reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18210.

18210. (a) Except as provided in Sections 18205.5 and 18209 and subject to subdivisions (b) and (c), an industrial loan company shall not make any loan or purchase or discount any note secured primarily by real property unless the loan or other obligation is repayable in substantially equal weekly, semimonthly, monthly, or quarterly installments during its term, which shall not exceed 30 years and 30 days from the date the loan or other obligation is made or acquired by the company. Equal installment requirements shall not apply to adjustable or variable rate loans or obligations made or purchased by the industrial loan company in accordance with Title VIII of the Garn-St. Germaine Depository Institutions Act of 1982 and any applicable regulations, guidelines, and policies adopted thereunder. However, an industrial loan company may make loans secured by first trust deeds on real property containing single family, or one to four residential, units provided that the repayment period for each loan does not exceed 40 years and 30 days from the date the loan is made by the company. All loans with repayment periods in excess of 30 years and 30 days shall not exceed in the aggregate 5 percent of all outstanding loans and obligations of the company.
(b) Any consumer loan or any purchase or discount of any consumer obligation having a term in excess of three years from the date the loan or other obligation is made or acquired by the company shall be secured solely by real property or solely by personal property. However, if the original principal amount of the consumer loan or obligation is twenty thousand dollars ($20,000) or more, then the loan or obligation shall be secured solely by real property or solely by personal property, or by both real property and personal property. All loans and obligations made and purchased pursuant to this subdivision shall be repayable in installments and within a term not to exceed the limitations set forth in subdivision (a), except that consumer loans or obligations secured solely by personal property shall have a term not to exceed the term provided for in Section 18205 and except as otherwise may be provided for in Sections 18207, 18208, and 18209. The equal installment requirements set forth in subdivision (a) shall not apply to loans or obligations made or purchased by the industrial loan company in accordance with Title VIII of the Garn-St. Germaine Depository Institutions Act of 1982 and any applicable regulations, guidelines, and policies adopted thereunder.
(c) In order to ensure the safety and soundness of industrial loan companies and to avoid an unreasonable concentration of loans and obligations that could result in balloon payments, all loans and obligations with a term in excess of 15 years and 30 days shall be repaid in substantially equal weekly, semimonthly, monthly, or quarterly installments during their term.
(Amended by Stats. 2000, Ch. 135, Sec. 61. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18211.

18211. No charge shall be collected unless a loan is made, except that an industrial loan company may charge, contract for, and receive a fee in connection with making a written commitment to make a loan, secured by real property having a face amount in excess of five thousand dollars ($5,000) whether or not the loan is consummated, or in connection with the purchase, sale, or origination of a lease as lessor and may charge, contract for, and receive an application fee for a loan having an original principal balance in excess of five thousand dollars ($5,000) or for a lease which payments are in excess of five thousand dollars ($5,000), provided, however, that a disclosure statement setting forth the amount of the fee, which may be reviewed by the commissioner as to form and content, shall be provided to each person to whom an application fee is charged. The commitment fee or the loan application fee with respect to a consumer loan shall be limited to the actual expenses incurred.
(Amended by Stats. 1987, Ch. 790, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18212.

18212. (a) The charges by an industrial loan company, broker, and all other persons on any loan, forbearance of money, credit, goods, or things in action under this division, shall not exceed in the aggregate:
(1) Two percent per month on that part of the unpaid principal balance of any loan up to, including, but not in excess of, one thousand dollars ($1,000).
(2) One percent per month on any remainder of such unpaid principal balance in excess of one thousand dollars ($1,000).
(b) As an alternative to the charges authorized by subdivision (a), a company may contract for and receive charges at a rate not exceeding 1.6 percent per month on the unpaid principal balance.
(Amended by Stats. 1979, Ch. 270.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18212.1.

18212.1. As an alternative to the charges authorized by Section 18212 a licensee may contract for and receive charges at a rate not exceeding five-sixths of 1 percent per month plus a percentage per month equal to one-twelfth of the annual rate prevailing on the 25th day of the second month of the quarter preceding the quarter in which the loan is made as established by the Federal Reserve Bank of San Francisco on advances to member banks under Section 13 and 13a of the Federal Reserve Act as now in effect or hereafter from time to time amended, or if there is no such single determinable rate for advances, the closest counterpart of such rate as shall be designated by the commissioner. Charges shall be calculated on the unpaid principal balance.
(Amended by Stats. 1996, Ch. 1064, Sec. 588. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18212.2.

