California Financial Code

§ 22602

FIN § 22602 Effective Jan 1, 2016Div. 9 · Ch. 3 · Art. 3

Statute text

(a)A licensee that is a finance lender may pay compensation to a person that is not licensed pursuant to this division in connection with the referral of one or more prospective borrowers to the licensee, when all of the following conditions are met:

(1)The referral by the unlicensed person leads to the consummation of a commercial loan, as defined in Section 22502, between the licensee and the prospective borrower referred by the unlicensed person.

(2)The loan contract provides for an annual percentage rate that does not exceed 36 percent.

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Legislative history

Added by Stats. 2015, Ch. 761, Sec. 1. (SB 197) Effective January 1, 2016.