reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 1 - Definitions › Section 22204.

22204. (a) In addition to the definition of consumer loan in Section 22203, a “consumer loan” also means a loan of a principal amount of less than five thousand dollars ($5,000), the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes.
For purposes of determining whether a loan is or is not a consumer loan, the lender may rely on any written statement of intended purposes signed by the borrower. The statement may be a separate statement signed by the borrower or may be contained in a loan application or other document signed by the borrower. The lender shall not be required to ascertain that the proceeds of the loan are used in accordance with the statement of intended purposes.
(b) A consumer loan under this section is a loan secured in the manner provided for in this division if it is secured, in whole or in part, by any lien on, security interest in, assignment of, or power of attorney relative to income arising from the operation of a business by the borrower, such as accounts, and chattel paper, including the right to payment for accounts or chattel paper sold by the borrower prior to or contemporaneously with the making of the loan.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 2 - Exemptions › Section 22250.

22250. (a) The following sections do not apply to any loan of a bona fide principal amount of ten thousand dollars ($10,000) or more, or to a duly licensed finance lender in connection with any such loan or loans, if the provisions of this section are not used for the purpose of evading this division: Sections 22154, 22155, 22201, 22202, 22307, 22313, 22314, 22315, 22322, 22323, 22325, 22334, and 22752, and the sections enumerated in subdivision (b).
(b) The following sections do not apply to any loan of a bona fide principal amount of five thousand dollars ($5,000) or more, or to a duly licensed finance lender in connection with any such loan or loans, if the provisions of this section are not used for the purpose of evading this division: Sections 22300, 22305, and 22306, subdivision (a) of Section 22307, and Sections 22309, 22320.5, 22326, 22327, 22400, and 22751.
(Amended by Stats. 2019, Ch. 708, Sec. 3. (AB 539) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 2 - Exemptions › Section 22252.

22252. This chapter does not apply to a program administrator or a PACE solicitor.
(Added by Stats. 2017, Ch. 475, Sec. 69. (AB 1284) Effective October 4, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22300.

22300. No licensee shall directly or indirectly charge, contract for, or receive any interest or charge of any nature unless a loan is made.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22301.

22301. (a) No licensee shall directly or indirectly charge, contract for, or receive any interest or charge of any nature with respect to a loan of five thousand dollars ($5,000) or more unless the loan is made.
(b) Notwithstanding subdivision (a), whenever a loan of five thousand dollars ($5,000) or more is not consummated because of the borrower’s failure to disclose outstanding liens or other information essential to making the loan or solely because of the borrower’s failure to complete the loan in accordance with the loan application, a licensee may charge, contract for, and receive an amount equal to the actual expenses incurred by the licensee in connection with the preparation for the loan.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22302.

22302. (a) Section 1670.5 of the Civil Code applies to the provisions of a loan contract that is subject to this division.
(b) A loan found to be unconscionable pursuant to Section 1670.5 of the Civil Code shall be deemed to be in violation of this division and subject to the remedies specified in this division.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22303.

22303. Every licensee who lends any sum of money may contract for and receive charges at a rate not exceeding the sum of the following:
(a) Two and one-half percent per month on that part of the unpaid principal balance of any loan up to, including, but not in excess of two hundred twenty-five dollars ($225).
(b) Two percent per month on that portion of the unpaid principal balance in excess of two hundred twenty-five dollars ($225) up to, including, but not in excess of nine hundred dollars ($900).
(c) One and one-half percent per month on that part of the unpaid principal balance in excess of nine hundred dollars ($900) up to, including, but not in excess of one thousand six hundred fifty dollars ($1,650).
(d) One percent per month on any remainder of such unpaid balance in excess of one thousand six hundred fifty dollars ($1,650).
This section does not apply to any loan of a bona fide principal amount of two thousand five hundred dollars ($2,500) or more as determined in accordance with Section 22251.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22304.

