California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 15 - Premium Finance Agencies
Section 40.1703 - Premium Finance Agreement Copy or Documents Used to Comply with Financial Code: Form: Contents
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
In addition to the specific requirements of Sections 18605, 18606 and 18607 of the Financial Code, the copy of the Premium Finance Agreement given to the borrower, or other documents used for this purpose or to signify acceptance of the borrower's application for a premium finance loan, shall contain at least the following and may consist of more than one document:
(a) The name and license number of the premium finance agency, address of the office where the loan was made, and the name of the person who closed the loan;
(b) The name and address of the borrower;
(c) The agreed rate of charge, shown as a percentage or percentages per month of the unpaid principal balance or portions thereof, and the amount of any minimum finance charge with a statement of the conditions under which it shall be applicable;
(d) A statement that the borrower may prepay the full amount due at any time and receive a rebate of a portion of the finance charge in the manner provided by Section 18637 of the Financial Code, and a statement disclosing the basis for computing said rebate and any default charge pursuant to Section 18631 of said Code;
(e) A statement in not less than 12-point bold face capital letters: FOR INFORMATION CONTACT THE DEPARTMENT OF BUSINESS OVERSIGHT, STATE OF CALIFORNIA
1. Change
without regulatory effect renumbering and amending former section
1288 to new section
40.1703 filed 8-19-97 pursuant to
section 100, title 1, California Code of
Regulations (Register 97, No. 34).
2. Change without regulatory
effect amending subsection (e) and NOTE filed 8-21-2019 pursuant to section
100, title 1, California Code of
Regulations (Register 2019, No. 34).
Note: Authority cited: Section 18347, Financial Code. Reference: Sections 321, 18605, 18606, 18607, 18631, and 18637, Financial Code.
