This section explains that an association in California can issue loans as long as they ensure the loan is financially sound and can be repaid by the borrower, considering the borrower's financial resources. Additionally, loans can be made to or acquired from directors, officers, or affiliated persons, but these must adhere to regulations set by the commissioner. Loans benefiting these parties are also regulated.

This law says that an association cannot make loans to corporations if 10% or more of the company's stock is owned or controlled by its directors, officers, employees, or major stockholders unless they get written permission from the commissioner first. A major stockholder is someone or their immediate family who owns more than 10% of the association's stock. Additionally, loans that benefit such corporations directly or indirectly are also restricted without the commissioner's consent.

This law limits how much an association can lend or invest in one borrower or project to 25% of its net worth, unless the commissioner allows otherwise. The term "one borrower" is explained further in another section.

This law allows associations to give out consumer loans, but the total amount of these loans can't be more than 30% of the association's assets.

Additionally, associations can include loans given to dealers for inventory and floor planning within this 30% limit. When figuring out how much can be loaned to one borrower, these dealer loans are considered commercial loans.

This law allows associations to make or invest in certain types of loans for agriculture, business, commercial, or corporate purposes, but they can only use up to 10% of their assets for these loans. Additionally, associations can engage in loans originated by specific entities, like banks and insurance companies, but still must keep this investment within the 10% limit.

Loans must meet certain criteria, such as being highly rated if they're corporate debt securities. An association cannot lend too much to a single borrower unless approved by a commissioner, following specific national bank or commercial bank standards. Certain types of loans, like those secured by real estate or with a specific nature, are exceptions to this rule. The term 'one borrower' includes any person or entity closely related to the obligor by ownership or financial interest.

This law allows associations (like financial institutions) to issue credit cards and provide credit related to these cards. It also states that certain rules in the Civil Code about credit don't apply to these associations.

This law says that no association, its directors, officers, or employees can force someone to buy insurance from a specific company, agency, or person as a condition for getting a loan or any other service from that association.

This law states that when a financial association makes a loan commitment, like a loan in process or a letter of credit, it is considered an investment. However, it should only be included in the association's total assets if money has been given out but not yet paid back.

This law allows associations to offer loans secured by savings accounts. The borrower doesn't have to be the account owner, but there are specific rules in this article that apply to these loans.

This law allows associations to offer overdraft loans for transaction accounts, but they must follow the rules set by the commissioner.

This law allows associations, such as savings and loan organizations, to set up a special reserve account. This account is specifically for covering losses that come from fraud committed by borrowers. The association can also take action to recover those losses directly from the borrower who committed the fraud.

This law allows certain financial entities to sue a borrower for damages if the borrower committed fraud, causing the original lender to issue a loan secured by real estate. They can seek up to 50% more than the actual damages as a penalty to the borrower.

However, this law does not apply to loans secured by single-family homes that the borrower lives in, which are worth $150,000 or less (adjusted yearly by inflation since 1987).

Importantly, lawsuits under this rule are not considered deficiency judgments, which are typically rulings for unpaid debt after foreclosure sells a property.

This law section allows lenders, like banks or financial associations, to demand full repayment of a mortgage or use other legal remedies if the property owner doesn't pay specific expenses associated with the property. These expenses include taxes, rents, assessments, or insurance premiums, as outlined in the mortgage agreement.

Even if not paying these expenses hasn't yet harmed the lender's financial interest in the property, they can still enforce these actions.

This law states that if there's a deed of trust or mortgage on a piece of real estate, and it's set up so a bank or related party can manage the payout of insurance money from a fire, flood, or other hazard, those terms are valid. This holds true even if the property's value hasn't been affected by the incident that triggered the insurance payout.