reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 5 - Charges on Scheduled Balances › Section 1476 - Installment Due Date: Deferment and Calculation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 5-15-84; effective thirtieth day thereafter (Register 84, No.
					 20).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 5 - Charges on Scheduled Balances › Section 1477 - Deferment Charges. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
3. Repealer filed 8-4-98;
					 operative 9-3-98 (Register 98, No. 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 5 - Charges on Scheduled Balances › Section 1478 - Deferment Charges: Required Notice and Records

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When a borrower requests deferment of the
				  payment date of an installment which is in default on the date of deferment or
				  which will become due within 15 days of such date, and such deferment is
				  granted, the finance company's records must contain some evidence thereof. This
				  must be represented by a written request from the borrower or by an appropriate
				  notation of the request in the borrower's file or upon the loan ledger
				  card.
(b) When the payment date of
				  an installment that is in default at least one full month is deferred at the
				  option of a finance company and a charge is made, the finance company shall
				  notify the borrower of such deferment and the loan file shall contain evidence
				  thereof. The notice to the borrower shall include at least the following:
(1) The amount of the deferment charge and
				  any additional credit insurance charges;
(2) The date the next installment will be
				  due;
(3) The new maturity date of
				  the loan; and
(4) The date the
				  deferment was granted.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 5 - Charges on Scheduled Balances › Section 1479 - Rebate of Precomputed Charges, Financial Code Section 22480(a)(2)(I) and (II): Rate Exceeding 22451. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 12-31-74 as an emergency; designated effective January 1, 1975
					 (Register 75, No. 1).
2. Repealer by operation of Sec.
					 11422.1, Gov. Code (Register 75,
					 No. 18).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code. Reference: Sections
						22451.5 and
						22480,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1485 - Credit Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
This article does not apply to the sale of credit life
					 insurance, credit disability insurance and credit loss-of-income
					 insurance.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
3. Amendment filed 8-4-98;
					 operative 9-3-98 (Register 98, No. 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22314,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1486 - Insurance Premiums: Charge Before Effective Date

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No insurance premium shall be charged to or collected from
					 a borrower prior to the effective date of such insurance. However, in the event
					 of refinancing of a loan, existing insurance may be extended to the maturity
					 date of the new loan and the additional premium may be charged to or collected
					 from the borrower at the time the loan is refinanced. The cost of the insurance
					 to replace the unexpired insurance shall not exceed the original premium cost
					 of such unexpired insurance. The cost of the insurance for the additional term
					 may be computed at rates currently in effect.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 52).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22300,
						22303,
						22306,
						22307 and
						22309,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1487 - Insurance Forms: Submission for Examination. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 5-15-84; effective thirtieth date thereafter (Register 84, No.
					 20).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1488 - Limitations on Requirement and Sale of Insurance: General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following are general limitations on the requirement
					 and sale of insurance. These requirements are in addition to the requirements
					 contained in Section
					 1489 of this Article for specific
					 types of security.
(a) A finance
				  company shall not require or sell insurance on any property securing a loan
				  when:
(1) The insurance coverage exceeds the
				  reasonable value of the property insured. Reasonable value shall be that value
				  established by a bona fide written appraisal, a statement of replacement value
				  signed by the borrower, a recent sales invoice, or other evidence acceptable to
				  the commissioner.
(2) Insurance on
				  the loan security is already in force in an amount reasonably sufficient to
				  protect the finance company considering the circumstances of the
				  loan.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1489 - Limitations on Sale of Insurance: Specific Types of Security

