Section 22340.1 Of Article 3. Loan Regulations From California Financial Code >> Division 9. >> Chapter 2. >> Article 3.
22340.1
. (a) A licensee that is a finance lender may sell to (1) an
institutional lender, or (2) an institutional investor described in
paragraph (6) of subdivision (b) of Section 22340, promissory notes
evidencing the obligation to repay federally related mortgage loans,
as defined in Section 1024.2 of Title 12 of the Code of Federal
Regulations, purchased from and made by an institutional lender, and
may make agreements for the collection of payments and performance of
services with respect to those notes. For purposes of this section,
"institutional lender" means any bank, trust company, savings bank or
savings and loan association, credit union, industrial loan company
or residential mortgage lender doing business under the authority of
and in accordance with a license, certificate or charter issued by
the United States or this state.
(b) In the absence of agreement to the contrary by the licensee
and the institutional investor or institutional lender, all payments
received from the collection of payments shall be deposited and
maintained in a trust account, and shall be disbursed from the trust
account only in accordance with the instructions of the owner of the
promissory note.