reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 2 - Conversion of Federal Depository Corporation Into California State Depository Corporation › Section 4951.

4951. Promptly after a conversion becomes effective, the resulting depository corporation shall:
(a) Surrender to the regulator of the converting depository corporation for cancellation the certificates of authority or licenses issued to the converting depository corporation by the regulator; and
(b) File with the regulator of the converting depository corporation such report regarding the conversion as the regulator may require.
(Added by Stats. 1982, Ch. 1411, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 2 - Conversion of Federal Depository Corporation Into California State Depository Corporation › Section 4952.

4952. (a) After a conversion becomes effective, the commissioner shall issue, upon application, a certificate under his or her official seal, stating that the converting depository corporation was converted into the resulting depository corporation and specifying the time at which the conversion became effective.
(b) Any certificate issued pursuant to subdivision (a) shall be prima facie evidence of the fact of the conversion and of the regularity of the proceedings taken for the conversion and shall be conclusive evidence of such matters in favor of any innocent purchaser or encumbrancer for value.
(Amended by Stats. 1996, Ch. 1064, Sec. 543. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4960.

4960. In this article, unless the context otherwise requires, “conversion” means any of the conversions described in Section 4961.
(Amended by Stats. 1995, Ch. 480, Sec. 192. Effective October 2, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4961.

4961. (a) A California state bank may convert into a national banking association pursuant to this article and federal law.
(b) A California state depository corporation of any class may convert into a federal depository corporation of another class pursuant to this article and federal law.
(Repealed and added by Stats. 1995, Ch. 480, Sec. 194. Effective October 2, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4961.5.

4961.5. (a) No provision of Division 1.1 (commencing with Section 1000), except the provisions of Chapter 19 (commencing with Section 1670) of Division 1.1, prohibits or restricts the conversion of a California state bank.
(b) No provision of Division 2 (commencing with Section 5000) prohibits or restricts the conversion of a California state savings and loan association.
(c) No provision of Division 7 (commencing with Section 18000), except the provisions of Chapter 10 (commencing with Section 18660) of Division 7, prohibits or restricts the conversion of a California industrial loan company.
(Amended by Stats. 2013, Ch. 334, Sec. 61. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4962.

4962. (a) A converting depository corporation shall make a plan of conversion, stating:
(1) That the converting depository corporation shall be converted into the resulting depository corporation.
(2) Proposed articles of the resulting depository corporation.
(3) Manner of converting the securities of the converting depository corporation into securities of the resulting depository corporation.
(4) Such other provisions as may be appropriate.
(b) (1) The plan of conversion shall be approved by the board of the converting depository corporation, and the principal terms of the plan of conversion shall be approved by the outstanding shares of the converting depository corporation.
(2) (A) Any amendment to the plan of conversion shall be approved by the board of the converting depository corporation and, if the amendment changes any of the principal terms of the plan of conversion, by the outstanding shares of the converting depository corporation.
(B) If the plan of conversion is amended and if the amendment is approved as required by subparagraph (A), the plan of conversion, as thus amended, shall constitute the plan of conversion.
(3) Any approval of the outstanding shares of the converting depository corporation required by this subdivision may be given before or after the approval of the board of the converting depository corporation.
(c) The board of the converting depository corporation may, in its discretion and without further approval of the outstanding shares, abandon the conversion at any time before the conversion becomes effective.
(Added by Stats. 1982, Ch. 1411, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4963.

4963. A conversion shall have the same effect as provided in Section 4950 in the case of a conversion of the type defined in Section 4940.
(Amended by Stats. 1995, Ch. 480, Sec. 197. Effective October 2, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4964.

4964. Promptly after a conversion becomes effective, the resulting depository corporation shall:
(a) Surrender to the commissioner for cancellation the certificates of authority or licenses issued by the commissioner to the converting depository corporation; and
(b) File with the commissioner such report of the conversion as the commissioner may require.
(Amended by Stats. 1996, Ch. 1064, Sec. 544. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4965.

