reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18342.

18342. Industrial loan companies have the powers specified in this division. In addition, industrial loan companies have the general powers conferred upon corporations by the General Corporation Law. The powers granted, including those granted by the General Corporation Law, are subject to the supervision and control of, and the conditions imposed by, the commissioner.
(Amended by Stats. 1989, Ch. 663, Sec. 11. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18343.

18343. The commissioner may require an industrial loan company to establish and maintain reasonable reserves for loans made, and contracts or other obligations purchased or discounted in accordance with sound business practices. The commissioner may by rule or order:
(a) Establish reasonable standards for the classification of loans and contracts or other obligations as to their delinquency or currency.
(b) Prescribe the conditions requiring the writing off of delinquent loans and contracts or other obligations and the conditions under which they may be restored as part of corporate assets.
(c) Establish the basis upon which reasonable and adequate reserves shall be created and maintained.
(Amended by Stats. 1989, Ch. 663, Sec. 12. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18344.

18344. An industrial loan company shall not conduct the business of making loans under this division, within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as is authorized in writing by the commissioner upon the commissioner’s finding that the character of the other business is such that the granting of the authority would not facilitate evasions of this division or of the rules and regulations made pursuant to this division.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18345.

18345. An industrial loan company shall notify the commissioner of every change in the officers, directors and management personnel of the company and of each branch of the company within 15 days of such change. Such report shall include a complete identification of each person assuming any such office or duties and such other information as the commissioner shall prescribe. The commissioner may by rule or order prescribe the positions or duties which will be deemed to be management personnel within the meaning of this section.
(Amended by Stats. 1989, Ch. 663, Sec. 13. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18346.

18346. The commissioner may require each industrial loan company to file with the commissioner a fidelity bond indemnifying the industrial loan company against loss of money or property by act of any officer, director or employee of such company, having access to assets owned by or pledged with the company. The fidelity bond shall contain a rider which provides that the coverage of the bond extends to all officers, directors and employees of the insured who are compensated by the insured. The commissioner may require that the fidelity bond contain a rider which provides that coverage of the bond extends to all officers and directors who are not compensated by the insured. The fidelity bond may be either a primary commercial blanket bond, a blanket position bond, or a banker’s blanket bond, but shall be written by an admitted surety insurer. The commissioner shall by regulation prescribe the amount of fidelity coverage to be required. The sufficiency of the sureties on the bond are at all times subject to the approval of the commissioner.
(Amended by Stats. 1982, Ch. 517, Sec. 226.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18346.1.

18346.1. (a) In lieu of providing a bond required pursuant to Section 18346, a licensee may deposit with the commissioner security in an amount as the commissioner may determine, for the protection of the public against loss suffered through theft or mysterious disappearance. Such security may only be in the form of cash, lawful money of the United States, bearer bonds issued by the United States or the State of California or evidence of deposit in banks or investment certificates issued by insured savings and loan associations authorized or licensed to do business in the State of California.
(b) Security deposited with the commissioner pursuant to subdivision (a) shall not be deemed an asset of the licensee for the purpose of complying with Article 3 of Chapter 2 of this division.
(Added by Stats. 1980, Ch. 427, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18347.

18347. The commissioner may establish rules and regulations which are reasonable and necessary to carry out the purposes and provisions of this division, including rules and regulations concerning the terms, form, offer, and sale of investment certificates.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18349.

18349. The commissioner may, upon reasonable notice and opportunity to be heard, suspend or revoke the license of an industrial loan company if the commissioner finds that the industrial loan company has violated any provision of this division or any rule or regulation of the commissioner made pursuant to this division, or if any factor or condition exists which, if it had existed at the time of the original application for a license, reasonably would have warranted the commissioner in refusing originally to issue such license.
(Repealed and added by Stats. 1980, Ch. 974, Sec. 11.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18350.

18350. Each industrial loan company shall pay to the commissioner its pro rata share of all costs and expenses of the department in administering this division and other laws relating to industrial loan companies or the industrial loan business, as estimated by the commissioner for the ensuing year and of any deficit actually incurred or anticipated in the year in which the assessment is made. The pro rata share shall be the proportion which a company’s assets bear to the aggregate assets of all companies as shown by the latest annual reports of the companies to the commissioner. The pro rata share shall not include the costs of any examinations provided for in Section 18392, unless they cannot be collected from the company examined.
(Amended by Stats. 1996, Ch. 1064, Sec. 592.5. 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 1 - General › Section 18351.

