Section 107.103 - Documents Required for Total Real Estate Loans in Excess of $1,000,000Except with the consent of the commissioner, no association shall make or purchase a single loan in excess of $1,000,000, or make or purchase any real estate loan which in addition to the existing loans held by the association that are due from the borrower will exceed a total of $1,000,000 unless the association obtains from the borrower either:
(a) A statement of financial condition as of a date within fifteen months of the date of the loan, and a statement of income and expenses for the last fiscal year or other audit period which have been examined by an independent public accountant in accordance with generally accepted auditing standards, and a report prepared by such accountant expressing an opinion concerning the financial statements, or(b) A statement of financial condition and a statement of income and expenses, for the same period as described in (a) above, prepared under penalty of perjury, which includes the following information relating to any assets in the form of real property, trust deeds or mortgages, or nonlisted securities:(1) The date of the acquisition of the asset;(2) The cost of the asset at date of acquisition (cost shall include actual cash payment, cost basis of any real or personal property exchanged or received and the amount of any indebtedness incurred or assumed in connection with the acquisition).Each association making a single loan in excess of $1,000,000 shall obtain from the borrower a statement signed by the borrower under penalty of perjury, stating as follows:
"The undersigned borrower hereby represents to __________ Savings and Loan Association that the total of all loans my by said association to the undersigned borrower, including the loan hereby applied for, and to all other persons and entities which are required to be included in computing said total, pursuant to the requirements of Section 118.5 of the regulations, is as follows:
(1) This loan: $__________(2) Other loans applied for or made: (If none, state: no exceptions; if any, state name of borrowers, loan number, and amount, as to each loan application) Amount $__________"
Documents required by this sections shall be maintained in the loan files of the association.
Cal. Code Regs. Tit. 10, § 107.103
1. Change without regulatory effect renumbering former Section 118.4 to Section 107.103 (Register 87, No. 14). For prior history, See Register 80, No. 19. Note: Authority cited: Section 5255, Financial Code. Reference: Sections 8707 and 8708, Financial Code.
1. Change without regulatory effect renumbering former Section 118.4 to Section 107.103 (Register 87, No. 14). For prior history, See Register 80, No. 19.