Cal. Code Regs. tit. 10 § 40.400
Except as permitted in writing by the Commissioner, an industrial loan company shall establish and maintain a reserve for losses for loans made, obligations purchased and net receivable from contracts of sale of foreclosed real property in accordance with generally accepted accounting principles ("GAAP"). The Commissioner may require a reserve for losses in addition to the reserve required by GAAP whenever an examination of the books and records of the industrial loan company indicate that the reserves are inadequate.
Any other method or variation of the above shall not be used without the written consent of the Commissioner. A request for variation must show that the resulting reserve for losses will at least equal or exceed the method provided in this section.
Cal. Code Regs. Tit. 10, § 40.400
Note: Authority cited: Section 18347, Financial Code. Reference: Section 18343, Financial Code.