§ 18208 Industrial Loan Collateral Requirements

Financial Code·California

AI SummaryVerified

This law says a company can give a loan where the borrower can pay back the money and fees anytime, but the loan must always be fully covered by certain safe investments.

Key Takeaways

•The loan must always be 100% covered by safe investments.
•You can pay back the loan and fees anytime you want.
•The investments can be special certificates from the company or traded stocks.

Example

You take out a $5,000 loan from a company to buy a car.

The company must keep $5,000 or more in safe investments (like special certificates or stocks) to cover your loan at all times. You can pay back the loan whenever you want.

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

Official Source

View on CA.gov

§ 18208 Industrial Loan Collateral Requirements

An industrial loan company may make a consumer loan in which the principal and charges are payable at any time during the loan, provided that the loan is secured at all times at least 100 percent by either investment certificates of an industrial loan company authorized to conduct business in the State of California under this division or traded securities. (Repealed and added by Stats. 1976, Ch. 964.)

Last verified: January 11, 2026

Key Terms

industrial loan company consumer loan investment certificates traded securities

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18208.

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Key Terms

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Key Takeaways

Example

Key Terms

Related Statutes

References