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 40.407 - Fees Paid in Connection with a Loan
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Fees paid in connection with a loan shall not be recognized as income at a rate greater than would be permitted by the "Rule of 78's" (sum-of-the-digits method), notwithstanding that the loan may have been paid prior to maturity by rewriting, extending, or amending the same or by a new loan made by the industrial loan company. However, fees paid in connection with a loan may be recognized as income when the loan is otherwise paid.
(b) "Fees paid in connection with a loan," for the purposes of this section, includes all charges as defined in Sections 18007 and 18008 of the Financial Code, except charges precomputed or earned by the agreed rate of charge, appraisal fees, escrow fees, and fees to be paid to a public officer.
1. Change without regulatory effect renumbering former section 1148 to new section 40.407 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.
