reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 3 - Investment in Business Property › Section 7300.

7300. (a) Each association shall have power to invest in real property, tangible personal property and interests in real property for the conduct of the business of the association, or its service corporation, which power shall include the ownership of stock of a wholly owned subsidiary corporation having as its exclusive activity the ownership and management of the property or interests.
(b) As used in this section, the term “real property” includes structures or buildings located on land owned in fee or held under a lease or sublease by the association with an unexpired term, including extensions or renewals that are automatically effective or may be exercised at the association’s option, of 25 years at the date of execution by the association of the lease or sublease.
(c) No association may without written approval of the commissioner purchase, sell, or pay interest on or dividends involving, gold or silver bullion or related instruments or securities except gold coins minted and issued by the United States Treasury pursuant to Public Law 99-185, 99 Stat. 1177 (1985).
(Amended by Stats. 1987, Ch. 1162, Sec. 12. Effective September 26, 1987.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7450.

7450. (a) An association may make any loan authorized by this division, but the association shall first determine that the type, amount, purpose, and repayment provisions of the loan in relation to the borrower’s resources and credit standing support the reasonable belief that the loan will be financially sound and will be repaid according to its terms, and that the loan is not otherwise unlawful.
(b) Subject to any regulations of the commissioner, an association may make or acquire loans directly or indirectly to or from any director, officer, affiliated person, or any parent or subsidiary. Loans made or acquired, directly or indirectly, the proceeds of which are intended to inure or have inured to the benefit of these parties are subject to the same regulations.
(Amended by Stats. 1987, Ch. 1162, Sec. 13. Effective September 26, 1987.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7450.2.

7450.2. Except with the prior written consent of the commissioner, no association shall knowingly make:
(a) Any loan to any corporation of which 10 percent or more of the stock is owned or controlled individually or collectively by any one or more of the directors, officers, employees, or substantial stockholders of the association.
As used in this subdivision, “substantial stockholder” means a person who has a real or beneficial ownership of more than 10 percent of the outstanding stock of the association. For this purpose, stock owned by the person’s immediate family shall be deemed owned by that person.
(b) Any loan the proceeds of which are intended to inure to the benefit of any corporation specified in subdivision (a).
(Added by Stats. 1986, Ch. 1158, Sec. 6. Effective September 26, 1986.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7451.

7451. Except as otherwise provided by the commissioner, an association shall not make or acquire total loans with respect to one borrower or on one project in an amount exceeding 25 percent of the net worth of the association. As used in this section, “one borrower” has the meaning defined in Section 7453.
(Amended by Stats. 1990, Ch. 1118, Sec. 42.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7452.

7452. (a) An association may make consumer loans, provided that the total of such loans shall not exceed 30-percent of the assets of the association.
(b) An association may include loans to dealers in consumer goods to finance inventory and floor planning in the total investment as part of the 30-percent limitation described in subdivision (a). For purposes of the limitations on loans to one borrower, loans to dealers in consumer goods to finance inventory and floor planning shall be treated as commercial loans.
(Amended by Stats. 1984, Ch. 225, Sec. 5. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7454.

7454. Each association is authorized to issue credit cards, extend credit in connection with the cards, and otherwise engage in or participate in credit card operations. The provisions of Title 2 (commencing with Section 1801) of the Civil Code shall not apply to any credit extended by an association pursuant to the provisions of this section.
(Amended by Stats. 1985, Ch. 983, Sec. 12.4. Effective September 26, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7455.

7455. No association or director, officer, or employee of an association shall require, as a condition to the granting of any loan or the extension of any other service by the association, that the borrower or any other person undertake a contract of insurance with any specific company, agency, or individual.
(Added by Stats. 1984, Ch. 287, Sec. 27. Effective July 6, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7456.

