SECTIONS 18405-18412 - California Statutes

FINANCIAL CODE

SECTION 18405-18412

18405. (a) On or before the 15th day of March of every year, each
industrial loan company shall file with the commissioner an audit
report containing audited financial statements together with such
other relevant information as the commissioner may require relating
to the company and to each place of business of the company. The
audited financial statements shall include a balance sheet of the
company prepared as of the last day of the preceding calendar year
and statements of income and of surplus for such calendar year.
(b) An industrial loan company whose certificate has been
surrendered or revoked shall, on or before 105 days after the
effective date of such surrender or revocation, submit to the
commissioner a closing audit report containing audited financial
statements as of such effective date for the 12 months ending with
such effective date, or for such other period as the commissioner may
specify. Such report shall include the information required by
subdivision (a) of this section and other relevant information
specified by the commissioner. A company which has complied with this
subdivision is exempted from the provisions of subdivision (a).
(c) The reports and financial statements referred to in
subdivisions (a) and (b) shall be prepared in accordance with
generally accepted accounting principles and shall be accompanied by
a report, certificate, or opinion of an independent certified public
accountant or independent public accountant, and shall contain such
relevant information as the commissioner may require. The audits
shall be conducted in accordance with generally accepted auditing
standards and the rules and regulations of the commissioner.
(d) For good cause and upon written request, the commissioner may
extend the time for compliance with subdivisions (a) and (b).
(e) If the report, certificate or opinion of the independent
accountant referred to in subdivision (c) hereof is in any way
qualified, the commissioner may require the company to take such
action as he deems appropriate to permit an independent accountant to
remove such qualification from the report, certificate or opinion.
(f) The commissioner may reject any financial statement, report,
certificate or opinion filed pursuant to this section by notifying
the company required to make such filing of its rejection and the
cause thereof. Within 30 days after the receipt of such notice, the
company shall correct such deficiency, and the failure so to do shall
be deemed a violation of this division. The commissioner shall
retain a copy of all filings so rejected.

18406. Each industrial loan company which has issued and which has
outstanding investment certificates shall:
(a) Post in a conspicuous and prominent place in each business
location a condensed statement of its financial condition, and
(b) Furnish to a person prior to such person's investment in an
investment certificate a copy of its latest condensed statement of
its financial condition. Each year a copy of the condensed statement
shall be furnished by mail or hand-delivered to each investment
certificate holder.
(c) Maintain and have available for public inspection a copy of
its latest audited financial statement required by subdivision (a) of
Section 18405 in each of its business locations. Any person shall,
upon request, be permitted to inspect the statement during regular
business hours.
(d) The statement required by subdivisions (a) and (b) shall set
forth such information and be in such form as may be required by the
commissioner.

18407. An industrial loan company shall, when requested by the
commissioner, submit its unaudited financial statements, prepared in
accordance with generally accepted accounting principles and
consisting of at least a balance sheet and a statement of income as
of the date and for the period specified by the commissioner. The
commissioner may require the submission of such reports on a monthly
or other periodic basis.

18408. An industrial loan company shall make other special reports
to the commissioner as the commissioner may from time to time
require.

18409. The commissioner shall make and file annually with the
department as a public record a composite of reports filed by
industrial loan companies, and any comments thereon that he or she
deems in the public interest.

18410. For the purposes of the composite report provided for by
Section 18409, an industrial loan company shall furnish statistical
information as is reasonably required by the commissioner, including
information for each place of business of the company and as to any
parent, subsidiary or affiliated company.

18411. The commissioner may by rule or regulation specify the form
and contents of the financial statements, reports, certificates and
opinions required to be filed pursuant to this article, and may
require that such reports and financial statements be verified in
such manner as he may prescribe.

18412. Each report required under this article shall be filed with
the commissioner at the time that the commissioner by regulation or
order may require. If any industrial loan company fails to make any
report required by this article at the time specified by the
commissioner, or fails to include in that report any matter required
by this article or by the commissioner, the commissioner shall assess
and collect a penalty of one hundred dollars ($100) for each day
which that report is delayed or withheld by the failure or neglect of
that industrial loan company.