4965. (a) After a conversion becomes effective, the resulting depository corporation may issue an officers’ certificate, stating that the converting depository corporation converted into the resulting depository corporation and specifying the time at which the conversion became effective.
(b) Any certificate issued pursuant to subdivision (a) shall be prima facie evidence of the fact of the conversion and of the regularity of the proceedings taken for the conversion and shall be conclusive evidence of such matters in favor of any innocent purchaser or encumbrancer for value.
(Added by Stats. 1982, Ch. 1411, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 1.6 - DEPOSITORY CORPORATIONS—SALE, MERGER, AND CONVERSION › CHAPTER 5 - Conversion › ARTICLE 3 - Conversion of California State Depository Corporation Into Federal Depository Corporation › Section 4966.

4966. (a) Within 60 days after a conversion, the resulting depository corporation shall file with the Secretary of State an officers’ certificate reciting the name of the converting depository corporation, the name of the resulting depository corporation, the effective date of the conversion, and that the conversion has been completed in compliance with the provisions of federal law. The Secretary of State shall enter the fact of the conversion on the Secretary of State’s corporation records for the converting depository corporation, and the converting depository corporation shall thereafter not be deemed to be a corporation organized under the laws of this state.
(b) As to any conversion, whenever effected, if an officers’ certificate has not been filed pursuant to subdivision (a) within 60 days after the completion of the conversion, the commissioner may file a report with the Secretary of State setting forth, to the extent the commissioner has knowledge he or she considers reliable, the recitals specified in subdivision (a), and the Secretary of State shall record the fact of the conversion with the same effect as provided in subdivision (a).
(Amended by Stats. 1996, Ch. 1064, Sec. 545. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4974.

4974. (a) Any compliance failure that was not willful or intentional and resulted from a bona fide error, that occurred notwithstanding the maintenance of procedures reasonably adopted to avoid those errors, including, but not limited to, those involving clerical, calculation, computer malfunction and programming, and printing errors shall be corrected no later than 45 days after receipt of the complaint or discovery of the error. A person who originates a covered loan shall not be administratively, civilly, or criminally liable for a bona fide error corrected pursuant to this section.
(b) If a person who originates covered loans makes a loan where the person knew of and showed reckless disregard for a violation of this division by a broker, the person and broker shall be jointly and severally liable for all damages awarded under this division with respect to the broker’s unlawful conduct.
This section does not impose or transfer liability for a breach of the broker’s fiduciary duty.
(Amended by Stats. 2001, Ch. 733, Sec. 3. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4975.

4975. (a) (1) Any licensed person who violates any provision of Section 4973, 4979.6, or 4979.7 shall be deemed to have violated that person’s licensing law.
(2) After a knowing and willful violation, the licensing agency may bring a proceeding to suspend the license of the licensed person for not less than six months and not more than three years.
(b) After a knowing and willful violation resulting in a second or subsequent administrative or civil action, the licensing agency may bring a proceeding to permanently revoke the license of the licensed person or impose any lesser licensed sanction for at least three years.
(c) A licensing agency may exercise any and all authority and powers available to it under any other provisions of law, to administer and enforce this division including, but not limited to, investigating and examining the licensed person’s books and records, and charging and collecting the reasonable costs for these activities. The licensing agency shall not charge a licensed person twice for the same service. Any civil, criminal, and administrative authority and remedies available to the licensing agency pursuant to its licensing law may be sought and employed in any combination deemed advisable by the licensing agency to enforce the provisions of this division.
(d) Nothing in this section shall be construed to impair or impede a licensing agency’s authority under any other provision of law.
(Amended by Stats. 2001, Ch. 733, Sec. 4. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4977.