22304. As an alternative to the charges authorized by Section 22303, a licensee may contract for and receive charges at the greater of the following:
(a) A rate not exceeding 1.6 percent per month on the unpaid principal balance.
(b) A rate not exceeding five-sixths of 1 percent per month plus a percentage per month equal to one-twelfth of the annual rate prevailing on the 25th day of the second month of the quarter preceding the quarter in which the loan is made, as established by the Federal Reserve Bank of San Francisco, on advances to member banks under Sections 13 and 13a of the Federal Reserve Act, as now in effect or hereafter from time to time amended, or if there is no single determinable rate for advances, the closest counterpart of this rate as shall be determined by the Commissioner of Financial Institutions. Charges shall be calculated on the unpaid principal balance.
(c) This section does not apply to any loan of a bona fide principal amount of two thousand five hundred dollars ($2,500) or more as determined in accordance with Section 22251.
(Amended by Stats. 2006, Ch. 538, Sec. 176. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22305.

22305. In addition to the charges authorized by Section 22303, 22304, or 22304.5, a licensee may contract for and receive an administrative fee, which shall be fully earned immediately upon making the loan, with respect to a loan of a bona fide principal amount of not more than two thousand five hundred dollars ($2,500) at a rate not in excess of 5 percent of the principal amount (exclusive of the administrative fee) or fifty dollars ($50), whichever is less, and with respect to a loan of a bona fide principal amount in excess of two thousand five hundred dollars ($2,500), at an amount not to exceed seventy-five dollars ($75). No administrative fee may be contracted for or received in connection with the refinancing of a loan unless at least one year has elapsed since the receipt of a previous administrative fee paid by the borrower. Only one administrative fee may be contracted for or received until the loan has been repaid in full. For purposes of this section, “bona fide principal amount” shall be determined in accordance with Section 22251.
(Amended by Stats. 2019, Ch. 708, Sec. 6. (AB 539) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22306.

22306. No amount in excess of that allowed by this article shall be directly or indirectly charged, contracted for, or received by any person, and the total charges of the finance lender and broker and any other person in the aggregate shall not exceed the maximum rate provided for in this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22307.

22307. (a) Except as provided in Section 22305 and Article 4 (commencing with Section 22400), all charges on loans made under this division shall be computed and paid only as a percentage per month of the unpaid principal balance or portions thereof, and shall be so expressed in every obligation signed by the borrower. The charges on loans shall be computed on the basis of the number of days actually elapsed. For the purpose of these computations, a month is any period of 30 consecutive days.
(b) The loan contract shall provide for payment of the aggregate amount contracted to be paid in substantially equal periodical installments, the first of which shall be due not less than 15 days nor more than one month and 15 days from the date the loan is made. This subdivision shall not apply to a loan made to a graduate student at an accredited college or university while the student is actively pursuing a study program leading to a postbaccalaureate degree, or to a student loan made by an eligible lender under the Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.), or to a student loan made pursuant to the Public Health Service Act, as amended (42 U.S.C. Sec. 294 et seq.).
(c) This section shall not apply to open-end loans.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22307.5.

22307.5. A licensee shall not charge, impose, or receive any penalty for the prepayment of a loan. This section does not apply to a loan secured by real property.
(Added by Stats. 2019, Ch. 708, Sec. 7. (AB 539) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22308.

22308. Notwithstanding Section 22307, a licensee may contract for and receive charges on the unpaid principal balance at a single annual percentage rate, applied on the basis of the number of days actually elapsed, if the annual rate would produce a finance charge at the maturity of the contract not in excess of the finance charge resulting from the application of the graduated rates specified in Section 22303, when the loan is paid according to its terms, and charges are computed on the basis that a month is any period of 30 consecutive days, as provided in Section 22307; provided, however, that if prepayment in full occurs on or before the third installment date, all charges shall be recomputed as a percentage per month of the unpaid principal balance or portions thereof, based on the number of days actually elapsed.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22309.

22309. Except as provided in Section 22305 and Article 4 (commencing with Section 22400), no charges on loans made pursuant to this division shall be paid, deducted, or received in advance, or compounded. However, if part or all of the consideration for a new loan contract is the unpaid balance of a prior loan, the principal amount payable under the new loan contract may include any unpaid interest that has accrued on the prior loan. The unpaid principal balance of a precomputed loan is the balance due after refund or credit of unearned interest as provided in Section 22400. At the time of making the loan, the licensee shall deliver to the borrower, or, at the direction of the borrower, deliver to another person, an amount equal to the face value of the loan and the note evidencing the loan.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22310.

