California Financial Code

§ 22304.5

FIN § 22304.5 Effective Jan 1, 2020Div. 9 · Ch. 2 · Art. 3

Statute text

(a)For any 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), as determined in accordance with Section 22251, a finance lender may contract for or receive charges at a rate not exceeding an annual simple interest rate of 36 percent per annum plus the Federal Funds Rate.

(b)As used in this section, “Federal Funds Rate” means the rate published by the Board of Governors of the Federal Reserve System in its Statistical Release H.15 Selected Interest Rates and in effect as of the first day of the month immediately preceding the month during which the loan is consummated. If the Federal Reserve System ceases publication of the federal funds rate, the commissioner shall designate a substantially equivalent index.

(c)The following rules shall also apply to finance lenders that make loans subject to this section:

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Legislative history

Added by Stats. 2019, Ch. 708, Sec. 5. (AB 539) Effective January 1, 2020.