Section 40.1202 - Credit Instruments: LimitationsAn 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.Cal. Code Regs. Tit. 10, § 40.1202
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.
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).