Section 18415.3 Of Article 4. Possession, Conservatorship, And Liquidation By The Commissioner From California Financial Code >> Division 7. >> Chapter 5. >> Article 4.
18415.3
. (a) Whenever the net worth of an industrial loan company,
exclusive of its good will, is less than 90 percent of the aggregate
sum of its outstanding investment certificates, exclusive of those
hypothecated with the company issuing them, divided by the fraction
that is its investment certificates ratio permitted by the
commissioner, the commissioner shall by written order direct the
company to make good the alleged deficiency of net worth. Pursuant to
the commissioner's orders, the company's net worth shall be at least
100 percent of the aggregate sum of its outstanding investment
certificates, exclusive of those hypothecated with the company
issuing them, divided by the fraction that is its investment
certificates ratio permitted by the commissioner.
(b) If the company fails to cure the alleged deficiency of net
worth within the commissioner's specified time, not to exceed 120
days, the commissioner may take possession of the company's property
and business. If the alleged deficiency is not cured within 120 days
of the order, the commissioner shall take possession of the company's
property and business.