Subject to Section 18145.1, when authorized by the commissioner as provided in this division, an industrial loan company, pursuant to a resolution of its board of directors, may establish and maintain one or more branch offices within the state.
Formation and OrganizationBranch Offices
Section § 18145
This law allows an industrial loan company in California to open branch offices within the state as long as it has approval from the commissioner and a resolution passed by its board of directors.
industrial loan company branch offices board of directors resolution
Section § 18145.1
This law allows the commissioner to exempt certain businesses from needing authorization for setting up an office or place of business if the commissioner believes it's not necessary to regulate them. When granting an exemption, the commissioner can also set conditions that they think are needed.
(a)CA Financial Code § 18145.1(a) The commissioner may, by order or regulation, exempt from the requirement of authorization by the commissioner set forth in Section 18145 any establishment of an office or place of business that the commissioner finds not necessary or appropriate to regulate under that section.
(b)CA Financial Code § 18145.1(b) In granting an exemption under this section, the commissioner may impose any conditions that the commissioner finds necessary or appropriate.
commissioner exemption business authorization office establishment
Section § 18146
If you want to open a branch office, you must submit an application in the specific format and with the information required by the commissioner. You also need to pay a $100 fee for each new branch office you wish to establish.
The request for authority to establish a branch office shall be set forth in an application in such form and containing such information as the commissioner may require and shall be accompanied by an application fee of one hundred dollars ($100) for each new branch office.
branch office application commissioner requirements branch office application fee
Section § 18147
Before approving a branch office application for an industrial loan company, the commissioner must verify that the application information is accurate. Additionally, the commissioner needs to ensure that having the new branch is beneficial for the public, that the company meets required capital standards, has proper branch operational controls, and is financially stable enough to open a new branch. Lastly, the company must be a member of the Federal Deposit Insurance Corporation, whether it started business before or after October 1, 1985.
The commissioner shall not approve an application for a branch office until the commissioner has ascertained to the commissioner’s satisfaction that the facts set forth in the application are true and:
(a)CA Financial Code § 18147(a) That the public convenience and advantage will be promoted by the establishment of the proposed branch office.
(b)CA Financial Code § 18147(b) That the industrial loan company has the capital required by this division.
(c)CA Financial Code § 18147(c) That the industrial loan company has established branch
operational controls.
(d)CA Financial Code § 18147(d) That the financial condition of the industrial loan company justifies the establishment of the proposed branch office.
(e)Copy CA Financial Code § 18147(e)
(1)Copy CA Financial Code § 18147(e)(1) As to an industrial loan company transacting business before October 1, 1985, that the industrial loan company is a member of the Federal Deposit Insurance Corporation, or (2) as to an industrial loan company commencing business on or after October 1, 1985, that the industrial loan company is a member of the Federal Deposit Insurance Corporation.
branch office approval industrial loan company requirements public convenience
Section § 18148
If an industrial loan company in California gets approval to open a branch, it must do so within six months. If it doesn't, it loses the right to open that branch. However, if they have a good reason, they can ask for more time before the six months are up. The Commissioner can extend this period in six-month increments.
The failure of an industrial loan company to open and operate a branch office within six months after the commissioner has issued an order approving the application for a branch office shall automatically terminate the right of the industrial loan company to open the branch office. However, the commissioner may for good cause on written application made before the expiration of the six months’ period, extend for additional periods, not in excess of six months each, the time within which the branch office may be opened.
industrial loan company branch office approval six-month deadline
Section § 18149
If someone wants to open a new branch office, and their application is approved, they need to pay a $100 fee. After that, they'll get a certificate allowing them to open and run the branch. This certificate will mention the opening date, conditions, and location of the new branch.
When the commissioner has approved an application for permission to establish a branch office and the applicant pays to the commissioner an additional fee of one hundred dollars ($100) for a certificate of authorization to transact business, the commissioner shall issue a certificate of authorization to transact business authorizing the opening and operation of the branch office and specifying the date on which and the conditions under which it may be opened and the place where it will be located.
branch office authorization business application approval commissioner fee
Section § 18150
If you run an industrial loan company with branch offices, you need to display the business authorization certificate given by the commissioner in a place where everyone can easily see it at each branch.
An industrial loan company shall keep posted in a conspicuous place in each branch office the certificate of authorization to transact business issued by the commissioner permitting the operation of the branch office.
industrial loan company branch office certificate of authorization
Section § 18151
If an industrial loan company starts a branch office without getting official approval, it must pay a penalty of $100 for each day the branch operates without permission.
An industrial loan company which opens a branch office without first obtaining a certificate of authorization to transact business shall forfeit to the people of the state the sum of one hundred dollars ($100) for every day during which the branch office is maintained without authority.
industrial loan company branch office certificate of authorization
Section § 18152
This section states that any branch offices that were opened and operating before September 18, 1959, are not affected by the rules in Sections 18146 through 18151. Essentially, it's providing a kind of 'grandfather' clause for these older branch offices.
The provisions of Sections 18146, 18147, 18148, 18149, 18150, and 18151 shall not affect branch offices which are opened and operating prior to September 18, 1959.
grandfather clause branch offices pre-1959 operations
Section § 18153
This law requires industrial loan companies that have branch offices to give each branch a specific name or number. The name must include the word 'branch' or 'office'. This designation should be clearly visible at the branch's location.
An industrial loan company which maintains a branch office or branch offices shall give to each branch office maintained by it a specified designation by name or number and include in the designation the word “branch” or the word “office” and shall prominently display the designation at the place of business of the branch.
industrial loan company branch office designation
Section § 18154
If an industrial loan company wants to close or stop using one of its branch offices, it needs to get written approval from the commissioner first. Additionally, it has to notify the public about the closure at least 30 days in advance, as directed by the commissioner.
Once a branch is closed, it can't reopen without the commissioner's approval and must follow certain rules to do so.
With the prior written approval of the commissioner, an industrial loan company may close or discontinue the opertion of any branch office provided public notice thereof is given in such manner as the commissioner directs at least 30 days before the date of closing or discontinuance.
After a branch office has been closed or discontinued, it may not be reopened without the approval of the commissioner and compliance with the applicable provisions of this division.
industrial loan company branch office closure public notice
