The California Financing Law (CFL) formerly known as the “California Finance Lenders Law” until 2017, regulates finance lenders and brokers who make and broker consumer and commercial loans, including a requirement that requires them to be licensed. The CFL requires Department of Business Oversight (DBO) licensees to perform regular acts and provide certain information to the DBO.
The “California Financing Law” is contained in the California Financial Code, § 22000 et seq. (CF). A finance lender is defined by the CFL as “any person who is engaged in the business of making consumer loans or making commercial loans.” A finance lenders license provides the licensee with an exemption from the California Constitution ‘s usury provision.
The California Financial Code mandates that the following current information must be provided to the DBO, as well as certain changes noted in the California Finance Code.
- FC 331.5 Designated email address
- FC 457 Change in office
- FC 1077 Annual list of all bank offices
- FC 14254.5 Opening, closing or relocating a credit union branch office
Designated Email Address
A licensee must establish and maintain an electronic service address designated for receiving communications and documents transmitted by the DBO commissioner to licensees.
Change in Office
Every licensee shall notify the commissioner of any change in the following officers of the licensee, to the extent that these officers exist within the licensee’s business organization: chairperson, chief executive officer, president, general manager, managing officer, chief financial officer, or chief credit officer.
Licensees must provide an annual list on or before January 1 of each year. This document must contain a list of all offices that are currently maintained and operated by the licensee bank. The report must detail the type of office maintained and operated, with its complete address.
CU Branch Changes
Licensees are required to notify the DBO commissioner in writing of the opening, closing, or relocating a branch office of a credit union. The licensee must provide notice of the action, including the street and mailing addresses of the branch office within ten (10) business days.
It is important that licensees meet these requirements since they may be subject to fines and penalties for failure to notify DBO of changes on a timely basis.
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