California

Financial Code

3,323 sections, each with the official text and a plain-English explanation of what it means for you.

• § 7452 — (a) An association may make consumer loans, provided that the total of such loans shall not exceed 30-percent of the assets of the association.
• § 7453 — (a) An association may make, invest in, sell, purchase, participate in, or otherwise deal in secured or unsecured loans for agricultural, business, commercial, or corporate purposes, provided that the
• § 7454 — Each association is authorized to issue credit cards, extend credit in connection with the cards, and otherwise engage in or participate in credit card operations.
• § 7455 — No association or director, officer, or employee of an association shall require, as a condition to the granting of any loan or the extension of any other service by the association, that the borrower
• § 7456 — Any loan commitment made by an association shall be counted as an investment and shall be included in total assets of the association only to the extent that funds have been advanced (and not repaid)
• § 7457 — An association may make loans on the security of its savings accounts, whether or not the borrower is the owner of the account, subject to the limitations of this article.
• § 7458 — An association may make overdraft loans specifically related to transaction accounts, subject to regulations issued by the commissioner.
• § 7459 — In addition to establishing reserves pursuant to Section 6476, an association or federal association, as defined in Section 5102, may establish a separate loan reserve account regarding losses resulti
• § 7460 — (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, an association, a federal association, an affiliate of an association or federal associati
• § 7461 — The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an association or federal association, or any
• § 7462 — The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an association or federal association, or any
• § 7500 — (a) Subject to limitations, if any, within this chapter, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in (including brokerage or warehousing) loans,
• § 7501 — Each real estate loan shall be evidenced by a note or instrument of obligation for the amount of the loan.
• § 7502 — (a) Each real estate loan shall be secured by a deed of trust, mortgage, or other transaction or instrument constituting a lien or claim, or its equivalent, upon the real estate securing the loan, acc
• § 7503 — Except as specified by the loan contract or by Section 2954.
• § 7504 — Notwithstanding any other provision of law, an association may adjust the interest rate, payment, balance, or term-to-maturity on any loan secured by real property as authorized by the loan contract,
• § 7505 — (a) Notwithstanding any other provision of law, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in loans (including construction loans) on the security
• § 7505.5 — (a) A savings association may make loans the principal purpose of which is to provide financing with respect to what is, or what is to become, primarily residential real estate, for which the associat
• § 7506 — Notwithstanding any other provision of the law, an association may make a loan secured by an assignment of a loan or loans to the extent that it could, under applicable law and regulations, make or pu
• § 7507 — (a) An association may make loans or advances of credit, or invest in interests therein, on the security of real property, which loans, advances of credit, or investments are not otherwise authorized
• § 7509 — (a) (1) At the time of origination, a real estate loan may not exceed 100 percent of the market value of security property.
• § 7600 — In the case of any investment made by an association in a real estate loan, in the event all or part of the ownership of the real estate security becomes vested in a person other than the party or par
• § 7650 — (a) Except as provided in subdivision (b), nothing in this division or the laws of this state shall be construed as denying to an association the right to invest its funds, operate a business, manage
• § 7675 — (a) Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Consti
• § 7700.3 — An association may engage in leasing activities that are the functional equivalent of lending, subject to the limitations of Sections 7701 to 7704, inclusive.
• § 7701 — An association may become the legal or beneficial owner of tangible personal property or real property for the purpose of leasing such property, may obtain an assignment of a lessor’s interest in a le
• § 7702 — (a) A lease of tangible personal property made to a natural person for personal, family, or household purposes pursuant to this section shall be subject to all limitations applicable to the amount of
• § 7703 — For the purposes of this article: (a) A “net lease” is a lease under which the association will not, directly or indirectly, provide or be obligated to provide for: (1) The servicing, repair, or maint
• § 7704 — If, in good faith, an association believes that there has been an unanticipated change in conditions that threatens its financial position by significantly increasing its exposure to loss, the provisi
• § 7720 — (a) An association may invest in tangible personal property, including without limitation, vehicles, mobilehomes, machinery, equipment, or furniture, and may hold the property for rental or sale.
• § 7800 — Subject to the provisions of Section 2955.
• § 8 — “Writing” includes any form of recorded message capable of comprehension by ordinary visual means.
• § 800 — As used in this chapter, unless the context requires otherwise, the following terms have the following meanings: (a) “Net direct debt” of any public corporation means all indebtedness of every kind af
• § 80000 — (a) The Legislature finds and declares that “Bank on California” is a voluntary collaborative initiative that assists Californians in opening a bank or credit union account and saving for the future.
