Company: CPSS
Filing Date: 2025-06-30
Form Type: 11-K
Source: 0001683168-25-004829
Chunk: 6

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-06-30
Form: 11-K
Chunk 6
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) | Investment Options |

The Plan offers various investment
options which are managed by several outside investment managers. Upon enrollment in the Plan, participants may direct their contributions
in any of the investment options offered at the time. A participant’s plan account will be invested in a target date retirement
fund based on age if an investment fund(s) is not chosen. Participants may change their investment options daily. Participants should
refer to the investment literature provided by the Plan Sponsor for a complete description of the investment options and for the detailed
composition of each investment fund.

| (g) | Notes Receivable from Participants |

Participants may borrow from their
accounts. Such borrowings and repayments are treated as transfers from and to, respectively, the participant’s investment funds.
Borrowings are secured by the participant’s vested account balance and bear interest at a rate commensurate with local prevailing
rates as determined by the Plan Administrator. Loans are limited to the lesser of $50,000, reduced by the highest outstanding loan balance
during the preceding 12 months, or 50% of the participant’s vested account balance. A loan shall be repaid within five years unless
it is used for the purchase of a primary residence.

Notes receivable from participants
are payable through payroll deductions in installments of principal plus interest of prime rate plus 1 percentage point (8.50% and 9.50%
at December 31, 2024 and 2023, respectively) with final payments due between January 2025 and November 2032.

| 6 |

<div align='center'>CONSUMER PORTFOLIO SERVICES, INC. 401(K) PLAN

Notes to Financial Statements

December 31, 2024, and 2023</div>

| (1) | Description of the Plan (continued) |

| (h) | Payments of Benefits |

Upon termination of service, a participant
may elect to receive either a single lump sum payment in cash equal to the value of the vested interest in his or her account, or a series
of substantially equal annual or more frequent installments over a period not to exceed the participant’s life expectancy.

| (i) | Forfeited Accounts |

In accordance with the Plan agreement,
forfeitures attributable to unvested matching contributions must be applied first to reduce expenses related to the administration of
the Plan (Note 2(e)) and then to reduce any employer contributions. As of December 31, 2024, and 2023, forfe