4977. (a) A licensing agency may, after appropriate notice and opportunity for hearing, by order levy administrative penalties against a person who violates any provision of this division, and the person shall be liable for administrative penalties of not more than two thousand five hundred dollars ($2,500) for each violation. Except for licensing agencies exempt from the provisions of the Administrative Procedure Act, any hearing shall be held in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the licensing agency shall have all the powers granted under that act.
(b) Any person who willfully and knowingly violates any provision of this division shall be liable for a civil penalty of not more than twenty-five thousand dollars ($25,000) 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 licensing agency in any court of competent jurisdiction.
(c) Nothing in this section requires exhaustion of administrative remedies prior to an injured party bringing a civil action.
(d) If the licensing agency determines that it is in the public interest, the licensing agency may include, in any action for penalties authorized by subdivision (b), a claim for relief in addition to the penalties, including a claim for restitution or disgorgement, and the court shall have jurisdiction to award the additional relief.
(e) Nothing in this section shall be construed to impair or impede the Attorney General from representing a licensing agency in bringing an action to enforce this division at the request and on behalf of the licensing agency.
(f) In any action brought by the licensing agency, or the Attorney General acting at the request and on behalf of the licensing agency, under this division in which a judgment against a person is rendered, the licensing agency or the Attorney General shall be entitled to recover costs which, in the discretion of the court, may include an amount representing reasonable attorney’s fees and investigative expenses for services rendered for deposit in the appropriate fund of that licensing agency.
(g) The amounts collected under subdivisions (a) and (b) shall be deposited in the appropriate fund of the licensing agency to be used by that licensing agency, subject to appropriation by the Legislature, for the purposes of education and enforcement in connection with abusive lending practices.
(Amended by Stats. 2001, Ch. 733, Sec. 5. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4978.

4978. (a) A person who fails to comply with the provisions of this division is civilly liable to the consumer in an amount equal to any actual damages suffered by the consumer, plus attorneys fees and costs. For a willful and knowing violation of this division, the person shall be liable to the consumer in the amount of fifteen thousand dollars ($15,000) or the consumers actual damages, whichever is greater, plus attorneys fees and costs.
(b) (1) If a provision in a contract in a covered loan violates subdivision (a), (b), (c), (d), (e), or (i) of Section 4973, Section 4979.6, or Section 4979.7, that provision is unenforceable. A court in which any action is brought by, or on behalf of, an aggrieved consumer for relief may issue an order or injunction to reform the terms of the covered loan to conform to the provisions of this division.
(2) A court may, in addition to any other remedy, award punitive damages to the consumer upon a finding that such damages are warranted pursuant to Section 3294 of the Civil Code.
(c) Nothing in this section is intended, nor shall be construed, to abrogate existing common law provisions prohibiting double recovery of damages.
(Amended by Stats. 2001, Ch. 733, Sec. 6. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4978.6.

4978.6. A person who originates covered loans shall inform any employee, who originates covered loans on behalf of the person, of the administrative or civil penalties for a violation of this division.
(Amended by Stats. 2001, Ch. 733, Sec. 7. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4979.

4979. Upon request, a person who originates a covered loan shall provide the licensing agency or the consumer, at no cost, documentation regarding his or her loan that clearly demonstrates whether any loan is a covered loan. This documentation shall include, but not be limited to, full disclosure of the original principal balance, the annual percentage rate, and the total points and fees, as defined in Section 4970.
(Amended by Stats. 2001, Ch. 733, Sec. 8. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4979.5.

4979.5. (a) A person who provides brokerage services to a borrower in a covered loan transaction by soliciting lenders or otherwise negotiating a consumer loan secured by real property, is the fiduciary of the consumer, and any violation of the person’s fiduciary duties shall be a violation of this section. A broker who arranges a covered loan owes this fiduciary duty to the consumer regardless of who else the broker may be acting as an agent for in the course of the loan transaction.
(b) Except for a broker or a person who provides brokerage services, no licensed person or subsequent assignee shall have administrative, civil, or criminal liability for a violation of this section.
(Added by Stats. 2001, Ch. 732, Sec. 1. Effective January 1, 2002. Applicable, by Sec. 3 of Ch. 732, to consumer loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4979.6.

4979.6. A person who originates a covered loan shall not make a covered loan that finances points and fees in excess of one thousand dollars ($1,000) or 6 percent of the original principal balance, exclusive of points and fees, whichever is greater.
(Added by Stats. 2001, Ch. 732, Sec. 1. Effective January 1, 2002. Applicable, by Sec. 3 of Ch. 732, to consumer loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4979.7.

4979.7. On or after July 1, 2002, a person who originates a consumer loan shall not finance, directly or indirectly, into a consumer loan or finance to the same borrower within 30 days of a consumer loan any credit life, credit disability, credit property, or credit unemployment insurance premiums, or any debt cancellation or suspension agreement fees, provided that credit insurance premiums, debt cancellation, or suspension fees calculated and paid on a monthly basis shall not be considered financed by the person originating the loan. For purposes of this section, credit insurance does not include a contract issued by a government agency or private mortgage insurance company to insure the lender against loss caused by a mortgagor’s default.
(Amended by Stats. 2001, Ch. 733, Sec. 9. Effective January 1, 2002. Applicable, by Sec. 10 of Ch. 733, only to covered loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.7 - COVERED LOANS › CHAPTER 3 - Enforcement › Section 4979.8.

