State Codes and Statutes

Statutes > California > Fin > 18315-18325

FINANCIAL CODE
SECTION 18315-18325



18315.  (a) When authorized to conduct business pursuant to this
division, an industrial loan company may sell and issue its
investment certificates subject to the provisions of this division.
The commissioner may, by written order directed to a company or by
rule or regulation, impose terms and conditions upon investment
certificates and the sale or redemption thereof or the payment of
interest thereon, as he or she deems reasonable and necessary or
advisable for the protection of the company or the public, and he or
she may from time to time in his or her discretion amend, alter or
revoke any such order or regulation or any condition or provision
thereof.
   (b) Any change in the form, terms, or provisions of outstanding
investment certificates or in the rights, privileges, or restrictions
upon the holder or issuer thereof is deemed a sale and issuance of
investment certificates.
   (c) The company named in any order issued pursuant to subdivision
(a) of this section may, within 15 days after receipt thereof, file
with the commissioner its written request for hearing. The filing of
the request shall not operate to postpone or suspend the
effectiveness of any order issued by the commissioner unless
otherwise directed by the commissioner. The commissioner shall,
within 15 days after the receipt of the written request or at such
later time as may be mutually agreed with the company, cause the
matter to be heard and shall thereafter issue his final decision. The
decision may be amended or set aside by the commissioner at any
time.
   (d) Every order or decision of the commissioner made pursuant to
this section is subject to judicial review in accordance with law.




18316.  An industrial loan company may, in addition to the sale of
installment investment certificates with loans, sell or negotiate
investment certificates either in certificates, or in receipt book
form. The certificates may provide for the payment of money at any
time, either fixed or uncertain. The company may receive payments
therefor in installments or otherwise, with or without an allowance
of interest upon such installments.



18317.  No company may have investment certificates outstanding with
a person or related persons in an aggregate amount in excess of 20
percent of the unimpaired capital stock and surplus of the company
not available for dividends as provided in Section 18319.



18318.  Investment or thrift certificates may be issued to or in the
name of a minor and as such shall be for the exclusive right and
benefit of such minor and may be redeemed in whole or part by said
minor or his order and payment so made is a valid release and
discharge to the company for such payment.



18318.5.  An investment or thrift certificate that is a
multiple-party account as defined in Section 5132 of the Probate Code
is governed by Part 2 (commencing with Section 5100) of Division 5
of the Probate Code.


18319.  In no event shall an industrial loan company have
outstanding at any time its investment certificates (exclusive of
those hypothecated with the company issuing them) in an aggregate sum
in excess of 20 times the aggregate amount of its paid-up and
unimpaired capital and such of its unimpaired surplus as is declared
by a bylaw of the company to be not available for cash dividends. The
commissioner by rule or by order issued pursuant to Section 18315,
may limit the amount of outstanding investment certificates of an
industrial loan company.


