State Codes and Statutes

Statutes > California > Fin > 22400-22402

FINANCIAL CODE
SECTION 22400-22402



22400.  This article applies only to loan contracts payable 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. In lieu of computing charges and applying payments as provided
in Section 22307, a licensee may precompute charges and apply
payments as follows:
   (a) The total charges which would be earned if the contract were
repaid exactly according to its terms, at the monthly rate stated in
the contract, may be precomputed when the loan is made and added to
the principal of the loan. For the purpose of computation, a month
shall be that period of time from any date in one month to the
corresponding date in the next month, and if there is no
corresponding date, then to the last day of the next month. The
principal amount of the loan shall be its face value as referred to
in Section 22309. Every payment may be applied to the combined total
of principal and precomputed charges until the contract is fully
paid. The acceptance of payment of charges on loans made under the
provisions of this article shall not be deemed to constitute payment
deduction or receipt thereof in advance nor compounding under Section
22309. Precomputed charges shall be subject to the following
adjustments:
   (1) 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 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.
   (2) If the loan contract is paid in full by cash, a new loan,
refinancing, or otherwise, the borrower shall receive a rebate of
that portion of the precomputed charge that is the difference between
the total precomputed charge and the charges at the contract rate
computed in accordance with the provisions of Section 22307 or 22308.
The tender, by the borrower or at his or her request, of an amount
equal to the unpaid balance, less the required rebate, must be
accepted by the licensee in full payment of the contract.
   (3) If three or more, but not all, installments are prepaid in
full at any one time, all of the prior charges for the loan shall be
recalculated and all subsequent charges for the remaining term of the
loan shall be recalculated by applying each payment first to charges
and the remainder to principal in accordance with the provisions of
Section 22307 or 22308.
   (4) 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 contract so provides, the licensee may charge and
collect a deferment charge. The deferment charge shall not exceed the
portion of the 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. The number
of months shall not exceed the number of full installments that are
in default on the date of deferment or that may become due within 15
days of that 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 the
balances and periods under the original loan contract. The 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 contract. However, if the payment is sufficient to
pay, in addition to the appropriate deferment charge, any installment
that 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.
   (5) In the event of default of more than 10 days in the payment of
one-half or more of any scheduled installment, the licensee may
charge and collect a default charge not exceeding an amount equal to
the portion of the precomputed charge applicable to the final
installment period. The charge may not be collected more than once
for the same default and may be collected at the time of the default
or at any time thereafter. If the default charge is deducted from any
payment received after default occurs, and the deduction results in
the default of a subsequent installment, no charge may be made for
the resulting default.
   (6) A borrower and licensee may agree that the first installment
due date may be not more than 15 days more than one month and the
amount of the installment may be increased by one-thirtieth of the
portion of the precomputed charge applicable to a first installment
of one month for each extra day.
   (b) The statement to be given to the borrower as provided in
subdivision (a) of Section 22337 and the contract shall disclose in
addition to other required information the principal amount of the
loan exclusive of charges and the basis for computing the refund of
precomputed charges in case of prepayment in full or acceleration of
maturity and for computing default and deferment charges. The
delivery of a receipt of each payment showing the total amount of
each payment complies with subdivision (d) of Section 22337.
   (c) If the maturity of the contract when the charges are
precomputed is accelerated for any reason, the licensee shall make
the same refund or credit as would be required if the contract was
paid in full on the date of acceleration. The unpaid balance shall be
treated as the unpaid principal balance, and thereafter the unpaid
balance of the contract shall bear charges at the agreed rate of
charge if the loan contract so provides.



22401.  With respect to precomputed loans, licensees shall be
subject only to, comply only with, and derive authority only from
Sections 22400 and 22402, notwithstanding any other provision of law
that is not within this division.


22402.  When charges on a loan of an original bona fide principal
amount of five thousand ($5,000) or more have been precomputed in a
manner similar to that provided in Section 22400, and the loan is
prepaid in full by cash, a new loan, refinancing, or otherwise, or
the maturity of the loan contract is accelerated for any reason, the
borrower shall receive a rebate or credit of that portion of the
precomputed charge that is the difference between the total
precomputed charge and the charges at the contract rate computed in
accordance with the provisions of Section 22307 or 22308, or on the
basis of 12 equal months of 30 days each, on the assumption that all
payments were received by the licensee on their respective due dates.
This section does not apply to charges paid by the borrower to the
lender or others, such as charges computed as a percentage of the
loan, that are fully earned upon making the loan, or to charges
agreed to be paid by the borrower upon prepayment of a loan secured
by a lien upon real property.