18212.2. In addition to the charges authorized by Section 18212 or 18212.1 an industrial loan company may contract for and receive an administrative fee, which shall be fully earned immediately upon making the loan, with respect to a loan of a principal amount of not more than two thousand five hundred dollars ($2,500) at a rate not in excess of 5 percent of the principal amount or fifty dollars ($50), whichever is lesser. No administrative fee may be contracted for or received in connection with refinancing a loan unless at least one year has elapsed since receipt of a previous administrative fee paid by the borrower.
(Amended by Stats. 1984, Ch. 890, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18213.

18213. Notwithstanding any other provision of law not within this division, industrial loan companies making loans pursuant to this division may not precompute interest on such loans.
(Repealed and added by Stats. 1979, Ch. 270.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18215.

18215. An industrial loan company may contract for, collect, and receive at the time of making the loan or at any time thereafter, any of the following:
(a) Any cost of publication as required by law.
(b) The statutory fee paid by it to any public officer for acknowledging, filing, recording, or releasing in any public office any instrument securing the loan or executed in connection with a loan.
(c) Premiums of the kind and to the extent described in paragraph (2) of subsection (e) of Section 226.4 of Regulation Z promulgated by the Board of Governors of the Federal Reserve System (12 C.F.R. 226.1 et seq.).
These amounts are not included in computing the maximum charges which may be made under this division.
(Amended by Stats. 1984, Ch. 199, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18216.

18216. (a) Notwithstanding Section 18211, an appraisal fee may be charged to an applicant or borrower by an industrial loan company in connection with an application or request for any loan having a face amount in excess of five thousand dollars ($5,000) that is secured primarily by real property whether or not the loan is made. That fee shall not exceed the actual cost of the appraisal. The appraisal shall be rendered to the industrial loan company in writing by a qualified appraiser approved pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, and any applicable regulations, guidelines, and policies adopted thereunder. Only one fee for appraising the same real property made in connection with the same applicant or borrower may be collected unless the applicant or borrower has obtained a new or additional loan and more than one year has elapsed since the prior appraisal. The fee is not included in charges as defined in this division or in computing the maximum charges that may be made under this division.
(b) If an appraisal fee is charged, a copy of the appraisal report shall be provided by the industrial loan company upon the request of the borrower or applicant at or before the closing of a loan transaction.
(Amended by Stats. 1995, Ch. 272, Sec. 1. Effective January 1, 1996.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18217.

18217. An escrow fee of a reasonable amount may be charged for any loan made which is secured primarily by real property when such services are actually performed. Such fee shall be considered reasonable when paid to a company licensed to do business under the Escrow Law, Division 6 (commencing with Section 17000), or any person exempted by the Escrow Law, provided that such fees are comparable to fees being charged by escrow companies so authorized to do business in this state. Such fee is not included in computing the maximum charges which may be made under this division.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18218.

18218. Notwithstanding any other provision of this division, an industrial loan company, in the collection of a delinquent loan of an unpaid principal balance, may do any of the following:
(a) Collect and receive the court costs and reasonable attorney’s fees allowed by a court in a judgment against a defaulting debtor.
(b) Contract for, collect, and receive the bona fide expenses actually incurred and paid by the industrial loan company, not exceeding 10 percent of the unpaid principal balance of the loan where no judgment at law is sought.
(c) Contract for, collect, and receive the bona fide expenses actually incurred and paid by the industrial loan company in obtaining a certificate of compliance or certificate of noncompliance issued for a motor vehicle pursuant to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code and the rules and regulations of the State Air Resources Board prior to the consignment of the vehicle for sale at public auction, pursuant to Sections 24007 and 24007.5 of the Vehicle Code.
(Amended by Stats. 1991, Ch. 1054, Sec. 1.3.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18218.5.

18218.5. With respect to a loan under this division, a fee not to exceed fifteen dollars ($15) for return by a depository institution of a dishonored check, negotiable order of withdrawal, or share draft may be charged and collected by the licensee. The fee is not included in charges as defined in this division or in determining the applicable maximum charges which may be made under this article.
(Amended by Stats. 1993, Ch. 101, Sec. 4. Effective January 1, 1994.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18219.