18320.  Notwithstanding Section 18319, an industrial loan company
shall in no event:
   (a) Have outstanding at any time during its first 12 months of
operation as an industrial loan company under this division, its
investment certificates (exclusive of those hypothecated with the
company issuing them) in an aggregate sum in excess of six times the
aggregate amount of its paid-up and unimpaired capital and unimpaired
surplus not available for dividends pursuant to Section 18319.
   (b) After 12 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
industrial loan company may file an application with the commissioner
seeking authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
eight times the aggregate amount of its paid-up and unimpaired
capital and unimpaired surplus not available for dividends pursuant
to Section 18319.
   (c) After 24 months of operation as an industrial loan company
under this division and during the next 24 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
12 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319.
   (d) If after 36 months of operation as an industrial loan company
under this division the outstanding investment certificates of a
company are insured by the Federal Deposit Insurance Corporation, the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which it may have outstanding to the extent authorized
by the capital-adequacy requirements of the federal Deposit Insurance
Corporation. An industrial loan company that is authorized to
increase the aggregate sum of its investment certificates to the
extent authorized by the capital-adequacy requirements of the Federal
Deposit Insurance Corporation also shall meet the requirements of
subdivisions (e) and (f).
   (e) After 48 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which, exclusive of those investment certificates
hypothecated with the company issuing them, in no event shall exceed
15 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319, only if both of the following requirements are met:
   (1) A company shall maintain a liquidity reserve in cash, or cash
equivalent, equal to 1 1/2 percent of its total investment
certificates outstanding. "Cash equivalent" means investments legal
for commercial banks under the laws of this state, with a maturity of
not more than 12 months.
   (2) In addition to the reserve for losses required by the
commissioner pursuant to Section 18343, a company shall establish and
maintain such special reserves for losses as the commissioner, by
rule or order, may require.
   (f) After 60 months of operation as an industrial loan company
under this division, the company may file an application with the
commissioner seeking authority to increase the aggregate sum of its
investment certificates which it may have outstanding, which,
exclusive of those investment certificates hypothecated with the
company issuing them, in no event shall exceed 20 times the aggregate
amount of its paid-up and unimpaired capital and unimpaired surplus
not available for dividends pursuant to Section 18319, and which may
exceed 15 times the amount of its paid-up and unimpaired capital and
unimpaired surplus not available for dividends pursuant to Section
18319 only if the requirements of subdivision (e) are met and the
capital stock is not less than one million two hundred fifty thousand
dollars ($1,250,000) and the unimpaired paid-in surplus is not less
than seven hundred fifty thousand dollars ($750,000).
   (g) Whenever the commissioner deems it reasonable and necessary or
advisable for the protection of the public (including the fact that
an industrial loan company is not a member of the Federal Deposit
Insurance Corporation), the commissioner may at any time by order
authorize said industrial loan company to have its investment
certificates outstanding in either a lesser aggregate sum than the
maximum aggregate amounts permitted by subdivision (a), (b), (c),
(d), (e), or (f), or none at all.
   (h) The request for authority filed with the commissioner pursuant
to subdivisions (b), (c), (d), (e), and (f) shall be set forth in an
application in such form and containing such information as the
commissioner may require.
   (i) The commissioner shall by rule or regulation set forth the
criteria that must be met before an industrial loan company can be
granted authority to increase the aggregate sum of its outstanding
investment certificates.
   (j) If the commissioner does not within 60 days of the filing of
an application grant a request by an industrial loan company
operating under this division, for authority to increase the
aggregate sum of its outstanding investment certificates to the
requested amount, or issues an order pursuant to subdivision (g), the
company may file with the commissioner its written request for
hearing in accordance with subdivisions (c) and (d) of Section 18315.



18321.  (a) Nothing in this division authorizes an industrial loan
company to receive demand deposits.
   (b) Subject to Section 18315, an industrial loan company that is a
member of the Federal Deposit Insurance Corporation pursuant to
Section 18521.5 may use the term "certificate of deposit" as defined
in Section 18003.6 with respect to an investment certificate that
does not authorize either of the following:
   (1) Redemption prior to its maturity.
   (2) Reduction of the interest rate payable thereon other than a
variable interest rate.


18322.  An industrial loan company shall obtain the written consent
of the commissioner prior to accepting any moneys pursuant to Section
17409. The commissioner may, by regulation or order, impose or
revise limitations and requirements, including, but not limited to,
liquidity and reserve requirements, as, in the opinion of the
commissioner, are necessary for safety and soundness. The
commissioner shall rescind that consent if, at any time, the
industrial loan company exceeds the limitations or fails to adhere to
the requirements imposed or, if in the opinion of the commissioner,
the continued acceptance of those moneys would pose a threat to the
safety and soundness of the company.



18325.  (a) An industrial loan company shall not impose any charge
on a periodic investment or thrift certificate, or on an investor in
an account evidenced by such certificate, for the failure of an
investor to invest, or for the late investment of, any agreed
periodic installment investment into such an account. An industrial
loan company shall pay interest on periodic investment or thrift
certificates at the same rate of interest per annum as is paid on
investment or thrift certificates as to which an investor has not
agreed to make periodic installment investments.
   (b) As used in this section "periodic investment or thrift
certificate" means an investment arrangement under which an investor
undertakes to make periodic investments of a specified amount into
one account, except, however, a periodic investment or thrift
certificate shall not mean an impound account established for the
purposes of the payment of taxes or other expenses and obligations in
connection with a loan secured by real property, or a certificate of
investment issued in connection with a loan pursuant to Section
18322.

