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HomeFinancial CodeDiv. 7Ch. 1Art. 2§ 18022 Industrial Loan Company Investments

§ 18022 Industrial Loan Company Investments

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 18022 Industrial Loan Company Investments

This law says that industrial loan companies can only invest their money in types of investments that regular banks are allowed to make, plus a few extra options like claims from other industrial loan companies.

Key Takeaways

  • •Industrial loan companies can invest only in legal investments for commercial banks.
  • •They may also invest in choses in action issued by other industrial loan companies.
  • •All investments must follow rules set by the commissioner.

Example

A small industrial loan company wants to put its savings into the stock of a local tech startup.

The company can do this because buying stock in a corporation is a legal investment for commercial banks, and the law lets industrial loan companies make those same investments.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 18022 Industrial Loan Company Investments

No industrial loan company shall invest any of its funds, except as authorized in this division. Industrial loan companies may invest their funds in investments that are legal investments for commercial banks, including the capital stock, obligations, or other securities of one or more corporations, subject to rules and orders prescribed by the commissioner. Companies may also invest their funds in the choses in action issued by any other industrial loan company. (Amended by Stats. 1996, Ch. 223, Sec. 1. Effective January 1, 1997.)

Last verified: January 11, 2026

Key Terms

industrial loan companychoses in actioncommercial bankscommissioner

Related Statutes

  • § 18024 Industrial Loan Company Names
  • § 18029 Recordkeeping Requirements
  • § 18020 Industrial Loan Officer Qualifications
  • § 18022.5 Industrial Loan Company Securities
  • § 18023 Industrial Loan Borrowing Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18022.
View Official Source