18219. An industrial loan company shall not induce or permit any borrower to split up or divide any loan and thereby contract for or receive a higher rate of charge than would otherwise be permitted by this division.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18220.

18220. An industrial loan company shall not induce any spouses, jointly or severally, to become obligated, directly or contingently or both, under more than one contract of loan at the same time, with the result of obtaining a higher rate of charge than would otherwise be permitted by this division.
(Amended by Stats. 2016, Ch. 50, Sec. 38. (SB 1005) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18221.

18221. Nothing in this division shall prevent an industrial loan company from transacting loan contracts with different borrowers and from contracting for and receiving, up to and including the highest rate of charge permitted by this division at the time of making said loans; provided, however, that if any person is obligated to and does pay more than one loan contract outstanding at the same time, the entire amount of charges paid by such person and received by the industrial loan company on such loan contracts, shall not exceed the maximum that would be permitted by this division if all such loan contracts so paid were combined into one loan transaction.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 2 - Terms and Maximum Charges › Section 18222.

18222. An industrial loan company shall permit payment to be made in advance in any amount on any contract of loan at any time. The industrial loan company shall apply such payment first to all charges due up to the date of such payment and the remainder to the loan balance.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 3 - Disclosure and Loan Documents › Section 18230.

18230. Each industrial loan company shall display prominently in each place of business a full and accurate schedule of the maximum charges to be made and the method of computing the same. The schedule is subject to the approval of the commissioner.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 3 - Disclosure and Loan Documents › Section 18231.

18231. Each industrial loan company shall:
(a) Deliver or cause to be delivered to the borrowers, or any one thereof, at the time the loan is made, a written statement showing in clear and distinct terms the name and address of such company and the broker, if any. The statement shall show the date, amount, and maturity of the loan contract, how and when repayable, the nature of the security, if any, for the loan, and the agreed rate of charge.
(b) Obtain from the borrower a signed statement as to whether any person has performed any act as a broker in connection with the making of the loan. If such statement discloses a broker or other person has participated, the company shall obtain a full statement of all sums paid or payable to the broker or other person.
(c) Keep the statements required by this section for a period of two years from and after the date the loan has been paid in full, or has matured according to its terms, or has been charged off.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 3 - Disclosure and Loan Documents › Section 18233.

18233. An industrial loan company shall deliver or cause to be delivered to the person making any payment in person in cash at any office of the company, at the time such payment is made on account of any loan, a plain and complete receipt showing the total amount received and identifying the loan contract upon which such payment is applied, and showing the unpaid balance of the loan.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 3 - Disclosure and Loan Documents › Section 18234.

18234. An industrial loan company shall upon repayment of any loan in full, cancel or plainly mark “paid” and return to the borrower or person making final payment, the note evidencing the loan. If such borrower is not otherwise obligated to such company, the company shall release all security for such loan, endorse and return any certificate of ownership, and return to the borrower any security agreement, assignment, or order signed by the borrower, except such as are a part of the court record in any action, or such as have been delivered to a third person for the purpose of carrying out the terms thereof.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 3 - Disclosure and Loan Documents › Section 18235.

18235. An industrial loan company shall not take any note, promise to pay, or security agreement that does not accurately disclose the actual amount of the loan, the time for which it is made, and the agreed rate of charge, nor any instrument in which blanks are left to be filled in after execution.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 4 - Credit Cards › Section 18245.

18245. (a) Subject to any regulations that the commissioner may issue, an industrial loan company may issue credit cards and may acquire or hold obligations resulting from the use of credit cards.
(b) Except as the commissioner may otherwise provide by regulation or order, the acquiring and holding of obligations pursuant to subdivision (a) are not subject to Article 2 (commencing with Section 18205) or Article 6.5 (commencing with Section 18300).
(Added by Stats. 1998, Ch. 827, Sec. 11. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18265.

18265. An industrial loan company that has investment certificates outstanding shall not make any loan or purchase or discount any other obligation with a maturity of more than 60 months and 15 days unless all of the following conditions are met:
(a) The loan or other obligation is secured.
(b) The property, or collateral securing the loan or other obligation, is of a kind or class that has been declared eligible by regulation of the commissioner.
(c) The aggregate principal balance of such loans and other obligations outstanding with a remaining maturity of more than 60 months and 15 days at any time shall not exceed a percentage of the aggregate principal balance due on all loans and other obligations owing to the industrial loan company by rule of the commissioner.
(Amended by Stats. 1983, Ch. 858, Sec. 21.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18266.1.

