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Section 18301 Of Article 6.5. Open-end Loans From California Financial Code >> Division 7. >> Chapter 3. >> Article 6.5.
18301
. (a) Whenever authorized by the commissioner, an industrial
loan company whose thrift obligations are insured by the Federal
Deposit Insurance Corporation may make a secured line of credit loan.
Security for line of credit loans shall be of a kind and class that
has been declared eligible by the commissioner.
(b) Line of credit loans authorized under Title VIII (Alternative Mortgage Transaction Party Act of 1982) of the Garn-St. Germain Depository Institutions Act of 1982 are not subject to subdivision (a).
(c) As used in this article, "line of credit loan" means a loan whereby a borrower requests and a company disburses loan proceeds in an installment or installments during the term of the loan by an advance or series of advances, whether or not the timing of the advance or advances is known on the date the loan is approved by the company.
(d) This section does not apply to secured line of credit lending activities engaged in on or before May 1, 1989, unless, after that date there is a change in the secured line of credit plan of business by the company.
(b) Line of credit loans authorized under Title VIII (Alternative Mortgage Transaction Party Act of 1982) of the Garn-St. Germain Depository Institutions Act of 1982 are not subject to subdivision (a).
(c) As used in this article, "line of credit loan" means a loan whereby a borrower requests and a company disburses loan proceeds in an installment or installments during the term of the loan by an advance or series of advances, whether or not the timing of the advance or advances is known on the date the loan is approved by the company.
(d) This section does not apply to secured line of credit lending activities engaged in on or before May 1, 1989, unless, after that date there is a change in the secured line of credit plan of business by the company.