18351. On or before the 30th day of November in each year, the commissioner shall notify each industrial loan company by mail of the amount assessed and levied against it and that amount shall be paid within 20 days thereafter. If payment is not made within 20 days, the commissioner shall assess and collect a penalty in addition to the assessment, of 1 percent of the assessment for each month or part of a month that the payment is delayed or withheld.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18352.

18352. In the levying and collection of an assessment pursuant to Section 18350, an industrial loan company shall not be assessed for nor be permitted to pay less than two hundred fifty dollars ($250) per year, or not less than twenty-five dollars ($25) per month or fraction of a month for the unexpired year ending December 31st following its incorporation.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18353.

18353. If an industrial loan company fails to pay the assessment provided in Section 18350 on or before the 30th day of December following the day upon which payment is due, the commissioner may by order summarily suspend or revoke the certificate issued to that company. If, after such an order is made, a request for hearing is filed in writing within 15 days from the date of service of the order and a hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date. During any period when its certificate is revoked or suspended, a company shall not issue thrift certificates or make loans or otherwise conduct business pursuant to this division except as may be permitted by order of the commissioner; provided, however, that neither the revocation, suspension or surrender of a certificate shall affect the powers of the commissioner as provided in this division.
This section shall become operative January 1, 1969. For the purpose of making its provisions operative, the commissioner shall issue to all industrial loan companies authorized to conduct business under this division on said date a certificate of authorization to conduct business pursuant to this division in such form as the commissioner may prescribe and as provided in Section 18101 and thereafter all such companies shall be conclusively presumed to be conducting business under this division pursuant to such certificate of authorization.
(Amended by Stats. 1989, Ch. 172, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18354.

18354. The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he requires relative to the affairs of an industrial loan company or to the subject matter of any examination, investigation, or hearing.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18355.

18355. Whenever, after an examination, investigation or hearing under this division, the commissioner deems it of public interest or advantage, he may certify a record to the proper prosecuting official of the county or city in which the act complained of, examined, or investigated, occurred.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18356.

18356. The commissioner may order any industrial loan company to desist from any conduct which the commissioner finds in violation of this division or any rule or order of the commissioner made pursuant to this division.
(Amended by Stats. 1996, Ch. 1064, Sec. 593. 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 1 - General › Section 18357.

18357. (a) If it appears to the commissioner that an industrial loan company has violated or failed to comply with the provisions of its articles of incorporation, or with any law of this state, the commissioner may by written order addressed to the company, direct that company to discontinue the violation and to comply with the law.
(b) Whenever it appears from the report of an industrial loan company or the commissioner has reason to conclude, that the capital stock of an industrial loan company is impaired or reduced below the amount required by this division, the commissioner shall by written order addressed to the company, direct that company to make good the alleged deficiency or impairment of capital. If the company fails to make good the alleged deficiency or impairment of capital, the commissioner may forthwith take possession of the property and business of the industrial loan company pursuant to Section 18415. If the company fails to make good the alleged deficiency or impairment of capital within 60 days of the date of the order, the commissioner shall take possession of the industrial loan company pursuant to Section 18415. The capital of an industrial loan company is impaired when the minimum amount of capital required by Sections 18130 and 18131 is reduced by a net deficit balance in the company’s surplus account.
(Amended by Stats. 1989, Ch. 172, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18358.

18358. If it appears to the commissioner that an industrial loan company is conducting business in an unsafe, unsound, or injurious manner, the commissioner may, by written order, direct the discontinuance of any such unsafe or injurious practices.
(Amended by Stats. 1989, Ch. 663, Sec. 15. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18359.

18359. Whenever the commissioner is authorized to issue an order pursuant to Section 18357 or Section 18358 of this division, the commissioner may issue an order directing an industrial loan company to discontinue or limit the sale of its investment certificates or to impound the proceeds from the sale of its investment certificates in such manner as the commissioner may specify in such order.
(Amended by Stats. 1989, Ch. 663, Sec. 16. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18360.