7456. Any loan commitment made by an association shall be counted as an investment and shall be included in total assets of the association only to the extent that funds have been advanced (and not repaid) pursuant to the commitment. For the purposes of this section, the term “loan commitment” includes a loan in process, a letter of credit, or any other commitment to extend credit.
(Added by Stats. 1984, Ch. 225, Sec. 7. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7457.

7457. An association may make loans on the security of its savings accounts, whether or not the borrower is the owner of the account, subject to the limitations of this article.
(Added by Stats. 1984, Ch. 868, Sec. 11.2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7459.

7459. In addition to establishing reserves pursuant to Section 6476, an association or federal association, as defined in Section 5102, may establish a separate loan reserve account regarding losses resulting from fraud by a borrower and may recover any of those losses from that borrower.
(Added by Stats. 1985, Ch. 656, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7460.

7460. (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, an association, a federal association, an affiliate of an association or federal association, a service corporation, or any successor in interest thereto, that originates, acquires, or purchases, in whole or in part, any loan secured directly or collaterally, in whole or in part, by a mortgage or deed of trust on real property, or any interest therein, may bring an action for recovery of damages, including exemplary damages not to exceed 50 percent of the actual damages, against a borrower where the action is based on fraud under Section 1572 of the Civil Code and the fraudulent conduct by the borrower induced the original lender to make that loan.
(b) The provisions of this section shall not apply to loans secured by single-family, owner-occupied residential real property, when the property is actually occupied by the borrower as represented to the lender in order to obtain the loan and the loan is for an amount of one hundred fifty thousand dollars ($150,000) or less, as adjusted annually, commencing on January 1, 1987, to the Consumer Price Index as published by the United States Department of Labor.
(c) Any action maintained under this section for damages shall not constitute a money judgment for deficiency or a deficiency judgment within the meaning of Section 580a, 580b, or 580d of the Code of Civil Procedure.
(Amended by Stats. 1986, Ch. 173, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7461.

7461. The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an association or federal association, or any successor in interest thereto, to accelerate the maturity date of the principal and interest on any loan secured thereby or to exercise any power of sale or other remedy contained therein upon the failure of the trustor or mortgagor to pay, at the times provided for under the terms of the deed of trust or mortgage, any taxes, rents, assessments, or insurance premiums with respect to the property or the loan, or any advances made by the association, federal association, affiliate or service corporation of an association or federal association, or any successor in interest thereto, shall be enforceable whether or not impairment of the security interest in the property has resulted from the failure of the trustor or mortgagor to so pay the taxes, rents, assessments, insurance premiums, or advances.
(Added by Stats. 1987, Ch. 397, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 5 - Investment in Loans › Section 7462.

7462. The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an association or federal association, or any successor in interest thereto, to receive and control the disbursement of the proceeds of any policy of fire, flood, or other hazard insurance respecting the property shall be enforceable whether or not impairment of the security interest in the property has resulted from the event that caused the proceeds of the insurance policy to become payable.
(Added by Stats. 1987, Ch. 397, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7500.

7500. (a) Subject to limitations, if any, within this chapter, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in (including brokerage or warehousing) loans, including construction loans, made on the security of residential or nonresidential real property, or interests in these loans.
(b) No investment in real property or a real estate loan shall be made by an association until one or more written appraisal reports, prepared at the request of an association or its agent, have been submitted to the association by a person or persons meeting the qualification standards for an appraiser as set forth in the commissioner’s regulations. No commitment to disburse shall be made by the association until the person or persons have been duly appointed and qualified as appraisers by the association. Such a person or persons shall have made a physical inspection and submitted to the association a fully documented appraisal of the real estate that would secure the loan or constitute the investment, or, in the case of a purchased loan, the person or persons have reviewed and approved an appraisal report in support of the loan. If the balance of any purchased loan is one million dollars ($1,000,000) or more, the person or persons reviewing and approving the appraisal report shall have inspected the real estate. Each appraisal report submitted to an association pursuant to this subdivision shall be signed and shall include the tax identification number, social security number, or other form of verifiable identification of the person or persons signing the appraisal report.
(c) For the purpose of determining appraised value, unimproved property without offsite improvements shall be evaluated as though offsite improvements have been installed if a subdivision map has been recorded and a bond or other instrument guaranteeing installation of the offsite improvements has been accepted by the governing authorities in connection with the recording of the subdivision map.
(Amended by Stats. 1988, Ch. 718, Sec. 15.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7501.