• § 80001 — For purposes of this division, the following terms shall have the following meanings: (a) “Department” means the Department of Financial Protection and Innovation.
• § 8009 — (a) Except where required by law, regulation, or court order, or permitted under subdivision (b), the commissioner, and all employees of the department, shall not disclose any information acquired by
• § 801 — Any securities or other assets that are described in Sections 803 to 819, inclusive, are legal investments for savings banks.
• § 8010 — The commissioner, after a determination of value made in accordance with Article 4 (commencing with Section 8150) of Chapter 7, may order that assets, individually or in the aggregate, to the extent t
• § 802 — Where any laws of this state provide that the moneys of any pension fund, retirement plan, trust fund, or the moneys of any special fund the investment of which is governed by law, or the funds of any
• § 803 — Gold and silver bullion and United States mint certificates of ascertained value.
• § 8030 — (a) To meet the operating costs and expenses of the department in administering this division and other laws relating to savings associations or the savings association business, for the payment of wh
• § 8031 — The proportion of operating costs and expenses to be assessed against each association shall be determined and prescribed by the commissioner by regulation.
• § 8032 — (a) On or before the 20th day of June of each year the commissioner shall notify each association by mail of the amount assessed and levied against it.
• § 8033 — If an association ceases to be an association by reason of merger, consolidation, conversion, acquisition of assets, or a similar type of transaction, any unpaid assessment for the fiscal year ended J
• § 8034 — (a) If a new domestic association is formed during a fiscal year, the initial assessment provided for by this article shall be computed on the same basis as if such new association had been an associa
• § 8035 — If any domestic association proposes to acquire the assets of any federal association or any state or national bank by transfer, conversion, or otherwise, the initial assessment provided for by this a
• § 8035.5 — As of the operative date of this section: (a) The Savings Association Special Regulatory Fund is converted into a separate account in the Financial Institutions Fund and designated as the Savings and
• § 8036 — All money collected or received by the commissioner under this division or any other law relating to savings associations or the savings association business, except money belonging to associations wh
• § 8037 — All expenses of the department in administering the division and other laws relating to savings associations or to the savings association business shall be paid by the Savings and Loan Account; and,
• § 804 — Stock of a federal reserve bank or of a federal home loan bank to the extent authorized by Section 1325.
• § 805 — Bonds or other interest-bearing notes and obligations of the United States and those for which the faith and credit of the United States are pledged for the payment of principal and interest.
• § 8050 — (a) The commissioner shall have general supervision over all (1) associations, (2) savings and loan holding companies, (3) service corporations, (4) finance subsidiaries, and (5) other persons that ar
• § 8051 — Each decision, order, or instruction shall be in writing signed by the commissioner or a deputy commissioner and shall be sent by registered or first-class mail, addressed to the home office of the ap
• § 8053 — The commissioner may from time to time issue, amend and rescind any rules, regulations, forms, and orders that are necessary to carry out the provisions of this division, including rules and regulatio
• § 8054 — (a) Notwithstanding any other provision of law, whenever by statute or regulation there is extended to federal associations doing business in this state any right, power, privilege, or duty not author
• § 8055 — Every final decision of the commissioner is subject to judicial review in accordance with law.
• § 806 — Bonds of the State of California and those for which the faith and credit of the State of California are pledged for the payment of principal and interest and in registered warrants of the State of Ca
• § 807 — Bonds of any flood control and water conservation districts, or any zone thereof, having an assessed valuation on taxable real property of not less than one million dollars ($1,000,000), county, city
• § 808 — Bonds of any other political subdivision, public corporation, or district of the State of California (herein referred to generally as public corporations) having the power, without limit as to rate or
• § 809 — (a) Any of the following subject to the conditions set forth in subdivision (b) to (d), inclusive.
