State Codes and Statutes

Statutes > California > Fin > 18634-18643

FINANCIAL CODE
SECTION 18634-18643



18634.  This article is applicable only to premium finance agencies.



18635.  Whenever the interest or charges, or interest and charges
deducted in advance exceed the maximum provided by this division, by
reason of subsequent repayment of the loan, a new loan, refinancing,
or otherwise, or any portion thereof prior to maturity, such excess
shall be rebated to the borrower or credited on any balance owing by
the borrower to the company. The rebate shall be the difference
between the total of the precomputed charge, any charge for extending
the first due date, plus any default or deferment charges and the
charges at the contract rate computed on unpaid principal balances
for the number of days actually elapsed by applying each payment
first to charges and the remainder to principal. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.



18636.  (a) As an alternative to the provisions of Section 18635, if
a loan is repayable in substantially equal and consecutive monthly
installments of principal and charges combined, the first of which is
due not less than 15 days nor more than one month and 15 days from
the date the loan is made, a company may precompute charges and apply
payments as provided in this article.
   (b) The total charges which would be earned if the loan contract
were repaid exactly according to its terms, at the monthly rate
stated in the loan contract, may be precomputed when the loan is made
and added to the principal of the loan. Every payment may be applied
to the combined total of principal and precomputed charges until the
loan contract is fully paid.
   (c) The portion of the precomputed charge applicable to any
particular monthly installment period shall bear the same ratio to
the total precomputed charge, excluding any adjustment made for a
first period of more or less than one month, as the balance scheduled
to be outstanding during that monthly period bears to the sum of all
monthly balances scheduled originally by the loan contract.



18637.  If a loan contract made under Section 18636 is prepaid in
full by cash, a new loan, refinancing or otherwise before the final
installment date, the borrower shall receive a rebate of the portion
of the precomputed charge applicable to the full installment periods
following the installment date nearest the date of such prepayment;
provided, however, that if prepayment in full occurs on or before the
third installment date the rebate shall be the difference between
the total precomputed charge and the charges at the contract rate
computed on unpaid principal balances by applying each payment first
to charges and the remainder to principal. After the third
installment date, any prepayment made on or before the 15th day
following an installment date shall be deemed to have been made on
the installment date preceding such prepayment. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.


18638.  A special rebate of precomputed charges shall be made if
three or more, but not all, installments are prepaid in full at any
one time either in one transaction or over a period of time on a loan
made under Section 18636. The special rebate shall be equal to the
portion of precomputed charge applicable to the last installment
period multiplied by the total number of full installment periods
such installments and any subsequent installments are prepaid. Such
special rebate shall be computed and made at the termination of the
loan contract and shall be an addition to any required rebate for
prepayment in full.


18640.  A deferment charge may be charged and collected on a loan
made under Section 18636 if the payment date of all wholly unpaid
installments on which no default charge has been collected is
deferred one or more full months and the loan contract so provides.
Such deferment charge shall not exceed the portion of precomputed
charge applicable, prior to deferment, to the first deferred monthly
installment period multiplied by the number of months the maturity of
the contract is deferred. Such number of months shall not exceed the
number of full installments which are in default on the date of
deferment or which may become due within 15 days of such date. When a
deferment charge is made, no portion of the precomputed charge shall
apply to the installment periods in which no installment payment is
required by reason of the deferment. In computing any default charge
or required rebate, the portion of the precomputed charge applicable
to each deferred balance and installment period following the
deferment period and prior to the deferred maturity shall remain the
same as that applicable to such balances and periods under the
original contract of loan. Such charge may be collected at the time
of deferment or at any time thereafter. Any payment received at the
time of deferment may be applied first to the deferment charge and
the remainder, if any, applied to the unpaid balance of the loan
contract; provided, however, if such payment is sufficient to pay, in
addition to the appropriate deferment charge, any installment which
is in default and the applicable default charge, it shall be first so
applied and any such installment shall not be deferred nor subject
to the deferment charge.



18642.  If the maturity of a loan made under Section 18636 is
accelerated for any reason, the company shall make the same refund or
credit as would be required if the loan contract was paid in full on
the date of acceleration and the unpaid balance shall be treated as
the unpaid principal balance and thereafter the unpaid balance of the
loan contract shall bear charges at the agreed rate of charge if the
loan contract so provides.



18643.  Notwithstanding any other provision of law not within this
article, with respect to precomputed loans, premium finance agencies
derive authority only from this article.