7501. Each real estate loan shall be evidenced by a note or instrument of obligation for the amount of the loan. The note or instrument shall specify the amount and terms of repayment including any penalty or charge for late payment, and may contain all other terms of the loan contract.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7502.

7502. (a) Each real estate loan shall be secured by a deed of trust, mortgage, or other transaction or instrument constituting a lien or claim, or its equivalent, upon the real estate securing the loan, according to any lawful and recognized practice that is suited to the transaction. Any deed of trust or other instrument or transaction constituting a lien or claim is included in the term “mortgage” in this division.
(b) A mortgage shall provide specifically for full protection to the association with respect to the loan and additional advances, including any terms and conditions that the association deems necessary and appropriate to state the agreement between the parties.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7503.

7503. Except as specified by the loan contract or by Section 2954.8 of the Civil Code, an association shall have no obligation to pay interest to the borrower upon funds credited to an impound, trust, or other type of account for payment of taxes, insurance, or other charges relating to the property, or to invest them for the benefit of the borrower, unless the funds have been placed in an interest bearing savings account under the terms of the loan contract.
(Amended by Stats. 1984, Ch. 287, Sec. 29. Effective July 6, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7505.

7505. (a) Notwithstanding any other provision of law, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in loans (including construction loans) on the security of real property for primarily residential (other than a one- to four-unit dwelling) or nonresidential use, subject to the limitations of this article.
(b) An association’s aggregate investment in real property loans for primarily nonresidential use under this section shall not exceed 40 percent of assets.
(Amended by Stats. 1987, Ch. 730, Sec. 15.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7505.5.

7505.5. (a) A savings association may make loans the principal purpose of which is to provide financing with respect to what is, or what is to become, primarily residential real estate, for which the association relies substantially on the borrower’s general credit standing and projected future income for repayment, without other security, or relies on other assurances for repayment, including guarantees or other obligations of third parties.
(b) An association’s aggregate investment in residential real estate loans described in subdivision (a) shall not exceed an amount equal to 5 percent of the association’s assets.
(Added by Stats. 1990, Ch. 1118, Sec. 44.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7506.

7506. Notwithstanding any other provision of the law, an association may make a loan secured by an assignment of a loan or loans to the extent that it could, under applicable law and regulations, make or purchase the underlying assigned loan or loans.
(Added by Stats. 1983, Ch. 1176, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7507.

7507. (a)  An association may make loans or advances of credit, or invest in interests therein, on the security of real property, which loans, advances of credit, or investments are not otherwise authorized under the law because of the following reasons:
(1) The loan-to-value ratio, stated maturity, or loan amount is in excess of the maximum allowable limits.
(2) Lack of any required borrower certification or required private mortgage insurance.
(3) The loan would cause an applicable percentage-of-assets category to be exceeded.
(4) A combination of the foregoing factors.
(b) Investments made under the authority of this section are subject to the following restrictions:
(1) No association shall have investments under this section aggregating at any one time more than 5 percent of its total assets.
(2) Each investment made under this section shall be fully documented to support the conclusion that it was made on a prudent basis.
(3) Loans made pursuant to this section shall comply with subparagraph (D) of paragraph (5), and paragraph (6), of subdivision (b), of Section 7504, where applicable.
(Amended by Stats. 1990, Ch. 1118, Sec. 45.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 6 - Real Estate Loans › Section 7509.