18360. The company named in any order issued pursuant to this division for which no express hearing right is provided, including Sections 18356, 18357, 18358, 18359, 18363, and 18415.3 may, within 15 days after receipt thereof, file with the commissioner its written request for hearing. The filing of that request shall not operate to postpone or suspend the effectiveness of any order issued by the commissioner unless otherwise directed by the commissioner. The order may be amended or set aside by the commissioner at any time. The commissioner shall, within 30 business days after the receipt of that written request or at a later time as may be mutually agreed with the company, cause that matter to be heard.
(Amended by Stats. 1996, Ch. 1064, Sec. 594. 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 1 - General › Section 18361.

18361. After any order is made final, the industrial loan company shall have 10 days in which suit may be commenced to restrain enforcement of such order and unless such action is commenced and enforcement of the final order is enjoined within 10 days by the court in which such suit is brought, the company shall comply with the final order.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18362.

18362. (a) If the commissioner believes that an industrial loan company or its directors, officers, agents, or employees have violated or are about to violate any of the provisions of this division, or any provision of an order, license, permit, decision, demand, or requirement of the commissioner, the commissioner may bring an action against such persons to enjoin those persons from continuing the violation or the attempt to violate this division, or doing any act in furtherance thereof. The commissioner shall bring such action in the name of the people in the superior court, and the court may enter an order or judgment awarding a preliminary or final injunction as is proper.
(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award the additional relief.
(c) Any person who violates any provision of this division, or who violates any rule or order adopted pursuant to this division, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.
(d) As applied to civil and criminal penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce the provisions of this division.
(Amended by Stats. 1990, Ch. 1202, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18363.

18363. The commissioner may order an industrial loan company to suspend the redemption of investment certificates or the payment of the liabilities of the company or limit the payment of the liabilities in such manner as he prescribes, if it appears to the commissioner that such action is necessary for the protection of the company, its investors or creditors, or in the public interest. The order is effective upon receipt of notice by the company and continues in effect until rescinded or modified by the commissioner in a writing delivered to the manager or executive officer of the company. Nothing in this section shall affect the right of any company to pay its current operating expenses and liabilities incurred during the period of suspension or limitation.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18364.

18364. After an order of suspending or limiting the payment of liabilities is effective and until that order is rescinded, the industrial loan company shall make no assignment or hypothecation of any indebtedness due to it from an investor without first crediting thereon the investment liability of the company to such investor-borrower.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18365.

18365. The authority granted to the commissioner by Section 18363, may be exercised by him in conjunction with all other powers granted by this chapter, or independently from them.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18366.

18366. Every order, decision, license, or other official act of the commissioner is subject to review in accordance with law. Upon review, the burden of proof lies upon the appellant, and the court shall receive and consider any pertinent evidence which was introduced in the formal hearing before the commissioner, whether oral or documentary, concerning the action of the commissioner under review. The review is limited to a consideration and determination of the question of whether there has been an abuse of discretion on the part of the commissioner in making such order, decision, finding, requirement, or rule.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18367.

18367. (a) If at any time the commissioner is of the opinion that the further sale of investment certificates by an industrial loan company would be unfair, unjust or inequitable to the purchasers of its investment certificates, the commissioner may, notwithstanding any other provision of this division, order the company to desist and refrain from the further sale of its investment certificates.
(b) 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 such 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 such written request or at such later time as may be mutually agreed with the company, cause such matter to be heard and shall thereafter issue his final decision. Such decision may be amended or set aside by the commissioner at any time.
(c) Every order or decision of the commissioner made pursuant to this section is subject to judicial review in accordance with law.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18368.

18368. (a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers.
(b) (1) The agreements authorized under subdivision (a) may include, but are not limited to, agreements with agencies of this state, of other states of the United States, or of the United States that regulate financial institutions, relating to examinations of industrial loan companies and other matters.
(2) Any agreement with a government agency that regulates financial institutions is exempt from the advertising and competitive bidding requirements of the Public Contract Code.
(Amended by Stats. 1996, Ch. 887, Sec. 52. Effective September 25, 1996.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18390.

18390. For the purpose of discovering violations of this division or securing information required, the commissioner may at any time investigate the affairs and examine the books, accounts, records, and files of every corporation engaged in the business of an industrial loan company or broker, or its holding company or affiliates, whether such corporation acts or claims to act as principal or agent, or under or without the authority of this division. For the purposes of examination and investigation, the commissioner and the commissioner’s duly designated representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes and vaults of all such corporations and their holding companies or affiliates.
(Amended by Stats. 1980, Ch. 418, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18391.

