Section 40.502 - Repurchase Provision(a) The investment certificates of an industrial loan company issued before May 29, 1991, shall contain a provision that the investment certificate may be repurchased within 30 days after, and shall be repurchased within 6 months of, the first of the month following the date upon which the owner or the owner's agent submits to the industrial loan company a written demand for repurchase.(b) The investment certificates of an industrial loan company issued on or after May 29, 1991, shall contain a provision that the company shall repurchase the certificate upon the written request of the owner or owner's agent, subject to the company's rights:(1) to defer payment for a period of 30 days after the first of the month following the date upon which the request for repurchase is received; and(2) to limit the aggregate amount of repurchases in any one calendar month to an amount not exceeding the company's net receipts of the previous month. The provision shall also state that certificates will be repurchased in the order in which they are presented for payment and that, notwithstanding the amount of the company's net receipts of the previous month, the company must repurchase the certificates within 6 months of the first of the month following the receipt of the written demand for repurchase.(c) The issuer shall not modify, impair, or avoid the requirements of this section by contract, agreement, or otherwise.Cal. Code Regs. Tit. 10, § 40.502
1. Change without regulatory effect renumbering and amending former section 1152 to new section 40.502 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34). Note: Authority cited: Section 18347, Financial Code. Reference: Section 18315, Financial Code.
1. Change without regulatory effect renumbering and amending former section 1152 to new section 40.502 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).