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, 22307,
22313, 22314, 22315, 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 22201, 22202, 22300, 22305, and
22306, subdivision (a) of Section 22307, and Sections 22309, 22320.5,
22322, 22323, 22325, 22326, 22327, 22334, 22400, and 22751.
22251. Any section that refers to this section does not apply to
any loan of the bona fide principal amount specified in the
regulatory ceiling provision of that section or more if that
provision is not used for the purpose of evading this division. In
determining under Section 22250, 22303, or 22304 or any section that
refers to this section whether a loan is a loan of a bona fide
principal amount of the amount specified in that section or more and
whether the regulatory ceiling provision of that section is used for
the purpose of evading this division, the following principles apply:
(a) If a borrower applies for a loan in a bona fide principal
amount of less than the specified amount and a loan to that borrower
of a bona fide principal amount of the specified amount or more if
made by a licensed finance lender, no adequate economic reason for
the increase in the size of the loan exists, and by prearrangement or
understanding between the borrower and the licensee a substantial
payment is to be made upon the loan with the effect of reducing the
bona fide principal amount of the loan to less than the specified
amount within a short time after the making of the loan other than by
reason of a requirement that the loan be paid in substantially equal
periodical installments, then the loan shall not be deemed to be a
loan of the bona fide principal amount of the specified amount or
more and the regulatory ceiling provisions shall be deemed to be used
for the purpose of evading this division unless the loan complies
with the other provisions of the section that includes the regulatory
ceiling provisions.
(b) If a loan made by a licensed finance lender is in a bona fide
principal amount of the specified amount or more, the fact that the
transaction is in the form of a sale of accounts, chattel paper,
goods, or instruments or a lease of goods, or in the form of an
advance on the purchase price of any of the foregoing, shall not be
deemed to affect the loan or the bona fides of the amount thereof or
to indicate that the regulatory ceiling provisions are used for the
purpose of evading this division.
(c) For the purposes of determining whether the loan amount
exceeds a regulatory ceiling, the "bona fide principal amount" shall
not be comprised of any charges or any other fees or recompense
specified in Sections 22200, 22201 (including, but not limited to,
amounts paid for insurance of the types specified in Sections 22313
and 22314), 22202, 22305, 22316, 22317, 22318, 22319, 22320, 22320.5,
and 22336. Nothing in this subdivision shall be construed to prevent
those specified charges, fees, and recompense that have been earned
and remain unpaid in an existing loan from being considered as part
of the bona fide principal amount of a new loan to refinance that
existing loan, provided the new loan is not made for the purpose of
circumventing a regulatory ceiling provision. This subdivision is
intended to define the meaning of "bona fide principal amount" as
used in this division solely for the purposes of determining whether
the loan amount exceeds a regulatory ceiling, and is not intended to
affect the meaning of "principal" for any other purpose.
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, 22307,
22313, 22314, 22315, 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 22201, 22202, 22300, 22305, and
22306, subdivision (a) of Section 22307, and Sections 22309, 22320.5,
22322, 22323, 22325, 22326, 22327, 22334, 22400, and 22751.
22251. Any section that refers to this section does not apply to
any loan of the bona fide principal amount specified in the
regulatory ceiling provision of that section or more if that
provision is not used for the purpose of evading this division. In
determining under Section 22250, 22303, or 22304 or any section that
refers to this section whether a loan is a loan of a bona fide
principal amount of the amount specified in that section or more and
whether the regulatory ceiling provision of that section is used for
the purpose of evading this division, the following principles apply:
(a) If a borrower applies for a loan in a bona fide principal
amount of less than the specified amount and a loan to that borrower
of a bona fide principal amount of the specified amount or more if
made by a licensed finance lender, no adequate economic reason for
the increase in the size of the loan exists, and by prearrangement or
understanding between the borrower and the licensee a substantial
payment is to be made upon the loan with the effect of reducing the
bona fide principal amount of the loan to less than the specified
amount within a short time after the making of the loan other than by
reason of a requirement that the loan be paid in substantially equal
periodical installments, then the loan shall not be deemed to be a
loan of the bona fide principal amount of the specified amount or
more and the regulatory ceiling provisions shall be deemed to be used
for the purpose of evading this division unless the loan complies
with the other provisions of the section that includes the regulatory
ceiling provisions.