State Codes and Statutes

Statutes > California > Fin > 18315-18325

FINANCIAL CODE
SECTION 18315-18325



18315.  (a) When authorized to conduct business pursuant to this
division, an industrial loan company may sell and issue its
investment certificates subject to the provisions of this division.
The commissioner may, by written order directed to a company or by
rule or regulation, impose terms and conditions upon investment
certificates and the sale or redemption thereof or the payment of
interest thereon, as he or she deems reasonable and necessary or
advisable for the protection of the company or the public, and he or
she may from time to time in his or her discretion amend, alter or
revoke any such order or regulation or any condition or provision
thereof.
   (b) Any change in the form, terms, or provisions of outstanding
investment certificates or in the rights, privileges, or restrictions
upon the holder or issuer thereof is deemed a sale and issuance of
investment certificates.
   (c) The company named in any order issued pursuant to subdivision
(a) of this section may, within 15 days after receipt thereof, file
with the commissioner its written request for hearing. The filing of
the request shall not operate to postpone or suspend the
effectiveness of any order issued by the commissioner unless
otherwise directed by the commissioner. The commissioner shall,
within 15 days after the receipt of the written request or at such
later time as may be mutually agreed with the company, cause the
matter to be heard and shall thereafter issue his final decision. The
decision may be amended or set aside by the commissioner at any
time.
   (d) Every order or decision of the commissioner made pursuant to
this section is subject to judicial review in accordance with law.




18316.  An industrial loan company may, in addition to the sale of
installment investment certificates with loans, sell or negotiate
investment certificates either in certificates, or in receipt book
form. The certificates may provide for the payment of money at any
time, either fixed or uncertain. The company may receive payments
therefor in installments or otherwise, with or without an allowance
of interest upon such installments.



18317.  No company may have investment certificates outstanding with
a person or related persons in an aggregate amount in excess of 20
percent of the unimpaired capital stock and surplus of the company
not available for dividends as provided in Section 18319.



18318.  Investment or thrift certificates may be issued to or in the
name of a minor and as such shall be for the exclusive right and
benefit of such minor and may be redeemed in whole or part by said
minor or his order and payment so made is a valid release and
discharge to the company for such payment.



18318.5.  An investment or thrift certificate that is a
multiple-party account as defined in Section 5132 of the Probate Code
is governed by Part 2 (commencing with Section 5100) of Division 5
of the Probate Code.


18319.  In no event shall an industrial loan company have
outstanding at any time its investment certificates (exclusive of
those hypothecated with the company issuing them) in an aggregate sum
in excess of 20 times the aggregate amount of its paid-up and
unimpaired capital and such of its unimpaired surplus as is declared
by a bylaw of the company to be not available for cash dividends. The
commissioner by rule or by order issued pursuant to Section 18315,
may limit the amount of outstanding investment certificates of an
industrial loan company.


