California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 6 - Loans and Obligations Receivable
Section 40.612 - Requirements for Loans Made or Obligations Acquired Pursuant to Sections 18210, 18265, 18266, and 18273 of the Financial Code

(a) The following kinds or classes of personal property or collateral are hereby declared eligible as security for loans or obligations:

(b) A loan or obligation secured only by item (8) in subsection (a) shall be 100 percent secured at all times during the life of the loan.

(c) The kinds or classes of personal property or collateral listed in subsection (a) of this section, except items (8), (13), (14) and (15) thereof, shall be reasonably insured against loss and the industrial loan company shall be named as loss payee in connection therewith.

(d) Real property is eligible as security for loans or obligations. Real property shall be reasonably insured against loss and the industrial loan company shall be named as loss payee in connection therewith.

(e) Subject to the provisions of Financial Code Section 18210, the aggregate of the principal balances of loans and obligations which will not mature within 60 months and 15 days shall not exceed 70 percent of the aggregate of the principal balances due on all loans and obligations owing to the industrial loan company.