2007 California Financial Code Article 1. Definitions

CA Codes (fin:22000-22011)

22000.  This division is known and may be cited as the "California
Finance Lenders Law."



22001.  (a) This division shall be liberally construed and applied
to promote its underlying purposes and policies, which are:
   (1) To ensure an adequate supply of credit to borrowers in this
state.
   (2) To simplify, clarify, and modernize the law governing loans
made by finance lenders.
   (3) To foster competition among finance lenders.
   (4) To protect borrowers against unfair practices by some lenders,
having due regard for the interests of legitimate and scrupulous
lenders.
   (5) To permit and encourage the development of fair and
economically sound lending practices.
   (6) To encourage and foster a sound economic climate in this
state.
   (b) Consumer loans, as defined in Sections 22203 and 22204, are
subject to this chapter, Chapter 2 (commencing with Section 22200),
Article 1 (commencing with Section 22700) of Chapter 4, and Article 2
(commencing with Section 22750) of Chapter 4.
   (c) Commercial loans, as defined in Section 22502, are subject to
this chapter, Chapter 3 (commencing with Section 22500), Article 1
(commencing with Section 22700) of Chapter 4, and Article 3
(commencing with Section 22780) of Chapter 4.



22002.  To accomplish its underlying purposes and policies, this
division creates a class of exempt persons pursuant to Section 1 of
Article XV of the California Constitution.
   It is the intent of the Legislature to preserve existing
exemptions under Section 1 of Article XV of the Constitution and
statutory law for (a) personal property brokers formerly regulated by
the Personal Property Brokers Law; (b) lenders formerly regulated by
the Consumer Finance Lenders Law; and (c) lenders formerly regulated
by the Commercial Finance Lenders Law; and no finding that any
provision of this division is invalid with respect to a particular
lender or class of lenders shall affect the enforceability of this
division with respect to any of the foregoing classifications of
lenders, which shall in all events continue to be exempted by this
division.


22003.  Unless the context otherwise requires, the definitions given
in this article govern the construction of this division.



22004.  "Broker" includes any person who is engaged in the business
of negotiating or performing any act as broker in connection with
loans made by a finance lender.



22005.  "Commissioner" means the Commissioner of Corporations.



22006.  As used in this division, the terms "security interest,"
"accounts," "chattel paper," "documents," "general intangibles,"
"goods," and "instruments" are as defined in the Uniform Commercial
Code.


22007.  "Licensee" means any finance lender or broker who receives a
license in accordance with this division.



22008.  "Person" means an individual, a corporation, a partnership,
a limited liability company, a joint venture, an association, a joint
stock company, a trust, an unincorporated organization, a
government, or a political subdivision of a government.




22009.  "Finance lender" includes any person who is engaged in the
business of making consumer loans or making commercial loans.  The
business of making consumer loans or commercial loans may include
lending money and taking, in the name of the lender, or in any other
name, in whole or in part, as security for a loan, any contract or
obligation involving the forfeiture of rights in or to personal
property, the use and possession of which property is retained by
other than the mortgagee or lender, or any lien on, assignment of, or
power of attorney relative to wages, salary, earnings, income, or
commission.
   It is the intent of the Legislature that the definition of finance
lender shall be interpreted to include a personal property broker as
referenced in Section 1 of Article XV of the California
Constitution.



22010.  "Finance lender" and "broker" do not include employees
regularly employed at the location specified in the license of the
finance lender or broker, except that an employee, when acting within
the scope of his or her employment, shall be exempt from any other
law from which his or her employer is exempt.



22011.  A "regulatory ceiling provision" is a statement in a section
or subdivision that specifies an original bona fide principal loan
amount at or above which that section or subdivision does not apply
to a loan.