State Codes and Statutes

Statutes > California > Fin > 22400-22402

FINANCIAL CODE
SECTION 22400-22402



22400.  This article applies only to loan contracts payable 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. In lieu of computing charges and applying payments as provided
in Section 22307, a licensee may precompute charges and apply
payments as follows:
   (a) The total charges which would be earned if the contract were
repaid exactly according to its terms, at the monthly rate stated in
the contract, may be precomputed when the loan is made and added to
the principal of the loan. For the purpose of computation, a month
shall be that period of time from any date in one month to the
corresponding date in the next month, and if there is no
corresponding date, then to the last day of the next month. The
principal amount of the loan shall be its face value as referred to
in Section 22309. Every payment may be applied to the combined total
of principal and precomputed charges until the contract is fully
paid. The acceptance of payment of charges on loans made under the
provisions of this article shall not be deemed to constitute payment
deduction or receipt thereof in advance nor compounding under Section
22309. Precomputed charges shall be subject to the following
adjustments:
   (1) 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 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.
   (2) If the loan contract is paid in full by cash, a new loan,
refinancing, or otherwise, the borrower shall receive a rebate of
that portion of the precomputed charge that is the difference between
the total precomputed charge and the charges at the contract rate
computed in accordance with the provisions of Section 22307 or 22308.
The tender, by the borrower or at his or her request, of an amount
equal to the unpaid balance, less the required rebate, must be
accepted by the licensee in full payment of the contract.
   (3) If three or more, but not all, installments are prepaid in
full at any one time, all of the prior charges for the loan shall be
recalculated and all subsequent charges for the remaining term of the
loan shall be recalculated by applying each payment first to charges
and the remainder to principal in accordance with the provisions of
Section 22307 or 22308.
   (4) 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 contract so provides, the licensee may charge and
collect a deferment charge. The deferment charge shall not exceed the
portion of the 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. The number
of months shall not exceed the number of full installments that are
in default on the date of deferment or that may become due within 15
days of that 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 the
balances and periods under the original loan contract. The 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 contract. However, if the payment is sufficient to
pay, in addition to the appropriate deferment charge, any installment
that 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.
   (5) In the event of default of more than 10 days in the payment of
one-half or more of any scheduled installment, the licensee may
charge and collect a default charge not exceeding an amount equal to
the portion of the precomputed charge applicable to the final
installment period. The charge may not be collected more than once
for the same default and may be collected at the time of the default
or at any time thereafter. If the default charge is deducted from any
payment received after default occurs, and the deduction results in
the default of a subsequent installment, no charge may be made for
the resulting default.
   (6) A borrower and licensee may agree that the first installment
due date may be not more than 15 days more than one month and the
amount of the installment may be increased by one-thirtieth of the
portion of the precomputed charge applicable to a first installment
of one month for each extra day.
   (b) The statement to be given to the borrower as provided in
subdivision (a) of Section 22337 and the contract shall disclose in
addition to other required information the principal amount of the
loan exclusive of charges and the basis for computing the refund of
precomputed charges in case of prepayment in full or acceleration of
maturity and for computing default and deferment charges. The
delivery of a receipt of each payment showing the total amount of
each payment complies with subdivision (d) of Section 22337.
   (c) If the maturity of the contract when the charges are
precomputed is accelerated for any reason, the licensee shall make
the same refund or credit as would be required if the contract was
paid in full on the date of acceleration. The unpaid balance shall be
treated as the unpaid principal balance, and thereafter the unpaid
balance of the contract shall bear charges at the agreed rate of
charge if the loan contract so provides.



22401.  With respect to precomputed loans, licensees shall be
subject only to, comply only with, and derive authority only from
Sections 22400 and 22402, notwithstanding any other provision of law
that is not within this division.


22402.  When charges on a loan of an original bona fide principal
amount of five thousand ($5,000) or more have been precomputed in a
manner similar to that provided in Section 22400, and the loan is
prepaid in full by cash, a new loan, refinancing, or otherwise, or
the maturity of the loan contract is accelerated for any reason, the
borrower shall receive a rebate or credit of that portion of the
precomputed charge that is the difference between the total
precomputed charge and the charges at the contract rate computed in
accordance with the provisions of Section 22307 or 22308, or on the
basis of 12 equal months of 30 days each, on the assumption that all
payments were received by the licensee on their respective due dates.
This section does not apply to charges paid by the borrower to the
lender or others, such as charges computed as a percentage of the
loan, that are fully earned upon making the loan, or to charges
agreed to be paid by the borrower upon prepayment of a loan secured
by a lien upon real property.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 22400-22402