4979.8. The provisions of this division shall not impose liability on an assignee that is a holder in due course. The provisions of this division shall not apply to persons chartered by Congress to engage in secondary mortgage market transactions.
(Added by Stats. 2001, Ch. 732, Sec. 1. Effective January 1, 2002. Applicable, by Sec. 3 of Ch. 732, to consumer loans applied for on or after July 1, 2002.)
2023 California Code › Financial Code - FIN › DIVISION 1.8 - SECURITIES SALES › Section 4982.

4982. Any violation of this division by a bank is a violation of Division 1.1 (commencing with Section 1000); a violation by a savings association is a violation of Division 2 (commencing with Section 5000); a violation by a credit union is a violation of Division 5 (commencing with Section 14000); and a violation by an industrial loan company is a violation of Division 7 (commencing with Section 18000).
(Amended by Stats. 2013, Ch. 334, Sec. 63. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.8 - SECURITIES SALES › Section 4983.

4983. Nothing in this division shall be construed or interpreted to mean that this division in any way gives a financial institution the authority to offer or sell any type of security that it could not otherwise offer or sell under state or federal law.
(Added by Stats. 1990, Ch. 1545, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 1.9 - PERSONS CONNECTED WITH FINANCIAL INSTITUTIONS › Section 4990.

4990. (a) Any person convicted of a felony violation of any of the provisions specified in subdivision (b) shall not serve in any capacity as a director or officer or in any other position involving any management duties with a financial institution in this state with accounts insured by an agency or instrumentality of the United States or a private share insurance or guaranty arrangement. This subdivision does not, however, apply to any director or officer of a financial institution, or to persons serving in managerial positions for financial institutions, whose office or employment with a financial institution commenced, and whose felony conviction occurred, prior to January 1, 1991.
(b) Subdivision (a) applies to felony convictions of offenses specified in Chapter 10 (commencing with Section 1320) of Division 1.1, Article 4 (commencing with Section 5300) of Chapter 1 of Division 2, Article 8 (commencing with Section 14750) of Chapter 4 of Division 5, and Chapter 6 (commencing with Section 18435) of Division 7. Subdivision (a) also applies to felony convictions of offenses specified in provisions of the laws of the United States added or amended by the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73).
(c) On and after January 1, 1991, any person who seeks employment by, or a controlling interest in, a financial institution specified in subdivision (a) shall, as a condition to obtaining that employment or controlling interest, permit the financial institution, its regulatory agency, or both to have access to that person’s state summary criminal history information, as defined in Section 11105 of the Penal Code, for purposes of determining whether the person has a prior conviction of a felony offense specified in subdivision (b) or any theft offense.
(d) Any state summary criminal history information obtained pursuant to this subdivision shall be kept confidential and no recipient under this subdivision shall disclose the contents other than for the purpose of determining eligibility for employment by, or acquisition of a controlling interest in, a financial institution specified in subdivision (a).
(e) The authority granted by this section to the commissioner and other regulatory agencies shall be in addition to any other authority granted by law to obtain information about the background of any person. Nothing in this section shall be construed to limit any authority of the commissioner or any regulatory agency otherwise provided by law.
(Amended by Stats. 2013, Ch. 334, Sec. 64. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.9 - PERSONS CONNECTED WITH FINANCIAL INSTITUTIONS › Section 4991.

4991. (a) In response to a request by another bank, savings association, credit union, or any other financial institution it is not unlawful for a bank, savings association, credit union, or any other financial institution to provide a written employment reference which advises of the applicants’ involvement in a theft, embezzlement, misappropriation, or other defalcation which has been reported to state or federal authorities pursuant to state or federal banking or financial institutions law. In order for the immunity provided in subdivision (b) to apply, a copy of the written employment reference shall be sent concurrently by the financial institution providing the reference, to the last known address of the person concerning whom the reference is provided.
(b) No bank, savings association, credit union, or any other financial institution shall be civilly liable for providing an employment reference as specified in subdivision (a), unless the information provided is false and the bank, savings association, credit union, or other financial institution providing the false information does so with knowledge and malice.
(Added by Stats. 1990, Ch. 947, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.

