In addition to establishing reserves pursuant to Section 6476, an association or federal association, as defined in Section 5102, may establish a separate loan reserve account regarding losses resulting from fraud by a borrower and may recover any of those losses from that borrower.
Cal. Fin. Code § 7459
Investment in Loans
Known as the Savings Association Law
The act spans §§ 5000–10009 (387 sections).
Added by Stats. 1985, Ch. 656, Sec. 2.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.