Article 2. Examinations of California Financial Code >> Division 7. >> Chapter 5. >> Article 2.
For the purpose of discovering violations of this division
or securing information required, the commissioner may at any time
investigate the affairs and examine the books, accounts, records, and
files of every corporation engaged in the business of an industrial
loan company or broker, or its holding company or affiliates, whether
such corporation acts or claims to act as principal or agent, or
under or without the authority of this division. For the purposes of
examination and investigation, the commissioner and the commissioner'
s duly designated representatives shall have free access to the
offices and places of business, books, accounts, papers, records,
files, safes and vaults of all such corporations and their holding
companies or affiliates.
Whenever in the judgment of the commissioner the condition
of any industrial loan company renders it necessary or expedient to
devote any extraordinary attention to its affairs, the commissioner
may make any extra examination or investigation and perform any
necessary services in connection with its affairs.
The industrial loan company examined shall pay to the
commissioner the cost of any examination, investigation or services,
including the salary or other compensation paid to the persons making
the examination or investigation or rendering services, and overhead
costs in connection therewith as fixed by the commissioner. In
determining the cost of examination, investigation, or services, the
commissioner may use the estimated average hourly cost for all
persons performing examinations, investigations, or services for
industrial loan companies for the fiscal year.
The commissioner shall, upon receipt of written notification
by an industrial loan company that it intends to engage in or is
engaging in transactions permitted under Section 18209, make an
examination of the affairs and records of each such industrial loan
company at least once each year. Such examination shall be made or
performed unless such company notifies the commissioner of its
election to discontinue such activity and gives evidence that it has
disposed of all evidences of indebtedness arising from any such
Investigation and examination reports prepared by the
commissioner's duly designated representatives shall not be public
records. Those reports may be disclosed to the officers and directors
of a company which is the subject of a report for the purpose of
corrective action by those officers or directors. Any such disclosure
shall not operate as a waiver of the exemption specified in
subdivision (d) of Section 6254 of the Government Code.
(a) In this section, "governmental agency" includes, without
limitation, any agency of this state, of any other state of the
United States, of the United States, or of any foreign nation.
(b) The commissioner may furnish information to a governmental
agency that regulates financial institutions.
(c) The commissioner may furnish to a governmental agency that
administers a loan guarantee or similar program, information relating
to a person who participates in the program.
(d) The commissioner may furnish to a governmental agency that
regulates business activities, other than the type described in
subdivision (b), information relating to:
(1) A suspected violation of a law administered by the agency.
(2) A person involved in an application to the agency for a
license, approval, or other authorization.
(e) The commissioner may furnish to a governmental agency that is
a law enforcement agency, information relating to a suspected crime.
(f) This section does not prescribe the only circumstances under
which the commissioner may furnish information.