California Administrative Code

With respect solely to requests submitted pursuant to the California Public Records Act (division 10 (commencing with section 7920.000) of title 1 of the Government Code) the Commissioner shall treat applications submitted pursuant to section 1021 of this subchapter as not subjec…

No association shall state or imply in its advertising that its loan portfolio is secured by residential properties if more than 20 percent of the unpaid balance of its loan portfolio is in loans secured by other than residential properties unless it sets forth a breakdown as fol…

(a) Purchase of obligations, etc., from association. Unless lawfully authorized by the instrument creating the relationship, or by court order or local law, funds held by an association as fiduciary shall not be invested in stock or obligations of, or property acquired from, the …

An association must submit an application for commissioner approval before investing in, or buying capital stock, obligations or other securities of a common subsidiary, wholly owned, or independent service corporation. The procedure for securing approval is as follows: (a) Appli…

(a) “Generic data” means statistical information which does not identify any individual accountholder. (b) “Home banking services” means any transfer of funds or financial information or the performance of other transactions initiated by a customer by means of an electronic home …

If the registrant offers or provides education financing under its registration, the registrant's annual report shall include the following information relating to education financing contracts entered into with California residents in the prior calendar year: (a) The number of e…

Associations shall determine the need for valuation allowances at least as of the end of each calendar quarter and as of the date of published financial statements and any necessary provisions for loss shall be recorded in accordance with generally accepted accounting principles.

(a) This section does not apply to any covered provider who makes no more than one commercial financing transaction to covered entities in a 12-month period or any covered provider who makes five or fewer commercial financing transactions to covered entities in a 12-month period …

Each Association shall keep a record of loans that were modified. Information regarding each loan appearing in the record shall consist of, but not be limited to, the following: (a) Loan number (b) Date original loan entered on books (c) Name of borrower (d) Unpaid balance of loa…

For the purpose of Section 7102 of the law, a wrap-around loan made by an association to a borrower on the security of a trust deed or mortgage on real property shall, notwithstanding the fact that such real property is subject to a preexisting loan, be deemed to be a loan secure…

An association may advance credit to a borrower for payment of insurance premiums in connection with an unsecured loan if the proceeds of the insurance are payable to the association and the amount of the coverage does not exceed the unpaid balance of the loan.

(a) “Modification agreement” means the written agreement executed by an association and borrower which modifies the amount, terms, or provisions of an existing promissory note and the deed of trust securing such note. (b) “Loan” or “advance” means an amortized loan. A loan which …

(a) “Company” means any domestic or foreign corporation, voting trust, business trust, limited partnership, partnership fund, joint stock company, association, syndicate, organized group of persons, or similar organization or group, whether incorporated or not. (b) “Issuer” means…

An association or service corporation which acts as an escrow agent shall act without partiality to any of the parties to an escrow transaction. If an association or a service corporation which acts as an escrow agent or an affiliate or an affiliated person of the association or …

The following terms used in subchapter 6 of these rules shall have (unless the context otherwise indicates) the following meanings: (a) “Call report” or “NMLS Mortgage Call Report” means a report of condition on the company and its operations including financial statements and pr…

(a) A finance company shall not require or permit a borrower to waive any statutory provision of the Law for his/her benefit, including any notice which the law requires to be given to the borrower (however, any notice may be given by registered mail, directed to his/her last kno…

The procedures set forth in this section are applicable to any person that is required to be licensed under section 22100, subdivision (a), or section 22100.5 of the Code, and that is required to use NMLS under section 1422.4 of these rules. Except as otherwise provided in subcha…

Except as otherwise provided by Section 22158 of the Financial Code, whenever any loan is transferred within the same company outside the State for any reason, or to an unlicensed affiliate wherever located for any reason, a finance company shall maintain at its licensed location…

(a) No charges shall be received from a borrower subsequent to the making of a loan unless authorized by the Law, and specifically provided for in the original contract. (b) All charges shall be clearly substantiated in the records of the finance company, and the borrower shall b…

(a) A loan contract with income-driven repayment provisions complies with the requirement in Financial Code section 22307, subdivision (b), that a loan contract “provide for payment of the aggregate amount contracted to be paid in substantially equal periodical installments,” if …

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 proper…

(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 appro…

(a) A finance company shall maintain in its home office, a file of all advertising copy for a period of at least two (2) years 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…

(a) The following rules shall not apply to any consumer loan of a bona fide principal amount of $10,000 or more or to a finance company in connection with any such loan provided the provisions of this section are not used for the purpose of evading the law or these rules: Section…

(a) A licensee shall report any change to the information contained in the finder registration form to the Commissioner within fifteen (15) days of the change. The notice shall be in writing and signed by the licensee. (b) Any change in the business location of a finder registere…

