reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 9 - Credit Insurance › Section 40.902 - 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 the disability is, or will become upon completion of the waiting
				  period provided for in the policy, compensable under an existing policy of
				  credit disability insurance, there may be no renewal or refinancing of the
				  borrower's existing loan.
(b) If,
				  with respect to any program for the sale of credit disability insurance, either
				  (1) the policy excludes from coverage those disabilities arising out of
				  injuries or illnesses existing on or before the effective date of insurance; or
				  (2) the policies offered in connection with the renewal of refinancing of loans
				  contain any terms or conditions which are different (other than as to the
				  amount and term of coverage occasioned by the renewal or refinancing) from the
				  terms or conditions of the policy relating to the loan being renewed or
				  refinanced; then, prior to any renewal or refinancing of the borrower's
				  existing loan, a written notice shall be given to the borrower by the
				  industrial loan company, 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 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 the renewal or refinancing, even though credit disability
				  insurance may again be provided for in connection with the renewal or
				  refinancing.
(2) If the loan is
				  renewed or refinanced, and a new policy of credit disability insurance is
				  provided, the borrower's right to recover will be limited to the coverage
				  provided by the new policy, which is different from that under which the
				  borrower had been previously insured. The notice shall explain the substance of
				  the differences.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 9 - Credit Insurance › Section 40.903 - Rebates of Unearned Credit Insurance Premiums

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When a loan is fully prepaid, an
				  industrial loan company shall rebate any unearned credit insurance premium to
				  the borrower. If a loan becomes fully prepaid on or before 15 days after the
				  loan was made, the entire credit insurance premium must be rebated to the
				  borrower.
(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 the refund must be
				  computed as of the date of the borrower's death.
1. Change
					 without regulatory effect renumbering former section
					 1204 to new section
					 40.903 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18327,
						Financial Code. Reference: Section
						18290,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 9 - Credit Insurance › Section 40.904 - Limitation on Sale of Credit Insurance: Refinance of Conditional Sale Contract

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall not sell credit insurance
					 with a loan that is made in whole or in part to refinance a conditional sale
					 contract held by such industrial loan 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. Change
					 without regulatory effect renumbering former section
					 1205 to new section
					 40.904 and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18290,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 9 - Credit Insurance › Section 40.905 - Required Record for Credit Life Insurance Claims

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan 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. Change
					 without regulatory effect renumbering former section
					 1206 to new section
					 40.905 and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18029,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 9 - Credit Insurance › Section 40.906 - Credit Disability Insurance: General Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An industrial loan company is not
				  required to make credit disability insurance available. If offered, however,
				  credit disability insurance must be offered on a voluntary basis, without
				  conditions as to the acceptance of other benefits for which the borrower will
				  be charged. The purchase of credit life insurance may not be a condition
				  precedent to obtaining credit disability insurance, nor may the purchase of
				  credit disability insurance be made a condition to obtaining credit life
				  insurance. No sales techniques may be employed which are designed, or which may
				  be reasonably expected, to restrict the ability of the borrower to select or
				  reject either or both forms of insurance coverage.
(b) Section
				  18293 of
				  the Financial Code requires that the borrower be given "an understandably
				  written statement ... 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 such claim." The statement will be approved when the content
				  will make a borrower generally aware of the coverage and understandable
				  describes the steps to be followed by the borrower in filing a claim under the
				  policy. The statement should not include a detailed description of the policy
				  coverage, but shall set forth the basic conditions under which coverage becomes
				  applicable (including, particularly, the extent of the elimination period). The
				  statement may contain language indicating that it is not a full statement of
				  the policy terms, and referring the borrower to the certificate of insurance
				  for details.
1. Change
					 without regulatory effect renumbering former section
					 1207 to new section
					 40.906 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18290,
						18291,
						18292 and
						18293,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1000 - Obligation or Loan Considered Unsecured Unless Collateral Appraised or Value Determined

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A loan made or obligation purchased shall be considered
					 unsecured within the meaning of Section
					 18271 of
					 the Financial Code and Sections
					 40.401 and
					 40.613 of this Chapter unless the
					 collateral given as security is supported by an adequate written appraisal or
					 the market value thereof is adequately established in the loan
					 file.
1. Change
					 without regulatory effect adding new article 10 (sections
					 40.1000-40.1005) and renumbering
					 and amending former section
					 1210 to new section
					 40.1000 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18271,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1001 - Standard Publication May be Used to Ascertain Market Value

