2020 California Code
Financial Code - FIN
DIVISION 7 - INDUSTRIAL LOAN COMPANIES
CHAPTER 3 - Loans and Purchased Obligations
ARTICLE 6 - Insurance Sold With Loans
Section 18295.
An industrial loan company may collect the costs of title insurance for loans secured primarily by real property. The costs for such insurance may be collected if:
(1) The principal amount of the loan is at least one thousand dollars ($1,000);
(2) The loan is secured by a lien of a deed of trust or mortgage on real property which is the subject of such policy of title insurance;
(3) The policy of title insurance is made payable to the lender or jointly to such lender and the borrower as their interests may appear;
(4) The coverage of such insurance may not exceed the lesser of the principal amount of the loan or the fair market value of the real property less prior encumbrances;
(5) The insurance is placed at standard rates through a title insurance company authorized to do business in the State of California;
(6) In connection with the renewal or extension of a loan, the additional cash advance is at least one thousand dollars ($1,000).
Such costs as herein authorized are not included in the maximum charges which may be made under this division.
(Amended by Stats. 1983, Ch. 858, Sec. 24.)