(a) A licensee shall retain for every loan the following documents for purposes of compliance with consumer reporting and loan underwriting standards: (1) Evidence that the payment performance of each borrower, on every loan made to that borrower, is being reported to one or more…

(a) A finder receives or processes an application under Section 22373, subdivision (a), of the Financial Code when the finder performs one or more of the services for a licensee under Section 22372, subdivision (a), of the Financial Code. (b) For loans in which a finder performs …

For purposes of conducting a survey of borrowers under subdivision (e) of Section 22380 of the Financial Code, a licensee shall upon request make available to the Commissioner a list of all borrowers who participated in the program, regardless of whether a loan was consummated. T…

A corporate licensee shall file with the commissioner a copy of any certificate affecting the licensee corporation hereafter filed by it with the Secretary of State and not theretofore filed with the commissioner.

Except as otherwise provided in Section 1723 of these rules, a bond or bonds filed pursuant to Section 17203.1 of the Financial Code shall have at least the coverage provided in standard forms of fidelity, commercial blanket or blanket position bonds. Any additional coverage in s…

An escrow agent shall maintain its books, records and accounts in accordance with generally accepted accounting principles and good business practice.

(a) Except as provided in Section 1737.1 of these rules, all money received by an escrow agent as part of an escrow transaction shall on or before the close of the next full working day after such receipt be deposited in a bank, a savings bank, or a savings and loan association i…

A check shall not be drawn, executed or dated prior to the existence, in the particular escrow account against which it is drawn, executed or dated, of a sufficient credit balance to cover said check.

Rules and amendments to the rules and plan of operation established by the board of directors of Fidelity Corporation pursuant to Section 17313 of the Financial Code shall be submitted in writing to the Commissioner for approval.

On or before 105 days after each fiscal year end, Fidelity Corporation shall file with the Commissioner audited financial statements prepared in accordance with generally accepted accounting principles and generally accepted auditing standards. The report shall include a list of …

(a) A prorater shall maintain for inspection by the Commissioner 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 date…

All receipts and disbursements of money shall be posted as of the date of the receipt or disbursement, regardless of the date of posting.

A licensee engaged in the business of selling checks or accepting money for the purpose of forwarding it to others in payment of utility bills should obtain and file with the Commissioner a fidelity bond providing fidelity coverage on each officer and employee of not less than $5…

(a) Every licensed securities depository shall make and keep current the records relating to its business: (1) Ledgers (or other records) reflecting all assets, liabilities, and capital, and the income and expenses of the licensee. (2) Journals (or other records of original entry…

(a) A licensee shall, upon any change in the information contained in its application for a license, file the changed information with the Commissioner through NMLS. (b) A licensee shall file the changed information on Forms MU1, MU2, and MU3 as applicable, and any exhibits and s…

(a) Applicants are required to complete, in accordance with subsections (b) and (c) of this section, the following Appointment of Commissioner of Financial Protection and Innovation as Agent for Service of Process form: Name of debt collector, which is applying for a license unde…

The consent to service of process shall be made on the following form: TO THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA KNOW ALL MEN BY THESE PRESENTS: That the undersigned, __________________________________________________ (a corporation, partnership or limited li…

(a) The notice to accompany the filing of an individual's fingerprints required in the following circumstances shall be made on the form set forth in subsection (c) of this rule: (1) In compliance with the requirements for a license application in Section 1950.122.4 of Subchapter…

(a) Every residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer shall exercise diligent supervision over the mortgage loan origination, lending and servicing activities of every mortgage loan originator that it sponsors. (b) Every mortgage lo…

(a) Annual Report Form. The annual report required under Section 23026 of the Financial Code shall be submitted on the following form number 2030: PLEASE READ THE ATTACHED INSTRUCTIONS CAREFULLY BEFORE COMPLETING THIS REPORT. All licensees must complete the report even if no busi…

The Commissioner is authorized to share any information or material that has been submitted to the NMLS, with any governmental agency, including but not limited to, the California Attorney General, the California Department of Justice, the U.S. Department of Justice, the U.S. Dep…

(a) Pursuant to Financial Code section 90009, subdivision (a)(2)(A), and California Code of Regulations, title 10, section 1010, subdivision (b)(5), a licensee under the Student Loan Servicing Act (division 12.5 (commencing with section 28100) of the Financial Code) is exempt fro…

Special situations arising in connection with coverages such as Hospital Malpractice Liability and Hospital Liability for the same risk will be governed by Section 2138.*

No bail licensee shall directly or indirectly represent that said bail licensee is a fidelity or surety insurer or that said bail licensee has the authority or powers of a bail permittee, bail agent or bail solicitor unless said bail licensee is licensed as such nor shall said ba…

(a) In administering Sections 10232.1 and 10235 of the Code, the commissioner shall take such action as is appropriate to prevent or halt the publication of advertising that is false, misleading or deceptive in itself or through the omission of information necessary to make a rep…