18266.1. An industrial loan company may make loans and acquire obligations, the proceeds of which are used for home improvements that are secured by real property having a market value of at least 100 percent of the principal amount owing on the loan being made by the industrial loan company or obligation being acquired by the industrial loan company and on prior encumbrances, except nondelinquent tax liens, secured by the same real property. Home improvements means additions, alterations, or modifications to owner-occupied property consisting of one to four dwelling units and appurtenant buildings thereto or to the real property containing same.
(Amended by Stats. 1998, Ch. 827, Sec. 12. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18266.2.

18266.2. An industrial loan company shall file a written request for authorization to conduct business under Section 18266.1. The request shall include the following information:
(a) A description of the company’s proposed plan of business.
(b) The character, business qualifications, and other experience of the proposed officers and managers directing the line of business for which authorization is requested.
(c) Any other facts and circumstances bearing on the proposal that, in the opinion of the commissioner, may be relevant.
(Added by Stats. 1989, Ch. 889, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18266.3.

18266.3. The commissioner shall approve the request made pursuant to Section 18266.2 within 30 days after filing unless the commissioner has ascertained that the company has failed to show either of the following:
(a) That the proposed plan of business has a reasonable promise of a successful operation.
(b) That the company has a person with the necessary business qualifications, experience or ability to direct and manage the operations of the plan of business.
(Added by Stats. 1989, Ch. 889, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18268.

18268. An industrial loan company that has investment certificates outstanding shall not lend in the aggregate more than 5 percent of its capital stock and surplus not available for dividends as provided in Section 18319 upon the security of the stock of any one corporation and that stock may not exceed 10 percent of the outstanding stock of the corporation, or upon the security of the bonds of any one obligor except bonds of the United States or for the payment of which the credit of the United States is pledged, bonds of the State of California, or for the payment of which the credit of the State of California is pledged, and any security authorized in writing by the commissioner or any security authorized by rule of the commissioner.
(Amended by Stats. 1989, Ch. 663, Sec. 6. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18269.

18269. An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by improved real property in a principal amount in excess of 20 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319. An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by unimproved real property in a principal amount in excess of 10 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319.
(Amended by Stats. 1989, Ch. 663, Sec. 7. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18270.

18270. An industrial loan company may require the borrower to sign a contract of pledge, assignment, mortgage, security agreement, deed of trust, or trust receipt relating to real or personal property given by the borrower as security for the repayment of the loan and interest and charges thereon.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18271.

18271. An industrial loan company that has investment certificates outstanding shall not make loans to, or hold the obligations of, any one person as primary obligor in an aggregate principal amount in excess of 20 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319. Unsecured loans or obligations of any person as primary obligor made or held by a company may not, in any event, exceed in the aggregate principal amount 5 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319.
(Amended by Stats. 1989, Ch. 663, Sec. 8. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18272.

18272. An industrial loan company shall diversify the loans and lease obligations it makes and other obligations it acquires, both as to the types of debtors and obligors, types of collateral, and as to terms and types of repayment schedules. The requirement for diversification notwithstanding, an industrial loan company may specialize in its lending, leasing, and other authorized practices under this division. The commissioner may promulgate rules and regulations pursuant to this section.
(Amended by Stats. 1984, Ch. 873, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 5 - Limitations and Regulations of Loans and Purchased Obligations › Section 18274.

18274. The principal balances of loans made, or obligations purchased, by an industrial loan company that has investment certificates outstanding, which loans or obligations are secured by unimproved real property, shall not in the aggregate exceed 5 percent of the company’s assets unless the commissioner consents to the taking of collateral to protect an existing jeopardized obligation.
(Amended by Stats. 1986, Ch. 296, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18290.

18290. (a) As used in this division:
(1) “Credit life insurance” and “credit disability insurance” have the same meanings as defined in Section 779.2 of the Insurance Code.
(2) “Credit loss-of-income insurance” means insurance issued to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed, as defined in the policy.
(b) An industrial loan company may provide and collect the costs for credit life insurance on the life of one or more of the borrowers, or credit disability, or loss-of-income insurance, or any combination of these coverages, to provide indemnity for payments becoming due on the indebtedness, with his or her consent, the form to be approved by the Insurance Commissioner, and a copy, together with evidence of its approval by the Insurance Commissioner, to be filed with the commissioner, and in an amount not in excess of the amount of the indebtedness. The amount charged to the borrower for credit life or disability insurance shall not exceed, in the case of credit life insurance, fifty cents ($0.50) per year per one hundred dollars ($100) of indebtedness (and in the same proportion for longer or shorter maturities and larger or smaller amounts) or the amount established by or pursuant to Section 779.35 of the Insurance Code, whichever is less, or, in the case of credit disability insurance, the amount established by or pursuant to Section 779.35 of the Insurance Code.
(Amended by Stats. 1987, Ch. 1314, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18291.

