Cal. Code Regs. Tit. 21, § 7102 - Definitions

(a) "Agency" means the Business, Transportation & Housing Agency.

(b) "Applicant" means any person who makes an oral or written request for financial assistance or who has received financial assistance from a financial institution and includes any person who is or may be contractually liable for the financial assistance other than a guarantor, surety, endorser, or similar party.

(c) "Application" means an oral or written request for financial assistance that is made in accordance with procedures established by a financial institution for the type of credit requested. A completed application means an application in connection with which a financial institution has received all the information that the financial institution regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral), provided, however, that the financial institution has exercised reasonable diligence in obtaining such information. Where an application is incomplete respecting matters that the applicant can complete, the financial institution shall make a reasonable effort to notify the applicant of the incompleteness and shall allow the applicant a reasonable opportunity to complete the application. The term does not include the use of an account or line of credit to obtain an amount of credit that does not exceed a previously established credit limit.

(d) "Bank" means state-chartered bank or national banking association.

(e) "Depository institution" means a financial institution which accepts savings or checking deposits from the public and shall only include commercial banks and savings and loan associations.

(f) "Fair market value" means the highest price which a property will bring in a competitive and open market under all conditions requisite to fair sale, the buyer and seller acting prudently and knowledgeably.

(g) "Financial assistance" means a loan or advance of credit secured by real property or a public grant where more than 50 percent of the proceeds are for the purchase, construction, rehabilitation, improvement or refinancing of a housing accommodation. The term "financial assistance" includes, but is not limited to, combination mobile home and land loans or contracts, combination personal property and real property secured loans, and the purchase of secured home improvement contracts. A financial institution may rely upon the stated written purpose of the loan as provided by the borrower.

(h) "Financial institution" includes any bank, savings and loan association, or other institution in this state, including a public agency, that regularly makes, arranges, or purchases financial assistance for the purchase, construction, rehabilitation, improvement, or refinancing of housing accommodations.

(i) "Home improvement" loan means a loan or advance of credit secured by real property made for the purpose of financing repairs, alterations, rehabilitation or fixtures, except furnishings, on a housing accommodation. The terms "improvement" and "improving" relate to a home improvement loan. A financial institution shall be able to rely upon the stated written purpose of the loan as provided by the applicant or the application for financial assistance.

(j) "Housing accommodation" includes any improved or unimproved real property, or portion thereof, that (1) is used or is intended to be used as a residence, (2) is or will be occupied by the owner, and (3) contains not more than four dwelling units. "Housing accommodation" shall also include any residential dwelling containing not more than four dwelling units where the owner thereof, whether or not the owner will occupy the property, applied or has applied for a secured home improvement loan from a financial institution, 50 percent of the proceeds of which loan will be used to improve the security property. "Housing accommodation" also means "subject property" and the "security property" wherever those phrases are used in this Subchapter 4.

(k) "Inquiry" means a written, or an oral in-person, request for information about the rates, fees, terms, and conditions of financial assistance the institution may or may not offer.

(l) "Other institution in this state" includes, but is not limited to, the following: real estate brokers when engaged in mortgage banking, state- or federally-chartered credit union, insurance company, industrial loan company, residential mortgage lenders, finance lenders, California Housing Finance Agency, Department of Veterans Affairs or other public entities, home improvement contractors, heating and air conditioning companies, or any institution which maintains offices in this state or which conducts business through authorized agents or correspondents doing business in California.

(m) "Refinancing" means the extension or other modification of an existing loan initially made or previously refinanced for the purpose of purchasing, constructing, rehabilitating, or improving housing accommodations, whether by modification of the original loan or its payoff through a new loan, whether by the holder of the original loan or a different financial institution, and whether or not additional funds are advanced for these purposes. "Refinancing" does not include any subsequent modification of terms where such modification was agreed to under the original contract, or changes in the interest rate of a loan written pursuant to Section 1916.5 of the Civil Code or any loan made pursuant to Section 1237 or Section 7153.9 of the Financial Code.

(n) "Regularly" means at least twelve or more transactions annually during the immediately preceding calendar year that in aggregate total more than $500,000 in value. "Regularly" does not include loans made by financial institutions to its own employees.

(o) "Savings and loan association" means those savings and loan associations which are subject to the jurisdiction of the Act.

(p) "Secretary" means the Secretary of the Business and Transportation Agency.

(q) "Secretary's designee" means the Commissioner of Financial Institutions in the case of state-licensed savings and loan associations, the Commissioner of Financial Institutions in the case of state banks, the Commissioner of Financial Institutions in the case of state credit unions and industrial loan companies, the Commissioner of Corporations in the case of finance lenders, licensed under the California Finance Lenders Law, and residential mortgage lenders licensed under the California Residential Mortgage Lending Act, the Commissioner of Insurance in the case of insurance companies, the Real Estate Commissioner in the case of real estate brokers when engaged in mortgage banking, and any other governmental entity or any other individual whom the Secretary designates to effectuate the purposes of the Act. Subparagraphs (p) and (q) of Section 7102 shall be used interchangeably throughout these regulations.

(r) For purposes of compliance with these regulations by a credit union, the words "applicant," "inquirer," "general public," "persons," and "public" as used in these regulations mean "members or persons eligible for membership in that credit union."

Notes

Cal. Code Regs. Tit. 21, § 7102

1. Change without regulatory effect of subsection (q); designated effective 4-1-87 (Register 87, No. 7).
2. Change without regulatory effect amending subsection (q) filed 1-10-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 2).
3. Change without regulatory effect amending subsections (a), (l) and (q) filed 2-5-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 6).

Note: Authority cited: Section 35814, Health and Safety Code. Reference: Section 35805, Health and Safety Code.

1. Change without regulatory effect of subsection (q); designated effective 4-1-87 (Register 87, No. 7).
2. Change without regulatory effect amending subsection (q) filed 1-10-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 2).
3. Change without regulatory effect amending subsections (a), ( l) and (q) filed 2-5-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 6).