18391. Whenever in the judgment of the commissioner the condition of any industrial loan company renders it necessary or expedient to devote any extraordinary attention to its affairs, the commissioner may make any extra examination or investigation and perform any necessary services in connection with its affairs.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18392.

18392. The industrial loan company examined shall pay to the commissioner the cost of any examination, investigation or services, including the salary or other compensation paid to the persons making the examination or investigation or rendering services, and overhead costs in connection therewith as fixed by the commissioner. In determining the cost of examination, investigation, or services, the commissioner may use the estimated average hourly cost for all persons performing examinations, investigations, or services for industrial loan companies for the fiscal year.
(Amended by Stats. 1981, Ch. 946, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18393.

18393. The commissioner shall, upon receipt of written notification by an industrial loan company that it intends to engage in or is engaging in transactions permitted under Section 18209, make an examination of the affairs and records of each such industrial loan company at least once each year. Such examination shall be made or performed unless such company notifies the commissioner of its election to discontinue such activity and gives evidence that it has disposed of all evidences of indebtedness arising from any such transactions.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18394.

18394. Investigation and examination reports prepared by the commissioner’s duly designated representatives shall not be public records. Those reports may be disclosed to the officers and directors of a company that is the subject of a report for the purpose of corrective action by those officers or directors. That type of disclosure shall not operate as a waiver of the exemption specified in Section 7929.000 of the Government Code.
(Amended by Stats. 2021, Ch. 615, Sec. 110. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 2 - Examinations › Section 18396.

18396. (a) In this section, “governmental agency” includes, without limitation, any agency of this state, of any other state of the United States, of the United States, or of any foreign nation.
(b) The commissioner may furnish information to a governmental agency that regulates financial institutions.
(c) The commissioner may furnish to a governmental agency that administers a loan guarantee or similar program, information relating to a person who participates in the program.
(d) The commissioner may furnish to a governmental agency that regulates business activities, other than the type described in subdivision (b), information relating to:
(1) A suspected violation of a law administered by the agency.
(2) A person involved in an application to the agency for a license, approval, or other authorization.
(e) The commissioner may furnish to a governmental agency that is a law enforcement agency, information relating to a suspected crime.
(f) This section does not prescribe the only circumstances under which the commissioner may furnish information.
(Added by Stats. 1995, Ch. 479, Sec. 5. Effective October 2, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18405.

18405. (a) On or before the 15th day of March of every year, each industrial loan company shall file with the commissioner an audit report containing audited financial statements together with such other relevant information as the commissioner may require relating to the company and to each place of business of the company. The audited financial statements shall include a balance sheet of the company prepared as of the last day of the preceding calendar year and statements of income and of surplus for such calendar year.
(b) The reports and financial statements referred to in subdivision (a) shall be prepared in accordance with generally accepted accounting principles and shall be accompanied by a report, certificate, or opinion of an independent certified public accountant or independent public accountant, and shall contain such relevant information as the commissioner may require. The audits shall be conducted in accordance with generally accepted auditing standards and the rules and regulations of the commissioner.
(c) For good cause and upon written request, the commissioner may extend the time for compliance with subdivision (a).
(d) If the report, certificate, or opinion of the independent accountant referred to in subdivision (b) hereof is in any way qualified, the commissioner may require the company to take such action as he or she deems appropriate to permit an independent accountant to remove such qualification from the report, certificate, or opinion.
(e) The commissioner may reject any financial statement, report, certificate, or opinion filed pursuant to this section by notifying the company required to make such filing of its rejection and the cause thereof. Within 30 days after the receipt of such notice, the company shall correct such deficiency, and the failure so to do shall be deemed a violation of this division. The commissioner shall retain a copy of all filings so rejected.
(Amended by Stats. 2015, Ch. 190, Sec. 42. (AB 1517) Effective January 1, 2016.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18406.

18406. Each industrial loan company which has issued and which has outstanding investment certificates shall:
(a) Post in a conspicuous and prominent place in each business location a condensed statement of its financial condition, and
(b) Furnish to a person prior to such person’s investment in an investment certificate a copy of its latest condensed statement of its financial condition. Each year a copy of the condensed statement shall be furnished by mail or hand-delivered to each investment certificate holder.
(c) Maintain and have available for public inspection a copy of its latest audited financial statement required by subdivision (a) of Section 18405 in each of its business locations. Any person shall, upon request, be permitted to inspect the statement during regular business hours.
(d) The statement required by subdivisions (a) and (b) shall set forth such information and be in such form as may be required by the commissioner.
(Repealed and added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18407.