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Except for obligations secured by real property, an
					 obligation may be considered to be secured by the Commissioner if the market
					 value of the collateral can be ascertained by reference to a standard
					 publication in general use by the trade.
1. Change
					 without regulatory effect renumbering and amending former section
					 1211 to new section
					 40.1001 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18266,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1002 - Reappraisal

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner may in his discretion require a
					 reappraisal of any property given as collateral security for a loan or covered
					 by a contract purchased.
1. Change
					 without regulatory effect renumbering and amending former section
					 1212 to new section
					 40.1002 and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18266,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1003 - Personal Property Appraisals Pursuant to Section 18266 of the Financial Code

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Appraisals of personal property pursuant to Section
					 18266 of
					 the Financial Code shall be in accordance with a written appraisal policy
					 approved by the board of directors of the industrial loan company.
At a minimum, the written appraisal policy shall require
					 that:
(a) The appraisal be in writing,
				  be signed by the appraiser, identify the loan or obligation involved, describe
				  the property and whether or not inspection of the property shows it to be in
				  good marketable condition, describe the procedures involved in making the
				  appraisal, state the fair market value of the property and the basis for
				  determining it, and be maintained in the file.
(b) If the loan or obligation involved has an
				  outstanding principal balance of $25,000 or more, the appraisal shall be made
				  by an independent appraiser. If the loan or obligation involved has an
				  outstanding principal balance of less than $25,000, the appraiser may be a
				  company employee if qualified, but the appraiser shall not be interested either
				  directly or indirectly in any way as a recipient of the loan.
1. Change
					 without regulatory effect renumbering former section
					 1213 to new section
					 40.1003 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18266,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1004 - Appraisal of Real Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall obtain an appraisal of
					 real property offered as security for a loan in accordance with a written
					 appraisal policy approved by the board of directors.
1. Change
					 without regulatory effect renumbering former section
					 1213.1 to new section
					 40.1004 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18216 and
						18266,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 10 - Appraisals › Section 40.1005 - Cost of Appraisals

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Where an appraisal fee is charged under Section
					 18216 of
					 the Financial Code, the actual cost of an appraisal of real property shall be
					 supported by a worksheet which shows the hours spent in connection with the
					 appraisal, the hourly rates of the appraisers and other employees and any other
					 direct costs. A composite hourly rate for appraisers or other employees may be
					 used with the written consent of the Commissioner. Overhead expenses shall not
					 be included in actual costs.
1. Change
					 without regulatory effect renumbering and amending former section
					 1214 to new section
					 40.1005 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18216,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1100 - Register of Repossessions Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan 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. Change
					 without regulatory effect adding new article 11 (sections
					 40.1100-40.1105), renumbering
					 former section
					 1221 to new section
					 40.1100, and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18029,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1101 - Evidence of Fair Market Value

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall maintain evidence that the
					 fair market value of the property was obtained and credited to the account of
					 the borrower. The evidence shall be:
(a) A report or other record which described
				  the condition of the collateral at the time of repossession; and
(b) Any of the following:
(1) Three or more signed bids from persons
				  not associated directly or indirectly with the industrial loan 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 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1102 - Expenses and Costs of Repossession or Sale: Expenses and Costs of Repairs

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No 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, that exceed the limitation contained in Section
					 18218 of
					 the Financial Code. 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. Change
					 without regulatory effect renumbering former section
					 1224 to new section
					 40.1102 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18218,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1103 - Sales to Certain Persons Prohibited

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall not sell property securing
					 a loan to any employee, officer, or director of such industrial loan company or
					 affiliate of such industrial loan company, or to a relative of any of them.
					 However, if an industrial loan company purchases such property it may be
					 subsequently sold to a director, officer, or employee of the industrial loan
					 company as provided in Section
					 18448 of
					 the Financial Code. For purposes of Section
					 18448 evidence of current market
					 value shall be maintained as required by Section
					 40.1101 of this
					 Chapter..
1. Change
					 without regulatory effect renumbering and amending former section
					 1225 to new section
					 40.1103 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18448,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1104 - Credit or Refund upon Resale After Repossession

