California Corporations Code

§ 25118

CORP § 25118 Effective Jan 1, 2020Div. 1 · Title 4 · Part 2 · Ch. 2

Statute text

(a)An evidence of indebtedness issued by an entity or guaranteed by an entity that is an affiliate (as defined in Section 150) of the borrower that, on the day the evidence of indebtedness issued or guaranty is first issued or entered into, has total assets of at least two million dollars ($2,000,000) according to its then most recent financial statements, and the purchasers or holders thereof, shall be exempt from the usury provisions of the California Constitution. The financial statements referred to in the preceding sentence shall meet both of the following requirements:

(1)Be as of a date not more than 90 days before the date the evidence of indebtedness or guaranty is first issued or entered into.

(2)Be prepared in accordance with either of the following:

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Legislative history

Amended by Stats. 2019, Ch. 143, Sec. 47. (SB 251) Effective January 1, 2020.