An application for authority to engage in the industrial loan business shall be in such form and contain such information as the commissioner may require and shall be accompanied by a filing fee of four hundred dollars ($400).
Formation and OrganizationApplications
Section § 18115
If you want to start an industrial loan business, you must submit an application with the details the commissioner requests and include a filing fee of $400.
industrial loan business application process commissioner requirements
Section § 18116
When someone wants to start an industrial loan company, they need to file an application. The commissioner is then required to investigate several things: the background and experience of the organizers and potential leaders, whether the community needs more industrial loan services, how well the community can support the proposed company based on local competition, and the community's economic activity. The commissioner will also consider any other relevant information.
Upon the filing of an application, the commissioner shall make or cause to be made a careful investigation and examination relative to the following:
(a)CA Financial Code § 18116(a) The background and experience of the organizers or incorporators, the proposed officers and managers, and the proposed stockholders and directors.
(b)CA Financial Code § 18116(b) The need for industrial loan facilities or additional industrial loan facilities, as the case may be, in the community where the proposed industrial loan company is to be located, giving particular consideration to the
adequacy of existing industrial loan facilities in the community.
(c)CA Financial Code § 18116(c) The ability of the community to support the proposed industrial loan company, giving consideration to (1) the competition offered by existing industrial loan companies; (2) the previous industrial loan history of the community; and (3) the opportunities for profitable employment of industrial loan funds as indicated by the average demand for credit, the number of potential investors, the volume of industrial loan transactions and the business and industries of the community with particular regard to their stability, diversification and size.
(d)CA Financial Code § 18116(d) Such other facts and circumstances bearing on the proposed industrial loan company as in the opinion of the commissioner may be relevant.
industrial loan company community support commission investigation
Section § 18117
This law allows the commissioner to deny an application for starting an industrial loan company if there are issues such as not benefiting the public, having unclear purposes, insufficient capital, applicant's involvement in crime or deceit, lack of experience in finance, or if the application contains false information.
It also applies if the applicant has failed to follow rules or violated similar regulations in another jurisdiction within the last 10 years.
The commissioner, upon reasonable notice and opportunity to be heard, may deny the application for any of the following reasons:
(a)CA Financial Code § 18117(a) The public convenience and advantage will not be promoted by the establishment of the proposed industrial loan company.
(b)CA Financial Code § 18117(b) The industrial loan company is being formed for a purpose other than the legitimate objectives contemplated by this division.
(c)CA Financial Code § 18117(c) The proposed capital structure is inadequate.
(d)CA Financial Code § 18117(d) Any proposed officer, director, or shareholder of the applicant has, within the last 10 years, (1) been convicted of or pleaded nolo contendere to a crime, or (2) committed any act involving dishonesty, fraud, or deceit, which crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with the provisions of this division.
(e)CA Financial Code § 18117(e) The applicant has not complied with all the applicable provisions of this division.
(f)CA Financial Code § 18117(f) The proposed officers and directors do not have sufficient banking, industrial loan, finance company, or other experience to afford reasonable promise of successful operation.
(g)CA Financial Code § 18117(g) A false statement of a material fact has been made in the application.
(h)CA Financial Code § 18117(h) The applicant or any officer, director, or incorporator of the applicant has violated any provision of this division or the rules thereunder or any similar regulatory scheme of a foreign jurisdiction.
industrial loan company application denial public convenience
Section § 18119
This law states that when an application is filed to start an industrial loan company planning to sell its investment certificates, the commissioner has 30 days to notify existing industrial loan companies about the application.
Within 30 days after an application is filed for authorization to establish an industrial loan company which intends to sell and issue its investment certificates, the commissioner shall give written notice of the filing of the application to each industrial loan company subject to this division.
industrial loan company application filing authorization process
Section § 18120
Before a company gets permission to run as an industrial loan company, a certain amount of money, known as the minimum capital stock and minimum paid-in surplus or reserve, must be paid in cash for the company's benefit. This requirement is part of another set of rules starting in Section 18130.
Before the commissioner issues a certificate of authorization to operate as an industrial loan company, there must be paid in cash for the benefit of the corporation, the minimum capital stock and minimum paid-in surplus or reserve required pursuant to Article 3 (commencing with Section 18130) of this chapter.
certificate of authorization industrial loan company minimum capital stock