22310. (a) Except for a rebate or refund pursuant to any administrative, civil, or criminal action, or any act of the commissioner, a rebate or refund required to be made upon payment in full of a loan pursuant to this division need not be made if the aggregate of all rebates or refunds required in connection with a loan is less than one dollar ($1).
(b) No licensee shall contract for or receive any payment required in connection with a loan for the purpose of avoiding a rebate or refund of less than one dollar ($1).
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22311.

22311. No person in connection with or incidental to the making of any loan regulated by this division may require the borrower to contract for purchase, or agree to purchase, any other thing in connection with the loan. A policy of insurance of the type specified in Section 22313 and credit life and disability insurance is not prohibited by this section. A policy of insurance of the type defined by subdivision (a) of Section 12640.02 of the Insurance Code shall not be deemed to be a collateral sale, purchase, or agreement within the terms of this section or of Section 22201 or 22312.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22312.

22312. No person in connection with or incidental to the making of a loan shall require the borrower to enter into any collateral sales agreements or contracts, other than the contract of pledge, assignment, or mortgage or personal property, or if otherwise permitted by this division, the deed of trust, mortgage, or lien on real property, by the borrower to the lender as security for the repayment of the loan and charges on the loan. Insurance of the type specified in Section 22313, credit life insurance, and credit disability insurance are not prohibited by this section.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22313.

22313. Insurance on tangible personal or real property offered as security shall not be deemed to be a collateral sale, purchase, or agreement within the terms of Section 22201, 22311, or 22312, when all the following requirements are met:
(a) The insurance is sold at standard rates through licensed insurance brokers or agents.
(b) The policy is written to cover the property that is offered as security for a loan.
(c) The property is reasonably insured against loss for a reasonable term, which may be up to the term of the loan.
(d) The policy relating to personal property is made payable to the borrower or any member of his or her family even though the customary mortgagee clause is attached or the mortgagee is a coassured.
(e) Except in the case of purchase money encumbrances, the amount of title insurance shall not exceed the principal amount of the loan that is secured by a deed of trust, mortgage, or lien on the real property that is the subject of the policy of title insurance.
(f) The policy of title insurance insures the lender or is made payable jointly to the lender and the borrower as their interests may appear.
(g) Title insurance is placed through a title insurance company, duly authorized to do business in the state in which the real property is located, at rates comparable to rates being used by other title insurance companies duly authorized to do business in that state.
(h) Title insurance is placed in connection with the renewal or extension of a loan only when the additional cash advance is at least one thousand dollars ($1,000).
This section does not apply to any loan of a bona fide principal amount of ten thousand dollars ($10,000) or more, or to a duly licensed finance lender in connection with any such loan or loans as determined in accordance with Section 22251.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22315.

22315. (a) Credit disability insurance written pursuant to Section 22314 shall not provide indemnity against the risk that the borrower will become disabled for a period of less than 14 days. The insurance may provide indemnity for any single period of continuous disability of 14 days or longer, after which the risk may become compensable. The insurance may be offered with retroactive coverage to an earlier date based upon the disability having continued for a period stated in the policy, but if insurance with retroactive coverage is offered, it shall also be offered without retroactive coverage, and the premium rate for each coverage shall be separately stated in writing to the borrower.
(b) If insurance with retroactive coverage is provided, the coverage shall provide for a prorated payment based upon the fraction of the month during which the insured is disabled, provided that the insured is continuously disabled during the waiting period set forth in the policy. If insurance without retroactive coverage is provided, the coverage shall provide for a prorated payment based upon the fraction of the month during which the insured is disabled, after first excluding the elimination period set forth in the policy. For the purpose of this subdivision, a month is any period of 30 consecutive days.
(c) Credit disability insurance, if made available by a licensee, shall be available on a monthly or annual premium basis, and the premium by the month shall not exceed a pro rata relationship to the annual premium. Credit disability insurance need not be offered for a period less than the term of the loan to which it is applicable, and no credit disability insurance shall be written for a period in excess of the term of the loan to which it is applicable.
(d) The monthly disability benefit payable with respect to an open-end loan shall not exceed the monthly payment computed pursuant to Section 22453 on the outstanding balance at the time disability is incurred.
This section does not apply to any loan of a bona fide principal amount of ten thousand dollars ($10,000) or more, as determined in accordance with Section 22251.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22316.

