Section 18295 Of Article 6. Insurance Sold With Loans From California Financial Code >> Division 7. >> Chapter 3. >> Article 6.
18295
. An industrial loan company may collect the costs of title
insurance for loans secured primarily by real property. The costs for
such insurance may be collected if:
(1) The principal amount of the loan is at least one thousand
dollars ($1,000);
(2) The loan is secured by a lien of a deed of trust or mortgage
on real property which is the subject of such policy of title
insurance;
(3) The policy of title insurance is made payable to the lender or
jointly to such lender and the borrower as their interests may
appear;
(4) The coverage of such insurance may not exceed the lesser of
the principal amount of the loan or the fair market value of the real
property less prior encumbrances;
(5) The insurance is placed at standard rates through a title
insurance company authorized to do business in the State of
California;
(6) In connection with the renewal or extension of a loan, the
additional cash advance is at least one thousand dollars ($1,000).
Such costs as herein authorized are not included in the maximum
charges which may be made under this division.