California Financial Code 18321 – (a) Nothing in this division authorizes an industrial loan …
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(a) Nothing in this division authorizes an industrial loan company to receive demand deposits.
(b) Subject to Section 18315, an industrial loan company that is a member of the Federal Deposit Insurance Corporation pursuant to Section 18521.5 may use the term “certificate of deposit” as defined in Section 18003.6 with respect to an investment certificate that does not authorize either of the following:
Terms Used In California Financial Code 18321
- company: as used in this division means a premium finance agency as defined in Section 18560. See California Financial Code 18003
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(1) Redemption prior to its maturity.
(2) Reduction of the interest rate payable thereon other than a variable interest rate.
(Amended by Stats. 1999, Ch. 345, Sec. 3. Effective January 1, 2000.)