22316. A licensee may collect the cost of a lot book report purchased in lieu of the title insurance provided for in Section 22313. The cost is not included in charges as defined in this division or in determining the maximum charges that may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22317.

22317. On any loan made that is secured by real property, an appraisal fee not to exceed the actual cost of the appraisal may be charged by the licensee if a written appraisal is provided to the licensee by a qualified appraiser. Only one fee for appraising the same real property may be collected unless the borrower has obtained a new or additional loan and more than one year has elapsed since the prior appraisal. The fee is not included in charges as defined in this division or in determining the maximum charges that may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22317.5.

22317.5. On any loan secured by real property, a licensee may not do either of the following:
(a) Fail to disburse funds in accordance with a commitment to make a loan that is accepted by the applicant.
(b) Intentionally delay the closing of a loan for the sole purpose of increasing interest, costs, fees, or charges payable by the borrower.
(Added by Stats. 2004, Ch. 940, Sec. 4. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22318.

22318. On any loan made that is secured by real property, an escrow fee of a reasonable amount may be charged. The fee shall be considered reasonable when paid to a company licensed to do business under the Escrow Law (Division 6 (commencing with Section 17000)), or any person exempted by the Escrow Law, provided that the fees are comparable to fees charged by escrow companies authorized to do business in this state. The fee is not included in charges defined in this division in determining the applicable maximum charges that may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22319.

22319. On any loan that is secured by real property, the fee to be paid to the trustee for reconveyance of the trust deed may be collected by the licensee for transmittal to the trustee. The fee is not included in charges defined in this division or in determining the applicable maximum charges that may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22320.

22320. With respect to a loan under this division, a fee not to exceed fifteen dollars ($15) for the return by a depository institution of a dishonored check, negotiable order of withdrawal, or share draft may be charged and collected by the licensee. The fee is not included in charges defined in this division or in determining the applicable maximum charges that may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22320.5.

22320.5. (a) A licensee may contract for and receive a delinquency fee not in excess of one of the following amounts:
(1) For a period in default of not less than 10 days, an amount not in excess of ten dollars ($10).
(2) For a period in default of not less than 15 days, an amount not in excess of fifteen dollars ($15).
(b) The delinquency fee may not be collected more than once for the same default and may be collected at the time of the default or at any time thereafter. If the delinquency fee is deducted from any payment received after default occurs, and the deduction results in the default of a subsequent installment, no fee may be collected for the resulting default. The delinquency fee under this section is not included in charges defined in this division or in determining applicable maximum charges that may be made under this article.
(c) For open-end loans made under Article 5 (commencing with Section 22450), a licensee shall not collect or receive the delinquency fee set forth in subdivision (a) unless there is a minimum of 20 days, inclusive, between the monthly billing date and the date upon which the minimum payment is due, exclusive of the applicable grace period provided in subdivision (a).
(d) This section shall not apply to precomputed loans as described in Section 22400.
(Added by Stats. 1998, Ch. 104, Sec. 2. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22322.

22322. A loan lawfully made outside the state may be enforced in this state as to the unpaid principal balance of the loan together with the interest, consideration, brokerage, and all other charges, to the extent of but not to exceed the unpaid principal balance and the aggregate amount of interest, consideration, brokerage, and all other charges permitted by this division in connection with a loan of the same amount made within this state.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22323.

22323. Any person who collects or attempts to collect in this state the unpaid principal balance of a loan made outside the state and a greater aggregate amount of interest, consideration, brokerage, and all other charges in connection with the loan than is permitted by this division in connection with a loan of the same amount made within this state, is subject to the provisions of this division.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22324.

22324. Any person who contracts for or negotiates in this state a loan to be made outside the state for the purpose of evading or avoiding the provisions of this division is subject to the provisions of this division.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22325.

22325. Every licensee shall display prominently in each licensed place of business a full and accurate schedule of the charges to be made and the method of computing the charges. The schedule is subject to the approval of the commissioner.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22326.