7509. (a) (1) At the time of origination, a real estate loan may not exceed 100 percent of the market value of security property. An association shall, by vote of its board of directors, establish maximum loan-to-value ratios for loans made on the security of real estate, and the resolution adopting those ratios shall be included in the minutes of the directors’ meeting. Home loans, as defined in Section 7504, made on the combined security of real estate and savings accounts may be made in excess of the maximum loan-to-value ratios adopted pursuant to this subdivision with the excess secured by the savings account.
(2) However, for loans originated in excess of 90 percent of the initial appraised value of the security property, the savings account shall consist only of funds belonging to the borrower, the borrower’s family, or the borrower’s employer, and the loans shall not exceed the appraised value of the real estate.
(b) With respect to home loans originated or refinanced in excess of 90 percent of the appraised value of the security property, that part of the unpaid balance that exceeds 80 percent of the property value shall be insured or guaranteed by a mortgage insurance company that the Federal Home Loan Mortgage Corporation has determined to be a “qualified private insurer.”
(c) With respect to all other loans on the security of real estate originated in excess of 90 percent of the appraised value of the security property, an association’s board of directors shall approve each of these loans prior to its origination and that approval shall be recorded in the minutes of its meeting.
(d) An association shall not make a loan secured by unimproved real property if the loan-to-value ratio would exceed 80 percent of the appraised value of the unimproved real property securing the loan.
(e) In determining compliance with maximum loan-to-value-ratio limitations for real estate loans, at the time of making a loan, an association shall add together the unpaid amount, or in the case of a line-of-credit loan, the approved credit limit, of all recorded loans secured by prior mortgages, liens, or other encumbrances on the security property that would have priority over the association’s lien, and shall not make the loan unless the total amount of those loans, including the loan to be made but excluding loans that will be paid off out of the proceeds of the new loan, does not exceed the applicable maximum loan-to-value-ratio limitations prescribed in this subdivision. In determining the value of the real estate security, an association shall use the current appraised value of the security property, which may include any expected value of improvements to be financed.
(f) “Value” for a real estate loan means the market value of the real estate.
(Amended by Stats. 2006, Ch. 538, Sec. 169. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 7 - Successors in Interest in Loans › Section 7600.

7600. In the case of any investment made by an association in a real estate loan, in the event all or part of the ownership of the real estate security becomes vested in a person other than the party or parties originally executing the security instruments and if there is not an agreement in writing to the contrary, an association may, without notice to the party or parties, deal with a successor in interest to the mortgage and debt in the same manner as with the original party or parties, and may forbear to sue or may extend time for payment of or otherwise modify the terms of the debt, without discharging or in any way affecting the original liability of the party or parties or their debt.
(Amended by Stats. 2006, Ch. 538, Sec. 170. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 8 - Salvage of Loans and Investments › Section 7650.

7650. (a) Except as provided in subdivision (b), nothing in this division or the laws of this state shall be construed as denying to an association the right to invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on a loan or investment made or an obligation created in good faith.
(b) Associations which do not meet the requirements of Section 6475, or have been issued an order pursuant to Section 8200, shall not take any action pursuant to this section without first obtaining approval, in writing, from the commissioner.
(Amended by Stats. 1985, Ch. 983, Sec. 12.7. Effective September 26, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 9 - Usury Exemption › Section 7675.

