Article 1. General of California Financial Code >> Division 7. >> Chapter 2. >> Article 1.
When authorized by the commissioner as provided in this
chapter, a corporation may be organized under the laws of this state,
or an existing California corporation may amend its articles of
incorporation, to engage in an industrial loan business. Except as
otherwise provided in this division, an industrial loan company may
be incorporated pursuant to Division 1 (commencing with Section 100),
Title 1, of the Corporations Code.
Each industrial loan company, other than a premium finance
agency, that has issued and has outstanding thrift obligations
shall, as a condition to its authority to conduct business under this
division, participate as a member of the Federal Deposit Insurance
If the commissioner approves an application to engage in
business as an industrial loan company filed pursuant to Article 2
(commencing with Section 18115) of this chapter, he shall issue a
certificate in duplicate authorizing the organization of the
corporation, or the amendment of its articles of incorporation, and
specifying the date on which, and the conditions under which, it may
commence business as an industrial loan company, including the place
where it will be located.
Upon filing an application for approval of proposed
articles of incorporation with the commissioner, or upon filing an
amendment to the articles of a proposed industrial loan company
changing the name of an existing corporation, the incorporators shall
file an application for a certificate of reservation of the name of
the proposed company as set forth in the articles of incorporation
with the Secretary of State pursuant to Section 201 of the
Corporations Code. The application filed with the Secretary of State
shall recite the fact of the pendency of the application and the
Secretary of State shall issue a certificate of reservation upon such
an application for a certificate and upon payment of any required
fee. Notwithstanding the provisions of Section 201 of the
Corporations Code, the name contained in the certificate of
reservation shall be reserved to the applicant until the commissioner
refuses to issue a certificate of approval or, if a certificate is
issued, as long as a certificate continues in force or effect, or for
a period of up to one year from the date when the application is
filed in accordance with this article, pending the applicant's
fulfillment of any requirements precedent to opening for business.
The Secretary of State may, upon the request of the applicant and the
approval of the commissioner, extend the reservation of the name for
an additional six months.
Companies authorized to engage in the industrial loan
business after the effective date of the act which added this section
shall have the words "industrial loan company," "investment and
loan," "thrift company," "thrift and loan company," or "bank" as part
of the company name included in the articles of incorporation.
The articles of incorporation of an industrial loan company,
in addition to the statement required by subdivision (b) of Section
202 of the Corporations Code, shall expressly state that its purpose
is to engage in an industrial loan business pursuant to this
division. The Secretary of State shall not file articles for the
incorporation of an industrial loan company or an amendment to the
articles of an existing corporation to engage in an industrial loan
business unless there is filed with the Secretary of State a
duplicate of the certificate issued by the commissioner pursuant to
An industrial loan company's certificate to engage in the
industrial loan business is not transferable or assignable.
Except as otherwise authorized under existing law, no
person, unless lawfully authorized to do business in this state under
the provisions of this division and who is actually engaged in
carrying on an industrial loan business, shall:
(a) Do business under any name or title that contains the
(1) "Industrial Loan Company."
(2) "Investment and Loan Company."
(3) "Thrift Company."
(4) "Thrift and Loan Company."
(b) Use any name or sign, or circulate or use any letterhead,
billhead, circular, or paper, whatever, or advertise or represent in
any manner that indicates or reasonably implies that the business is
the character or kind of business carried on or transacted by an
industrial loan business or is likely to lead any person to believe
that the business is that of an industrial loan company.