22326. No person, except as authorized by this division, shall directly or indirectly charge, contract for, or receive any interest, discount, or consideration greater than the lender would be permitted by law to charge if he or she were not a licensee hereunder, upon the loan, use, or forbearance of money, goods, or things in action, or upon the loan, use, or sale of credit. This section applies to any person, who by any device, subterfuge, or pretense charges, contracts for, or receives greater interest, consideration, or charges than is authorized by this division for any loan, use, or forbearance of money, goods, or things in action or for any loan, use, or sale of credit.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22327.

22327. No licensee shall knowingly induce any borrower to split up or divide any loan with any other licensee. No licensee shall induce or permit any borrower to be or to become obligated directly or indirectly, or both, under more than one contract of loan at the same time with the same licensee for the purpose or with the result of obtaining a higher rate of charge than would otherwise be permitted by this article, except as otherwise required by the federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.; Public Law 93-495) and Regulation B promulgated by the Board of Governors of the Federal Reserve System (12 C.F.R. 202 et seq.). For the purpose of this section, “borrower” includes any spouses, whether jointly or severally obligated.
(Amended by Stats. 2016, Ch. 50, Sec. 40. (SB 1005) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22329.5.

22329.5. A licensee, or the agent of a licensee, that has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a subsequent assignment to skip trace, locate, or repossess the vehicle without simultaneously, and in the same manner by which the assignment is given, advising the assignee of the assignment of the information contained in the notice. As used in this section, “assignment” has the same meaning set forth in Section 7500.1 of the Business and Professions Code.
(Added by Stats. 2007, Ch. 192, Sec. 8. Effective September 7, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22330.

22330. No licensee shall take a deed of trust, mortgage, or lien upon real property as security for any loan made under this division, except any lien as is created by law upon the recording of an abstract of judgment. This section shall not apply to any loan of a bona fide principal amount of five thousand dollars ($5,000) or more as determined in accordance with Section 22251.
(Amended by Stats. 1999, Ch. 347, Sec. 4. Effective January 1, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22331.

22331. No licensee shall take any confession of judgment or any power of attorney, except a power of attorney taken to effectuate the transfer of the ownership of any motor vehicle or mobilehome at the time of making the loan.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22332.

22332. No licensee shall take any note or promise to pay that does not accurately disclose the actual amount of the loan, the time for which it is made, and the agreed rate of charge or the annual percentage rate pursuant to Regulation Z promulgated by the Consumer Financial Protection Bureau.
(Amended by Stats. 2014, Ch. 64, Sec. 18. (AB 2742) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22333.

22333. No licensee shall take any instrument in which blanks are left to be filled in after execution.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22334.

22334. (a) Except as provided in subdivision (b), a licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal over more than the maximum terms set forth below opposite the respective size of loans.
Principal amount of loan
Maximum term
Less than $500  ........................
24 months and 15 days
$500 but less than $1,500  ........................
36 months and 15 days
$1,500 but less than $3,000  ........................
48 months and 15 days
$3,000 but less than $10,000  ........................
60 months and 15 days
(b) The maximum loan term of 60 months and 15 days does not apply to a loan secured by real property of a bona fide principal amount of at least five thousand dollars ($5,000).
(c) A licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal that is less than 12 months. This subdivision applies to a loan of a bona fide principal amount of at least two thousand five hundred dollars ($2,500), but less than ten thousand dollars ($10,000).
(d) This section does not apply to an open-end loan, a student loan made by an eligible lender under the Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.), or a student loan made pursuant to the Public Health Service Act, as amended (42 U.S.C. Sec. 294 et seq.).
(Amended by Stats. 2019, Ch. 708, Sec. 8. (AB 539) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22335.

22335. The payment by any person in money, credit, goods, or things in action as consideration for any sale or assignment of, or order for, the payment of wages, salary, commissions, or other compensation for services, whether earned or to be earned, is, for the purposes of regulation under this division, a loan secured by the assignment. The amount by which the assigned compensation exceeds the amount of the consideration actually paid is interest and charges upon or for the loan, calculated from the date of payment to the date the compensation is payable.
This section shall not be construed as modifying or affecting existing statutes governing wage assignments in the state, or as authorizing those assignments.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22336.

