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§ 40.604. Service Contracts.

10 CA ADC § 40.604Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 1. Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40. Industrial Loans
Article 6. Loans and Obligations Receivable
10 CCR § 40.604
§ 40.604. Service Contracts.
Currentness
(a) No industrial loan company which has investment certificates outstanding shall purchase service contracts from dealers if such contracts exceed in the aggregate 10 percent of the net receivables outstanding. Service contracts purchased from any one dealer, its parent, and its affiliates shall not exceed in the aggregate 5 percent of the net receivables outstanding.
(b) For the purposes of this section:
(1) “Dealer” is defined to mean any person who provides lessons or services, including, for example, a dance studio or health spa; and
(2) “Service contract” is defined to mean a contract obligating a dealer to provide lessons or services, not in connection with the sale of household goods or commercial goods, for a stated period of time in consideration of a promise to pay a stated sum.

Credits

Note: Authority cited: Section 18347, Financial Code. Reference: Section 18190, Financial Code.
History
1. Change without regulatory effect renumbering former section 1157.2 to new section 40.604 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
This database is current through 5/3/24 Register 2024, No. 18.
Cal. Admin. Code tit. 10, § 40.604, 10 CA ADC § 40.604
End of Document