.5. The commissioner may impose conditions in any permit issued under Section 18427.4, requiring the deposit in escrow of securities, imposing a legend condition restricting the transferability thereof, impounding the proceeds from the sale thereof, limiting the expense in connection with the sale thereof, or such other conditions as he or she deems reasonable and necessary or advisable in the public interest.
(Added by Stats. 1996, Ch. 1064, Sec. 607. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.6.

18427.6. Every permit issued pursuant to Section 18427.4 shall recite that it is permissive only and does not constitute a recommendation or endorsement of the securities permitted to be sold.
(Added by Stats. 1996, Ch. 1064, Sec. 608. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.7.

18427.7. The commissioner may amend, alter, suspend, or revoke any permit issued pursuant to Section 18427.4.
(Added by Stats. 1996, Ch. 1064, Sec. 609. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.8.

18427.8. Whenever an industrial loan company applies for a permit to issue any security or to deliver any other consideration (whether or not such security or such transaction is exempt from, or not subject to, the provisions of Section 18427.1) in exchange for one or more bona fide outstanding securities (as defined in Section 25019 of the Corporations Code), claims, or property interests, or partly in such exchange and partly for cash, the commissioner is authorized to approve the terms and conditions of such issuance and exchange or such delivery and exchange and the fairness of such terms and conditions and is authorized to hold a hearing on the fairness of such terms and conditions, at which all persons to whom it is proposed to issue any security or to deliver any other consideration in such exchange shall have the right to appear.
(Added by Stats. 1996, Ch. 1064, Sec. 610. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.9.

18427.9. There shall be exempted from the provisions of Section 18427.1 all of the following:
(a) (1) Any offer, not involving a public offering, to an affiliate or to a person of the type described in subdivision (i) of Section 25102 of the Corporations Code or in the regulations of the Commissioner of Financial Protection and Innovation adopted thereunder.
(2) The execution and delivery of an agreement for the sale of securities to any person of the type described in paragraph (1), subject to all of the following:
(A) The agreement shall contain substantially the following provision:
“The sale of the securities which are the subject of this agreement has not been authorized by a permit issued by the Commissioner of Financial Protection and Innovation. The issuance of the securities or the payment or receipt of any part of the consideration therefor prior to the issuance of a permit is unlawful, unless the sale of securities is exempt from Section 18427.1 of the California Financial Code. The rights of all parties to this agreement are expressly conditioned upon the issuance of a permit, unless the sale is so exempt.”
(B) No part of the purchase price may be paid or received, and none of the securities may be issued, until a permit authorizing the sale of the securities is issued, unless the sale is exempt from Section 18427.1.
(b) Any transaction or security that the commissioner by regulation or order exempts as not being comprehended within the purposes of this article and the regulation of which they find is not necessary or appropriate in the public interest or for the protection of investors.
(Amended by Stats. 2022, Ch. 452, Sec. 130. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.10.

18427.10. Nothing contained in this article shall affect the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code.
(Added by Stats. 1996, Ch. 1064, Sec. 612. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 5 - Securities Transactions › Section 18427.11.

18427.11. The commissioner may by regulation or order restrict, limit, prohibit or otherwise condition the uses of the proceeds from the sale of securities, the extent to which a security may be included within the definition of capital, or the extent to which the proceeds from the sale of securities may be included in the investment certificate ratio as defined by Section 18016, or used to increase outstanding investment certificates.
(Added by Stats. 1996, Ch. 1064, Sec. 613. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18435.

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.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18436.

18436. An industrial loan company shall not, directly or indirectly, make any loan of money or property to or guarantee the obligation of any of its directors or officers, or officers and directors of its holding company, or officers and directors of its affiliates.
(Amended by Stats. 1980, Ch. 418, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18437.

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.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18438.

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.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18439.

18439. If any amount in excess of the charges permitted by this division, including interest, is charged, contracted for, or received in the making or collection of a contract of loan, except as a result of an accidental and bona fide error in computation, such contract is void and no person has any right to collect or receive the principal, interest, or charges.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 6 - Prohibited Practices and Penalties › Section 18440.

18440. An industrial loan company shall not take any confession of judgment or any power of attorney at the time of making the loan except a power of attorney taken to effectuate the transfer of the ownership of any motor vehicle, the transfer of the ownership of securities, or the cancellation of an insurance policy and the receipt and distribution of any unearned premiums in the event of default in the payment of a loan made to finance the purchase of any such insurance policy.
(Added by Stats. 1976, Ch. 964.)