• § 810 — Bonds of any irrigation district, water storage district, water conservation district, county water district, reclamation district, drainage district, and any district the primary function of which is
• § 811 — (a) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate credit banks established under the Federa
• § 812 — Bonds, notes or other obligations issued by the Federal Financing Bank, the United States Postal Service, or issued or assumed by the International Bank for Reconstruction and Development, the Tenness
• § 813 — (a) Notes with a maturity not exceeding 15 months after the date of issue, issued in anticipation of uncollected taxes, income, revenue, cash receipts, and other moneys of the State of California or a
• § 814 — Revenue securities of any state of the United States, or of the Commonwealth of Puerto Rico, and of any city, county, city and county, political subdivision, public corporation, or district (herein re
• § 815 — Bonds of any local public housing agency (as defined in the United States Housing Act of 1937, as amended) that are secured by either of the following: (a) An agreement between the public housing agen
• § 8150 — (a) On or before the last day of January in each year, or within 30 days following the end of the fiscal year, each association, savings and loan holding company, and those subsidiaries of an associat
• § 8151 — Each association, savings and loan holding company and subsidiary of any association or savings and loan holding company that is required to file an annual report under Section 8150 also shall make an
• § 8152 — From time to time the commissioner may, without previous notice, examine or cause an examination to be made into the affairs of each association, and any office of the association within or outside th
• § 8153 — (a) In lieu of a report or an examination under Section 8150 or 8152, the commissioner may accept any report made to, or examination made by, a federal or state authority that supervises financial ins
• § 8154 — (a) Whenever, in the judgment of the commissioner, the condition of any association, savings and loan holding company, or any of their subsidiaries renders it necessary or expedient to make an extra e
• § 8155 — (a) The commissioner is authorized in connection with any examination or audit of any association or any subsidiary to cause to be made appraisals of real estate or other property held by it or securi
• § 8156 — (a) Each association shall at least annually cause its books and accounts to be audited at its own expense by a certified public accountant or firm of certified public accountants selected by the asso
• § 8157 — (a) The commissioner may prescribe the scope of the annual audit and may require the auditor to furnish information in addition to that contained in the audit report.
• § 8158 — (a) The commissioner, or any department employee authorized by the commissioner, shall have free access to all books and records of an association, savings and loan holding company, and any of their s
• § 8159 — For each department examination or appraisal made outside this state, a reasonable fee and the actual traveling expenses incurred shall be paid to the department by the association, savings and loan h
• § 816 — Bonds secured by an insurance commitment of the Federal Housing Administration.
• § 8160 — If an association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company fails to report to the commissioner as required by this article, the commis
• § 817 — Evidences of indebtedness of companies incorporated in the United States and, directly or indirectly, engaged in manufacturing, extraction, merchandising, or commercial financing and in bonds of autho
• § 818 — Fixed interest railroad bonds meeting the requirements of subdivisions (a) and (b); bonds secured by a mortgage on jointly operated railroad facilities meeting the requirements of subdivision (c); and
• § 819 — Bonds and debentures of gas, electric, or gas and electric companies meeting the requirements of subdivision (a); bonds and debentures of telephone companies meeting the requirements of subdivision (b
• § 8200 — The commissioner may issue cease and desist orders which may order affirmative action in accordance with the following: (a) If the commissioner, as a result of any examination or from any report, find
• § 8201 — (a) Whenever the commissioner determines that any institution-affiliated party or any director, officer, or employee of a savings and loan holding company or affiliate thereof has committed any of the
• § 8202 — (a) The commissioner shall publish and make the following available to the public: (1) Any final order issued with respect to any administrative enforcement proceeding initiated by the commissioner pu
• § 8225 — (a) Whenever the commissioner deems it necessary in order to conserve the assets of any association for the benefit of the depositors and other creditors, or if the commissioner finds any of the follo
• § 8226 — Any conservator shall have all the rights, powers, and privileges possessed by the officers, directors, members and stockholders of the association.
• § 8227 — Except as authorized by the commissioner, the conservator shall not retain special counsel or other experts, incur any expense other than normal operating expenses, or liquidate assets except in the o
• § 8228 — The directors and officers shall remain in office and the employees shall remain in their respective positions, but the conservator may remove any director, officer, or employee, provided the order of
• § 8229 — (a) While the association is in the charge of a conservator, savings account holders, borrowers, and other obligors of the association shall continue to make payments to the association in accordance
• § 8230 — Whenever a conservator has taken possession of the property and business of any association pursuant to this article, that association, within 10 days after the taking, if it deems itself aggrieved th
• § 8250 — (a) If the commissioner finds that any association (1) is in an impaired condition, (2) is engaging in practices that threaten to result in an impaired condition, or (3) is in violation of an order or
• § 8251 — (a) In the case of an insured association, the appointment by the commissioner of a receiver under this article shall constitute an official determination of a public authority of this state pursuant
• § 8252 — If the commissioner or a department employee is appointed receiver, no additional compensation shall be paid, but if another person is appointed, then the compensation of the receiver, as determined b
• § 8253 — If the association is an institution insured by the Federal Deposit Insurance Corporation, the Federal Deposit Insurance Corporation shall be tendered appointment as receiver or coreceiver.