4995. The following definitions shall apply for purposes of this division:
(a) “Higher-priced mortgage loan” has the meaning set forth in Section 1026.35 of Title 12 of the Code of Federal Regulations.
(b) “Licensed person” means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Financing Law (Division 9 (commencing with Section 22000)), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000)), a commercial or industrial bank organized under the Banking Law (Division 1.1 (commencing with Section 1000)), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000)), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000)).
(c) “Mortgage broker” means a licensed person who provides mortgage brokerage services. For purposes of this division, a licensed person who makes home loans is a “mortgage broker,” and subject to the requirements of this division applicable to mortgage brokers, only with respect to transactions in which the licensed person provides mortgage brokerage services.
(d) “Mortgage brokerage services” means arranging or attempting to arrange, as exclusive agent for the borrower or as dual agent for the borrower and lender, for compensation or in expectation of compensation, paid directly or indirectly, a higher-priced mortgage loan made by an unaffiliated third party.
(Amended by Stats. 2019, Ch. 143, Sec. 57. (SB 251) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.1.

4995.1. Notwithstanding any other provision of law, the maximum amount of a prepayment penalty that may be imposed by a licensed person in connection with a higher-priced mortgage loan shall not exceed 2 percent of the principal balance prepaid, for prepayment of the loan during the first 12 months following loan consummation or 1 percent of the principal balance prepaid, for prepayment of the loan during the second 12 months following loan consummation.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.3.

4995.3. (a) Any licensed person who violates any provision of this division shall be deemed to have violated that person’s licensing law.
(b) The licensing agency may, by order and after appropriate administrative hearing, prohibit licensees under this division from engaging in acts or practices in connection with higher-priced mortgage loans that the licensing agency finds to be unfair, deceptive, or designed to evade laws of this state.
(c) A violation of Section 2923.1 of the Civil Code in connection with a higher-priced mortgage loan is a violation of this division.
(d) A violation of the provisions of Part 226 of Title 12 of the Code of Federal Regulations, relating to prepayment penalties in connection with higher-priced mortgage loans, is a violation of this division.
(e) The provisions of this division may be enforced only by the Attorney General or the licensed person’s licensing agency. Any licensed person who willfully and knowingly violates any provision of this division shall be liable for a civil penalty of not more than ten thousand dollars ($10,000) for each violation.
(f) A prepayment penalty or yield spread premium provision of a higher-priced mortgage loan that violates this division shall be unenforceable.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.4.

4995.4. The provisions of this division shall apply to higher-priced mortgage loans originated on or after July 1, 2010.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.5.

4995.5. The provisions of this division are severable. If any provision of this division or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 1.10 - HIGHER-PRICED MORTGAGE LOANS › Section 4995.6.

4995.6. Nothing in this division shall be construed to affect any other rights or remedies otherwise available under the law.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.

5100. When used in this division, the words and phrases set forth in this article shall have the meanings given in this article unless the context requires another meaning.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.2.

5100.2. For purposes of this division:
(a) Any reference to regulations of the federal Office of the Comptroller of the Currency or the Federal Deposit Insurance Corporation shall also be deemed to include and refer to regulations adopted by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation, to the extent these regulations have been continued in effect and made enforceable by the Office of the Comptroller of the Currency or Federal Deposit Insurance Corporation, respectively, pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73).
(b) Any reference to charters issued by the Office of the Comptroller of the Currency shall also be deemed to include and refer to charters issued by the Federal Home Loan Bank Board.
(Amended by Stats. 2016, Ch. 277, Sec. 9. (AB 2907) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.5.