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Insurance on motor vehicles (including
				  motorcycles, and other vehicles licensed by the Department of Motor Vehicles),
				  mobile homes (registered by the Department of Housing and Community
				  Development), boats and aircraft is subject to the following limitations:
(1) A finance company shall not require or
				  solicit in a manner which may lead a prospective borrower to believe that
				  collision insurance is required when the amount of the annual premium is more
				  than one-third of the principal amount of the loan exclusive of any insurance
				  premium or one-third of the reasonable value of the security for the loan. A
				  finance company may require and sell collision insurance with a $50 or more
				  deductible clause, and fire, theft and/or comprehensive insurance.
(2) A finance company may sell, but not
				  require, property damage, public liability, uninsured motorist, towing and
				  labor, and medical payments insurance provided such insurance has not been
				  disapproved by the commissioner. The sale of such insurance must be supported
				  by a statement, signed by the borrower that the insurance was not a
				  prerequisite to obtaining the loan and that the insurance was purchased at the
				  option of the borrower only.
(3)
				  Insurance for periods of more or less than one year will ordinarily be
				  considered unreasonable, except that the insurance for periods of less than one
				  year will not be considered unreasonable if the premium is a pro-rata portion
				  of the annual premium.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1490 - Prohibited Collateral Sales

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any sale of insurance, in connection with a loan that is in
					 violation of Sections
					 1488 and
					 1489 of these rules, constitutes a
					 prohibited transaction under Sections
					 22311 and
					 22312 of
					 the Financial Code.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending section and NOTE
					 filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1492 - Prohibition Against Requirement of Particular Agent or Broker

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company which requires or solicits insurance in
					 connection with a loan shall comply with Article 5.5 of Chapter 1 of Part 2 of
					 Division 1 of the Insurance Code.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Article 5.5, Chapter 1, Part 2, Division 1,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1493 - Refund of Policy Fees Charged with Household Fire Insurance Policies

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
When household fire insurance has been sold by a finance
					 company and it is subsequently canceled, the policy fee, if any, must be
					 considered part of the premium when any cancellation refund is
					 computed.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending section and NOTE
					 filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1494 - Requirement of Cancellation of Existing Insurance Prohibited

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall not as a condition precedent to the
					 making of a loan require a borrower to cancel any existing insurance. The
					 borrower shall have sole discretion as to whether existing insurance shall be
					 maintained or canceled.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1495 - Payment of Insurance Claims to Lender: Retention of Insurance Policies by Lender: Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Neither a finance company, a company affiliated with such
					 finance company, nor officers, directors, or employees of such finance company
					 or such affiliate shall accept from insurance companies remittances in payment
					 of claims under policies of insurance upon property securing a loan or hold
					 such insurance policies for borrowers unless such policies of insurance protect
					 the finance company such as a coinsured or by a loss payable clause or
					 otherwise. In the event a remittance under a policy in which a lender is not a
					 loss payee should be received by any of the persons herein named, it shall
					 immediately be forwarded by mail to the insurance carrier for proper
					 transmittal.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1496 - Adjustment of Insurance Claims: Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Neither a finance company, a company affiliated with such
					 finance company, nor officers, directors or employees of such finance company
					 or affiliate, shall act as adjuster of, or in any manner exercise control or
					 supervision over the adjustment of any insurance claim relating to property
					 securing a loan made by such finance company in any case where there is a
					 direct or indirect financial benefit to such finance company, affiliated
					 company, or the officers, directors, or employees of such finance company or
					 affiliate, as a result of such insurance claim. This prohibition shall not
					 extend, however, to the duly constituted claims or adjustment department or
					 division of a licensed insurance carrier, nor shall it apply where the loss is
					 adjusted by a staff adjuster of the carrier or an independent individual
					 adjuster.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending section and NOTE
					 filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1497 - Cancellation of Insurance Policy. After Repossession: Credit or Refund Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall, within 10 days after the
					 repossession and sale of such collateral securing the loan by the finance
					 company, notify the borrower that existing insurance may be canceled by the
					 borrower, and a refund of premium obtained and shall, if requested, join such
					 borrower in any request for cancellation of such policy. Any funds received by
					 a finance company as a return premium resulting from cancellation of any
					 insurance policy written in connection with a loan shall be immediately
					 credited or refunded to the borrower.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1498 - Requirement of Notice to Borrower in Event of Increase of an Insurance Premium

