SECTIONS 18680-18687 - California Statutes

FINANCIAL CODE

SECTION 18680-18687

18680. No foreign (other state) industrial loan company may
transact core business in this state except at a branch office
established in accordance with federal law and the law of the
domicile of the industrial loan company.

18681. Section 18680 does not prohibit:
(a) Any foreign (other state) industrial loan company which does
not maintain a California branch office from carrying on the
activities described in subdivision (d) of Section 191 of the
Corporations Code.
(b) Any foreign (other state) industrial loan company which does
not maintain a California branch office from making in this state
loans secured by liens on real property located in this state.
(c) Any foreign (other state) industrial loan company from having
a California industrial loan company as its agent pursuant to Article
5 (commencing with Section 18700).

18682. No foreign (other state) industrial loan company may
establish or maintain a California branch office unless it is
qualified to transact intrastate business in this state under Chapter
21 (commencing with Section 2100) of Division 1 of Title 1 of the
Corporations Code.

18683. No foreign (other state) industrial loan company may
establish or maintain a California branch office unless the
industrial loan company is insured.

18684. (a) (1) No foreign (other state) industrial loan company may
merge as the surviving corporation (Section 148) with a California
industrial loan company or California bank except that an insured
foreign (other state) industrial loan company may do so in accordance
with federal law, the law of the domicile of the foreign (other
state) industrial loan company, this chapter, and Division 1.5
(commencing with Section 4800).
(2) No foreign (other state) industrial loan company may purchase
the whole business unit of a California industrial loan company or
California bank except that an insured foreign (other state)
industrial loan company may do so in accordance with federal law, the
law of the domicile of the foreign (other state) industrial loan
company, this chapter and Division 1.5 (commencing with Section
4800).
(3) No foreign (other state) industrial loan company that does not
already maintain a California branch office may establish or
maintain a California branch office except in the manner described in
paragraph (1) or (2) and in accordance with federal law, the law of
the domicile of the foreign (other state) industrial loan company and
this chapter.
(b) This section constitutes:
(1) An election to permit early interstate merger transactions
pursuant to Section 44(a)(3) of the Federal Deposit Insurance Act (12
U.S.C. Sec. 1831u(a)(3)).
(2) An express prohibition against interstate branching through
the acquisition of a branch business unit located in this state of a
California industrial loan company or California bank (without
acquisition of the whole business unit of the California industrial
loan company or California bank) pursuant to Section 44(a)(4) of the
Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u(a)(4)).
(3) An express prohibition against interstate branching through de
novo establishment of California branch offices pursuant to Section
5155 of the Revised Statutes (12 U.S.C. Sec. 36) or Section 18(d) of
the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(d)).

18685. (a) No foreign (other state) industrial loan company that
does not already maintain a California branch office may:
(1) Merge as the surviving corporation (Section 148) with a
California industrial loan company or California bank pursuant to
paragraph (1) of subdivision (a) of Section 18684 unless the
California industrial loan company or California bank has been in
existence for at least five years.
(2) Purchase the whole business unit, of a California industrial
loan company or California bank pursuant to paragraph (2) of
subdivision (a) of Section 18684 unless the California industrial
loan company or California bank has been in existence for at least
five years.
(b) For purposes of this section, a California industrial loan
company or California bank that is established solely for the purpose
of, and does not open for business prior to, acquiring the whole
business unit of a second California industrial loan company or
California bank through a merger or purchase is deemed to have been
in existence for the same period of time as the second California
industrial loan company or California bank.

18687. (a) No foreign (other state) industrial loan company that
maintains a California branch office may transact at the branch
office any business that it is not authorized to transact or is
prohibited from transacting under the law of its domicile or that
industrial loan companies organized and licensed under the laws of
this state are not authorized to transact or are prohibited from
transacting.
(b) Whenever any provision of this chapter or of any rule or order
issued under this chapter which is applicable to or with respect to
a foreign (other state) industrial loan company that maintains a
California branch office is inconsistent with any provision of any
other chapter of this division, the former provision applies, and the
latter provision does not apply.