Cal. Code Regs. tit. 10, § 40.616 – Single Payment Loans Made Pursuant to Section 18207, Financial Code.

(a) A determination must be made that the borrower has a specific reason and need for a single payment loan rather than a loan repayable in accordance with the terms provided by Section 18205 of the Financial Code.
(b) The loan application and credit investigation must demonstrate that the borrower intends and will be able to pay the loan at maturity.

An industrial loan company shall not make a consumer or other type of loan which is repayable by a single payment at maturity unless the following conditions are met:

Note: Authority cited: Section 18347, Financial Code. Reference: Section 18207, Financial Code.

History

1. Change without regulatory effect renumbering former section 1174 to new section 40.616 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).