State Codes and Statutes

Statutes > California > Fin > 18634-18643

FINANCIAL CODE
SECTION 18634-18643



18634.  This article is applicable only to premium finance agencies.



18635.  Whenever the interest or charges, or interest and charges
deducted in advance exceed the maximum provided by this division, by
reason of subsequent repayment of the loan, a new loan, refinancing,
or otherwise, or any portion thereof prior to maturity, such excess
shall be rebated to the borrower or credited on any balance owing by
the borrower to the company. The rebate shall be the difference
between the total of the precomputed charge, any charge for extending
the first due date, plus any default or deferment charges and the
charges at the contract rate computed on unpaid principal balances
for the number of days actually elapsed by applying each payment
first to charges and the remainder to principal. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.



18636.  (a) As an alternative to the provisions of Section 18635, if
a loan is repayable in substantially equal and consecutive monthly
installments of principal and charges combined, the first of which is
due not less than 15 days nor more than one month and 15 days from
the date the loan is made, a company may precompute charges and apply
payments as provided in this article.
   (b) The total charges which would be earned if the loan contract
were repaid exactly according to its terms, at the monthly rate
stated in the loan contract, may be precomputed when the loan is made
and added to the principal of the loan. Every payment may be applied
to the combined total of principal and precomputed charges until the
loan contract is fully paid.
   (c) The portion of the precomputed charge applicable to any
particular monthly installment period shall bear the same ratio to
the total precomputed charge, excluding any adjustment made for a
first period of more or less than one month, as the balance scheduled
to be outstanding during that monthly period bears to the sum of all
monthly balances scheduled originally by the loan contract.



18637.  If a loan contract made under Section 18636 is prepaid in
full by cash, a new loan, refinancing or otherwise before the final
installment date, the borrower shall receive a rebate of the portion
of the precomputed charge applicable to the full installment periods
following the installment date nearest the date of such prepayment;
provided, however, that if prepayment in full occurs on or before the
third installment date the rebate shall be the difference between
the total precomputed charge and the charges at the contract rate
computed on unpaid principal balances by applying each payment first
to charges and the remainder to principal. After the third
installment date, any prepayment made on or before the 15th day
following an installment date shall be deemed to have been made on
the installment date preceding such prepayment. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.


18638.  A special rebate of precomputed charges shall be made if
three or more, but not all, installments are prepaid in full at any
one time either in one transaction or over a period of time on a loan
made under Section 18636. The special rebate shall be equal to the
portion of precomputed charge applicable to the last installment
period multiplied by the total number of full installment periods
such installments and any subsequent installments are prepaid. Such
special rebate shall be computed and made at the termination of the
loan contract and shall be an addition to any required rebate for
prepayment in full.


18640.  A deferment charge may be charged and collected on a loan
made under Section 18636 if the payment date of all wholly unpaid
installments on which no default charge has been collected is
deferred one or more full months and the loan contract so provides.
Such deferment charge shall not exceed the portion of precomputed
charge applicable, prior to deferment, to the first deferred monthly
installment period multiplied by the number of months the maturity of
the contract is deferred. Such number of months shall not exceed the
number of full installments which are in default on the date of
deferment or which may become due within 15 days of such date. When a
deferment charge is made, no portion of the precomputed charge shall
apply to the installment periods in which no installment payment is
required by reason of the deferment. In computing any default charge
or required rebate, the portion of the precomputed charge applicable
to each deferred balance and installment period following the
deferment period and prior to the deferred maturity shall remain the
same as that applicable to such balances and periods under the
original contract of loan. Such charge may be collected at the time
of deferment or at any time thereafter. Any payment received at the
time of deferment may be applied first to the deferment charge and
the remainder, if any, applied to the unpaid balance of the loan
contract; provided, however, if such payment is sufficient to pay, in
addition to the appropriate deferment charge, any installment which
is in default and the applicable default charge, it shall be first so
applied and any such installment shall not be deferred nor subject
to the deferment charge.



18642.  If the maturity of a loan made under Section 18636 is
accelerated for any reason, the company shall make the same refund or
credit as would be required if the loan contract was paid in full on
the date of acceleration and the unpaid balance shall be treated as
the unpaid principal balance and thereafter the unpaid balance of the
loan contract shall bear charges at the agreed rate of charge if the
loan contract so provides.



