Cal. Code Regs. tit. 10 § 40.601
An industrial loan company shall ordinarily maintain a credit file with respect to each dealer from whom obligations are acquired, with or without recourse. Such credit file shall contain information appropriate to the value and type of business done with such dealer. Such credit file shall include an annual balance sheet and income statement. A written agreement with the dealer should be executed and should include provisions for contingent liability for obligations purchased, and dealer reserve and withholds. With respect to nonrecourse transactions, however, a credit file on the dealer will not be required where a company has made a proper direct check of the obligation with the primary obligor, by prompt notification or otherwise, and has obtained proper credit information on the primary obligor. In such case the account file must contain written evidence, by memorandum or otherwise, substantiating that such check has been made. In cases where a credit file is required, such information shall be kept reasonably current to the extent feasible. The information required by this rule shall be retained in the files, as to each dealer and account, as long as there is a balance outstanding on the same.
Cal. Code Regs. Tit. 10, § 40.601
Note: Authority cited: Section 18347, Financial Code. Reference: Sections 18190 and 18029, Financial Code.