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If an industrial loan company, any affiliate of the
					 industrial loan company, any company in which it has some interest, or any
					 company in which any person connected with the industrial loan company has some
					 interest, purchases any property securing a loan at any sale after
					 repossession, the industrial loan 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 the
				  property as determined under Section
				  40.1101.
(b) Upon a resale of the property, credit or
				  refund to the borrower the gross amount for which the property is resold less
				  the amount of credit or refund made under subsection (a) of this rule, and any
				  expenses of repairing or reconditioning the property made after its purchase
				  and any expenses of resale, provided that these expenses shall not exceed the
				  actual outlay therefor.
1. Change
					 without regulatory effect renumbering and amending former section
					 1226 to new section
					 40.1104 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18029 and
						18266,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 11 - Repossession and Sale of Personal Property › Section 40.1105 - Records: Maintenance Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An industrial loan company shall maintain
				  complete records of the repossession and sale or resale of any property
				  securing a loan and shall include at least the following:
(1) A copy of the Department of Motor
				  Vehicles affidavit of repossession if required.
(2) A copy of the security agreement if the
				  original has been released.
(3)
				  Evidence that the notice of sale required by Section
				  9504(3)
				  of the Commercial Code was sent by registered or certified mail. If the notice
				  was served personally an affidavit to that effect shall be on file.
(4) 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.
(5) Invoices and receipts
				  for payment of liens, expenses of repairs and expenses of resale provided by
				  Sections 40.1102 and
				  40.1104 of this Chapter.
(6) Evidence that the borrower was notified
				  that existing insurance may be canceled by the borrower.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 12 - Advertising › Section 40.1200 - Advertising: Submission for Examination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
By order of the Commissioner, advertising of investment
					 certificates shall be submitted by the time specified in the order, to the
					 Commissioner in duplicate over the signature of an officer or employee of the
					 industrial loan company whose name has been submitted to the Commissioner with
					 representations that said person is authorized by the industrial loan company
					 to submit advertising and is familiar with the requirements of Financial Code
					 Section
					 18062 and
					 regulations regarding advertising.
1. Change
					 without regulatory effect adding new article 12 (sections
					 40.1200-40.1203) and renumbering
					 former section
					 1230 to new section
					 40.1200 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18062,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 12 - Advertising › Section 40.1201 - Maintenance of Advertising Copy

