Cal. Code Regs. tit. 10 § 40.701

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

Section 40.701 - Application for Authorization

An industrial loan company requesting the Commissioner's consent to engage in the business of leasing as authorized by Section 18310 of the Financial Code shall submit the following information:

(a) A detailed statement of the company's proposed plan of leasing setting forth both the specific leasing business in which the company proposes to engage at the outset and its proposed future leasing program. Said statement should include, but is not limited to, the following information:

(1) Type of equipment subject to lease.

(2) Lease agreements.

(3) Procedure for perfecting liens.

(4) Terms and maturities.

(5) Advance payment/down payments.

(6) Concluding options.

(7) Credit requirements.

(8) Approval authority.

(9) Collection policy.

(10) Form and amount of collateral and/or public liability insurance.

(11) Method for determination of capitalization costs and residual value.

(12) Method for disposal of returned equipment.

(13) Method for early termination of lease.

(14) Method by which income, depreciation, and tax credits will be treated on the company's books.

(15) Any other pertinent factors.

(b) A schedule showing the estimated number, type and amount of leases to be made in each of the first 12 months of operation.

(c) A budget showing the estimated income and expense for the first 12 months of operating said leasing business.

(d) Name of the person(s) who will be operating the leasing business with a statement as to his or her leasing business experience and other qualifications.

(e) A statement from legal counsel that the proposed plan of business has been reviewed and that it complies with all applicable federal and California statutes.

Cal. Code Regs. Tit. 10, § 40.701

1. Change without regulatory effect renumbering former section 1179.1 to new section 40.701 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 18311, Financial Code.

1. Change without regulatory effect renumbering former section 1179.1 to new section 40.701 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).