California Civil Code

§ 1916.5

CIV § 1916.5 Effective Jan 1, 2023Div. 3 · Title 4 · Part 4 · Ch. 3

Statute text

(a)No increase in interest provided for in any provision for a variable interest rate contained in a security document, or evidence of debt issued in connection therewith, by a lender other than a supervised financial organization is valid unless that provision is set forth in the security document, and in any evidence of debt issued in connection therewith, and the document or documents contain the following provisions:

(1)A requirement that when an increase in the interest rate is required or permitted by a movement in a particular direction of a prescribed standard an identical decrease is required in the interest rate by a movement in the opposite direction of the prescribed standard.

(2)The rate of interest shall not change more often than once during any semiannual period, and at least six months shall elapse between any two changes.

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Legislative history

Amended by Stats. 2022, Ch. 452, Sec. 27. (SB 1498) Effective January 1, 2023.