7675. (a) Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any obligations of, loans made or arranged by, or forbearances of, an association; a federal association; a qualified foreign savings association; an entity that is a savings and loan holding company; a subsidiary of a savings and loan holding company that is not an association; or a service corporation which is a subsidiary of an association, a federal association, or a qualified foreign savings association. As used in this section, the terms “savings and loan holding company” and “subsidiary” mean a savings and loan holding company or a subsidiary, as defined in Section 10 of the Home Owners Loan Act, as amended (12 U.S.C. Sec. 1467a), and the term “service corporation” means a service corporation described in Section 5(c)(4)(B) of the Home Owners’ Loan Act of 1933 (12 U.S.C. Sec. 1464), as amended, or Section 7252, or a wholly owned subsidiary referred to in Section 7300.
(b) Subdivision (a) creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. Notwithstanding any other provision of law, subdivision (a) does not exempt an association; a federal association; a foreign savings association; a savings and loan holding company, a subsidiary of a savings and loan holding company; a service corporation which is a subsidiary of an association; a federal association, or foreign savings association from complying with all other law and regulations governing the business in which the association, federal association, foreign savings association, savings and loan holding company, subsidiary of a savings and loan holding company, or service corporation which is a subsidiary of an association, a federal association, or a foreign savings association is engaged.
(c) For purposes of this section, “foreign savings association” means a foreign savings association as defined in Chapter 10 (commencing with Section 10000) or Chapter 10.1 (commencing with Section 10010) and “qualified foreign savings association” means a foreign savings association that has been authorized to conduct the business of an association in this state by the commissioner.
(Amended by Stats. 1990, Ch. 1118, Sec. 46.5.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10 - Finance Leasing › Section 7700.3.

7700.3. An association may engage in leasing activities that are the functional equivalent of lending, subject to the limitations of Sections 7701 to 7704, inclusive.
(Added by Stats. 1985, Ch. 983, Sec. 13. Effective September 26, 1985.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10 - Finance Leasing › Section 7701.

7701. An association may become the legal or beneficial owner of tangible personal property or real property for the purpose of leasing such property, may obtain an assignment of a lessor’s interest in a lease of such property, and may incur obligations incidental to its position as the legal or beneficial owner and lessor of the leased property, if:
(1) The lease is a net, full-payout lease representing a noncancelable obligation of the lessee, notwithstanding the possible early termination of the lease.
(2) At the expiration of the lease, the association’s interest in the property shall be liquidated or released on a net basis as soon as practicable.
(Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10 - Finance Leasing › Section 7702.

7702. (a) A lease of tangible personal property made to a natural person for personal, family, or household purposes pursuant to this section shall be subject to all limitations applicable to the amount of an association’s investment in consumer loans.
(b) A lease made for commercial, corporate, business, or agricultural purposes pursuant to this section shall be subject to all limitations applicable to the amount of an association’s investment in commercial loans.
(c) A lease of residential or nonresidential real property made pursuant to this section shall be subject to all limitations applicable to the amount of an association’s investment in real estate loans.
(Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10 - Finance Leasing › Section 7703.

7703. For the purposes of this article:
(a) A “net lease” is a lease under which the association will not, directly or indirectly, provide or be obligated to provide for:
(1) The servicing, repair, or maintenance of the leased property during the lease term.
(2) The purchasing of parts and accessories for the leased property; provided that improvements and additions to the leased property may be leased to the lessee upon its request in accordance with the full pay-out requirement of this section.
(3) The loan of replacement or substitute property while the leased property is being serviced.
(4) The purchasing of insurance for a lessee, except where the lessee has failed to discharge a contractual obligation to purchase or maintain insurance.
(5) The renewal of any license, registration, or filing for the property unless such action by the association is necessary to protect its interest as an owner or financer of the property.
(b) A “full-payout” lease is one from which the lessor can reasonably expect to realize a return of its full investment in the leased property, plus the estimated cost of financing the property over the term of the lease, from rentals, estimated tax benefits, and the estimated residual value of the property at the expiration of the initial term of the lease; provided that no more than 20 percent of the return may be realized from the residual value of the property at the expiration of the initial term of the lease. Both the estimated residual value of the property and that portion of the estimated residual value relied upon by the lessor to satisfy the requirements of a full-payout lease must be reasonable in light of the nature of the leased property and all relevant circumstances so that realization of the lessor’s full investment plus the cost of financing the property depends primarily on the creditworthiness of the lessee, and not on the residual market value of the leased property. The maximum term of a full-payout lease shall be 40 years.
(Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10 - Finance Leasing › Section 7704.

