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Article 3. Real Property Held of California Financial Code >> Division 7. >> Chapter 1. >> Article 3.
An industrial loan company may purchase, hold and convey
real property for the following purposes only:
(a) Real property conveyed to it in satisfaction of debts previously contracted in the course of its business.
(b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees' sales under deeds of trust under securities held by it. No company shall bid at any such sale a larger amount than is necessary to satisfy its debt and costs.
(c) Real property necessary as premises for the transaction of its business. No company shall invest directly or indirectly an amount exceeding one-third of its paid-up capital stock and surplus not available for dividends as provided in Section 18319 in the lot and building in which the business of the company is carried on, leasehold improvements, furniture, fixtures, vaults, automobiles, and other personal property, necessary and proper to carry on its business.
(d) The provisions of this section shall not apply to property acquired and held for lease pursuant to Section 18310.
(a) Real property conveyed to it in satisfaction of debts previously contracted in the course of its business.
(b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees' sales under deeds of trust under securities held by it. No company shall bid at any such sale a larger amount than is necessary to satisfy its debt and costs.
(c) Real property necessary as premises for the transaction of its business. No company shall invest directly or indirectly an amount exceeding one-third of its paid-up capital stock and surplus not available for dividends as provided in Section 18319 in the lot and building in which the business of the company is carried on, leasehold improvements, furniture, fixtures, vaults, automobiles, and other personal property, necessary and proper to carry on its business.
(d) The provisions of this section shall not apply to property acquired and held for lease pursuant to Section 18310.
(a) The commissioner may establish rules and regulations
regarding the sale of any real property acquired pursuant to
subdivision (a) or (b) of Section 18040, consistent with what
constitutes sound business practices for industrial loan companies.
(b) Real property acquired pursuant to subdivision (a) or (b) of Section 18040 shall not be held for a longer period than five years without the written consent of the commissioner.
(b) Real property acquired pursuant to subdivision (a) or (b) of Section 18040 shall not be held for a longer period than five years without the written consent of the commissioner.
The authority of a three-fourths vote of all the directors
is necessary to authorize the purchase of a lot and building
necessary as premises for the transaction of business as an
industrial loan company or to authorize the construction of such
building.
Real property held by an industrial loan company shall be
conveyed by an instrument under the corporate seal of the
corporation, signed by the president or vice president, and the
secretary or assistant secretary.
