California Code, Civil Code – CIV § 2954.11. “ Installment loan ” ways any loan specified in subdivision (h) expanded under an installment mortgage highlight.

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(a) As used in this point:

(1) “Open-end credit plan” comes with the meaning set forth in Regulation Z associated with the government Reserve program ( 12 C.F.R. 226.2(a)(20) ).

(2) “ Installment mortgage ” suggests any financing given in subdivision (h) extended under an installment loan feature.

(3) “ Installment financing function ” suggests a characteristic of an open-end credit arrange which supplies for a different subaccount of this open-end credit program pursuant to which the primary of, and interest on, the loan connected with that subaccount are to be paid back in considerably equivalent installments over a particular stage without reference to extent exceptional under every other ability for the open-end credit score rating arrange and/or payment schedule with respect to the more ability.

(b)(1) Except as if title loans Indiana not supplied by statute, the borrower under any installment loan will probably be eligible to prepay your whole or any a portion of the installment financing, combined with any accrued interest, anytime.

(2) pertaining to any installment financing, nothing in this section shall prevent a debtor from getting obliged, by an understanding on paper, to pay for a prepayment fee; but merely a prepayment generated within 5 years associated with the go out the installment financing is manufactured is at the mercy of a prepayment fee after which only as here established. A sum maybe not exceeding 20 percent on the initial major amount of the installment loan is prepaid in virtually any one 12-month cycle without incurring a prepayment fee. A prepayment cost is implemented on any levels prepaid in every 12-month course over 20% of earliest main amount of the installment financing, which demand shall maybe not surpass a sum equal to the cost of six months’ advance interest from the quantity prepaid service more than 20 percent for the initial principal amount of the installment mortgage.

(c) For purposes of subdivision (b):

(1) In the event that action of believe or mortgage obtains payment in excess of one installment loan, each one of the installment financial loans will be considered getting been individually made in the time that proceeds of installment financing become advanced.

(2) In the event that outstanding balances of a loan expert pursuant to an open-end credit program after that turns out to be susceptible to an installment mortgage function associated with credit score rating plan, the borrowed funds shall be deemed having become generated as soon as the financing turns out to be at the mercy of the installment financing function, if the function ended up being offered by the borrower’s solution under initial terms of the open-end credit score rating plan or the element thereafter became available upon customization of initial terms of the open-end credit score rating program.

(d) Notwithstanding subdivision (b), no prepayment charge might be enforced pertaining to an installment loan subject to this point if any with the soon after utilize:

(1) The domestic structure getting the installment mortgage happens to be harmed to these a level by a normal tragedy that a state of emergency try announced by Governor, pursuant to Chapter 7 (commencing with part 8550) of unit 1 of Title 2 of this national Code , your residential construction should not be occupied and also the prepayment is causally associated thereto.

(2) The prepayment is created in conjunction with a genuine deal for the real land securing the installment financing.

(3) the lending company will not adhere to subdivision (age).

(4) The expression of this installment loan is for only five years in addition to original main quantity of the installment loan are less than five thousand cash ($5,000).

(elizabeth)(1) The lender receiving a debtor’s responsibility to pay for a prepayment cost authorized by subdivision (b) shall provide the debtor with an authored disclosure explaining the presence of the prepayment fee duty, the circumstances under that prepayment cost will be payable, as well as the method by which the total amount of the prepayment charge will probably be determined. If subdivision (f) supplies the debtor with a right to rescind the installment loan together with associated obligation to cover a prepayment fee, the disclosure required by this subdivision shall furthermore tell the debtor for this right to rescind, exactly how and when to work out just the right, and where you can post or deliver a notice of rescission.