7704. If, in good faith, an association believes that there has been an unanticipated change in conditions that threatens its financial position by significantly increasing its exposure to loss, the provisions of Sections 7702 and 7703 of this article shall not prevent the association:
(a) As the owner and lessor under a net, full pay-out lease, from taking reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease.
(b) As the assignee of a lessor’s interest in a lease, from becoming the owner and lessor of the leased property pursuant to its contractual right, or from taking any reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease.
(c) From including any provisions in a lease, or from making any additional agreements, to protect its financial position or investment in the circumstances set forth in subdivisions (a) and (b) of this section.
(Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 10.5 - Leasing › Section 7720.

7720. (a) An association may invest in tangible personal property, including without limitation, vehicles, mobilehomes, machinery, equipment, or furniture, and may hold the property for rental or sale.
(b) Investment under this section is limited to not in excess of 10 percent of the total assets of the association.
(Added by renumbering Section 7700 by Stats. 1990, Ch. 216, Sec. 25.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 6 - Investment Operations › ARTICLE 11 - Hazard Insurance › Section 7800.

7800. Subject to the provisions of Section 2955.5 of the Civil Code, the board of directors of every association and affiliate or service corporation of an association shall establish standards for the maintenance of hazard insurance which are considered necessary to protect the institution’s interest in real estate security for its loans. The standards may include establishment of criteria based on such factors as recognized financial ratings of insurers and coverage forms, but those standards may not be based on the insurer’s corporate structure. Subject to compliance with these standards, an association, an affiliate or service corporation of an association shall permit a borrower to have reasonable freedom of choice in selecting the insurer to provide hazard insurance coverage on the real estate security.
(Added by Stats. 1988, Ch. 718, Sec. 17.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 1 - Department of Savings and Loan › Section 8009.

8009. (a) Except where required by law, regulation, or court order, or permitted under subdivision (b), the commissioner, and all employees of the department, shall not disclose any information acquired by them in the discharge of their duties as prescribed by this division.
(b) The commissioner may furnish information relating to the condition or operation of any association or other person to state and federal authorities that supervise financial institutions, to state, local and federal law enforcement agencies, and state agencies that are engaged in any investigation of an unsafe or unsound business practice.
(c) No record or document in the possession or custody of the department which contains information specified in subdivision (a) shall be produced pursuant to a subpoena duces tecum addressed to the commissioner or any employee of the department except upon a determination of a court of competent jurisdiction that disclosure of the information in the record or document would serve the public interest and assist the department in conducting the duties prescribed by this subdivision. With respect to each item subject to the subpoena duces tecum, the court shall either make this determination or shall determine that the item is not subject to disclosure. The court’s determination shall be made upon hearing on a motion by the subpoenaing party under this subdivision to compel production of the document or record.
(Amended by Stats. 1989, Ch. 868, Sec. 9. Effective September 26, 1989.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 1 - Department of Savings and Loan › Section 8010.

8010. The commissioner, after a determination of value made in accordance with Article 4 (commencing with Section 8150) of Chapter 7, may order that assets, individually or in the aggregate, to the extent that the assets are overvalued on an association’s books, be charged off against current operations, or that a special reserve or reserves equal to the overvaluation be set up by transfers from retained earnings or reserves.
(Amended by Stats. 1989, Ch. 868, Sec. 10. Effective September 26, 1989.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8030.

8030. (a) To meet the operating costs and expenses of the department in administering this division and other laws relating to savings associations or the savings association business, for the payment of which no provision is otherwise made, the commissioner shall require each association doing business in this state to pay in advance an annual assessment for its pro rata share of all operating costs and expenses as estimated by the commissioner for the ensuing year.
(b) As used in this article, “association” includes a foreign savings association doing business in this state under an approval issued by the commissioner.
(Amended by Stats. 1996, Ch. 1064, Sec. 562.5. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8031.