22336. This article does not prohibit any licensee from contracting for, collecting, or receiving the following:
(a) The statutory fee paid by the licensee to any public officer for acknowledging, filing, recording, or releasing in any public office any instrument securing the loan or executed in connection with the loan.
(b) Premiums paid by the licensee of the kind and to the extent described in paragraph (2) of subsection (e) of Section 226.4 of Regulation Z promulgated by the Board of Governors of the Federal Reserve System (12 C.F.R. 226).
These amounts are not included in determining the maximum charges which may be made under this article.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22338.

22338. Each licensed broker shall:
(a) Deliver to the borrower, or any one thereof, at the time the final negotiation or arrangement is made, a statement showing in clear and distinct terms the name, address, and license number of the broker and the finance lender. The statement shall show the date, amount, and terms of the agreement with the broker, and all amounts paid or to be paid to the broker and to any person other than the finance lender.
(b) Deliver to the finance lender making the loan a copy of the statement referred to and described in subdivision (a).
(c) Deliver to the person making any payment to the broker to be retained by the broker, a plain and complete receipt for each payment made, at the time it is made, showing the total amount received, and identifying the brokerage agreement and the loan contract upon which the payment is applied. If the payment is made by a person other than the finance lender, a copy of the receipt shall be delivered to the finance lender.
(d) When the borrower pays the loan in full, ensure that the finance lender fully complies with subdivision (e) of Section 22337.
(e) Deliver to the potential borrower or borrowers, at the time the licensee first requires or accepts any signed instrument or the payment of any fee, a statement showing in clear and distinct terms the name, address, and license number of the broker and finance lender.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22339.

22339. Nothing contained in this article shall be construed to deny to any licensee hereunder the right of taking and using a security agreement that, in addition to securing an original obligation, may secure the repayment of sums that may be advanced to, or expenditures that may be made at the direction of, the borrower subsequent to the execution of the security agreement and prior to the satisfaction thereof.
(Added by Stats. 1994, Ch. 1115, Sec. 2. Effective January 1, 1995. Operative July 1, 1995, by Sec. 5 of Ch. 1115.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22340.1.

22340.1. (a) A licensee that is a finance lender may sell to (1) an institutional lender, or (2) an institutional investor described in paragraph (6) of subdivision (b) of Section 22340, promissory notes evidencing the obligation to repay federally related mortgage loans, as defined in Section 1024.2 of Title 12 of the Code of Federal Regulations, purchased from and made by an institutional lender, and may make agreements for the collection of payments and performance of services with respect to those notes. For purposes of this section, “institutional lender” means any bank, trust company, savings bank or savings and loan association, credit union, industrial loan company or residential mortgage lender doing business under the authority of and in accordance with a license, certificate or charter issued by the United States or this state.
(b) In the absence of agreement to the contrary by the licensee and the institutional investor or institutional lender, all payments received from the collection of payments shall be deposited and maintained in a trust account, and shall be disbursed from the trust account only in accordance with the instructions of the owner of the promissory note.
(Amended by Stats. 2014, Ch. 64, Sec. 20. (AB 2742) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22345.

22345. (a) Any person who violates any provision of Section 987 of Title 10 of the United States Code, as amended by 126 Stat. 1785 (Public Law 112-239), or any provision of Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as published on July 22, 2015, on page 43560 in Number 140 of Volume 80 of the Federal Register, violates this chapter.
(b) A person that does not market consumer loans to, or does not extend those loans to, covered borrowers, as that term is defined under Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described in subdivision (a), shall not be in violation of Section 394 of the Military and Veterans Code.
(Amended by Stats. 2017, Ch. 514, Sec. 3. (SB 266) Effective January 1, 2018.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22346.

22346. Any licensee that violates any provision of any of the following federal acts or regulations violates this division:
(a) The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(b) The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(c) The federal Home Ownership Equity Protection Act (15 U.S.C. Sec. 1639).
(d) Any regulation promulgated under any of the federal acts in subdivision (a), (b), or (c).
(Added by Stats. 2009, Ch. 629, Sec. 6. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3 - Loan Regulations › Section 22347.

