Is Someone Who Makes No Loans, A Lender?

The California Finance Lenders Lawprohibits any "person" from engaging in the business of a "finance lender" without a license, unless otherwise exempt.  Cal. Fin. Code § 22100(a).   The CFL defines a "finance lender" as follows:

Court Rules That Debate And Litigation Do Not Necessarily A Controversy Make

In June of 2022, I reported on the adoption of commercial financial disclosure rules by the California Department of Financial Protection & Innovation. These rules were adopted pursuant legislation, SB 1235, that was enacted in 2018. In December of...

Court Ruling Deals Blow To DFPI's "True Lender" Theory

While the California Financing Law defines "finance lender", it does so in a very open-ended and nonspecific manner. Cal. Fin. Code § 22009 ("'Finance lender' includes any person who is engaged in the business of making consumer loans or making...

Will California's Bank Failures May Shine A Spotlight On California Corporate Law?

As has been widely reported, the California Department of Financial Protection & Innovation announced that it has taken possession of another California chartered bank - First Republic Bank. This is the second California state bank failure this...

California Bill Would Regulate "Digital Financial Asset Transaction Kiosks"

Relatively few English words both begin and end with the letter "k".  Kiosk is one.  The word kiosk can be traced to the Persian word, kūsht, which refers to a palace or villa.  In Turkish, the word became köşk.  In France, a small structure placed in a...

DBO Says It "Will Not Criticize" Banks And Credit Unions For Holding Virtual Meetings

In response to Covid-19 (Coronavirus) emergency, the California Department of Business Oversight has issued guidance to banks and credit unions and to escrow agents, finance lenders and services, student loan servicers, residential mortgage lenders...

Must A Broker-Dealer Be Licensed As A Personal Property Broker?

Is your California securities broker-dealer a licensed personal property broker?  Does it need to have such a license to make loans to its customers?  Anyone reading California Corporations Code Section 25217(c) would conclude that it must:

California Proposes To End Bylaw Amendment Reviews

Credit Unions got their start in Nineteenth Century Germany. In 1909, Roman Catholic textile workers opened the first credit union in the United States, St. Mary's Cooperative Credit Association (later, renamed La Caisse Populaire Ste.-Marie). At...

Consumer Loan, Commercial Loan or Neither?

The California Finance Lenders Law imposes a licensing requirement on persons engaged in the business of a finance lender. Cal. Fin. Code § 22100(a). Chapter 2 of the CFLL imposes a host of requirements on "consumer loans" and Chapter 3 imposes a...

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