8031. The proportion of operating costs and expenses to be assessed against each association shall be determined and prescribed by the commissioner by regulation. The total amount assessed for all associations, together with any existing surplus, shall not exceed the amount of the budget for the ensuing fiscal year plus a reasonable reserve for contingencies.
(Amended by Stats. 1984, Ch. 287, Sec. 35. Effective July 6, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8032.

8032. (a) On or before the 20th day of June of each year the commissioner shall notify each association by mail of the amount assessed and levied against it.
(b) Except as provided in this article, an association shall pay one-half or more of the amount assessed so as to be received by the commissioner not later than the 10th day of July and shall pay the remainder so as to be received by the commissioner not later than the following 10th day of January.
(c) If payment is not received by the commissioner on time, the commissioner shall assess and collect in addition to the annual assessment, a penalty of 5 percent of the unpaid assessment for each month or part of a month that the payment is delinquent.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8033.

8033. If an association ceases to be an association by reason of merger, consolidation, conversion, acquisition of assets, or a similar type of transaction, any unpaid assessment for the fiscal year ended June 30 in which the conversion, merger, or acquisition occurs shall be due and payable on or before the day preceding the date of the conversion, merger, or acquisition. Payment of the unpaid assessment under this section shall be a condition of approval of any transaction requiring the commissioner’s approval.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8034.

8034. (a) If a new domestic association is formed during a fiscal year, the initial assessment provided for by this article shall be computed on the same basis as if such new association had been an association and assessed on or before the 20th day of June in the fiscal year preceding the initial assessment except that the initial assessment shall be based on the assets of the new association at the time of issuance of its certificate of authority and, except as provided in subdivision (b), the assessment shall be reduced, if the certificate of authority is not issued in July, by one-twelfth for each full month of the fiscal year which has expired at the time of issuance of the certificate of authority and shall be payable in full on the date of issuance.
(b) In the levy and collection of an assessment under this article, no association shall be assessed for, or be permitted to pay less than five hundred dollars ($500) for the unexpired portion of the fiscal year in which the domestic association is formed.
(Amended by Stats. 1984, Ch. 868, Sec. 15.5.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8035.

8035. If any domestic association proposes to acquire the assets of any federal association or any state or national bank by transfer, conversion, or otherwise, the initial assessment provided for by this article shall be computed on the same basis as if the federal association or state or national bank had been an association and assessed on or before the 20th day of June in the fiscal year preceding the initial assessment, except that the initial assessment shall be based on the assets of the federal association or of the state or national bank, as shown by the institution’s report to the Office of Thrift Supervision, the commissioner, or the Comptroller of the Currency, respectively, next preceding the 20th day of June in the fiscal year preceding the initial assessment and the assessment shall be reduced, if the certificate of authority is not issued in July, by one-twelfth for each full month of the fiscal year which has expired at the time of the issuance of the certificate of authority and shall be payable in full on the date of issuance.
(Amended by Stats. 1996, Ch. 1064, Sec. 563. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8035.5.

8035.5. As of the operative date of this section:
(a) The Savings Association Special Regulatory Fund is converted into a separate account in the Financial Institutions Fund and designated as the Savings and Loan Account.
(b) All moneys and other assets and all liabilities of the Savings Association Special Regulatory Fund shall be transferred to the Savings and Loan Account.
(Added by Stats. 1996, Ch. 1064, Sec. 563.5. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8036.

8036. All money collected or received by the commissioner under this division or any other law relating to savings associations or the savings association business, except money belonging to associations whose business property and assets are in the possession of the commissioner, shall be deposited with the State Treasurer to the credit of the Savings and Loan Account in the Financial Institutions Fund.
(Amended by Stats. 1996, Ch. 1064, Sec. 564. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 2 - Savings and Loan Account › Section 8037.

