Title FIN, California Fin. Code

The definitions given in this division govern the construction of this division unless the context otherwise requires. (Repealed and added by Stats. 1979, Ch. 112.)

This division is applicable to any person, other than a federal credit union engaging in the business of a credit union in this state. For purposes of this division, “person” shall have the meaning set forth in Section 5065 of the Corporations Code. (Added by Stats. 2002, Ch. 734…

If and to the extent that any provision of this division is preempted by federal law, the provision shall not apply and shall not be enforced. (Added by Stats. 2002, Ch. 734, Sec. 4. Effective September 20, 2002.)

A credit union is a cooperative, organized for the purposes of promoting thrift and savings among its members, creating a source of credit for them at rates of interest set by the board of directors, and providing an opportunity for them to use and control their own money on a de…

(a) Except as provided in subdivision (b), all provisions of law applicable to nonprofit mutual benefit corporations generally (including, but not limited to, the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corpo…

“Commissioner” means the Commissioner of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 114. (SB 1498) Effective January 1, 2023.)

“Impaired capital” means that the losses or projected losses of a credit union are such that the book value of a member’s share is reduced below 100 percent of the monetary amount of that share when initially purchased plus any accumulated dividends. (Added by Stats. 1982, Ch. 71…

Unless otherwise defined in this division, “insolvent” means a credit union has ceased to pay its debts in the ordinary course of business, or cannot pay its debts as they become due, or is insolvent within the meaning of the federal bankruptcy law. (Added by Stats. 1982, Ch. 716…

“Credit manager” means a natural person approved by the board of directors and employed by a credit union to supervise the lending activities of the credit union in accordance with the loan policies established by the board of directors and consistent with the applicable state an…

“Obligation” means any contractual obligation to the credit union for money borrowed or credit extended or guaranteed from its members, including, but not limited to, loans, lines of credit, agreements to extend credit, and lease agreements. (Added by Stats. 1984, Ch. 789, Sec. 1…

This division shall be known and may be cited as the “Industrial Loan Law,” the “Industrial Banking Law,” or the “Thrift and Loan Law.” (Amended by Stats. 1998, Ch. 827, Sec. 2. Effective January 1, 1999.)

The definitions given in this article govern the construction of this division unless the context otherwise requires. (Repealed and added by Stats. 1976, Ch. 964.)

“Commissioner” means the Commissioner of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 127. (SB 1498) Effective January 1, 2023.)

“Department” means the Department of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 128. (SB 1498) Effective January 1, 2023.)

“Industrial loan company,” “thrift and loan company,” or “company” as used in this division means a premium finance agency as defined in Section 18560. Notwithstanding any other provision of this chapter, these terms and this division do not apply to an industrial bank subject to…

“Investment and loan” means an industrial loan company. (Added by Stats. 1990, Ch. 623, Sec. 2.)

(a) Any reference in a provision of any statute or regulation of this state to an industrial loan company or a thrift and loan company means an insurance premium finance agency as defined in Section 18560. (b) Subdivision (a) does not apply in any of the following cases: (1) In c…

(a) When used with respect to an industrial loan company, “insured” means an industrial loan company that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (b) When used with respect to an investment cer…

“Certificate of deposit” as that term is used by an industrial loan company licensed under this division means an investment certificate representing the obligation of an industrial loan company to repay a nondemand deposit as deposit is defined in Section 3(1) of the Federal Dep…

“Demand deposit” means investment or thrift certificates in account, passbook, or certificate form which are redeemable and payable upon demand to the owner. (Added by Stats. 1999, Ch. 345, Sec. 1. Effective January 1, 2000.)

“Borrower” means the person receiving the proceeds or benefits of a loan. (Repealed and added by Stats. 1976, Ch. 964.)