18407. An industrial loan company shall, when requested by the commissioner, submit its unaudited financial statements, prepared in accordance with generally accepted accounting principles and consisting of at least a balance sheet and a statement of income as of the date and for the period specified by the commissioner. The commissioner may require the submission of such reports on a monthly or other periodic basis.
(Repealed and added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18409.

18409. The commissioner shall make and file annually with the department as a public record a composite of reports filed by industrial loan companies, and any comments thereon that he or she deems in the public interest.
(Amended by Stats. 1996, Ch. 1064, Sec. 596. 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 3 - Reports and Financial Statements › Section 18410.

18410. For the purposes of the composite report provided for by Section 18409, an industrial loan company shall furnish statistical information as is reasonably required by the commissioner, including information for each place of business of the company and as to any parent, subsidiary or affiliated company.
(Repealed and added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18411.

18411. The commissioner may by rule or regulation specify the form and contents of the financial statements, reports, certificates and opinions required to be filed pursuant to this article, and may require that such reports and financial statements be verified in such manner as he may prescribe.
(Repealed and added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 3 - Reports and Financial Statements › Section 18412.

18412. Each report required under this article shall be filed with the commissioner at the time that the commissioner by regulation or order may require. If any industrial loan company fails to make any report required by this article at the time specified by the commissioner, or fails to include in that report any matter required by this article or by the commissioner, the commissioner shall assess and collect a penalty of one hundred dollars ($100) for each day which that report is delayed or withheld by the failure or neglect of that industrial loan company.
(Added by Stats. 1990, Ch. 679, Sec. 1.)
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.

18415. The commissioner may take possession of the property and business of any industrial loan company and retain possession until the company resumes business or its affairs are liquidated if any of the following grounds exist:
(a) The capital of an industrial loan company is impaired.
(b) An industrial loan company has violated its articles of incorporation or any law of this state.
(c) An industrial loan company is conducting its business in an unsafe or unauthorized manner.
(d) An industrial loan company refuses to submit its books, papers and affairs to the inspection of any examiner.
(e) An officer of any industrial loan company refuses to be examined upon oath touching the concerns of such industrial loan company.
(f) An industrial loan company has suspended payment of its obligations.
(g) An industrial loan company is in such condition that it is unsound or unsafe for it to transact business.
(h) An industrial loan company neglects or refuses to observe any order of the commissioner made pursuant to this division, unless the enforcement of that order is restrained in a proceeding brought by the industrial loan company.
(i) An industrial loan company (1) fails to become and continue as either a member of the Federal Deposit Insurance Corporation or a member of the Thrift Guaranty Corporation of California in accordance with Chapter 7 (commencing with Section 18475), (2) has its right to participate in the Thrift Guaranty Corporation of California suspended or revoked pursuant to subdivision (a) of Section 18496 and it is not a member of the Federal Deposit Insurance Corporation, or (3) fails to pay any assessment levied pursuant thereto within the time specified.
(j) A member industrial loan company of Guaranty Corporation refuses to permit Guaranty Corporation, its appointed certified public accountant or public accountant, or specialized committees or employees to fulfill their duties under Section 18496.
(k) An industrial loan company has sold or issued investment certificates in violation of the provisions of this division.
(l) An industrial loan company has failed to maintain in effect a bond required under the provisions of this division.
(m) Any fact or condition exists which, if it had existed at the time of the original application for authority to organize and establish a corporation to engage in the industrial loan business reasonably would have warranted the commissioner in disapproving the application.
(n) An application for membership in the Federal Deposit Insurance Corporation has not been filed with and accepted by the Federal Deposit Insurance Corporation on or before January 15, 1990.
If the commissioner takes possession of the business and property of an industrial loan company, the company, with the consent of the commissioner, may resume business upon prescribed conditions.
(Amended by Stats. 1989, Ch. 583, Sec. 2.5.)
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 18415.1.

18415.1. Whenever the commissioner has taken possession of the property and business of an industrial loan company, that industrial loan company, within 10 days after the taking, if it deems itself aggrieved thereby, may apply to the superior court in the county in which the head office of the industrial loan company is located to enjoin further proceedings. The commissioner may exercise all powers granted by this article during the 10-day period after taking possession of the property and business of the industrial loan company. The court, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits may dismiss the application or enjoin the commissioner from further proceedings and direct the commissioner to surrender the property and business to the industrial loan company, or make such further order as may be just.
(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 18415.2.