8037. All expenses of the department in administering the division and other laws relating to savings associations or to the savings association business shall be paid by the Savings and Loan Account; and, except as otherwise provided in Section 276 or 277, and the Savings and Loan Account shall be used only for such purposes.
(Repealed and added by Stats. 1996, Ch. 1064, Sec. 565.5. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 3 - General Supervisory Powers and Duties of Commissioner › Section 8050.

8050. (a) The commissioner shall have general supervision over all (1) associations, (2) savings and loan holding companies, (3) service corporations, (4) finance subsidiaries, and (5) other persons that are subject to the provisions of this division.
(b) The commissioner shall enforce the purposes of this division by use of the powers conferred by it and by an action in any court of competent jurisdiction if required.
(Amended by Stats. 1990, Ch. 1118, Sec. 46.7.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 3 - General Supervisory Powers and Duties of Commissioner › Section 8051.

8051. Each decision, order, or instruction shall be in writing signed by the commissioner or a deputy commissioner and shall be sent by registered or first-class mail, addressed to the home office of the appropriate association or person.
(Amended by Stats. 1986, Ch. 361, Sec. 10.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 3 - General Supervisory Powers and Duties of Commissioner › Section 8053.

8053. The commissioner may from time to time issue, amend and rescind any rules, regulations, forms, and orders that are necessary to carry out the provisions of this division, including rules and regulations governing the administration of any association, savings and loan holding company and their subsidiaries, and defining any terms whether or not used in the law insofar as the definitions are not inconsistent with the provisions of this division. The commissioner may waive any requirement of any rule or regulation in situations where, in the commissioner’s opinion, the requirement is not necessary in the public interest or for the protection of the public.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 3 - General Supervisory Powers and Duties of Commissioner › Section 8054.

8054. (a) Notwithstanding any other provision of law, whenever by statute or regulation there is extended to federal associations doing business in this state any right, power, privilege, or duty not authorized for state associations, the commissioner may by regulation extend to state associations that right, power, privilege, or duty.
(b) Any regulation adopted under this section shall expire at 12 p.m. on December 31 of the year following the calendar year in which it is promulgated.
(c) For the purposes of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code regulations adopted under this section are subject only to the provisions of Sections 11343.4, 11346.1, and 11349.6 of the Government Code.
(d) The provisions of this section shall not apply to any federal statute or regulation promulgated prior to January 1, 1984.
(Amended by Stats. 1995, Ch. 938, Sec. 9.2. Effective January 1, 1996.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 3 - General Supervisory Powers and Duties of Commissioner › Section 8055.

8055. Every final decision of the commissioner is subject to judicial review in accordance with law. An action or proceeding for judicial review pursuant to this section shall be commenced within 60 days after issuance of the final decision.
(Added by Stats. 1986, Ch. 361, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 4 - Reports and Examinations › Section 8150.

8150. (a) On or before the last day of January in each year, or within 30 days following the end of the fiscal year, each association, savings and loan holding company, and those subsidiaries of an association or savings and loan holding company that the commissioner may require, shall make an annual written report to the commissioner, in a format to be prescribed by the commissioner.
(b) Each report shall be verified by an authorized officer.
(Amended by Stats. 1984, Ch. 868, Sec. 16.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 4 - Reports and Examinations › Section 8151.

8151. Each association, savings and loan holding company and subsidiary of any association or savings and loan holding company that is required to file an annual report under Section 8150 also shall make any other reports that the commissioner may from time to time require, which shall be in a format and filed on a date that the commissioner may prescribe and shall, if required by the commissioner, be verified in the same manner as the annual report.
(Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 7 - Supervision › ARTICLE 4 - Reports and Examinations › Section 8152.

8152. From time to time the commissioner may, without previous notice, examine or cause an examination to be made into the affairs of each association, and any office of the association within or outside this state, savings and loan holding company and subsidiary of any association or savings and loan holding company subject to this division.
(Amended by Stats. 2003, Ch. 404, Sec. 15. Effective January 1, 2004.)