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If an insurance premium is increased subsequent to the sale
					 of the insurance in connection with a loan, the finance company shall notify
					 the borrower of such increase. The notice to the borrower shall state the
					 reason for the increase, the amount of the additional premium, any change in
					 terms and the amount of any additional charges.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22311,
						22312 and
						22313,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 6 - Insurance › Section 1499 - Reasonable Cause: Right to Approve or Disapprove of the Issuer Selected to Underwrite Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Any person engaged in the business of financing the purchase of real or
				  personal property or of lending money on the security of real or personal
				  property and the trustee, director, officer, agent or other employee or
				  affiliate of any such person shall have the right to approve or disapprove, for
				  reasonable cause, the insurer selected to underwrite any insurance required by
				  the contract of sale or deed or trust or other loan agreement. This regulation
				  includes insurance covering damage to or destruction of real or personal
				  property and it includes title insurance.
(b) Reasonable cause is defined as the
				  failure of the insurer to:
(1) Be licensed by
				  the State of California to transact the line of insurance afforded;
(2) Provide the insurance in conformity with
				  all requirements of the California Insurance Code and the Regulations issued
				  thereunder;
(3) Obtain and attach
				  to the evidence of insurance afforded to the lender appropriate evidence of the
				  reinsurance referred to in Section
				  3080 of the
				  California Insurance Code when the amount of insurance is in excess of the
				  one-tenth of the value of the insurer's assets in excess of the sum of its
				  liabilities for losses reported, expenses, taxes, all other indebtedness and
				  reinsurance of outstanding risks as provided by law as referred to in said
				  section. Such reinsurance may be required by the lender to be in a company
				  meeting all of the criteria of this regulation;
(4) Afford the customary coverage required by
				  the lender for the class of property involved including the loss payable
				  endorsement required by the lender;
(5) Provide, at the option of the lender,
				  coverage equal to the lesser of the market value or the replacement value of
				  the property or the agreed value when the property insured is real property, or
				  the actual cash value of the property when the property is personal
				  property;
(6) Provide coverage with
				  a deductible not exceeding $100 or 1% of the amount of insurance, whichever is
				  greater. If the custom of the insurance business is to afford a higher
				  deductible in conjunction with the coverage provided (including the deductibles
				  used in conjunction with earthquake insurance), the insurer may provide such
				  higher deductible; or
(7) Deliver
				  evidence of insurance to the lender which includes those provisions of the
				  contract which have a bearing on the coverage afforded the property securing
				  the loan.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1510 - Credit Insurance: Extension Thereof

