General - Loans And Purchased Obligations - Financial - CA

Section § 18190

This law outlines what an industrial loan company is allowed to do. They can lend money with or without collateral like installment investment certificates. They can also charge for loans upfront or at another time. Additionally, they can buy, sell, or offer discounts on certain types of financial obligations, such as trust receipts and sales contracts. Finally, they are permitted to handle lease obligations by buying, selling, or originating them.

An industrial loan company may:

(a) Loan money, secured or unsecured, with or without the pledge of its installment investment certificates.

(b) Collect and receive charges for loans in advance or otherwise.

(c) Purchase, sell, or discount the following obligations: bona fide trust receipts, secured or unsecured choses in action, conditional sales contracts, or security agreements.

(d) Purchase, sell, discount, or originate lease obligations.

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Section § 18191

This law section lists specific financial transactions that are exempt from certain regulations under multiple sections. First, it exempts legitimate loans of $10,000 or more, or any related activities by industrial loan companies, as long as they're not trying to bypass the law. Next, it excludes amounts owed by a backup guarantor on obligations bought under this division. Finally, it exempts loans to a main borrower who has put up accounts receivable or installment accounts as collateral for loans totaling $10,000 or more.

Sections 18008, 18009, 18010, 18212, 18212.1, 18214, 18219, 18220, 18222, 18230 through 18234, 18290 through 18295, and 18439 do not apply to:

(a) Any bona fide loan of a principal amount of ten thousand dollars ($10,000) or more or to an industrial loan company in connection with any such loan if the provisions of the section are not used for the purpose of evading this division.

(b) An amount due from a contingent guarantor on his or her obligations purchased under the provisions of this division.

(c) A loan to a primary borrower who has pledged accounts receivable or installment accounts to secure loans which taken in the aggregate amount to ten thousand dollars ($10,000) or more.

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Section § 18191.5

This law outlines situations where certain financial regulations listed in specified sections do not apply. Specifically, it exempts genuine loans of $5,000 or more, including loans by industrial loan companies, provided these loans aren't structured to dodge the regulations. It also exempts debts from contingent guarantors and loans secured by accounts receivable or installment accounts when these total $5,000 or more.

Sections 18008, 18009, 18010, 18212, 18212.1, and 18214 do not apply to:

(a) Any bona fide loan of a principal amount of five thousand dollars ($5,000) or more, or to an industrial loan company in connection with any bona fide loan of a principal amount of five thousand dollars ($5,000) or more if the provisions of the section are not used for the purpose of evading this division.

(b) An amount due from a contingent guarantor on his or her obligations purchased under the provisions of this division.

(c) A loan to a primary borrower who has pledged accounts receivable or installment accounts to secure loans which taken in the aggregate amount to five thousand dollars ($5,000) or more.

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Section § 18192

This law treats any payment made in exchange for an assignment of wages or similar compensation as a secured loan. The difference between the actual payment and the total assigned compensation is considered interest and charges on that loan. However, it doesn't change existing wage assignment laws or allow wage assignments by themselves.

The payment of money, credit, goods, or things in action as consideration for any sale or assignment of, or order for, the payment of wages, salary, commissions, or other compensation for services, whether earned or to be earned, is, for the purposes of regulation under this division, a loan secured by such assignment, and the amount by which the assigned compensation exceeds the amount of consideration actually paid is interest and charges upon or for such loan from the date of payment to the date the compensation is payable. This section does not modify or affect existing statutes governing wage assignments in this state, or authorize such assignments.

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