Cal. FIN § 7507
This is the official text of Cal. FIN § 7507, part of California’s Financial Code — regulates banks, credit unions, lenders, and other financial institutions.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Official statutory text
(a) An association may make loans or advances of credit, or invest in interests therein, on the security of real property, which loans, advances of credit, or investments are not otherwise authorized under the law because of the following reasons:
(1) The loan-to-value ratio, stated maturity, or loan amount is in excess of the maximum allowable limits.
(2) Lack of any required borrower certification or required private mortgage insurance.
(3) The loan would cause an applicable percentage-of-assets category to be exceeded.
(4) A combination of the foregoing factors.
(b) Investments made under the authority of this section are subject to the following restrictions:
(1) No association shall have investments under this section aggregating at any one time more than 5 percent of its total assets.
(2) Each investment made under this section shall be fully documented to support the conclusion that it was made on a prudent basis.
(3) Loans made pursuant to this section shall comply with subparagraph (D) of paragraph (5), and paragraph (6), of subdivision (b), of Section 7504, where applicable.
(1) The loan-to-value ratio, stated maturity, or loan amount is in excess of the maximum allowable limits.
(2) Lack of any required borrower certification or required private mortgage insurance.
(3) The loan would cause an applicable percentage-of-assets category to be exceeded.
(4) A combination of the foregoing factors.
(b) Investments made under the authority of this section are subject to the following restrictions:
(1) No association shall have investments under this section aggregating at any one time more than 5 percent of its total assets.
(2) Each investment made under this section shall be fully documented to support the conclusion that it was made on a prudent basis.
(3) Loans made pursuant to this section shall comply with subparagraph (D) of paragraph (5), and paragraph (6), of subdivision (b), of Section 7504, where applicable.
Status: in_force · Read it on the official government site
Need a lawyer in California?
Find a California lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.