When authorized by the commissioner as provided in this chapter, a corporation may be organized under the laws of this state, or an existing California corporation may amend its articles of incorporation, to engage in an industrial loan business. Except as otherwise provided in this division, an industrial loan company may be incorporated pursuant to Division 1 (commencing with Section 100), Title 1, of the Corporations Code.
Formation and OrganizationGeneral
Section § 18100
This law allows corporations in California to organize or amend their articles to operate as an industrial loan company if they get approval from the commissioner. Industrial loan companies must follow specific laws in Division 1 of the Corporations Code, unless stated otherwise.
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Section § 18100.5
If an industrial loan company issues thrift obligations, it must be a member of the Federal Deposit Insurance Corporation (FDIC) to legally conduct business, unless it's a premium finance agency.
Each industrial loan company, other than a premium finance agency, that has issued and has outstanding thrift obligations shall, as a condition to its authority to conduct business under this division, participate as a member of the Federal Deposit Insurance Corporation.
industrial loan company thrift obligations Federal Deposit Insurance Corporation
Section § 18101
If a commissioner approves a company's application to become an industrial loan company, they will issue a certificate. This certificate allows the company to form, or change its corporate structure, and outlines the starting date and conditions for beginning business. It also notes the business location.
If the commissioner approves an application to engage in business as an industrial loan company filed pursuant to Article 2 (commencing with Section 18115) of this chapter, he shall issue a certificate in duplicate authorizing the organization of the corporation, or the amendment of its articles of incorporation, and specifying the date on which, and the conditions under which, it may commence business as an industrial loan company, including the place where it will be located.
industrial loan company commissioner approval application approval
Section § 18101.5
This law outlines the process for reserving a company name in California when setting up an industrial loan company. When you apply to incorporate or change the name of such a company, you must also apply for a certificate to reserve that name with the Secretary of State. The name reservation remains valid until either the application is denied, the business certificate expires, or up to one year, whichever comes first. If needed, you can request a six-month extension for the name reservation, pending commissioner approval.
Upon filing an application for approval of proposed articles of incorporation with the commissioner, or upon filing an amendment to the articles of a proposed industrial loan company changing the name of an existing corporation, the incorporators shall file an application for a certificate of reservation of the name of the proposed company as set forth in the articles of incorporation with the Secretary of State pursuant to Section 201 of the Corporations Code. The application filed with the Secretary of State shall recite the fact of the pendency of the application and the Secretary of State shall issue a certificate of reservation upon such an
application for a certificate and upon payment of any required fee. Notwithstanding the provisions of Section 201 of the Corporations Code, the name contained in the certificate of reservation shall be reserved to the applicant until the commissioner refuses to issue a certificate of approval or, if a certificate is issued, as long as a certificate continues in force or effect, or for a period of up to one year from the date when the application is filed in accordance with this article, pending the applicant’s fulfillment of any requirements precedent to opening for business. The Secretary of State may, upon the request of the applicant and the approval of the commissioner, extend the reservation of the name for an additional six months.
industrial loan company incorporation name reservation
Section § 18101.6
If a company is going to start an industrial loan business after this law came into effect, it must include specific terms like “industrial loan company,” “investment and loan,” “thrift company,” “thrift and loan company,” or “bank” in its official name as part of its articles of incorporation.
Companies authorized to engage in the industrial loan business after the effective date of the act which added this section shall have the words “industrial loan company,” “investment and loan,” “thrift company,” “thrift and loan company,” or “bank” as part of the company name included in the articles of incorporation.
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Section § 18102
If you want to start an industrial loan company in California, your articles of incorporation must specifically state that the company’s purpose is to run an industrial loan business. Also, the California Secretary of State won't file the articles or any amendments unless they have a duplicate certificate from the commissioner, as mentioned in another law section.
The articles of incorporation of an industrial loan company, in addition to the statement required by subdivision (b) of Section 202 of the Corporations Code, shall expressly state that its purpose is to engage in an industrial loan business pursuant to this division. The Secretary of State shall not file articles for the incorporation of an industrial loan company or an amendment to the articles of an existing corporation to engage in an industrial loan business unless there is filed with the Secretary of State a duplicate of the certificate issued by the commissioner pursuant to Section 18101.
industrial loan company articles of incorporation purpose statement
Section § 18103
This law states that an industrial loan company cannot transfer or assign its certificate to conduct business; it's strictly for the original holder.
An industrial loan company’s certificate to engage in the industrial loan business is not transferable or assignable.
industrial loan company certificate engage in business
Section § 18104
This law states that unless a person is legally authorized and actually operating an industrial loan business in California, they cannot use certain terms in their business name that suggest they are one. This includes 'Industrial Loan Company,' 'Investment and Loan Company,' 'Thrift Company,' and 'Thrift and Loan Company.'
Additionally, businesses cannot use names, signs, letterheads, or any promotional material that implies they are operating as an industrial loan business, which could mislead others into believing so.
Except as otherwise authorized under existing law, no person, unless lawfully authorized to do business in this state under the provisions of this division and who is actually engaged in carrying on an industrial loan business, shall:
(a)CA Financial Code § 18104(a) Do business under any name or title that contains the following terms:
(1)CA Financial Code § 18104(a)(1) “Industrial Loan Company.”
(2)CA Financial Code § 18104(a)(2) “Investment and Loan
Company.”
(3)CA Financial Code § 18104(a)(3) “Thrift Company.”
(4)CA Financial Code § 18104(a)(4) “Thrift and Loan Company.”
(b)CA Financial Code § 18104(b) Use any name or sign, or circulate or use any letterhead, billhead, circular, or paper, whatever, or advertise or represent in any manner that indicates or reasonably implies that the business is the character or kind of business carried on or transacted by an industrial loan business or is likely to lead any person to believe that the business is that of an industrial loan company.
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