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 40.617 - Refinance of Single Payment Loans
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Except for loans secured by 100 percent of the industrial loan company's investment certificates, if a loan repayable by a single payment is not fully paid at maturity, it may be refinanced or extended for a new term not to exceed the original term of such loan, provided that at the time of refinance or extension the charges due are collected. If such a loan is not fully paid at the new or extended maturity date, it may not be refinanced unless the following conditions are met:
(a) A new application shall be taken and an appropriate credit investigation made. A determination shall be made that the borrower will be able to adhere to the terms of the new loan;
(b) The new loan shall comply with the term limitations and other provisions of Section 18205 of the Financial Code;
(c) If the new loan is a consumer loan, it shall be repayable by equal or substantially equal periodic payments during its term. If the new loan is other than a consumer loan, a determination must be made that the borrower will be able to pay any final installment amounting to more than twice the amount of any other scheduled installment.
1. Change without regulatory effect renumbering former section 1175 to new section 40.617 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 18207, Financial Code.
