22200-22204

FINANCIAL CODE
SECTION 22200-22204




22200.  "Charges" include the aggregate interest, fees, bonuses,
commissions, brokerage, discounts, expenses, and other forms of costs
charged, contracted for, or received by a licensee or any other
person in connection with the investigating, arranging, negotiating,
procuring, guaranteeing, making, servicing, collecting, and enforcing
of a loan or forbearance of money, credit, goods, or things in
action, or any other service rendered.



22201.  "Charges" include any profit or advantage of any kind that a
licensee may contract for, collect, receive, or obtain by a
collateral sale, purchase, or agreement, in connection with
negotiating, arranging, making, or otherwise in connection with any
loan.



22202.  "Charges" do not include any of the following:
   (a) Commissions received as a licensed insurance agent or broker
in connection with insurance written as provided in Section 22313.
   (b) Amounts not in excess of the amounts specified in subdivision
(c) of Section 3068 of the Civil Code paid to holders of possessory
liens, imposed pursuant to Chapter 6.5 (commencing with Section 3067)
of Title 14 of Part 4 of Division 3 of the Civil Code, to release
motor vehicles that secure loans subject to this division.
   (c) Court costs, excluding attorney's fees, incurred in a suit and
recovered against a debtor who defaults on his or her loan.
   (d) Fees paid to a licensee for the privilege of participating in
an open-end credit program, which fees are to cover administrative
costs and are imposed upon executing the open-end loan agreement and
on annual renewal dates or anniversary dates thereafter.
   (e) Amounts received by a licensee from a seller, from whom the
borrower obtains money, goods, labor, or services on credit, in
connection with a transaction under an open-end credit program that
are paid or deducted from the loan proceeds paid to the seller at the
direction of the borrower and which are an obligation of the seller
to the licensee for the privilege of allowing the seller to
participate in the licensee's open-end credit program. Amounts
received by a licensee from a seller pursuant to this subdivision may
not exceed 6 percent of the loan proceeds paid to the seller at the
direction of the borrower.
   (f) Actual and necessary fees not exceeding five hundred dollars
($500) paid in connection with the repossession of a motor vehicle to
repossession agencies licensed pursuant to Chapter 11 (commencing
with Section 7500) of Division 3 of the Business and Professions Code
provided that the licensee complies with Sections 22328 and 22329,
and actual fees paid to a licensee in conformity with Sections 26751
and 41612 of the Government Code in an amount not exceeding the
amount specified in those sections of the Government Code.
   (g) Moneys paid to, and commissions and benefits received by, a
licensee for the sale of goods, services, or insurance, whether or
not the sale is in connection with a loan, that the buyer by a
separately signed authorization acknowledges is optional, if sale of
the goods, services, or insurance has been authorized pursuant to
Section 22154.



22203.  "Consumer loan" means a loan, whether secured by either real
or personal property, or both, or unsecured, the proceeds of which
are intended by the borrower for use primarily for personal, family,
or household purposes. For purposes of determining whether a loan is
a consumer loan, the lender may rely on any written statement of
intended purposes signed by the borrower. The statement may be a
separate statement signed by the borrower, or may be contained in a
loan application or other document signed by the borrower. The lender
shall not be required to ascertain that the proceeds of the loan are
used in accordance with the statement of intended purposes. Nothing
in this section shall authorize the taking of real property as
security, except as specified in Section 22330.



22204.  (a) In addition to the definition of consumer loan in
Section 22203, a "consumer loan" also means a loan of a principal
amount of less than five thousand dollars ($5,000), the proceeds of
which are intended by the borrower for use primarily for other than
personal, family, or household purposes.
   For purposes of determining whether a loan is or is not a consumer
loan, the lender may rely on any written statement of intended
purposes signed by the borrower. The statement may be a separate
statement signed by the borrower or may be contained in a loan
application or other document signed by the borrower. The lender
shall not be required to ascertain that the proceeds of the loan are
used in accordance with the statement of intended purposes.
   (b) A consumer loan under this section is a loan secured in the
manner provided for in this division if it is secured, in whole or in
part, by any lien on, security interest in, assignment of, or power
of attorney relative to income arising from the operation of a
business by the borrower, such as accounts, and chattel paper,
including the right to payment for accounts or chattel paper sold by
the borrower prior to or contemporaneously with the making of the
loan.