This part of the law explains that the definitions provided in this section are meant to be used when interpreting the rest of the division unless it's clear that they don't apply in a particular situation.

This law defines the term “Commissioner” as referring specifically to the Commissioner of Financial Protection and Innovation.

This section defines the term "Department" specifically as the Department of Financial Protection and Innovation.

This law defines the terms 'industrial loan company,' 'thrift and loan company,' or 'company' as referring to a premium finance agency as outlined in another section (Section 18560). However, it is important to note that these terms, and the entire division, do not apply to industrial banks that are governed by a different set of rules starting from Section 1530 of Division 1.1.

This law defines the term “investment and loan” specifically as referring to an industrial loan company.

This law explains that whenever you see references to an 'industrial loan company' or 'thrift and loan company' in California's statutes or regulations, they actually mean an 'insurance premium finance agency' as described in another section of the law. However, this rule does not apply if another law specifically says something different, or if the reference is within certain specific sections of the law.

This law explains what 'insured' means in the context of industrial loan companies and investment certificates. If an industrial loan company or an investment certificate is labeled 'insured,' it means they are covered by the Federal Deposit Insurance Corporation (FDIC) under the Federal Deposit Insurance Act.

A 'certificate of deposit' for an industrial loan company is an investment certificate that shows the company's promise to pay back a deposit that can't be withdrawn on demand, according to federal law definitions.

The term "demand deposit" refers to a type of account like an investment or savings certificate that can be cashed out at any time by the owner. These accounts are available in forms such as passbooks or certificates, and they are easily accessible whenever the owner requests.

This section defines a 'Borrower' as the person who gets the money or benefits from a loan.

This section defines what a 'consumer loan' or 'consumer obligation' is. It's any loan or debt a person takes on where the money, goods, or services are mainly for personal or household uses.

This law explains what “primarily secured by real property” means. It indicates that when a loan is given or a debt is taken on, if the value of the property (after subtracting other debts on it) is more than half of the loan amount, then the loan is considered to be primarily secured by that property.

This section defines 'charges' as all the costs an industrial loan company or any other person might impose when handling a loan or other financial service. This includes everything from interest and fees to commissions and expenses, covering all activities related to setting up, managing, or enforcing the loan.

This section defines "charges" in the context of loans. It includes any profit or benefit someone might get through a related sale, purchase, or agreement when they arrange or make a loan. However, it doesn't count commissions from selling insurance as allowed by this division.

The term "principal amount" refers to the actual sum of money, credit, goods, or other resources that the borrower gets or uses, either directly or based on their instructions, when they first make the deal.

This law defines the terms 'principal balance' and 'face amount' as the remaining amount owed on a loan or financial obligation.

This law defines an 'affiliated company' as any business that is managed or controlled, either directly or indirectly, in the same way as an industrial loan company. Essentially, if two companies share the same management or control, they are considered affiliated.

An "Affiliate" in the context of industrial loan companies refers to a company or a person who has control over more than 10 percent of the company's voting stock.

The term “Corporate Securities Law” refers specifically to the Corporate Securities Law of 1968, which is part of a larger set of regulations starting from Section 25000 in Division 1 of Title 4 under the Corporations Code. This law governs how securities are issued, offered, and traded to ensure compliance and protect investors.

This section explains that 'outstanding loans and obligations' refer to all loans and debts still owed, which include lease obligations. From this total, you subtract any unearned interest, charges, discounts, and set-asides for potential losses, along with other permitted deductions determined by the commissioner's regulations.

This section clarifies that when the term "obligation" is mentioned in certain other sections (like Sections 18265, 18271, 18272, and 18343), it also includes lease obligations. This is based on the authorization provided in Section 18310.

This law defines a 'lease obligation' for the purposes of the relevant division as a type of lease agreement where an industrial loan company acts as the lessor, meaning they are leasing out property or assets to another party.

This section explains the term "investment certificates ratio". It refers to the comparison between the total value of all outstanding investment certificates a company has issued (except the ones used as collateral) and the company's paid-up and unimpaired capital and surplus that can't be used for dividends.

This section simply states that a 'premium finance agency' is defined according to another legal section, specifically Section 18560. So, to understand what a premium finance agency is, you need to refer to that section.

This law defines 'assets' for this division as all assets except for intangible ones.

This law defines what 'capital' means in this specific context. It includes three main components: capital stock, primary capital not already counted as part of capital stock, and secondary capital.

In this law, the term "primary capital" is defined. It includes several types of financial resources: common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, and a special kind of debt called mandatory convertible debt. However, only a portion (20%) of this debt is counted as part of primary capital.

The law defines 'secondary capital' as the extra financial resources a company can use, which come from certain types of debt and stock. This includes mandatory convertible debt not counted in the main capital, limited life preferred stock, and subordinated notes and debentures. These resources can only make up to 50% of the company's primary capital. Additionally, except for the mandatory convertible debt, these financial tools need to have an average maturity term of seven years or more to qualify as part of the capital surplus under the primary capital category.

This section defines 'perpetual preferred stock' as a type of preferred stock that never has to be repaid on a specific date and cannot be cashed in by the holder whenever they want. Some preferred stocks may switch to common stock at a predetermined date, and these are still considered perpetual preferred stock. However, if the interest rate on a stock increases in such a way that the issuer is effectively forced to buy back the stock, it is not considered perpetual preferred stock.

This law defines 'mandatory convertible debt' as a type of loan that a company must change into shares of common or perpetual preferred stock by a specific date, which is within or before 12 years. It's a kind of subordinated debt, meaning it's lower in priority for repayment if the company goes bankrupt.

This law defines "subordinated notes and debentures" for industrial loan companies. These are financial obligations that are not insured deposits and must clearly state this on their face. They generally need to have a maturity of at least seven years, unless exceptions are made by a commissioner. They must also state that they are lower in payment priority compared to other obligations like deposits and are unsecured. Additionally, an industrial loan company needs permission to retire them, and there's a waiver of offset rights if they're issued to a bank.

This section defines 'Capital Stock' as referring specifically to one-class voting common stock.