18291. (a) If credit life or disability insurance is provided pursuant to this division, and if the insured borrower dies or becomes disabled during the term of the loan contract, the insurance shall be sufficient to pay the total amount due on the loan (excluding unearned charges) outstanding on the date of death, or all amounts which become due on the loan thereafter during the period of disability, as the case may be, without any exception, reservation, or limitation, subject, however, to the provisions of Section 18292.
(b) Any credit life, disability, or loss-of-income insurance as provided shall be in force as soon as the loan is made. An industrial loan company shall not require any of these coverages as a condition of making a loan.
(Amended by Stats. 1986, Ch. 813, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18292.

18292. (a) If credit disability insurance is provided pursuant to this division, it shall not provide indemnity against the risk of a borrower becoming disabled for a period of less than 14 days. The insurance may provide indemnity for any single period of continuous disability of 14 days or longer, after which the risk may become compensable. The insurance may be offered with retroactive coverage to an earlier date based upon the disability having continued for a period stated in the policy, but if insurance with retroactive coverage is offered, it shall also be offered without retroactive coverage, and the premium rate for each coverage shall be separately stated in writing to the borrower.
(b) If insurance with retroactive coverage is provided, the coverage shall provide for a prorated payment based upon the fraction of the month during which the insured is disabled, provided that the insured is continuously disabled during the waiting period set forth in the policy. If insurance without retroactive coverage is provided, the coverage shall provide for a prorated payment based upon the fraction of the month during which the insured is disabled, after first excluding the elimination period set forth in the policy. For the purpose of this subdivision, a month is any period of 30 consecutive days.
(c) Credit disability insurance, if made available by an industrial loan company, shall be available on a monthly or annual premium basis, and the premium by the month shall not exceed a pro rata relationship to the annual premium. Credit disability insurance need not be offered for a period less than the term of the loan to which it is applicable and no credit disability insurance shall be written for a period in excess of the term of the loan to which it is applicable.
(d) The monthly disability benefit payable with respect to an open end loan shall not exceed the monthly payment computed pursuant to Section 18300 on the outstanding balance at the time the disability is incurred.
(Amended by Stats. 1984, Ch. 199, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18293.

18293. If credit disability or loss-of-income insurance is provided pursuant to this division, the industrial loan company shall also deliver an understandable written statement to the borrower detailing the conditions when the borrower will be entitled to make a claim under the insurance policy and the procedure to be followed in making the claim.
(Amended by Stats. 1998, Ch. 827, Sec. 13. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18294.

18294. An industrial loan company may collect the costs for insurance of tangible personal or real property offered as security for a loan, reasonably insured against loss for a reasonable term considering the circumstances of the loan, when the policy of insurance is made payable to the borrower or any member of his family, even though the customary mortgagee clause is attached, and if the insurance is sold at standard rates through duly licensed insurance agents.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18295.

18295. An industrial loan company may collect the costs of title insurance for loans secured primarily by real property. The costs for such insurance may be collected if:
(1) The principal amount of the loan is at least one thousand dollars ($1,000);
(2) The loan is secured by a lien of a deed of trust or mortgage on real property which is the subject of such policy of title insurance;
(3) The policy of title insurance is made payable to the lender or jointly to such lender and the borrower as their interests may appear;
(4) The coverage of such insurance may not exceed the lesser of the principal amount of the loan or the fair market value of the real property less prior encumbrances;
(5) The insurance is placed at standard rates through a title insurance company authorized to do business in the State of California;
(6) In connection with the renewal or extension of a loan, the additional cash advance is at least one thousand dollars ($1,000).
Such costs as herein authorized are not included in the maximum charges which may be made under this division.
(Amended by Stats. 1983, Ch. 858, Sec. 24.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6 - Insurance Sold With Loans › Section 18296.

