Bill Aims To Exempt Venture Capital Company Equity Security Investments From Lenders Law

California requires persons who are engaged in the business of making loans to be licensed under the Finance Lenders Law.  Cal. Fin. Code § 22000 et seq.  This had been an issue for venture capital funds that extended bridge loans to see portfolio companies through to the next round of financing.  In 2003, the legislature provided some

Bill Proposes Significant Changes To Finance Lenders Law

If you are in the business of making loans in California, there’s a good chance that you need a license.  Some lenders are licensed under the Real Estate Law while others are licensed under laws governing banks, credit unions or residential mortgage lending.  If a lender doesn’t fall within any of these categories, that lender

A Look At Recent DOC Enforcement Activity

Enforcement Actions

The California Department of Corporations administers and enforces numerous state laws, including the Commodity Law, Corporate Securities Law of 1968, Deferred Deposit Law, Escrow Law, Franchise Law, Finance Lenders Law, and Residential Mortgage Lending Act. Recently, I took a look at the Department’s enforcement activity for the first seven months of this year.  By my

Sale-Leaseback Transactions And The Finance Lenders Law

The California Finance Lenders Law generally requires that persons “engaged in the business of making consumer loans or making commercial loans” be licensed, unless exempt.  Cal. Fin. Code §§ 22100(a) and 22009.  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