5100.5. “Affiliated person” of a savings association means the following:
(a) A director, officer, or controlling person of the savings association.
(b) A spouse of a director, officer, controlling person of the savings association.
(c) A member of the immediate family of a director, officer, or controlling person of the savings association, who has the same home as that person or who is a director or officer of any subsidiary of the savings association or of any holding company affiliate of the savings association.
(d) Any corporation or organization other than the savings association or a corporation or organization through which the savings association operates, of which a director, officer or controlling person of the savings association meets any of the following criteria:
(1) Is chief executive officer, chief financial officer, or a person performing similar functions.
(2) Is a general partner.
(3) Is a limited partner who, directly or indirectly either alone or with his spouse and the members of his immediate family who are also affiliated persons of the savings association, owns an interest of 10 percent or more in the partnership (based on the value of his contribution) or who, directly or indirectly with other directors, officers, and controlling persons of the savings association and their spouses and their immediate family members who are also affiliated persons of the savings association owns an interest of 25 percent or more in the partnership.
(4) Directly or indirectly either alone or with his or her spouse and the members of his or her immediate family who are also affiliated persons of the savings association, owns or controls 10 percent or more of any class of equity securities or owns or controls, with other directors, officers, and controlling persons of the savings association and their spouses and their immediate family members who are also affiliated persons of the savings association, 25 percent or more of any class of equity securities.
(e) Any trust or other estate in which a director, officer, or controlling person of the savings association or the spouse of the person has a substantial beneficial interest or as to which the person or his or her spouse serves as trustee or in a similar fiduciary capacity.
(Repealed and added by Stats. 1990, Ch. 1118, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.6.

5100.6. “Affiliate” of a savings association, unless otherwise defined, includes any corporation, business trust, unincorporated association or other similar organization which meets the criteria of subdivision (a), (b), or (c), as follows:
(a) The savings association directly or indirectly, owns or controls either a majority of the voting shares or more than 50 per centum of the number of shares voted for the election of its directors, trustees, or other persons exercising similar functions at the preceding election, or controls in any manner the election of a majority of its directors, trustees, or other persons exercising similar functions.
(b) Control thereof is held, directly or indirectly through stock ownership or in any other manner, by the shareholders of a savings association who own or control either a majority of the shares of the savings association or more than 50 per centum of the number of shares voted for the election of directors of that savings association at the preceding election, or by trustees for the benefit of the shareholders of any savings association.
(c) A majority of its directors, trustees, or other persons exercising similar functions are directors of any one savings association.
(Added by Stats. 1990, Ch. 1118, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.7.

5100.7. “Controlling person” of a savings association means any person or entity which (a) either directly or indirectly or acting in concert with one or more other persons or entities, owns, controls, or holds with power to vote, or holds proxies representing, 10 percent or more of the voting shares or rights of the association or (b) controls in any manner the election or appointment of a majority of the directors of the association. However, a director of a savings association shall not be deemed to be a controlling person of the association based upon his or her voting, or acting in concert with other directors in voting, proxies (a) obtained in connection with an annual solicitation of proxies or (b) obtained from savings account holders and borrowers if the proxies are voted as directed by a majority vote of the entire board of directors of that association, or of a committee of those directors if the committee’s composition and authority are controlled by a majority vote of the entire board and if its authority is revocable by such a majority.
(Added by Stats. 1990, Ch. 1118, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.8.

5100.8. “Immediate family” of any natural person means any of the following (whether by the full or half blood or by adoption):
(a) The person’s spouse, father, mother, children, brothers, sisters, and grandchildren.
(b) The father, mother, brothers, and sisters of the person’s spouse.
(c) The spouse of a child, brother, or sister of the person.
(Added by Stats. 1990, Ch. 1118, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5100.9.

5100.9. “Institution-affiliated party” means any of the following:
(a) Any director, officer, employee or controlling stockholder of, or agent for, a savings association.
(b) Any person who has filed or is required to file an application to become a savings and loan holding company with the commissioner pursuant to Section 5801.
(c) Any shareholder, consultant, joint venture partner, and any other person as determined by the commissioner (by regulation or case-by-case) who participates in the conduct of the affairs of a savings association.
(d) Any independent contractor (including any attorney, appraiser, or accountant) who knowingly or recklessly participates in any of the following which caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the savings association:
(1) Any violation of law or regulation.
(2) Any breach of fiduciary duty.
(3) Any unsafe or unsound practice.
(Added by Stats. 1990, Ch. 1118, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5101.

5101. “Approved by the members,” in the case of a mutual association, means approved by a majority of all votes cast at a duly held regular or special meeting or by the written consent (including consents by proxy) of a majority of the total votes of members outstanding at the close of business on the next business day prior to the date that the requisite written consents have been filed with the association.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5102.