18296. An industrial loan company may collect the costs of insurance of the type defined by subdivision (a) of Section 12640.02 of the Insurance Code. Costs authorized by this section are not included in the maximum charges which may be made under this division.
(Added by Stats. 1984, Ch. 199, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6.5 - Open-End Loans › Section 18301.

18301. (a) Whenever authorized by the commissioner, an industrial loan company whose thrift obligations are insured by the Federal Deposit Insurance Corporation may make a secured line of credit loan. Security for line of credit loans shall be of a kind and class that has been declared eligible by the commissioner.
(b) Line of credit loans authorized under Title VIII (Alternative Mortgage Transaction Party Act of 1982) of the Garn-St. Germain Depository Institutions Act of 1982 are not subject to subdivision (a).
(c) As used in this article, “line of credit loan” means a loan whereby a borrower requests and a company disburses loan proceeds in an installment or installments during the term of the loan by an advance or series of advances, whether or not the timing of the advance or advances is known on the date the loan is approved by the company.
(d) This section does not apply to secured line of credit lending activities engaged in on or before May 1, 1989, unless, after that date there is a change in the secured line of credit plan of business by the company.
(Added by Stats. 1989, Ch. 889, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6.5 - Open-End Loans › Section 18302.

18302. An industrial loan company shall file a written request for authorization to conduct business under subdivision (a) of Section 18301. The request shall include all of the following information:
(a) A description of the company’s proposed plan of business.
(b) The character, business qualifications, and other experience of the proposed officers and managers directing the line of business for which authorization is requested.
(c) Any other facts and circumstances bearing on the proposal that, in the opinion of the commissioner, may be relevant.
(Added by Stats. 1989, Ch. 889, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 3 - Loans and Purchased Obligations › ARTICLE 6.5 - Open-End Loans › Section 18303.

18303. The commissioner shall approve the request made pursuant to Section 18302 within 30 days after filing unless the commissioner has ascertained that the company has failed to show either of the following:
(a) That the proposed plan of business has a reasonable promise of a successful operation.
(b) That the company has a person with the necessary business qualifications, experience, or ability to direct and manage the operations of the plan of business.
(Added by Stats. 1989, Ch. 889, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18315.

18315. (a) When authorized to conduct business pursuant to this division, an industrial loan company may sell and issue its investment certificates subject to the provisions of this division. The commissioner may, by written order directed to a company or by rule or regulation, impose terms and conditions upon investment certificates and the sale or redemption thereof or the payment of interest thereon, as he or she deems reasonable and necessary or advisable for the protection of the company or the public, and he or she may from time to time in his or her discretion amend, alter or revoke any such order or regulation or any condition or provision thereof.
(b) Any change in the form, terms, or provisions of outstanding investment certificates or in the rights, privileges, or restrictions upon the holder or issuer thereof is deemed a sale and issuance of investment certificates.
(c) The company named in any order issued pursuant to subdivision (a) of this section may, within 15 days after receipt thereof, file with the commissioner its written request for hearing. The filing of the request shall not operate to postpone or suspend the effectiveness of any order issued by the commissioner unless otherwise directed by the commissioner. The commissioner shall, within 15 days after the receipt of the written request or at such later time as may be mutually agreed with the company, cause the matter to be heard and shall thereafter issue his final decision. The decision may be amended or set aside by the commissioner at any time.
(d) Every order or decision of the commissioner made pursuant to this section is subject to judicial review in accordance with law.
(Amended by Stats. 1998, Ch. 827, Sec. 14. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18316.

18316. An industrial loan company may, in addition to the sale of installment investment certificates with loans, sell or negotiate investment certificates either in certificates, or in receipt book form. The certificates may provide for the payment of money at any time, either fixed or uncertain. The company may receive payments therefor in installments or otherwise, with or without an allowance of interest upon such installments.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18317.

18317. No company may have investment certificates outstanding with a person or related persons in an aggregate amount in excess of 20 percent of the unimpaired capital stock and surplus of the company not available for dividends as provided in Section 18319.
(Amended by Stats. 1989, Ch. 663, Sec. 10. Operative January 1, 1991, by Sec. 20 of Ch. 663.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18318.

18318. Investment or thrift certificates may be issued to or in the name of a minor and as such shall be for the exclusive right and benefit of such minor and may be redeemed in whole or part by said minor or his order and payment so made is a valid release and discharge to the company for such payment.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18318.5.