18320.  Notwithstanding Section 18319, an industrial loan company
shall in no event:
   (a) Have outstanding at any time during its first 12 months of
operation as an industrial loan company under this division, its
investment certificates (exclusive of those hypothecated with the
company issuing them) in an aggregate sum in excess of six times the
aggregate amount of its paid-up and unimpaired capital and unimpaired
surplus not available for dividends pursuant to Section 18319.
   (b) After 12 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
industrial loan company may file an application with the commissioner
seeking authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
eight times the aggregate amount of its paid-up and unimpaired
capital and unimpaired surplus not available for dividends pursuant
to Section 18319.
   (c) After 24 months of operation as an industrial loan company
under this division and during the next 24 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
12 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319.
   (d) If after 36 months of operation as an industrial loan company
under this division the outstanding investment certificates of a
company are insured by the Federal Deposit Insurance Corporation, the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which it may have outstanding to the extent authorized
by the capital-adequacy requirements of the federal Deposit Insurance
Corporation. An industrial loan company that is authorized to
increase the aggregate sum of its investment certificates to the
extent authorized by the capital-adequacy requirements of the Federal
Deposit Insurance Corporation also shall meet the requirements of
subdivisions (e) and (f).
   (e) After 48 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which, exclusive of those investment certificates
hypothecated with the company issuing them, in no event shall exceed
15 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319, only if both of the following requirements are met:
   (1) A company shall maintain a liquidity reserve in cash, or cash
equivalent, equal to 1 1/2 percent of its total investment
certificates outstanding. "Cash equivalent" means investments legal
for commercial banks under the laws of this state, with a maturity of
not more than 12 months.
   (2) In addition to the reserve for losses required by the
commissioner pursuant to Section 18343, a company shall establish and
maintain such special reserves for losses as the commissioner, by
rule or order, may require.
   (f) After 60 months of operation as an industrial loan company
under this division, the company may file an application with the
commissioner seeking authority to increase the aggregate sum of its
investment certificates which it may have outstanding, which,
exclusive of those investment certificates hypothecated with the
company issuing them, in no event shall exceed 20 times the aggregate
amount of its paid-up and unimpaired capital and unimpaired surplus
not available for dividends pursuant to Section 18319, and which may
exceed 15 times the amount of its paid-up and unimpaired capital and
unimpaired surplus not available for dividends pursuant to Section
18319 only if the requirements of subdivision (e) are met and the
capital stock is not less than one million two hundred fifty thousand
dollars ($1,250,000) and the unimpaired paid-in surplus is not less
than seven hundred fifty thousand dollars ($750,000).
   (g) Whenever the commissioner deems it reasonable and necessary or
advisable for the protection of the public (including the fact that
an industrial loan company is not a member of the Federal Deposit
Insurance Corporation), the commissioner may at any time by order
authorize said industrial loan company to have its investment
certificates outstanding in either a lesser aggregate sum than the
maximum aggregate amounts permitted by subdivision (a), (b), (c),
(d), (e), or (f), or none at all.
   (h) The request for authority filed with the commissioner pursuant
to subdivisions (b), (c), (d), (e), and (f) shall be set forth in an
application in such form and containing such information as the
commissioner may require.
   (i) The commissioner shall by rule or regulation set forth the
criteria that must be met before an industrial loan company can be
granted authority to increase the aggregate sum of its outstanding
investment certificates.
   (j) If the commissioner does not within 60 days of the filing of
an application grant a request by an industrial loan company
operating under this division, for authority to increase the
aggregate sum of its outstanding investment certificates to the
requested amount, or issues an order pursuant to subdivision (g), the
company may file with the commissioner its written request for
hearing in accordance with subdivisions (c) and (d) of Section 18315.



18321.  (a) Nothing in this division authorizes an industrial loan
company to receive demand deposits.
   (b) Subject to Section 18315, an industrial loan company that is a
member of the Federal Deposit Insurance Corporation pursuant to
Section 18521.5 may use the term "certificate of deposit" as defined
in Section 18003.6 with respect to an investment certificate that
does not authorize either of the following:
   (1) Redemption prior to its maturity.
   (2) Reduction of the interest rate payable thereon other than a
variable interest rate.


18322.  An industrial loan company shall obtain the written consent
of the commissioner prior to accepting any moneys pursuant to Section
17409. The commissioner may, by regulation or order, impose or
revise limitations and requirements, including, but not limited to,
liquidity and reserve requirements, as, in the opinion of the
commissioner, are necessary for safety and soundness. The
commissioner shall rescind that consent if, at any time, the
industrial loan company exceeds the limitations or fails to adhere to
the requirements imposed or, if in the opinion of the commissioner,
the continued acceptance of those moneys would pose a threat to the
safety and soundness of the company.



18325.  (a) An industrial loan company shall not impose any charge
on a periodic investment or thrift certificate, or on an investor in
an account evidenced by such certificate, for the failure of an
investor to invest, or for the late investment of, any agreed
periodic installment investment into such an account. An industrial
loan company shall pay interest on periodic investment or thrift
certificates at the same rate of interest per annum as is paid on
investment or thrift certificates as to which an investor has not
agreed to make periodic installment investments.
   (b) As used in this section "periodic investment or thrift
certificate" means an investment arrangement under which an investor
undertakes to make periodic investments of a specified amount into
one account, except, however, a periodic investment or thrift
certificate shall not mean an impound account established for the
purposes of the payment of taxes or other expenses and obligations in
connection with a loan secured by real property, or a certificate of
investment issued in connection with a loan pursuant to Section
18322.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 18315-18325

