Article 3. Disclosure And Loan Documents of California Financial Code >> Division 7. >> Chapter 3. >> Article 3.
Each industrial loan company shall display prominently in
each place of business a full and accurate schedule of the maximum
charges to be made and the method of computing the same. The schedule
is subject to the approval of the commissioner.
Each industrial loan company shall:
(a) Deliver or cause to be delivered to the borrowers, or any one
thereof, at the time the loan is made, a written statement showing in
clear and distinct terms the name and address of such company and
the broker, if any. The statement shall show the date, amount, and
maturity of the loan contract, how and when repayable, the nature of
the security, if any, for the loan, and the agreed rate of charge.
(b) Obtain from the borrower a signed statement as to whether any
person has performed any act as a broker in connection with the
making of the loan. If such statement discloses a broker or other
person has participated, the company shall obtain a full statement of
all sums paid or payable to the broker or other person.
(c) Keep the statements required by this section for a period of
two years from and after the date the loan has been paid in full, or
has matured according to its terms, or has been charged off.
An industrial loan company shall deliver or cause to be
delivered to the person making any payment in person in cash at any
office of the company, at the time such payment is made on account of
any loan, a plain and complete receipt showing the total amount
received and identifying the loan contract upon which such payment is
applied, and showing the unpaid balance of the loan.
An industrial loan company shall upon repayment of any loan
in full, cancel or plainly mark "paid" and return to the borrower or
person making final payment, the note evidencing the loan. If such
borrower is not otherwise obligated to such company, the company
shall release all security for such loan, endorse and return any
certificate of ownership, and return to the borrower any security
agreement, assignment, or order signed by the borrower, except such
as are a part of the court record in any action, or such as have been
delivered to a third person for the purpose of carrying out the
An industrial loan company shall not take any note, promise
to pay, or security agreement that does not accurately disclose the
actual amount of the loan, the time for which it is made, and the
agreed rate of charge, nor any instrument in which blanks are left to
be filled in after execution.