Section 22600.1 Of Article 3. Loan Regulations From California Financial Code >> Division 9. >> Chapter 3. >> Article 3.
22600.1
. (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 22600, promissory notes
evidencing the obligation to repay real estate secured business
purpose loans, as defined in Section 3500.5 of Title 24 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, or
industrial loan company 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.