California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 4 - Reserves
Section 40.406 - Unearned Income
An industrial loan company shall employ a system which provides a current, reasonable accounting of its unearned charges and discount for loans made and obligations purchased. Acquisition costs shall not be taken into income. An industrial loan company that does not maintain a perpetual inventory of unearned income shall take an inventory or test the accuracy of its unearned income in accordance with generally accepted accounting procedures at least once each year. Any understatement of unearned income disclosed by such inventory or test shall be adjusted on the records of the industrial loan company.
1. Change without regulatory effect renumbering former section 1147 to new section 40.406 and adding new NOTE filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
Note: Authority cited: Section 18347, Financial Code. Reference: Section 18343, Financial Code.