FINANCIAL CODE
SECTION 18315-18325



18315.  (a) When authorized to conduct business pursuant to this
division, an industrial loan company may sell and issue its
investment certificates subject to the provisions of this division.
The commissioner may, by written order directed to a company or by
rule or regulation, impose terms and conditions upon investment
certificates and the sale or redemption thereof or the payment of
interest thereon, as he or she deems reasonable and necessary or
advisable for the protection of the company or the public, and he or
she may from time to time in his or her discretion amend, alter or
revoke any such order or regulation or any condition or provision
thereof.
   (b) Any change in the form, terms, or provisions of outstanding
investment certificates or in the rights, privileges, or restrictions
upon the holder or issuer thereof is deemed a sale and issuance of
investment certificates.
   (c) The company named in any order issued pursuant to subdivision
(a) of this section may, within 15 days after receipt thereof, file
with the commissioner its written request for hearing. The filing of
the request shall not operate to postpone or suspend the
effectiveness of any order issued by the commissioner unless
otherwise directed by the commissioner. The commissioner shall,
within 15 days after the receipt of the written request or at such
later time as may be mutually agreed with the company, cause the
matter to be heard and shall thereafter issue his final decision. The
decision may be amended or set aside by the commissioner at any
time.
   (d) Every order or decision of the commissioner made pursuant to
this section is subject to judicial review in accordance with law.




18316.  An industrial loan company may, in addition to the sale of
installment investment certificates with loans, sell or negotiate
investment certificates either in certificates, or in receipt book
form. The certificates may provide for the payment of money at any
time, either fixed or uncertain. The company may receive payments
therefor in installments or otherwise, with or without an allowance
of interest upon such installments.



18317.  No company may have investment certificates outstanding with
a person or related persons in an aggregate amount in excess of 20
percent of the unimpaired capital stock and surplus of the company
not available for dividends as provided in Section 18319.



18318.  Investment or thrift certificates may be issued to or in the
name of a minor and as such shall be for the exclusive right and
benefit of such minor and may be redeemed in whole or part by said
minor or his order and payment so made is a valid release and
discharge to the company for such payment.



18318.5.  An investment or thrift certificate that is a
multiple-party account as defined in Section 5132 of the Probate Code
is governed by Part 2 (commencing with Section 5100) of Division 5
of the Probate Code.


18319.  In no event shall an industrial loan company have
outstanding at any time its investment certificates (exclusive of
those hypothecated with the company issuing them) in an aggregate sum
in excess of 20 times the aggregate amount of its paid-up and
unimpaired capital and such of its unimpaired surplus as is declared
by a bylaw of the company to be not available for cash dividends. The
commissioner by rule or by order issued pursuant to Section 18315,
may limit the amount of outstanding investment certificates of an
industrial loan company.


