For the purpose of discovering violations of this division or securing information required, the commissioner may at any time investigate the affairs and examine the books, accounts, records, and files of every corporation engaged in the business of an industrial loan company or broker, or its holding company or affiliates, whether such corporation acts or claims to act as principal or agent, or under or without the authority of this division. For the purposes of examination and investigation, the commissioner and the commissioner’s duly designated representatives shall have free access to the offices and places of business, books, accounts, papers,
records, files, safes and vaults of all such corporations and their holding companies or affiliates.
Administration and Powers of the CommissionerExaminations
Section § 18390
This law allows the commissioner to inspect and investigate companies involved in industrial loans. They can check the company’s books, accounts, and records anytime to ensure they follow the rules. This includes visiting company offices and accessing files and safes, whether the company is working independently or as a part of a bigger group.
industrial loan companies commissioner investigation financial examination
Section § 18391
This law says that if the commissioner thinks an industrial loan company needs special attention due to its condition, they can investigate the company's affairs more closely and do what’s necessary to address any issues.
Whenever in the judgment of the commissioner the condition of any industrial loan company renders it necessary or expedient to devote any extraordinary attention to its affairs, the commissioner may make any extra examination or investigation and perform any necessary services in connection with its affairs.
industrial loan company commissioner authority extraordinary attention
Section § 18392
If an industrial loan company is examined by the commissioner, it has to pay for the costs associated with this process. This includes salaries and any related overhead costs for the people conducting the examination or investigation. The commissioner can decide the cost by using an estimated average hourly rate for that fiscal year.
The industrial loan company examined shall pay to the commissioner the cost of any examination, investigation or services, including the salary or other compensation paid to the persons making the examination or investigation or rendering services, and overhead costs in connection therewith as fixed by the commissioner. In determining the cost of examination, investigation, or services, the commissioner may use the estimated average hourly cost for all persons performing examinations, investigations, or services for industrial loan companies for the fiscal year.
industrial loan company examination costs investigation expenses
Section § 18393
The commissioner needs to check the business and records of an industrial loan company at least once a year if they are involved in certain transactions (as specified in another law section). This check continues unless the company informs the commissioner that they want to stop these activities and proves they have dealt with any debts from those transactions.
The commissioner shall, upon receipt of written notification by an industrial loan company that it intends to engage in or is engaging in transactions permitted under Section 18209, make an examination of the affairs and records of each such industrial loan company at least once each year. Such examination shall be made or performed unless such company notifies the commissioner of its election to discontinue such activity and gives evidence that it has disposed of all evidences of indebtedness arising from any such transactions.
industrial loan company annual examination business records
Section § 18394
Investigation and examination reports created by the commissioner's team are not public records. However, these reports can be shared with a company's officers and directors to help them take corrective action. Sharing the reports does not mean they're no longer exempt from public disclosure laws.
Investigation and examination reports prepared by the commissioner’s duly designated representatives shall not be public records. Those reports may be disclosed to the officers and directors of a company that is the subject of a report for the purpose of corrective action by those officers or directors. That type of disclosure shall not operate as a waiver of the exemption specified in Section 7929.000 of the Government Code.
investigation reports examination reports commissioner's representatives
Section § 18396
This law explains that the commissioner can share information with various governmental agencies, which can be from this state, other states, the U.S., or even foreign nations. The commissioner may provide information specifically to agencies regulating financial institutions, programs like loan guarantees, business regulatory bodies, or law enforcement, especially if there's a suspected crime or legal violation. The law also clarifies that these are just some of the scenarios where information sharing might happen, not all-inclusive.
(a)CA Financial Code § 18396(a) In this section, “governmental agency” includes, without limitation, any agency of this state, of any other state of the United States, of the United States, or of any foreign nation.
(b)CA Financial Code § 18396(b) The commissioner may furnish information to a governmental agency that regulates financial institutions.
(c)CA Financial Code § 18396(c) The commissioner may furnish to a governmental agency that administers a loan guarantee or similar program,
information relating to a person who participates in the program.
(d)CA Financial Code § 18396(d) The commissioner may furnish to a governmental agency that regulates business activities, other than the type described in subdivision (b), information relating to:
(1)CA Financial Code § 18396(d)(1) A suspected violation of a law administered by the agency.
(2)CA Financial Code § 18396(d)(2) A person involved in an application to the agency for a license, approval, or other authorization.
(e)CA Financial Code § 18396(e) The commissioner may furnish to a governmental agency that is a law enforcement agency, information relating to a suspected crime.
(f)CA Financial Code § 18396(f) This section does not prescribe the only circumstances under which the commissioner may furnish information.
commissioner information sharing financial regulation information loan guarantee programs