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
When the maturity date of a loan is extended by virtue of
					 deferment of installments under Section
					 22400(a)(4)
					 of the Financial Code or by agreement between the finance company and the
					 borrower, existing credit life and credit disability insurance coverage shall
					 be extended to cover the new term of the loan contract as provided in Section
					 22314(a)
					 or
					 22400(a)(4)
					 of the Financial Code, and the premium for this coverage may be charged to the
					 borrower.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Amendment of NOTE filed 5-15-84; effective thirtieth day
					 thereafter (Register 84, No. 20).
3. Change without regulatory
					 effect amending section and NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
4. Amendment filed 8-4-98;
					 operative 9-3-98 (Register 98, No. 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22314 and
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1511 - Limitation on Soliciting Sale of Credit Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A finance company shall not offer or sell
				  credit insurance in any manner which restricts a borrower's ability to
				  voluntarily select or reject credit life or credit disability insurance or
				  both.
(b) A finance loan company
				  shall use a written form (which may be separate from or incorporated in the
				  loan documents), which shall be signed or initialed by each of the insured
				  borrowers. Such form should be in substantially the following form:
"Sign or initial.__________ Loan No.__________
__________I want credit life insurance.
__________I do not want credit life insurance.
__________I want credit disability insurance.
__________ I do not want credit disability
					 insurance."
(c) When credit
				  insurance is sold more than 30 days after the making of the loan, in lieu of
				  subsection (b) above, a finance company may obtain an audio recorded
				  confirmation of an insured borrower's selection of credit insurance. Such
				  recording shall be obtained with the consent of the insured borrower(s) and
				  include confirmation of the type of credit insurance selected. A finance
				  company shall make recorded confirmations available to the Commissioner upon
				  request.
1. Amendment
					 filed 12-3-74; effective thirtieth day thereafter (Register 74, No.
					 49).
2. Amendment filed 12-29-83; effective thirtieth day thereafter
					 (Register 83, No. 53).
3. Change without regulatory effect amending
					 subsection (b) and NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
4. New subsection (c) filed
					 8-4-98; operative 9-3-98 (Register 98, No. 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22314,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1512 - Limitation on Sale of Credit Disability Insurance: Illusory Benefit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A finance
				  company shall not sell credit disability insurance, as prohibited by current
				  regulations of the Insurance Commissioner, to a borrower who is a member of the
				  Armed Forces of the United States.
(b) A finance company shall not sell credit
				  disability insurance, as prohibited by current regulations of the Insurance
				  Commissioner, to a borrower which would, in effect, provide a substantially
				  illusory benefit. This would include the sale to a borrower who is not normally
				  employed.
1. Amendment
					 filed 3-20-78; effective thirtieth day thereafter (Register 7, No.
					 12).
2. Amendment filed 12-29-83; effective thirtieth day thereafter
					 (Register 83, No. 53).
3. Change without regulatory effect amending
					 NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22314 and
						22315,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1513 - Limitations on Refinance of Loans Covered by Credit Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) During any period when a borrower is
				  disabled, and such disability is, or will become upon the completion of the
				  waiting period provided for in the applicable policy, compensable under an
				  existing policy of credit disability insurance, there may be no renewal or
				  refinancing of such borrower's existing loan. Any additional loans or advances
				  which the licensee desires to make to such a borrower during such a period must
				  be accomplished by a new and separate loan, subject, however, to Section
				  22327 of
				  the Financial Code.
(b) If, with
				  respect to any program for the sale of credit disability insurance, either (a)
				  the credit disability insurance policy excludes from coverage those
				  disabilities arising out of injuries or illnesses existing on or before the
				  effective date of the insurance; and/or (b) such credit disability insurance
				  policies written or offered in connection with the renewal or refinancing of
				  loans contain any terms or conditions which are different (other than as to the
				  amount and term of coverage occasioned by such renewal or refinancing) from the
				  terms and/or conditions of the policy relating to the loan being renewed or
				  refinanced; then, prior to any renewal or refinancing of such borrower's
				  existing loan, a notice, in writing, shall be given to the borrower by the
				  licensee, advising the borrower as to either or both of the following,
				  whichever may be applicable;
(1) That if the
				  borrower's loan is renewed or refinanced, the borrower will not be entitled to
				  recover any disability benefits for any disability resulting from any accident
				  or illness which occurred subsequent to the date of the borrower's existing
				  loan but prior to the date of such renewal or refinancing, even though credit
				  disability insurance may again be provided for in connection with such renewal
				  or refinancing.
(2) That if the
				  borrower's loan is renewed or refinanced, and a new policy of credit disability
				  insurance is again provided, the borrower's right to recover upon such
				  insurance policy will be limited to the coverage provided by such new policy,
				  which is different from that under which the borrower had been previously
				  insured. Such notice shall then explain the substance of such
				  differences.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1514 - Rebates of Unearned Credit Insurance Premiums

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If a loan becomes fully prepaid on or
				  before 15 days after the loan was made, the entire credit insurance premium
				  must be rebated.
(b) When a loan is
				  paid by credit life insurance, any unearned credit disability insurance premium
				  must be promptly refunded to the borrower's heirs or estate and such refund
				  must be computed as of the date of the borrower's death.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22314,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1515 - Limitation on Sale of Credit Insurance: Refinance of Conditional Sale Contract

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall not sell credit insurance with a
					 loan that is made in whole or part to refinance a conditional sale contract
					 held by such finance company when such contract is covered by credit insurance,
					 unless the loan file contains evidence of the borrower's request for rebate of
					 any unearned credit insurance premium applicable to such
					 contract.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22314,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 7 - Credit Insurance › Section 1516 - Required Record for Credit Life Insurance Claims