18318.5. An investment or thrift certificate that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2 (commencing with Section 5100) of Division 5 of the Probate Code.
(Amended by Stats. 1990, Ch. 79, Sec. 11. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18319.

18319. In no event shall an industrial loan company have outstanding at any time its investment certificates (exclusive of those hypothecated with the company issuing them) in an aggregate sum in excess of 20 times the aggregate amount of its paid-up and unimpaired capital and such of its unimpaired surplus as is declared by a bylaw of the company to be not available for cash dividends. The commissioner by rule or by order issued pursuant to Section 18315, may limit the amount of outstanding investment certificates of an industrial loan company.
(Amended by Stats. 1983, Ch. 858, Sec. 29.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18321.

18321. (a) Nothing in this division authorizes an industrial loan company to receive demand deposits.
(b) Subject to Section 18315, an industrial loan company that is a member of the Federal Deposit Insurance Corporation pursuant to Section 18521.5 may use the term “certificate of deposit” as defined in Section 18003.6 with respect to an investment certificate that does not authorize either of the following:
(1) Redemption prior to its maturity.
(2) Reduction of the interest rate payable thereon other than a variable interest rate.
(Amended by Stats. 1999, Ch. 345, Sec. 3. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18322.

18322. An industrial loan company shall obtain the written consent of the commissioner prior to accepting any moneys pursuant to Section 17409. The commissioner may, by regulation or order, impose or revise limitations and requirements, including, but not limited to, liquidity and reserve requirements, as, in the opinion of the commissioner, are necessary for safety and soundness. The commissioner shall rescind that consent if, at any time, the industrial loan company exceeds the limitations or fails to adhere to the requirements imposed or, if in the opinion of the commissioner, the continued acceptance of those moneys would pose a threat to the safety and soundness of the company.
(Added by Stats. 1990, Ch. 1306, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 4 - Investment Certificates › Section 18325.

18325. (a) An industrial loan company shall not impose any charge on a periodic investment or thrift certificate, or on an investor in an account evidenced by such certificate, for the failure of an investor to invest, or for the late investment of, any agreed periodic installment investment into such an account. An industrial loan company shall pay interest on periodic investment or thrift certificates at the same rate of interest per annum as is paid on investment or thrift certificates as to which an investor has not agreed to make periodic installment investments.
(b) As used in this section “periodic investment or thrift certificate” means an investment arrangement under which an investor undertakes to make periodic investments of a specified amount into one account, except, however, a periodic investment or thrift certificate shall not mean an impound account established for the purposes of the payment of taxes or other expenses and obligations in connection with a loan secured by real property, or a certificate of investment issued in connection with a loan pursuant to Section 18322.
(Added by Stats. 1976, Ch. 964.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18339.

18339. As of the operative date of this section:
(a) There is established an Industrial Loan Account in the Financial Institutions Fund in the State Treasury.
(b) All money on deposit with the Treasurer in the State Corporations Fund that has been received or collected by the Commissioner of Financial Protection and Innovation under this division or any other law relating to industrial loan companies or the industrial loan business, all other assets of the State Corporations Fund that have been acquired by the Commissioner of Financial Protection and Innovation under this division or any other law relating to industrial loan companies or the industrial loan business, and all liabilities of the State Corporations Fund that have been incurred under this division or any other law relating to industrial loan companies or the industrial loan business shall be transferred to the Industrial Loan Account.
(Amended by Stats. 2022, Ch. 452, Sec. 129. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18340.

18340. All money received or collected by the commissioner under this division or any other law relating to industrial loan companies or the industrial loan business shall be deposited in the State Treasury to the credit of the Industrial Loan Account of the Financial Institutions Fund.
(Amended by Stats. 1996, Ch. 1064, Sec. 589. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 7 - INDUSTRIAL LOAN COMPANIES › CHAPTER 5 - Administration and Powers of the Commissioner › ARTICLE 1 - General › Section 18340.5.

18340.5. All expenses of the department in administering this division and other laws relating to industrial loan companies or the industrial loan business shall be paid out of the Industrial Loan Account; and, except as otherwise provided in Section 276 or 277, the Industrial Loan Account shall be used only for such purposes.
(Added by Stats. 1996, Ch. 1064, Sec. 590. Effective January 1, 1997. Operative July 1, 1997.)