Section 40.612 - Requirements for Loans Made or Obligations Acquired Pursuant to Sections 18210, 18265, 18266, and 18273 of the Financial Code(a) The following kinds or classes of personal property or collateral are hereby declared eligible as security for loans or obligations:(6) Personal property, used for carrying on a business other than that property held for sale;(8) Investment Thrift Certificates of the industrial loan company;(12) Musical instruments;(15) Notes secured by deeds of trust on real property which real property is reasonably insured against loss;(16) Equipment and automobile leases; and(17) Other personal property or collateral determined by the Commissioner upon written request to be similar in nature to any of the above. This written request shall be submitted at least 5 business days before making a loan or purchasing an obligation secured by personal property or collateral.(b) A loan or obligation secured only by item (8) in subsection (a) shall be 100 percent secured at all times during the life of the loan.(c) The kinds or classes of personal property or collateral listed in subsection (a) of this section, except items (8), (13), (14) and (15) thereof, shall be reasonably insured against loss and the industrial loan company shall be named as loss payee in connection therewith.(d) Real property is eligible as security for loans or obligations. Real property shall be reasonably insured against loss and the industrial loan company shall be named as loss payee in connection therewith.(e) Subject to the provisions of Financial Code Section 18210, the aggregate of the principal balances of loans and obligations which will not mature within 60 months and 15 days shall not exceed 70 percent of the aggregate of the principal balances due on all loans and obligations owing to the industrial loan company.Cal. Code Regs. Tit. 10, § 40.612
1. Change without regulatory effect renumbering former section 1169 to new section 40.612 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 18210, 18265, 18266 and 18273, Financial Code.
1. Change without regulatory effect renumbering former section 1169 to new section 40.612 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).