California Financial Code

§ 18266

FIN § 18266 Effective Jan 1, 1997Div. 7 · Ch. 3 · Art. 5

Statute text

(a)Except as set forth in subdivisions (b) and (c), any loan or obligation made or acquired by an industrial loan company that has investment certificates outstanding that is secured primarily by real property and has an outstanding principal balance of ten thousand dollars ($10,000) or more shall be secured by real property having a fair market value, or real property and personal property combined having a fair market value, at the time the loan or other obligation is made or acquired, of at least 110 percent of the principal amount owing on the loan or obligation and on prior encumbrances, except nondelinquent tax liens, secured by the same real property with regard to loans secured solely by real property, or by both real property and personal property. Fair market value of the real property for purposes of this section shall be determined by a real property appraiser who meets the qualifications established pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, and any applicable regulations, guidelines, or policies thereunder.

(b)Subdivision (a) does not apply to:

(1)Any loan guaranteed in whole or in part by the Administrator of Veterans Affairs pursuant to the Servicemen’s Readjustment Act of 1944 or any act of Congress supplementary or amendatory thereof.

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Legislative history

Amended by Stats. 1996, Ch. 227, Sec. 1. Effective January 1, 1997.