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§ 40.1202. Credit Instruments: Limitations.

10 CA ADC § 40.1202BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS

Barclays Official California Code of Regulations Currentness
Title 10. Investment
Chapter 1. Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40. Industrial Loans
Article 12. Advertising
10 CCR § 40.1202
§ 40.1202. Credit Instruments: Limitations.
An industrial loan company shall not issue instruments purporting to be a firm offer to lend or a commitment to extend credit to a borrower or a prospective borrower unless all of the following conditions are met:
(a) The company issues said instrument to an individual specifically named therein;
(b) The company expressly covenants with said borrower or prospective borrower to consummate a loan or loans up to a definitely stated or determinable maximum amount at a rate not to exceed the current applicable rate of charge upon presentation of the credit instrument without any credit investigation or consideration of the value of the security;
(c) The credit instrument is dated accurately as of the date of issue and contains a termination date effective not more than twelve months from the date of issuance by the company;
(d) The credit instrument is not a facsimile of a bond or insurance policy, or check, draft or other form of commercial paper;
(e) The credit instrument clearly shows that a loan, including the repayment thereof together with charges, is involved;
(f) The credit instrument specifies the location at which the loan will be made; and
(g) The credit instrument contains only positive statements, not qualified in any way.
Note: Authority cited: Section 18347, Financial Code. Reference: Section 18055, Financial Code.
HISTORY
1. Change without regulatory effect renumbering former section 1236 to new section 40.1202 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
This database is current through 7/22/22 Register 2022, No. 29
10 CCR § 40.1202, 10 CA ADC § 40.1202
End of Document