§ 18265 Loan Maturity Limits

Financial Code·California

AI SummaryVerified

Key Takeaways

•This law is for companies that lend money (like banks but for businesses).
•They can't give loans that last longer than 5 years and 15 days unless they follow special rules.
•The loan must be safe (like having something valuable, like a house or car, as backup).
•The backup thing (like a house or car) must be on a special list that the boss (commissioner) says is okay.
•They can't have too many long loans at the same time. The boss sets a limit on how much of their total loans can be long ones.

Example

A company wants to borrow money to buy a big machine for their factory.

If the company wants to pay back the loan in 6 years (longer than 5 years and 15 days), the bank can only say yes if the machine is on the boss's 'okay' list and the bank isn't already lending too much money in long loans.

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

Official Source

View on CA.gov

§ 18265 Loan Maturity Limits

An industrial loan company that has investment certificates outstanding shall not make any loan or purchase or discount any other obligation with a maturity of more than 60 months and 15 days unless all of the following conditions are met: (a) The loan or other obligation is secured. (b) The property, or collateral securing the loan or other obligation, is of a kind or class that has been declared eligible by regulation of the commissioner. (c) The aggregate principal balance of such loans and other obligations outstanding with a remaining maturity of more than 60 months and 15 days at any time shall not exceed a percentage of the aggregate principal balance due on all loans and other obligations owing to the industrial loan company by rule of the commissioner. (Amended by Stats. 1983, Ch. 858, Sec. 21.)

Last verified: January 23, 2026

Key Terms

industrial loan company investment certificates maturity of more than 60 months and 15 days secured eligible collateral aggregate principal balance commissioner

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18265.

§ 18265 Loan Maturity Limits

Financial Code·California

AI SummaryVerified

§ 18265 Loan Maturity Limits

Key Takeaways

•This law is for companies that lend money (like banks but for businesses).
•They can't give loans that last longer than 5 years and 15 days unless they follow special rules.
•The loan must be safe (like having something valuable, like a house or car, as backup).
•The backup thing (like a house or car) must be on a special list that the boss (commissioner) says is okay.
•They can't have too many long loans at the same time. The boss sets a limit on how much of their total loans can be long ones.

Example

A company wants to borrow money to buy a big machine for their factory.

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

Official Source

View on CA.gov

§ 18265 Loan Maturity Limits

Last verified: January 23, 2026

Key Terms

industrial loan company investment certificates maturity of more than 60 months and 15 days secured eligible collateral aggregate principal balance commissioner

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18265.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References