18643.  Notwithstanding any other provision of law not within this
article, with respect to precomputed loans, premium finance agencies
derive authority only from this article.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 18634-18643

FINANCIAL CODE
SECTION 18634-18643



18634.  This article is applicable only to premium finance agencies.



18635.  Whenever the interest or charges, or interest and charges
deducted in advance exceed the maximum provided by this division, by
reason of subsequent repayment of the loan, a new loan, refinancing,
or otherwise, or any portion thereof prior to maturity, such excess
shall be rebated to the borrower or credited on any balance owing by
the borrower to the company. The rebate shall be the difference
between the total of the precomputed charge, any charge for extending
the first due date, plus any default or deferment charges and the
charges at the contract rate computed on unpaid principal balances
for the number of days actually elapsed by applying each payment
first to charges and the remainder to principal. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.



18636.  (a) As an alternative to the provisions of Section 18635, if
a loan is repayable in substantially equal and consecutive monthly
installments of principal and charges combined, the first of which is
due not less than 15 days nor more than one month and 15 days from
the date the loan is made, a company may precompute charges and apply
payments as provided in this article.
   (b) The total charges which would be earned if the loan contract
were repaid exactly according to its terms, at the monthly rate
stated in the loan contract, may be precomputed when the loan is made
and added to the principal of the loan. Every payment may be applied
to the combined total of principal and precomputed charges until the
loan contract is fully paid.
   (c) The portion of the precomputed charge applicable to any
particular monthly installment period shall bear the same ratio to
the total precomputed charge, excluding any adjustment made for a
first period of more or less than one month, as the balance scheduled
to be outstanding during that monthly period bears to the sum of all
monthly balances scheduled originally by the loan contract.



18637.  If a loan contract made under Section 18636 is prepaid in
full by cash, a new loan, refinancing or otherwise before the final
installment date, the borrower shall receive a rebate of the portion
of the precomputed charge applicable to the full installment periods
following the installment date nearest the date of such prepayment;
provided, however, that if prepayment in full occurs on or before the
third installment date the rebate shall be the difference between
the total precomputed charge and the charges at the contract rate
computed on unpaid principal balances by applying each payment first
to charges and the remainder to principal. After the third
installment date, any prepayment made on or before the 15th day
following an installment date shall be deemed to have been made on
the installment date preceding such prepayment. The tender, by the
borrower or at his request, of an amount equal to the unpaid balance
less the required rebate must be accepted by the company in full
payment of the loan contract.


18638.  A special rebate of precomputed charges shall be made if
three or more, but not all, installments are prepaid in full at any
one time either in one transaction or over a period of time on a loan
made under Section 18636. The special rebate shall be equal to the
portion of precomputed charge applicable to the last installment
period multiplied by the total number of full installment periods
such installments and any subsequent installments are prepaid. Such
special rebate shall be computed and made at the termination of the
loan contract and shall be an addition to any required rebate for
prepayment in full.


18640.  A deferment charge may be charged and collected on a loan
made under Section 18636 if the payment date of all wholly unpaid
installments on which no default charge has been collected is
deferred one or more full months and the loan contract so provides.
Such deferment charge shall not exceed the portion of precomputed
charge applicable, prior to deferment, to the first deferred monthly
installment period multiplied by the number of months the maturity of
the contract is deferred. Such number of months shall not exceed the
number of full installments which are in default on the date of
deferment or which may become due within 15 days of such date. When a
deferment charge is made, no portion of the precomputed charge shall
apply to the installment periods in which no installment payment is
required by reason of the deferment. In computing any default charge
or required rebate, the portion of the precomputed charge applicable
to each deferred balance and installment period following the
deferment period and prior to the deferred maturity shall remain the
same as that applicable to such balances and periods under the
original contract of loan. Such charge may be collected at the time
of deferment or at any time thereafter. Any payment received at the
time of deferment may be applied first to the deferment charge and
the remainder, if any, applied to the unpaid balance of the loan
contract; provided, however, if such payment is sufficient to pay, in
addition to the appropriate deferment charge, any installment which
is in default and the applicable default charge, it shall be first so
applied and any such installment shall not be deferred nor subject
to the deferment charge.



18642.  If the maturity of a loan made under Section 18636 is
accelerated for any reason, the company shall make the same refund or
credit as would be required if the loan contract was paid in full on
the date of acceleration and the unpaid balance shall be treated as
the unpaid principal balance and thereafter the unpaid balance of the
loan contract shall bear charges at the agreed rate of charge if the
loan contract so provides.



18643.  Notwithstanding any other provision of law not within this
article, with respect to precomputed loans, premium finance agencies
derive authority only from this article.


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