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HomeFinancial CodeDiv. 7Ch. 2Art. 2§ 18116 Industrial Loan Company Approval

§ 18116 Industrial Loan Company Approval

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

§ 18116 Industrial Loan Company Approval

This law says the government must check if new loan companies are trustworthy and needed in the community before allowing them to open.

Key Takeaways

  • •The government checks the backgrounds of the people starting the loan company.
  • •They make sure the town actually needs another loan company.
  • •They look at whether the town has enough business to keep the loan company running.

Example

A group wants to open a new loan company in a small town.

The government will check if the people starting the company are honest, if the town really needs another loan company, and if the town has enough business to support it.

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

Official Source
View on CA.gov

§ 18116 Industrial Loan Company Approval

Upon the filing of an application, the commissioner shall make or cause to be made a careful investigation and examination relative to the following: (a) The background and experience of the organizers or incorporators, the proposed officers and managers, and the proposed stockholders and directors. (b) The need for industrial loan facilities or additional industrial loan facilities, as the case may be, in the community where the proposed industrial loan company is to be located, giving particular consideration to the adequacy of existing industrial loan facilities in the community. (c) The ability of the community to support the proposed industrial loan company, giving consideration to (1) the competition offered by existing industrial loan companies; (2) the previous industrial loan history of the community; and (3) the opportunities for profitable employment of industrial loan funds as indicated by the average demand for credit, the number of potential investors, the volume of industrial loan transactions and the business and industries of the community with particular regard to their stability, diversification and size. (d) Such other facts and circumstances bearing on the proposed industrial loan company as in the opinion of the commissioner may be relevant. (Amended by Stats. 1980, Ch. 974, Sec. 8.)

Last verified: January 11, 2026

Key Terms

industrial loan companycommissionerinvestigationcommunity supportdemand for credit

Related Statutes

  • § 18119 Industrial Loan Company Notice
  • § 100009 Debt Collection License Investigation
  • § 100011 License Issuance Requirements
  • § 100012 License Denial Proceedings
  • § 100014 License Validity Period

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18116.
View Official Source