Cal. Code Regs. tit. 10 § 40.602

Current through Register 2024 Notice Reg. No. 43, October 25, 2024

Section 40.602 - Diversification of Receivables

An industrial loan company shall limit the volume of obligations purchased from one person or business entity and diversify the loans it makes and obligations it acquires as to the types of debtors and types of collateral so as to minimize the exposure to possible loss. The Commissioner may require a company to reduce its outstanding loans made to a specific type of debtor or secured by a specific type of collateral or reduce the volume of obligations purchased from one person or business entity in order to reduce the exposure to possible loss.

Cal. Code Regs. Tit. 10, § 40.602

1. Change without regulatory effect renumbering and amending former section 1157 to new section 40.602 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 18190 and 18272, Financial Code.

1. Change without regulatory effect renumbering and amending former section 1157 to new section 40.602 and adding new Note filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).