5102. (a) “Association” or “savings association” means a mutual or stock savings association, savings and loan association or savings bank subject to the provisions of this division, but excluding a federal association.
(b) “Federal association” means a savings and loan association or federal savings bank that is chartered by the Office of Thrift Supervision under Section 5 of the Home Owners’ Loan Act of 1933 (12 U.S.C. Sec. 1464), as amended.
(Amended by Stats. 1990, Ch. 1118, Sec. 8.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5103.

5103. “Certificate of authority” means:
(a) A certificate of authority to transact the business of an association, which is issued by the commissioner pursuant to this division.
(b) An uncanceled annual license issued to an association under prior law which is valid on the effective date of this division.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5103.5.

5103.5. “Commercial paper” means any note, draft, or bill of exchange which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.
(Added by Stats. 1984, Ch. 225, Sec. 1. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5104.

5104. “Commissioner” means the Commissioner of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 108. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5105.

5105. “Community” means a centralized area or locality in which a body of inhabitants is gathered in one group having common residential, social, or business interests. The term does not necessarily mean a municipal corporation or other political subdivision. A community need not be limited by lines and boundaries. A city, village, town, or other governmental unit, either incorporated or unincorporated, may constitute one community, but a large, populous area under one or more forms of government may be composed of several communities.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5105.5.

5105.5. “Consumer loan” means a loan for personal, family, or household purposes, and loans reasonably incident thereto, and may be made as either open-end or closed-end consumer credit, but does not include credit extended in connection with credit cards or bona fide overdraft loans.
(Added by Stats. 1984, Ch. 225, Sec. 2. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5105.8.

5105.8. “Corporate debt security” means a marketable obligation, evidencing the indebtedness of any corporation in the form of a bond, note, or debenture, or both note and debenture, which is commonly regarded as a debt security and is not predominantly speculative in nature. A security is marketable if it may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.
(Added by Stats. 1984, Ch. 225, Sec. 3. Effective June 21, 1984.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5106.

5106. “Department” means the Department of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 452, Sec. 109. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5107.

5107. “Financial institution” means a thrift institution, commercial bank, or trust company.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5108.

5108. “Impaired condition” means a condition in which the assets of an association in the aggregate do not have a value, as determined in accordance with generally accepted accounting principles, equal to or greater than the aggregate amount of liabilities of the association to its creditors, including the holders of its savings accounts and all other persons who are creditors.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5109.

5109. “Mutual association” means an association for which the articles of incorporation do not authorize the issuance of capital stock.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5110.

5110. “Member” means a person holding a savings account of a mutual association. A joint and survivorship or other multiple owner constitutes a single membership.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5111.

5111. “Mutual capital certificate” means a certificate evidencing an investment in a mutual association and issued pursuant to provisions of this division.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5112.

5112. “Net worth certificate” means a certificate issued by an association in accordance with Section 13i of the Federal Deposit Insurance Act, as amended (12 U.S.C., Sec. 1823i) and regulations promulgated thereunder by the Federal Deposit Insurance Corporation.
(Amended by Stats. 1990, Ch. 1118, Sec. 8.5.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5113.

5113. “Person” means any individual, domestic, or foreign corporation, entity, voting trust, business trust, partnership, limited liability company, association, syndicate, organized group of persons, or similar organization, group or entity, whether incorporated or not.
(Amended by Stats. 1994, Ch. 1010, Sec. 113. Effective January 1, 1995.)
2023 California Code › Financial Code - FIN › DIVISION 2 - SAVINGS ASSOCIATION LAW › CHAPTER 1 - Short Title, General Definitions, and General Provisions › ARTICLE 2 - General Definitions › Section 5114.

5114. “Primarily residential property” means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following:
(a) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of more than one dwelling unit.
(b) A structure or structures designed or used primarily for residential rather than nonresidential purposes for students, residents, and persons under the care of, or the employees or members of the staff of, an educational, health, or welfare institution or facility.
(c) A structure or structures that are used in part for residential purposes for not more than one family and in part for business purposes if the residential use of the structure or structures is substantial and permanent and not merely transitory.
(Added by Stats. 1983, Ch. 1091, Sec. 2.)