Section 22334 - Scheduled repayment of principal(a) Except as provided in subdivision (b), a licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal over more than the maximum terms set forth below opposite the respective size of loans. Principal amount of loan | Maximum term |
Less than $500 ........................ | 24 months and 15 days |
$500 but less than $1,500 ........................ | 36 months and 15 days |
$1,500 but less than $3,000 ........................ | 48 months and 15 days |
$3,000 but less than $10,000 ........................ | 60 months and 15 days |
(b) The maximum loan term of 60 months and 15 days does not apply to a loan secured by real property of a bona fide principal amount of at least five thousand dollars ($5,000).(c) A licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal that is less than 12 months. This subdivision applies to a loan of a bona fide principal amount of at least two thousand five hundred dollars ($2,500), but less than ten thousand dollars ($10,000).(d) This section does not apply to an open-end loan, a student loan made by an eligible lender under the Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.), or a student loan made pursuant to the Public Health Service Act, as amended (42 U.S.C. Sec. 294 et seq.).Amended by Stats 2019 ch 708 (AB 539),s 8, eff. 1/1/2020.