1. (a) At the time of purchase, credit or refund to the borrower an amount at least equal to the fair market value of the property as determined under Section 40.1101.
2. (b) Upon a resale of the property, credit or refund to the borrower the gross amount for which the property is resold less the amount of credit or refund made under subsection (a) of this rule, and any expenses of repairing or reconditioning the property made after its purchase and any expenses of resale, provided that these expenses shall not exceed the actual outlay therefor.

If an industrial loan company, any affiliate of the industrial loan company, any company in which it has some interest, or any company in which any person connected with the industrial loan company has some interest, purchases any property securing a loan at any sale after repossession, the industrial loan company shall:

Note: Authority cited: Section 18347, Financial Code. Reference: Sections 18029 and 18266, Financial Code.

History

1. Change without regulatory effect renumbering and amending former section 1226 to new section 40.1104 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).