18415.2. An appeal may be taken from the judgment of the court by the commissioner or by the industrial loan company in the manner provided by law for appeals from the judgment of a superior court to the court of appeal.
(Amended by Stats. 1998, Ch. 931, Sec. 149. Effective September 28, 1998.)
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 18415.3.

18415.3. (a) Whenever the net worth of an industrial loan company, exclusive of its good will, is less than 90 percent of the aggregate sum of its outstanding investment certificates, exclusive of those hypothecated with the company issuing them, divided by the fraction that is its investment certificates ratio permitted by the commissioner, the commissioner shall by written order direct the company to make good the alleged deficiency of net worth. Pursuant to the commissioner’s orders, the company’s net worth shall be at least 100 percent of the aggregate sum of its outstanding investment certificates, exclusive of those hypothecated with the company issuing them, divided by the fraction that is its investment certificates ratio permitted by the commissioner.
(b) If the company fails to cure the alleged deficiency of net worth within the commissioner’s specified time, not to exceed 120 days, the commissioner may take possession of the company’s property and business. If the alleged deficiency is not cured within 120 days of the order, the commissioner shall take possession of the company’s property and business.
(Amended by Stats. 2006, Ch. 538, Sec. 174. Effective January 1, 2007.)
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 18415.4.

18415.4. The commissioner may also, upon the request of the board of directors of a company, take possession of the property and business of a company and as conservator, take such action as the commissioner deems 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 18415.5.

18415.5. Upon taking possession of the property and business of any industrial loan company, the commissioner shall give notice of that fact to all persons holding or having in their possession any assets of the company. The notice required by this section shall not be deemed to be a prerequisite to the taking of possession of the property and business of the industrial loan company. No person knowing of the taking, or who has been notified thereof, shall have a lien or charge upon any assets of the company for any payment, advance or clearance thereafter made, or for any liability thereafter incurred.
Notice is deemed given when the commissioner has either made personal service of the notice, or mailed the notice to the person by certified mail.
(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 18415.6.

18415.6. Any officer, agent, employee, director, or stockholder of a company who refuses to comply with the demand for possession issued under Section 18415 shall be guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or imprisonment not exceeding one year or by both such fine and imprisonment.
(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 18415.7.

18415.7. On demand of the commissioner, it shall be the duty of the sheriff of any county of the state, and of the police department of any municipal corporation therein, to furnish the commissioner with deputies, patrolmen, or officers as may be necessary to assist the commissioner in making and enforcing any seizure under Section 18415.
(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 18415.8.

18415.8. Upon taking possession of the property and business of any company, the superior court for the county in which the head office of the company is located shall have exclusive original jurisdiction of all proceedings relating thereto and of any action or other proceedings brought under the provisions of this chapter. All papers relating to the taking of possession, including copies of the certificate of appointment of any special deputy, shall be filed and be made a part of the record of the proceeding within 45 days of the date of taking possession. All papers filed with the superior court, including inventories required to be filed, shall be made a part of the record of the proceeding without the payment of any additional fees therefor.
(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 18415.9.

18415.9. At any time after the order taking possession issued under Section 18415 has been filed with the court, the commissioner may remove the principal office of the person proceeded against to the City and County of San Francisco or to the City of Los Angeles. In the event of removal, the court where the proceeding was commenced shall, upon the application of the commissioner, direct the superior court clerk to transmit all of the papers filed therein with that clerk to the Superior Court Clerk of the City and County of San Francisco or of the County of Los Angeles as the case may require. The proceeding shall thereafter be conducted in the same manner as though it had been commenced in the county to which it had been transferred.
(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 18415.10.

18415.10. The commissioner may, at any time, examine under oath any officer, director, agent, employee or stockholder of a company to determine whether or not all property and assets have been transferred or delivered to the commissioner’s possession.
(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 18415.11.

18415.11. Upon taking possession of the property and business of any company, the commissioner has authority and the duty to collect all moneys due to the company and to do such other acts as are necessary or expedient to collect, conserve, or protect its assets, property and business. The commissioner shall also proceed to conserve or liquidate the affairs thereof as provided in this chapter.
(Added by Stats. 1985, Ch. 140, Sec. 1. Effective July 1, 1985.)