22347. The unique identifier of any licensed mortgage loan originator shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or Internet Web sites, and any other documents as established by rule, regulation, or order of the commissioner.
(Added by Stats. 2009, Ch. 160, Sec. 42. (SB 36) Effective October 11, 2009.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22365.

22365. (a) The Pilot Program for Increased Access to Responsible Small Dollar Loans is hereby established.
(b) For purposes of this article:
(1) “Commissioner” means the Commissioner of Financial Protection and Innovation.
(2) “Program” means the Pilot Program for Increased Access to Responsible Small Dollar Loans.
(3) Pursuant to Section 22380.5, “licensee” also includes a licensee approved to participate in the former Pilot Program for Affordable Credit-Building Opportunities as described in Article 3.5 (commencing with Section 22348).
(c) This article does not apply to either of the following:
(1) A licensee that has not been accepted to participate in the program.
(2) A licensee that has been accepted to participate in the program that chooses to lend pursuant to provisions of this division that are outside of the program.
(Amended by Stats. 2022, Ch. 452, Sec. 137. (SB 1498) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 22381.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22366.

22366. (a) Any entity licensed under this chapter that wishes to participate in the program, that is in good standing with the commissioner and has no outstanding enforcement actions or deficiencies at the time of its application, shall file an application with the commissioner, in a manner prescribed by the commissioner, and shall pay a fee to the commissioner, in an amount calculated by the commissioner to cover its costs to administer this article.
(b) Any entity wishing to participate in the program that is not licensed pursuant to this chapter may submit a combined application to the commissioner, in a manner prescribed by the commissioner, for licensure under this chapter and admission to the program and shall pay a fee to the commissioner in an amount equal to the fees that would have been imposed if the person had submitted separate applications. To be eligible to apply in this manner, an entity must be free of outstanding enforcement or other disciplinary actions taken against it by any of California’s financial regulators or by a financial regulator of another state.
(Added by Stats. 2013, Ch. 467, Sec. 2. (SB 318) Effective January 1, 2014. Repealed as of January 1, 2028, pursuant to Section 22381.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22367.

22367. Every entity approved by the commissioner to participate in the program shall file with the commissioner on or before March 15 an annual report consistent with Section 22159, separate from any other annual report the licensee may be required to file.
(Added by Stats. 2013, Ch. 467, Sec. 2. (SB 318) Effective January 1, 2014. Repealed as of January 1, 2028, pursuant to Section 22381.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22368.

22368. Except as otherwise provided, nothing in this article shall exempt any licensee from any of the provisions of this division or Section 1632 of the Civil Code.
(Added by Stats. 2013, Ch. 467, Sec. 2. (SB 318) Effective January 1, 2014. Repealed as of January 1, 2028, pursuant to Section 22381.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22369.

22369. No licensee may offer or make a loan, nor impose any charges or fees pursuant to Section 22370, nor use a finder pursuant to Section 22371, without prior approval from the commissioner to participate in the program.
(Added by Stats. 2013, Ch. 467, Sec. 2. (SB 318) Effective January 1, 2014. Repealed as of January 1, 2028, pursuant to Section 22381.)
2023 California Code › Financial Code - FIN › DIVISION 9 - CALIFORNIA FINANCING LAW › CHAPTER 2 - Consumer Loans › ARTICLE 3.6 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Section 22371.

22371. (a) A licensee who is approved by the commissioner to participate in the program may use the services of one or more finders as provided in this article. In addition to the fees and costs authorized by subdivision (b) of Section 22375 and subdivision (a) of Section 22377, the commissioner may charge a licensee who uses the services of one or more finders a fee, following the examination of the finder or finders, in an amount not to exceed that necessary to offset the commissioner’s costs to oversee the activities of that licensee’s finder or finders.
(b) For purposes of this article, a “finder” means an entity that, at the finder’s physical location for business, brings a licensee and a prospective borrower together for the purpose of negotiating a loan contract.
(c) An entity, whose sole means of bringing a licensee and a prospective borrower together at that entity’s physical location for business is via an electronic access point through which a prospective borrower may directly access the Internet Web site of a licensee is not a “finder” for purposes of this article.
(Amended by Stats. 2018, Ch. 1016, Sec. 3. (AB 237) Effective January 1, 2019. Repealed as of January 1, 2028, pursuant to Section 22381.)