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Article 1. General Provisions
California Civil Code Section 1787.1-1787.2

1787.1.  This title may be cited as "The Holden Credit Denial
Disclosure Act of 1976."

1787.2.  (a) Within 30 days, or at a later reasonable time as
specified in federal law or regulations, after receipt of a completed
written application for credit, a creditor shall notify the
applicant of its action on the application.
   (b) Each applicant denied credit shall be entitled to a statement
of reasons for such action from the creditor.  A creditor satisfies
this obligation by:
   (1) Providing statements of reasons in writing as a matter of
course to applicants denied credit; or
   (2) Giving written notification of credit denial which discloses:

   (i) The applicant's right to a statement of reasons within 30 days
after receipt by the creditor of a request made within 60 days after
such notification; and
   (ii) The identity and address of the person or office from which
the statement of reasons may be obtained.
   (3) The statement of reasons may be given orally if the written
notification advises the applicant of the right to have the statement
of reasons confirmed in writing on written request.
   (c) A statement of reasons meets the requirements of this section
only if it contains the specific reasons for the credit denial.
   (d) Where a creditor has been requested by a third party to make a
specific extension of credit directly or indirectly to an applicant,
the notification and statement of reasons required by this section
may be made directly by such creditor, or indirectly through the
third party, provided in either case that the identity of the
creditor is disclosed.
   (e) For purposes of this section:
   (1) The term "applicant" means a natural person who applies for
credit primarily for personal, family or household purposes.
   (2) The term "credit denial" means a denial or revocation of
credit, a change in the terms of an existing credit arrangement, or a
refusal to grant credit in substantially the amount or on
substantially the terms requested.  Such term does not include a
refusal to extend additional credit under an existing credit
arrangement where the applicant is delinquent or otherwise in
default, or where such additional credit would exceed a previously
established credit limit without a specific written application or
written request for an increase in the credit limit.
   (3) The term "creditor" refers only to creditors who regularly
extend, or arrange for the extension of, credit whether in connection
with loans, sales of property or services, or otherwise.
   (f) Nothing in this section shall be construed to limit any
authority, derived from other provisions of law, of any state
department or agency.

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