“Consumer loan or consumer obligation” means a loan made to, or an obligation incurred by, a natural person in which the money loaned, or the property delivered or service rendered under the obligation is primarily for personal, family, or household purposes. (Added by Stats. 197…

“Primarily secured by real property”, as used in this division, means the fair market value of the real property less prior encumbrances, at the time the loan is made or other obligation is acquired, is more than 50 percent of the principal amount owing on the loan or obligation.…

“Charges”, as used in this division, include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by an industrial loan company or any other person in connection with the investigating, a…

“Charges” also include any profit or advantage of any kind that any person may contract for, collect, receive, or in any manner obtain by a collateral sale, purchase, or agreement, in connection with the negotiating, arranging, making, or otherwise in connection with any loan, ex…

“Principal amount”, as used in this division, means the net amount of money, credit, goods, or things in action received by the debtor or borrower or disbursed on the borrower’s instructions at the time of entering into the transaction. (Added by Stats. 1976, Ch. 964.)

“Principal balance”, and “face amount” as used in this division, means the unpaid balance of a loan or other obligation. (Amended by Stats. 1979, Ch. 270.)

“Affiliated company”, as used in this division, is a company under substantially the same management or control, directly or indirectly, as the industrial loan company. (Added by Stats. 1976, Ch. 964.)

“Affiliate” means an affiliated company or a person who, directly or indirectly, controls over 10 percent of the voting stock of an industrial loan company. (Added by Stats. 1996, Ch. 467, Sec. 1. Effective January 1, 1997.)

“Corporate Securities Law” means the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code. (Added by Stats. 1976, Ch. 964.)

“Outstanding loans and obligations,” as used in this division, means total outstanding loans and obligations, including lease obligations, less unearned interest or charges, unearned discount, reserve or allowance for losses, and other applicable allowances or deductions as deter…

“Obligation” as used in Sections 18265, 18271, 18272, and 18343 includes lease obligations as authorized by Section 18310. (Added by Stats. 1979, Ch. 911.)

“Lease obligation” as used in this division, means a lease contract entered into by an industrial loan company as lessor. (Added by Stats. 1979, Ch. 911.)

“Investment certificates ratio”, as used in this division, means the ratio of the aggregate sum of all of the outstanding investment certificates, exclusive of those hypothecated with the company issuing them, of a company to the aggregate amount of its paid-up and unimpaired cap…

“Premium finance agency” has the meaning set forth in Section 18560. (Added by Stats. 1998, Ch. 827, Sec. 5. Effective January 1, 1999.)

“Assets,” as used in this division, means all assets excluding intangibles. (Added by Stats. 1986, Ch. 680, Sec. 1.)

“Capital,” as used in this division, consists of all of the following: (a) Capital stock. (b) Primary capital to the extent not included in capital stock. (c) Secondary capital. (Added by Stats. 1989, Ch. 663, Sec. 1. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

“Primary capital,” as used in this division, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, and mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of that debt). (Added by Stats. 19…

“Secondary capital,” as used in this division, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock, and subordinated notes and debentures, all in an amount up to 50 percent of primary capital. Issues of limited life pr…

“Perpetual preferred stock,” as used in this division, means a preferred stock that does not have a stated maturity date or that can not be redeemed at the option of the holder. It includes those issues of preferred stock that automatically convert into common stock at a stated d…

“Mandatory convertible debt,” as used in this division, means a subordinated debt instrument which requires the issuer to convert that instrument into common or perpetual preferred stock by a date at or before the maturity of the debt instrument. The maturity of those instruments…

“Limited life preferred,” as used in this division, means preferred stock which has a maturity or which may be redeemed at the option of the holder. (Added by Stats. 1989, Ch. 663, Sec. 1.5. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

“Subordinated notes and debentures,” as used in this division, means an obligation other than an investment certificate obligation that: (a) Bears on its face, in boldface type no smaller than the largest size type used in the obligation, the following: “this obligation is not a …

“Capital Stock,” as used in this division, means one-class voting common stock. (Added by Stats. 1989, Ch. 663, Sec. 2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Every person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan is a pawnbroker within the meaning of this division. (Amended by Stats. 1996, Ch. 923, Sec. 7. Effective January 1, 1997.)

As used in this division “receiving goods as security for a loan” does not include a good faith purchase of goods. (Added by Stats. 1979, Ch. 1037.)