Section 18415 Of Article 4. Possession, Conservatorship, And Liquidation By The Commissioner From California Financial Code >> Division 7. >> Chapter 5. >> Article 4.
18415
. The commissioner may take possession of the property and
business of any industrial loan company and retain possession until
the company resumes business or its affairs are liquidated if any of
the following grounds exist:
(a) The capital of an industrial loan company is impaired.
(b) An industrial loan company has violated its articles of
incorporation or any law of this state.
(c) An industrial loan company is conducting its business in an
unsafe or unauthorized manner.
(d) An industrial loan company refuses to submit its books, papers
and affairs to the inspection of any examiner.
(e) An officer of any industrial loan company refuses to be
examined upon oath touching the concerns of such industrial loan
company.
(f) An industrial loan company has suspended payment of its
obligations.
(g) An industrial loan company is in such condition that it is
unsound or unsafe for it to transact business.
(h) An industrial loan company neglects or refuses to observe any
order of the commissioner made pursuant to this division, unless the
enforcement of that order is restrained in a proceeding brought by
the industrial loan company.
(i) An industrial loan company (1) fails to become and continue as
either a member of the Federal Deposit Insurance Corporation or a
member of the Thrift Guaranty Corporation of California in accordance
with Chapter 7 (commencing with Section 18475), (2) has its right to
participate in the Thrift Guaranty Corporation of California
suspended or revoked pursuant to subdivision (a) of Section 18496 and
it is not a member of the Federal Deposit Insurance Corporation, or
(3) fails to pay any assessment levied pursuant thereto within the
time specified.
(j) A member industrial loan company of Guaranty Corporation
refuses to permit Guaranty Corporation, its appointed certified
public accountant or public accountant, or specialized committees or
employees to fulfill their duties under Section 18496.
(k) An industrial loan company has sold or issued investment
certificates in violation of the provisions of this division.
(l) An industrial loan company has failed to maintain in effect a
bond required under the provisions of this division.
(m) Any fact or condition exists which, if it had existed at the
time of the original application for authority to organize and
establish a corporation to engage in the industrial loan business
reasonably would have warranted the commissioner in disapproving the
application.
(n) An application for membership in the Federal Deposit Insurance
Corporation has not been filed with and accepted by the Federal
Deposit Insurance Corporation on or before January 15, 1990.
If the commissioner takes possession of the business and property
of an industrial loan company, the company, with the consent of the
commissioner, may resume business upon prescribed conditions.