Section 40.703 - Limitation on Outstanding Lease Obligations(a) Unless, in the opinion of the Commissioner, a greater percentage is justified by an appropriate showing in the company's first year projections, an industrial loan company during its first 12 months of operating a leasing business shall not originate or purchase direct lease obligations in an amount exceeding in aggregate 10% of the company's net outstanding loan and obligations, including direct lease obligations.(b) After 12 months of operating a direct leasing business, an industrial loan company may file a request for authority to increase the aggregate amount of its outstanding direct lease obligations which in no event shall exceed 20% of the company's net outstanding loans and obligations, including direct lease obligations.(c) A request submitted pursuant to subsection (b) shall be supported by the following: (1) A statement including, but is not to be limited to, information relating to the type of property leased; net income realized from direct leasing operations; a budget showing the estimated income and expense from the direct leasing operations for the next year; and whether it proposes to lease the same type of property presently leased or whether it plans to lease other types of property.(2) A schedule showing the number and aggregate amount of direct lease obligations held by the company. The schedule shall show the number and amounts by types of property.(3) A schedule of delinquent direct leases by types of property and number of months delinquent.(4) A schedule showing the number and total amount of direct lease obligations which were charged off by the company. The schedule shall show the type of property leased; original cost of property leased; book value of equipment at the time of repossession; and any gain or loss as a result of the sale of said equipment.(5) Any other pertinent factors.Cal. Code Regs. Tit. 10, § 40.703
1. Change without regulatory effect renumbering former section 1179.3 to new section 40.703 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 18316, Financial Code.
1. Change without regulatory effect renumbering former section 1179.3 to new section 40.703 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).