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An industrial loan company shall maintain
				  a file of all advertising copy for a period of at least ninety (90) days after
				  the last date of its use.
(b) All
				  advertising copy shall have noted thereon the name or names of all advertising
				  media used and the dates when such advertising appeared.
(c) In the case of radio or television
				  advertising, unless the full text of such announcements is maintained for the
				  aforesaid prescribed time by the broadcasting station or stations and is there
				  available to the Commissioner, an industrial loan company shall cause a voice
				  transcription of the full text of such announcements to be prepared and
				  retained for said ninety (90) day period.
1. Change
					 without regulatory effect renumbering and amending former section
					 1232 to new section
					 40.1201 and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18029 and
						18063,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 12 - Advertising › Section 40.1202 - Credit Instruments: Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall not issue instruments
					 purporting to be a firm offer to lend or a commitment to extend credit to a
					 borrower or a prospective borrower unless all of the following conditions are
					 met:
(a) The company issues said
				  instrument to an individual specifically named therein;
(b) The company expressly covenants with said
				  borrower or prospective borrower to consummate a loan or loans up to a
				  definitely stated or determinable maximum amount at a rate not to exceed the
				  current applicable rate of charge upon presentation of the credit instrument
				  without any credit investigation or consideration of the value of the
				  security;
(c) The credit instrument
				  is dated accurately as of the date of issue and contains a termination date
				  effective not more than twelve months from the date of issuance by the
				  company;
(d) The credit instrument
				  is not a facsimile of a bond or insurance policy, or check, draft or other form
				  of commercial paper;
(e) The credit
				  instrument clearly shows that a loan, including the repayment thereof together
				  with charges, is involved;
(f) The
				  credit instrument specifies the location at which the loan will be made;
				  and
(g) The credit instrument
				  contains only positive statements, not qualified in any way.
1. Change
					 without regulatory effect renumbering former section
					 1236 to new section
					 40.1202 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18055,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 12 - Advertising › Section 40.1203 - Financial Statements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any financial information contained in or attached to any
					 advertising shall be based on the most recent audited financial statement filed
					 with the Commissioner under Section
					 18405 of
					 the Financial Code. Any condensed financial statement so used shall comply with
					 Section 40.1301 of this
					 Chapter.
1. Change
					 without regulatory effect renumbering and amending former section
					 1241 to new section
					 40.1203 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18055,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 13 - Reports › Section 40.1300 - Preparation of Independent Audit Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An industrial loan company shall furnish an independent
					 audit report pursuant to the following:
(a) Each industrial loan company shall
				  annually, on or before the fifteenth day of March, file with the Commissioner a
				  two part report: One, containing statistical information, to be prepared by the
				  company on Form ILL 424, Instructions for Completion of Report of Statistical
				  Information of Industrial Loan Companies (dated 1/88); the other, as described
				  in subsection (d), prepared by an independent certified public accountant or an
				  independent public accountant.
(b)
				  Three copies of the report must be filed with the Commissioner of the
				  Department of Business Oversight.
(c) For the purpose of determining whether an
				  accountant is independent, as required by Financial Code Section
				  18405, the
				  rules and regulations of the California State Board of Accountancy with respect
				  to independence shall be applicable. The accountant shall include in the report
				  an affirmative statement that he/she is independent and has no financial
				  interest in the industrial loan company either directly or
				  indirectly.
(d) The second part of
				  the annual report shall contain:
(1) Audited
				  financial statements which include a comparative balance sheet of the company
				  as of the last day of the calendar year and of the preceding year, and
				  comparative statements of income; stockholder's equity and changes in financial
				  position for each such calendar year. These financial statements shall be
				  prepared on an accrual basis accompanied by an accountant's report, including
				  an opinion meeting the standards of the California Board of Accountancy (Rule
				  58.1 of the Board of Accountancy).
(2) An analysis of the allowance for loan
				  losses, showing the balance at the beginning of the year, additions to the
				  allowance less accounts charged to the allowance, and the balance at the end of
				  the year.
(3) The accountant shall
				  submit under separate cover, along with the audit report, a copy of the letter
				  to management describing internal control and making recommendations for
				  improving operating procedures. The company shall submit a copy of its letter,
				  if any, in response to the management letter of the accountant. The accountant
				  shall examine documentation on loans and include in the management letter
				  appropriate comments on the condition of the loan files examined if any
				  weaknesses exist (e.g., application, notes, security interest, insurance,
				  appraisals).
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 13 - Reports › Section 40.1301 - Reports to Officers and Directors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Each industrial loan company shall maintain a system of
					 internal controls which shall include the preparation and delivery to each
					 principal officer and member of the board of directors of the company at least
					 monthly a written report of the affairs of the company containing sufficient
					 detail so that the responsible officer and director will be fully informed
					 concerning the current position of the company and be able to discharge his
					 responsibility on an informed basis. Copies of such reports shall be kept on
					 file available for examination for at least two years.
1. Change
					 without regulatory effect renumbering former section
					 1251 to new section
					 40.1301 and adding new NOTE filed
					 8-19-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18029,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 13 - Reports › Section 40.1303 - Audited Financial Statements for Public Inspections

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The audited financial statements required to be furnished
					 for public inspection pursuant to Subdivision (c) of Section
					 18406 of
					 the Financial Code shall include (a) the opinion of the independent accountant,
					 (b) the balance sheet, profit and loss, and statement of source and application
					 of funds and (c) all informative disclosures necessary to make the information
					 contained in the opinion and financial statements not misleading. Information
					 included in the annual audit report required pursuant to Section
					 18405(a)
					 of the Financial Code which is not required by the foregoing may be
					 omitted.
1. Change
					 without regulatory effect renumbering former section
					 1252.1 to new section
					 40.1303 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18406,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 13 - Reports › Section 40.1304 - Order Deleting or Supplementing Form of Financial Statement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Upon written petition or otherwise, the Commissioner may by
					 specific order in a particular matter require additions to, or permit deletions
					 from, the form of financial statement contained in Section
					 40.1302 of this Chapter or the
					 financial statements required by Section
					 40.1303 of this Chapter, if the
					 addition or deletion is necessary to make the information contained in the
					 forms not misleading.
1. Change
					 without regulatory effect renumbering and amending former section
					 1253 to new section
					 40.1304 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18406,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 14 - Exceptions to Rules › Section 40.1600 - Exceptions to Rules: Loans of $10,000 or More

