California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 9 - Repossession and Sale of Personal Property
Section 1535 - Duty of a Finance Company
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Unless otherwise provided in these regulations, a repossession, whether voluntary or involuntary, and sale shall be conducted in accordance with the California Commercial Code.
(b) Upon repossession of property securing a loan, a finance company must deal fairly and justly with the borrower in selling such property and obtain on such sale the fair market value of the property.
(c) Reasonable care of such property must be taken while in the possession of the finance company.
(d) If a borrower requests, and if the lender agrees, the property securing a loan may be repossessed and sold even though the loan is not in default. The repossession and sale of such property shall be processed in accordance with this Article.
1. Amendment
filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
53).
2. Change without regulatory effect amending subsection (b) and
NOTE filed 6-14-95 pursuant to section
100, title 1, California Code of
Regulations (Register 95, No. 24).
Note: Authority cited: Section 22150, Financial Code. Reference: Section 22150, Financial Code.