FINANCIAL CODE
SECTION 22400-22402



22400.  This article applies only to loan contracts payable 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. In lieu of computing charges and applying payments as provided
in Section 22307, a licensee may precompute charges and apply
payments as follows:
   (a) The total charges which would be earned if the contract were
repaid exactly according to its terms, at the monthly rate stated in
the contract, may be precomputed when the loan is made and added to
the principal of the loan. For the purpose of computation, a month
shall be that period of time from any date in one month to the
corresponding date in the next month, and if there is no
corresponding date, then to the last day of the next month. The
principal amount of the loan shall be its face value as referred to
in Section 22309. Every payment may be applied to the combined total
of principal and precomputed charges until the contract is fully
paid. The acceptance of payment of charges on loans made under the
provisions of this article shall not be deemed to constitute payment
deduction or receipt thereof in advance nor compounding under Section
22309. Precomputed charges shall be subject to the following
adjustments:
   (1) 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 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.
   (2) If the loan contract is paid in full by cash, a new loan,
refinancing, or otherwise, the borrower shall receive a rebate of
that portion of the precomputed charge that is the difference between
the total precomputed charge and the charges at the contract rate
computed in accordance with the provisions of Section 22307 or 22308.
The tender, by the borrower or at his or her request, of an amount
equal to the unpaid balance, less the required rebate, must be
accepted by the licensee in full payment of the contract.
   (3) If three or more, but not all, installments are prepaid in
full at any one time, all of the prior charges for the loan shall be
recalculated and all subsequent charges for the remaining term of the
loan shall be recalculated by applying each payment first to charges
and the remainder to principal in accordance with the provisions of
Section 22307 or 22308.
   (4) 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 contract so provides, the licensee may charge and
collect a deferment charge. The deferment charge shall not exceed the
portion of the 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. The number
of months shall not exceed the number of full installments that are
in default on the date of deferment or that may become due within 15
days of that 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 the
balances and periods under the original loan contract. The 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 contract. However, if the payment is sufficient to
pay, in addition to the appropriate deferment charge, any installment
that 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.
   (5) In the event of default of more than 10 days in the payment of
one-half or more of any scheduled installment, the licensee may
charge and collect a default charge not exceeding an amount equal to
the portion of the precomputed charge applicable to the final
installment period. The charge may not be collected more than once
for the same default and may be collected at the time of the default
or at any time thereafter. If the default charge is deducted from any
payment received after default occurs, and the deduction results in
the default of a subsequent installment, no charge may be made for
the resulting default.
   (6) A borrower and licensee may agree that the first installment
due date may be not more than 15 days more than one month and the
amount of the installment may be increased by one-thirtieth of the
portion of the precomputed charge applicable to a first installment
of one month for each extra day.
   (b) The statement to be given to the borrower as provided in
subdivision (a) of Section 22337 and the contract shall disclose in
addition to other required information the principal amount of the
loan exclusive of charges and the basis for computing the refund of
precomputed charges in case of prepayment in full or acceleration of
maturity and for computing default and deferment charges. The
delivery of a receipt of each payment showing the total amount of
each payment complies with subdivision (d) of Section 22337.
   (c) If the maturity of the contract when the charges are
precomputed is accelerated for any reason, the licensee shall make
the same refund or credit as would be required if the contract was
paid in full on the date of acceleration. The unpaid balance shall be
treated as the unpaid principal balance, and thereafter the unpaid
balance of the contract shall bear charges at the agreed rate of
charge if the loan contract so provides.



22401.  With respect to precomputed loans, licensees shall be
subject only to, comply only with, and derive authority only from
Sections 22400 and 22402, notwithstanding any other provision of law
that is not within this division.


22402.  When charges on a loan of an original bona fide principal
amount of five thousand ($5,000) or more have been precomputed in a
manner similar to that provided in Section 22400, and the loan is
prepaid in full by cash, a new loan, refinancing, or otherwise, or
the maturity of the loan contract is accelerated for any reason, the
borrower shall receive a rebate or credit of that portion of the
precomputed charge that is the difference between the total
precomputed charge and the charges at the contract rate computed in
accordance with the provisions of Section 22307 or 22308, or on the
basis of 12 equal months of 30 days each, on the assumption that all
payments were received by the licensee on their respective due dates.
This section does not apply to charges paid by the borrower to the
lender or others, such as charges computed as a percentage of the
loan, that are fully earned upon making the loan, or to charges
agreed to be paid by the borrower upon prepayment of a loan secured
by a lien upon real property.

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