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HomeFinancial CodeDiv. 7Ch. 3Art. 5§ 18269 Real Property Loan Limits

§ 18269 Real Property Loan Limits

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

§ 18269 Real Property Loan Limits

Key Takeaways

  • •A company that lends money can't give too big of a loan for a house or building. The loan can't be more than 20% of the company's own money.
  • •If the loan is for empty land (no buildings), the company can't lend more than 10% of its own money.
  • •These rules only apply if the company has sold investment certificates to people.

Example

A small bank wants to give a loan to someone buying a house.

If the bank has $1 million of its own money, the biggest loan it can give for a house is $200,000. If the loan is for empty land, the biggest loan is $100,000.

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

Official Source
View on CA.gov

§ 18269 Real Property Loan Limits

An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by improved real property in a principal amount in excess of 20 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319. An industrial loan company that has investment certificates outstanding shall not make any loan secured primarily by unimproved real property in a principal amount in excess of 10 percent of the company’s unimpaired capital stock and surplus not available for dividends as provided in Section 18319. (Amended by Stats. 1989, Ch. 663, Sec. 7. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Last verified: January 23, 2026

Key Terms

industrial loan companyinvestment certificatesimproved real propertyunimproved real propertyunimpaired capital stock and surplus not available for dividends

Related Statutes

  • § 18274 Industrial Loan Property Limits
  • § 18265 Loan Maturity Limits
  • § 18268 Loan Limits On Stock Bonds
  • § 18271 Loan Limits For Industrial Lenders
  • § 18208 Industrial Loan Collateral Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18269.
View Official Source