(b) If a loan made by a licensed finance lender is in a bona fide
principal amount of the specified amount or more, the fact that the
transaction is in the form of a sale of accounts, chattel paper,
goods, or instruments or a lease of goods, or in the form of an
advance on the purchase price of any of the foregoing, shall not be
deemed to affect the loan or the bona fides of the amount thereof or
to indicate that the regulatory ceiling provisions are used for the
purpose of evading this division.
(c) For the purposes of determining whether the loan amount
exceeds a regulatory ceiling, the "bona fide principal amount" shall
not be comprised of any charges or any other fees or recompense
specified in Sections 22200, 22201 (including, but not limited to,
amounts paid for insurance of the types specified in Sections 22313
and 22314), 22202, 22305, 22316, 22317, 22318, 22319, 22320, 22320.5,
and 22336. Nothing in this subdivision shall be construed to prevent
those specified charges, fees, and recompense that have been earned
and remain unpaid in an existing loan from being considered as part
of the bona fide principal amount of a new loan to refinance that
existing loan, provided the new loan is not made for the purpose of
circumventing a regulatory ceiling provision. This subdivision is
intended to define the meaning of "bona fide principal amount" as
used in this division solely for the purposes of determining whether
the loan amount exceeds a regulatory ceiling, and is not intended to
affect the meaning of "principal" for any other purpose.
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, 22307,
22313, 22314, 22315, 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 22201, 22202, 22300, 22305, and
22306, subdivision (a) of Section 22307, and Sections 22309, 22320.5,
22322, 22323, 22325, 22326, 22327, 22334, 22400, and 22751.
22251. Any section that refers to this section does not apply to
any loan of the bona fide principal amount specified in the
regulatory ceiling provision of that section or more if that
provision is not used for the purpose of evading this division. In
determining under Section 22250, 22303, or 22304 or any section that
refers to this section whether a loan is a loan of a bona fide
principal amount of the amount specified in that section or more and
whether the regulatory ceiling provision of that section is used for
the purpose of evading this division, the following principles apply:
(a) If a borrower applies for a loan in a bona fide principal
amount of less than the specified amount and a loan to that borrower
of a bona fide principal amount of the specified amount or more if
made by a licensed finance lender, no adequate economic reason for
the increase in the size of the loan exists, and by prearrangement or
understanding between the borrower and the licensee a substantial
payment is to be made upon the loan with the effect of reducing the
bona fide principal amount of the loan to less than the specified
amount within a short time after the making of the loan other than by
reason of a requirement that the loan be paid in substantially equal
periodical installments, then the loan shall not be deemed to be a
loan of the bona fide principal amount of the specified amount or
more and the regulatory ceiling provisions shall be deemed to be used
for the purpose of evading this division unless the loan complies
with the other provisions of the section that includes the regulatory
ceiling provisions.
(b) If a loan made by a licensed finance lender is in a bona fide
principal amount of the specified amount or more, the fact that the
transaction is in the form of a sale of accounts, chattel paper,
goods, or instruments or a lease of goods, or in the form of an
advance on the purchase price of any of the foregoing, shall not be
deemed to affect the loan or the bona fides of the amount thereof or
to indicate that the regulatory ceiling provisions are used for the
purpose of evading this division.
(c) For the purposes of determining whether the loan amount
exceeds a regulatory ceiling, the "bona fide principal amount" shall
not be comprised of any charges or any other fees or recompense
specified in Sections 22200, 22201 (including, but not limited to,
amounts paid for insurance of the types specified in Sections 22313
and 22314), 22202, 22305, 22316, 22317, 22318, 22319, 22320, 22320.5,
and 22336. Nothing in this subdivision shall be construed to prevent
those specified charges, fees, and recompense that have been earned
and remain unpaid in an existing loan from being considered as part
of the bona fide principal amount of a new loan to refinance that
existing loan, provided the new loan is not made for the purpose of
circumventing a regulatory ceiling provision. This subdivision is
intended to define the meaning of "bona fide principal amount" as
used in this division solely for the purposes of determining whether
the loan amount exceeds a regulatory ceiling, and is not intended to
affect the meaning of "principal" for any other purpose.