• § 8254 — Whenever a receiver has taken possession of the property and business of any association pursuant to this article, that association, within 10 days after the taking, if it deems itself aggrieved there
• § 8500 — (a) Every federal association and the holders of stock, shares, share accounts, savings accounts, and certificate accounts issued by any federal association have all the rights, powers, and privileges
• § 8501 — No director of a federal association shall be liable for monetary damages to the federal association, its stockholders or members, based upon the laws of this state, to the extent that the stockholder
• § 9 — “Section” means a section of this code unless some other statute is specifically mentioned, and “subdivision” means a subdivision of the section in which the term occurs unless some other section is e
• § 900 — (a) Commencing on or before January 1, 2027, the department shall make available to financial institutions and the general public online resources related to financial abuse of victims of domestic vio
• § 9000 — Associations shall pay all fees required by this division to the department.
• § 90000 — (a) The Legislature finds and declares all of the following: (1) California consumers are vulnerable to abuse if the state lacks a dedicated financial services regulator with broad authority over prov
• § 90001 — This division shall be known, and may be cited, as the “California Consumer Financial Protection Law.
• § 90002 — (a) This division shall not apply to a licensee, or an employee of a licensee, of any state agency other than the Department of Financial Protection and Innovation to the extent that licensee or emplo
• § 90003 — (a) It is unlawful for a covered person or service provider, as defined in subdivision (f) of Section 90005, to do any of the following: (1) Engage, have engaged, or propose to engage in any unlawful,
• § 90004 — (a) In addition to the prohibitions contained in Section 1102.
• § 90005 — The definitions in this section apply throughout this division, except as otherwise provided in this division or if the context clearly indicates otherwise: (a) “Affiliate” means any person that contr
• § 90006 — (a) The department shall regulate the offering and provision of consumer financial products or services under California consumer financial laws and shall exercise nonexclusive oversight and enforceme
• § 90007 — With respect to funds under this division: (a) All moneys collected or received by the commissioner under this division shall be deposited with the State Treasurer to the credit of the Financial Prote
• § 90008 — (a) The department shall, by rule, establish reasonable procedures to provide a timely response to consumers, in writing where appropriate, to complaints against, or inquiries concerning, a covered pe
• § 90009 — (a) (1) The department may prescribe rules regarding registration requirements applicable to a covered person engaged in the business of offering or providing a consumer financial product or service,
• § 90009.5 — (a) Notwithstanding paragraph (1) of subdivision (a) of Section 90009, the department shall promulgate rules regarding registration requirements applicable to a covered person no later than three year
• § 9001 — (a) Except where otherwise expressly provided, the commissioner shall prescribe by regulation the amount of each fee expressly required by the provisions of this division, including both existing prov
• § 90010 — (a) This section shall apply to any covered person who meets any of the following conditions: (1) Offers or provides origination, brokerage, or servicing of loans secured by real estate for use by con
• § 90011 — The commissioner and the department shall have all the investigatory and subpoena powers set forth in Sections 11180 to 11191, inclusive, of the Government Code and any subpoena may further require a
• § 90012 — With respect to the enforcement powers of the commissioner and the department under this division, all of the following apply: (a) The department may take any action authorized by this law against a c
• § 90013 — The department may bring a civil action in accordance with the following: (a) If a person violates any provision of this division, rule or final order, or condition imposed in writing by the departmen
• § 90014 — The following limitations apply to actions brought under this division: (a) Except as otherwise permitted by law or equity, including provisions under any consumer financial law, no civil action may b
• § 90015 — (a) The department may conduct hearings and adjudication proceedings with respect to any person in order to ensure or enforce compliance with both of the following: (1) The provisions of this division
• § 90016 — The commissioner shall not outsource or delegate enforcement authority under this division to a private attorney.
• § 90017 — In regard to cooperation with the Attorney General, the following provisions apply: (a) The department may enter into an agreement with the Attorney General with respect to civil actions by each agenc
• § 90018 — (a) The commissioner shall prepare and publish on the department’s internet website an annual report detailing actions taken during the prior year under this law.
• § 90019 — (a) The provisions of this division shall be liberally construed to effectuate its purposes.
• § 99 — This division, Division 1.