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following provisions of these rules shall not apply to
					 any loan of a bona fide principal amount of ten thousand dollars ($10,000) or
					 more or to an industrial loan company in connection with any such loan provided
					 the provisions of this section are not used for the purpose of evading the law
					 or this Chapter: Sections
					 40.101,
					 40.302,
					 40.600,
					 40.605 to
					 40.609, inclusive, 40.611, 40.800
					 to 40.812, inclusive, 40.814, 40.900 to 40.906, inclusive, 40.1005, 40.1100,
					 40.1101 and 40.1103 to 40.1105, inclusive.
1. Change
					 without regulatory effect adding new article 14 (sections
					 40.1600-40.1601) and renumbering
					 and amending former section
					 1280 to new section
					 40.1600 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18191,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 14 - Exceptions to Rules › Section 40.1601 - Exceptions to Rules: Premium Finance Agencies

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following provisions of these rules shall not apply to
					 a premium finance agency or an industrial loan company in conducting business
					 as set forth in Chapter 8 (commencing with Financial Code Section
					 18560) of
					 the Industrial Loan Law, provided the provisions of this Section are not used
					 for the purpose of evading the law or this Chapter: Sections
					 40.600,
					 40.609,
					 40.611 and
					 40.612,
					 inclusive.
1. Change
					 without regulatory effect renumbering and amending former section
					 1282 to new section
					 40.1601 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18560 and
						18594,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 15 - Premium Finance Agencies › Section 40.1700 - Down Payments-Record Keeping

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A premium finance agency that maintains a time deposit, a
					 certificate of deposit or a letter of credit pursuant to Section
					 18593 of
					 the Financial Code shall establish and maintain currently the following
					 records:
(a) Cash receipts and
				  disbursements journals or other records showing receipts and disbursements of
				  down payment;
(b) Down payment
				  liability control account.
1. Change
					 without regulatory effect adding new article 15 (sections
					 40.1700-40.1703) and renumbering
					 former section
					 1285 to new section
					 40.1700 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						18029 and
						18593,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 15 - Premium Finance Agencies › Section 40.1701 - Deposits or Letters of Credit Pursuant to Section 18593 of the Financial Code

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A premium finance agency that does not hold downpayments in
					 a separate trust bank account shall maintain a time deposit, certificate of
					 deposit or a letter or letters of credit pursuant to Section
					 18593 of
					 the Financial Code. The amount of the deposits, certificates of deposits, or
					 letters of credit shall be based upon the monthly average downpayment
					 liability, unless the Commissioner for good cause, in writing, has found that a
					 different amount of coverage would be in the public interest.
1. Change
					 without regulatory effect renumbering former section
					 1286 to new section
					 40.1701 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18593,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 15 - Premium Finance Agencies › Section 40.1702 - Annual Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A schedule of the downpayment liability as at the end of
					 each month during the calendar year as reflected in the Downpayment Liability
					 Control Account must be submitted each year with the Annual Report required by
					 Section
					 18405 of
					 the Financial Code unless the downpayments are held by the premium finance
					 agency in a separate account.
1. Change
					 without regulatory effect renumbering former section
					 1287 to new section
					 40.1702 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Section
						18405,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 40 - Industrial Loans › Article 15 - Premium Finance Agencies › Section 40.1703 - Premium Finance Agreement Copy or Documents Used to Comply with Financial Code: Form: Contents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In addition to the specific requirements of Sections
					 18605,
					 18606 and
					 18607 of
					 the Financial Code, the copy of the Premium Finance Agreement given to the
					 borrower, or other documents used for this purpose or to signify acceptance of
					 the borrower's application for a premium finance loan, shall contain at least
					 the following and may consist of more than one document:
(a) The name and license number of the
				  premium finance agency, address of the office where the loan was made, and the
				  name of the person who closed the loan;
(b) The name and address of the
				  borrower;
(c) The agreed rate of
				  charge, shown as a percentage or percentages per month of the unpaid principal
				  balance or portions thereof, and the amount of any minimum finance charge with
				  a statement of the conditions under which it shall be applicable;
(d) A statement that the borrower may prepay
				  the full amount due at any time and receive a rebate of a portion of the
				  finance charge in the manner provided by Section
				  18637 of
				  the Financial Code, and a statement disclosing the basis for computing said
				  rebate and any default charge pursuant to Section
				  18631 of said Code;
(e) A statement in not less than 12-point
				  bold face capital letters:
FOR INFORMATION CONTACT THE DEPARTMENT OF
				  BUSINESS OVERSIGHT, STATE OF CALIFORNIA
1. Change
					 without regulatory effect renumbering and amending former section
					 1288 to new section
					 40.1703 filed 8-19-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 34).
2. Change without regulatory
					 effect amending subsection (e) and NOTE filed 8-21-2019 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2019, No. 34).
Note: Authority cited: Section
						18347,
						Financial Code. Reference: Sections
						321,
						18605,
						18606,
						18607,
						18631, and
						18637,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 50 - Business and Industrial Development Corporations › Article 1 - General Provisions › Subarticle 1 - Citation and Construction › Section 50.1 - Scope