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall maintain a register of claims
					 filed. Such register should identify each loan, show the date of the borrower's
					 death and the date each claim was filed.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22156,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 8 - Appraisals › Section 1525 - Appraisals Pursuant to Section 22317, Financial Code

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An appraisal, for which a fee is charged pursuant to
					 Section
					 22317 of
					 the Financial Code, shall be made by a qualified appraiser. An appraiser may be
					 a company employee if qualified. The appraisal shall be in writing and signed
					 by the appraiser, shall state the fair market value of the property, and
					 describe the work method used and done by the appraiser in making the
					 appraisal.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending section heading,
					 section and NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22317,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 8 - Appraisals › Section 1526 - Limitation of Appraisal Fee Pursuant to Section 22458.4 or 24458.4, Financial Code. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Amendment filed 7-8-85; effective thirtieth day thereafter
					 (Register 85, No. 28).
3. Repealer filed 2-24-86; effective
					 thirtieth day thereafter (Register 86, No. 9).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code. Reference: Sections
						22400,
						22458.4,
						24400 and
						24458.4,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1535 - Duty of a Finance Company

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Unless otherwise provided in these regulations, a repossession, whether
				  voluntary or involuntary, and sale shall be conducted in accordance with the
				  California Commercial Code.
(b)
				  Upon repossession of property securing a loan, a finance company must deal
				  fairly and justly with the borrower in selling such property and obtain on such
				  sale the fair market value of the property.
(c) Reasonable care of such property must be
				  taken while in the possession of the finance company.
(d) If a borrower requests, and if the lender
				  agrees, the property securing a loan may be repossessed and sold even though
				  the loan is not in default. The repossession and sale of such property shall be
				  processed in accordance with this Article.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending subsection (b) and
					 NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22150,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1536 - Register of Repossessions Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall maintain a register of all
					 repossessions of personal property including property voluntarily surrendered
					 by a borrower. The register shall show at least the date of repossession, loan
					 number, name of borrower, description of the property and the date of sale or
					 disposition of the property.
1. New NOTE
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22156,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1537 - Sale of Security

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  After repossession of any property securing a loan and prior to a public or
				  private sale, (unless the collateral is perishable or threatens to decline
				  speedily in value), a finance company shall give written notice to the borrower
				  of the date, time and place at which the property will be sold in a public sale
				  or the date and time on or after which the property may be sold in private
				  sale. Notice shall be personally served on the borrower at least five (5) days
				  before the date of the sale. If the notice is not served on the borrower
				  personally it may be served by registered or certified mail sent to the
				  borrower at his/her last known address. The notice must state the amounts
				  required to release the collateral to the borrower. If a demand for the entire
				  balance is made, the amount quoted must be the net pay-off as adjusted by any
				  rebate of unearned precomputed charges and credit insurance premiums.
(b) If the finance company cannot obtain the
				  fair market value of the property at the time of sale and the borrower does not
				  demand that the sale proceed, the finance company may reschedule the sale of
				  the property within a reasonable time thereafter. Written notice or
				  announcement of the date, time and place of sale shall be provided to the
				  borrower. The borrower is given credit for the actual selling price, or the
				  highest bid obtained at the noticed sale, whichever is greater.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
3. Amendment filed 8-4-98;
					 operative 9-3-98 (Register 98, No. 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22150,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1538 - Evidence of Fair Market Value

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall maintain in its records evidence
					 that the fair market value of the property was obtained and credited to the
					 account of the borrower. Such evidence shall be in the form of:
(a) A report or other record which describes
				  the condition of the collateral at the time of repossession; and
(b) Any of the following:
(1) Three (3) or more signed bids from
				  persons not associated directly or indirectly with the finance company which
				  show the name and address of each bidder, the date of bid and an adequate
				  description of the property; or
(2)
				  A copy of a statement of sale from the auction house which shows the gross
				  sales price, sales commissions and any other costs of sale; or
(3) Some other form acceptable to the
				  commissioner establishing value.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1539 - Expenses and Costs of Repossession or Sale: Expenses and Costs of Repairs

