§ 18451 Prohibited Deposit Loans

Financial Code·California

AI SummaryVerified

Key Takeaways

•If you work at a loan company, you can't deposit company money with someone if they agree to loan money back to you or your coworkers.
•This is illegal even if you just try to do it, not just if you actually do it.
•Breaking this rule can get you in trouble with the law.

Example

A manager at a loan company deposits company money into a friend's bank and the friend agrees to loan some of that money back to the manager.

This is against the law because the manager is using company money to get a personal loan, which is not allowed.

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

Official Source

View on CA.gov

§ 18451 Prohibited Deposit Loans

A director, officer, or employee of an industrial loan company, its holding company, or its affiliates who makes or maintains, or attempts to make or maintain, a deposit of such company’s funds with any other person on condition, or with the understanding, express or implied, that the person receiving such deposit make a loan or advance, directly or indirectly, to any director, officer, or employee of the company so making or maintaining or attempting to make or maintain such deposit, is guilty of a misdemeanor. (Amended by Stats. 1980, Ch. 418, Sec. 12.)

Last verified: January 23, 2026

Key Terms

director officer employee industrial loan company misdemeanor deposit loan or advance

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18451.

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Key Takeaways

Example

Key Terms

Related Statutes

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