18320.  Notwithstanding Section 18319, an industrial loan company
shall in no event:
   (a) Have outstanding at any time during its first 12 months of
operation as an industrial loan company under this division, its
investment certificates (exclusive of those hypothecated with the
company issuing them) in an aggregate sum in excess of six times the
aggregate amount of its paid-up and unimpaired capital and unimpaired
surplus not available for dividends pursuant to Section 18319.
   (b) After 12 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
industrial loan company may file an application with the commissioner
seeking authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
eight times the aggregate amount of its paid-up and unimpaired
capital and unimpaired surplus not available for dividends pursuant
to Section 18319.
   (c) After 24 months of operation as an industrial loan company
under this division and during the next 24 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which (exclusive of those investment certificates
hypothecated with the company issuing them) in no event shall exceed
12 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319.
   (d) If after 36 months of operation as an industrial loan company
under this division the outstanding investment certificates of a
company are insured by the Federal Deposit Insurance Corporation, the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which it may have outstanding to the extent authorized
by the capital-adequacy requirements of the federal Deposit Insurance
Corporation. An industrial loan company that is authorized to
increase the aggregate sum of its investment certificates to the
extent authorized by the capital-adequacy requirements of the Federal
Deposit Insurance Corporation also shall meet the requirements of
subdivisions (e) and (f).
   (e) After 48 months of operation as an industrial loan company
under this division and during the next 12 months of operation the
company may file an application with the commissioner seeking
authority to increase the aggregate sum of its investment
certificates which, exclusive of those investment certificates
hypothecated with the company issuing them, in no event shall exceed
15 times the aggregate amount of its paid-up and unimpaired capital
and unimpaired surplus not available for dividends pursuant to
Section 18319, only if both of the following requirements are met:
   (1) A company shall maintain a liquidity reserve in cash, or cash
equivalent, equal to 1 1/2 percent of its total investment
certificates outstanding. "Cash equivalent" means investments legal
for commercial banks under the laws of this state, with a maturity of
not more than 12 months.
   (2) In addition to the reserve for losses required by the
commissioner pursuant to Section 18343, a company shall establish and
maintain such special reserves for losses as the commissioner, by
rule or order, may require.
   (f) After 60 months of operation as an industrial loan company
under this division, the company may file an application with the
commissioner seeking authority to increase the aggregate sum of its
investment certificates which it may have outstanding, which,
exclusive of those investment certificates hypothecated with the
company issuing them, in no event shall exceed 20 times the aggregate
amount of its paid-up and unimpaired capital and unimpaired surplus
not available for dividends pursuant to Section 18319, and which may
exceed 15 times the amount of its paid-up and unimpaired capital and
unimpaired surplus not available for dividends pursuant to Section
18319 only if the requirements of subdivision (e) are met and the
capital stock is not less than one million two hundred fifty thousand
dollars ($1,250,000) and the unimpaired paid-in surplus is not less
than seven hundred fifty thousand dollars ($750,000).
   (g) Whenever the commissioner deems it reasonable and necessary or
advisable for the protection of the public (including the fact that
an industrial loan company is not a member of the Federal Deposit
Insurance Corporation), the commissioner may at any time by order
authorize said industrial loan company to have its investment
certificates outstanding in either a lesser aggregate sum than the
maximum aggregate amounts permitted by subdivision (a), (b), (c),
(d), (e), or (f), or none at all.
   (h) The request for authority filed with the commissioner pursuant
to subdivisions (b), (c), (d), (e), and (f) shall be set forth in an
application in such form and containing such information as the
commissioner may require.
   (i) The commissioner shall by rule or regulation set forth the
criteria that must be met before an industrial loan company can be
granted authority to increase the aggregate sum of its outstanding
investment certificates.
   (j) If the commissioner does not within 60 days of the filing of
an application grant a request by an industrial loan company
operating under this division, for authority to increase the
aggregate sum of its outstanding investment certificates to the
requested amount, or issues an order pursuant to subdivision (g), the
company may file with the commissioner its written request for
hearing in accordance with subdivisions (c) and (d) of Section 18315.



18321.  (a) Nothing in this division authorizes an industrial loan
company to receive demand deposits.
   (b) Subject to Section 18315, an industrial loan company that is a
member of the Federal Deposit Insurance Corporation pursuant to
Section 18521.5 may use the term "certificate of deposit" as defined
in Section 18003.6 with respect to an investment certificate that
does not authorize either of the following:
   (1) Redemption prior to its maturity.
   (2) Reduction of the interest rate payable thereon other than a
variable interest rate.


18322.  An industrial loan company shall obtain the written consent
of the commissioner prior to accepting any moneys pursuant to Section
17409. The commissioner may, by regulation or order, impose or
revise limitations and requirements, including, but not limited to,
liquidity and reserve requirements, as, in the opinion of the
commissioner, are necessary for safety and soundness. The
commissioner shall rescind that consent if, at any time, the
industrial loan company exceeds the limitations or fails to adhere to
the requirements imposed or, if in the opinion of the commissioner,
the continued acceptance of those moneys would pose a threat to the
safety and soundness of the company.



18325.  (a) An industrial loan company shall not impose any charge
on a periodic investment or thrift certificate, or on an investor in
an account evidenced by such certificate, for the failure of an
investor to invest, or for the late investment of, any agreed
periodic installment investment into such an account. An industrial
loan company shall pay interest on periodic investment or thrift
certificates at the same rate of interest per annum as is paid on
investment or thrift certificates as to which an investor has not
agreed to make periodic installment investments.
   (b) As used in this section "periodic investment or thrift
certificate" means an investment arrangement under which an investor
undertakes to make periodic investments of a specified amount into
one account, except, however, a periodic investment or thrift
certificate shall not mean an impound account established for the
purposes of the payment of taxes or other expenses and obligations in
connection with a loan secured by real property, or a certificate of
investment issued in connection with a loan pursuant to Section
18322.

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