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Except as provided by Section
					 22329(e)(5),
					 expenses or costs of repossession or sale of property securing a loan shall be
					 charged to or collected from a borrower, either directly or indirectly. No
					 expenses or costs of repairs to such property shall be charged to or collected
					 from a borrower, either directly or indirectly, except upon a written
					 authorization from the borrower specifically authorizing such repairs and
					 signed by the borrower after the repossession and prior to the making of the
					 repairs. Nothing in this section shall be deemed to apply to a lien on property
					 securing a loan, which existed prior to the date of repossession of such
					 property and which resulted from some act of the borrower occurring prior to
					 the date of such repossession. Nothing in this section shall be deemed to
					 permit any charge other than charges permitted by law.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
3. Amendment of section and NOTE
					 filed 8-4-98; operative 9-3-98 (Register 98, No.
					 32).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150,
						22156 and
						22329,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1540 - Sales to Certain Persons Prohibited

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall not sell property securing a loan
					 to any employee, officer, director or partner of such finance company or
					 affiliate of such finance company, or to a relative of any of
					 them.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22156,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1541 - Credit or Refund upon Resale After Repossession

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If a finance company, or any affiliate of such finance
					 company, or any company in which it has some interest, or any company in which
					 any person connected with the finance company has some interest, purchases any
					 property securing a loan at any sale after repossession, the finance company
					 shall:
(a) At the time of purchase,
				  credit or refund to the borrower an amount at least equal to the fair market
				  value of such property as determined under Section
				  1538 of these rules.
(b) Upon a resale of such property, credit or
				  refund to the borrower the gross amount for which such property is resold less
				  the amount of credit or refund made under subsection (a) of this rule, and any
				  expenses of repairing or reconditioning such property made after its purchase
				  and any expenses of resale, provided that any such expenses shall not exceed
				  the actual outlay therefor.
(c) Not
				  resell such property to any of the persons described in Section
				  1540 of these rules.
1. Amendment
					 filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
2. Change without regulatory effect amending NOTE filed 6-14-95
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Section
						22150,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 9 - Repossession and Sale of Personal Property › Section 1542 - Records: Maintenance Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finance company shall maintain complete records of the
					 repossession and sale or resale of any property securing a loan and such
					 records shall include at least the following:
(a) A copy of the Department of Motor
				  Vehicles affidavit of repossession if required.
(b) A copy of the security agreement if the
				  original has been released.
(c)
				  Evidence that the notice of sale required by Section
				  1537 of this Article was sent by
				  registered or certified mail. If the notice was served personally, an affidavit
				  to that effect shall be on file.
(d) A copy of a bill of sale for collateral
				  other than a vehicle for which an affidavit of repossession was prepared. The
				  bill of sale shall include the purchaser's name, address and gross sales
				  price.
(e) Invoices and/or receipts
				  for payment of liens, expenses of repairs and expense of resale provided by
				  Sections 1539 and
				  1541 of this Article.
(f) Evidence that the borrower was notified
				  that existing insurance may be canceled by him/her.
Such records shall be maintained for a period of not less
					 than two (2) years after the sale.
1. Amendment
					 of subsection (f) filed 12-29-83; effective thirtieth day thereafter (Register
					 83, No. 53).
2. Change without regulatory effect amending subsection
					 (c) and NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22150 and
						22156,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 10 - Advertising › Section 1551 - Disapproved Advertising. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 5-16-84; effective thirtieth day thereafter (Register 84, No.
					 20).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 10 - Advertising › Section 1553 - Advertising Specified Terms of Loans: Must Apply to All Loans Unless Qualified. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 5-16-84; effective thirtieth day thereafter (Register 84, No.
					 20).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 10 - Advertising › Section 1554 - Specified Rates or Charges Quoted: Additional Information Required: Must Apply to All Loans Unless Qualified. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 5-16-84; effective thirtieth day thereafter (Register 84, No.
					 20).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code.