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) This Subchapter
					 contains regulations relating to business and industrial development
					 corporations.
(b) This Article
					 contains general provisions relating to this Subchapter. The succeeding
					 articles of this Subchapter contain regulations relating to various subjects
					 regarding business and industrial development corporations.
(c) This Subarticle contains regulations
					 relating to the citation and construction of this Subchapter. Subarticle 2
					 (commencing with Section
					 50.100) of this Article contains
					 definitions for this Subchapter.
1. New
						Subchapter 50 (Sections
						50.1-50.15309, not consecutive)
						filed 12-29-78; designated effective 3-1-79 (Register 79, No. 2).
2.
						Editorial correction of NOTE (Register 79, No.
						17).
Note: Authority cited for Subchapter 50 (Sections
						  50.1-50.15309, not consecutive):
						  Section
						  31101,
						  Financial Code. Reference: Division 15, Financial
						  Code.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 50 - Business and Industrial Development Corporations › Article 1 - General Provisions › Subarticle 1 - Citation and Construction › Section 50.2 - Citation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) This Subchapter
					 shall be known and may be cited as the "Business and Industrial Development
					 Corporations Regulations" or as the "Bidco Regulations."
(b) The first unit of the number of each
					 section in this Subchapter is "50." However, in citing a section of this
					 Subchapter, a person may omit the first unit of the number of such section if
					 it is clear that such person is referring to a section of this
					 Subchapter.
California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 50 - Business and Industrial Development Corporations › Article 1 - General Provisions › Subarticle 1 - Citation and Construction › Section 50.3 - Unsafe and Unsound Acts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Any act which is designated in this Subchapter as an "unsafe and unsound act"
					 is an act which, in the usual or typical circumstances encountered, constitutes
					 an unsafe and unsound act within the meaning of the Business and Industrial
					 Development Corporations Law. However, it is impossible to foresee or to
					 provide for all of the varying circumstances which may arise in a particular
					 case. Also, the acts designated in this Subchapter as "unsafe and unsound acts"
					 are not intended to constitute a complete compilation of all the acts which
					 constitute unsafe or unsound acts within the meaning of the Business and
					 Industrial Development Corporations Law. Therefore, the Commissioner may, if
					 and when warranted in any particular case, upon application or on his own
					 initiative, decide that in such case an act which is designated in this
					 Subchapter as an "unsafe and unsound act" does not constitute an unsafe or
					 unsound act within the meaning of the Business and Industrial Development
					 Corporations Law. Also, the Commissioner may decide that an act which is not
					 designated in this Subchapter as an "unsafe and unsound act" constitutes an
					 unsafe or unsound act within the meaning of the Corporations Law.
(b) Subject to the qualifications set forth
					 in Subdivision (a) of this Section, whenever a licensee commits any act which
					 is designated in this Subchapter as an "unsafe and unsound act," such licensee
					 shall be deemed:
(1) To be transacting and
					 conducting its business in an unsafe and unsound manner within the meaning of
					 the Business and Industrial Development Corporations Law; and
(2) If and to the extent that such act
					 affects the condition of the licensee, to be in an unsafe and unsound condition
					 within the meaning of the Business and Industrial Development Corporations
					 Law.