Ca Code, Civil Code – CIV § 2954.11

Ca Code, Civil Code – CIV § 2954.11

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(a) As found in this area:

(1) “Open-end credit plan” gets the meaning established in Regulation Z regarding the Federal Reserve System ( 12 C.F.R. 226.2(a)(20) ).

(2) “ Installment loan ” means any loan specified in subdivision (h) extended under an installment loan function.

(3) “ Installment loan function ” means an attribute of a open-end credit plan which supplies for a different subaccount of open-end credit plan pursuant that the main of, and interest on, the mortgage related to that subaccount should be paid back in substantially equal installments more than a certain duration without respect to the quantity outstanding under some other feature of this open-end credit plan or even the repayment schedule with regards to the other function.

(b)(1) Except as otherwise supplied by statute, the debtor under any installment loan will probably be eligible to prepay your whole or any the main installment loan, along with any accrued interest, whenever you want.

(2) with regards to any installment loan, absolutely nothing in this area shall preclude a debtor from becoming obligated, by the contract on paper, to pay for a prepayment fee; but merely a prepayment made within five several years of the date the installment loan is manufactured could be susceptible to a prepayment cost after which entirely as herein established. A sum maybe not surpassing 20 % of this initial principal quantity of this installment loan can be prepaid in almost any one 12-month duration without incurring a prepayment fee. A prepayment fee could be imposed on any amount prepaid in almost any period that is 12-month more than 20 per cent associated with the initial principal level of the installment loan, which charge shall maybe not meet or exceed a quantity add up to the repayment of 6 months’ advance interest on the quantity prepaid more than 20 % for the initial principal level of the installment loan.

(c) For purposes of subdivision (b):

(1) In the event that deed of trust or home loan secures payment in excess of one installment loan, each one of the installment loans will be considered to possess been individually made regarding the date that the profits for the installment loan are advanced level.

(2) In the event that outstanding stability of that loan advanced level pursuant to an open-end credit plan thereafter becomes at the mercy of an installment loan function for the credit plan, the mortgage will probably be considered to possess been made whenever loan becomes at the mercy of the installment loan function, whether or not the function had been offered at the debtor’s option under initial regards to the open-end credit plan or even the function thereafter became available upon modification for the initial regards to the credit plan that is open-end.

(d) Notwithstanding subdivision (b), no prepayment fee can be imposed with regards to an installment loan susceptible to this area if some of the apply that is following

(1) The domestic framework securing the installment loan happens to be damaged to this degree by an all natural catastrophe that a situation of crisis is announced by the Governor, pursuant to Chapter 7 (commencing with part 8550) of Division 1 of Title 2 for the national Code, your domestic framework may not be occupied together with prepayment is causally related thereto.

(2) The prepayment is created together with a real purchase of this property that is real the installment loan.

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

(4) the definition of of this installment loan is for less than 5 years together with principal that is original for the installment loan is not as much as five thousand bucks ($5,000).

(age)(1) the financial institution getting a debtor’s responsibility to pay for a prepayment fee authorized by subdivision (b) shall furnish the borrower by having a written disclosure explaining the presence of the charge that is prepayment, the conditions under that your prepayment cost will be payable, in addition to method in which the actual quantity of the prepayment cost will probably be determined. The disclosure required by this subdivision shall also inform the borrower of this right to rescind, how and when to exercise the right, and where to mail or deliver a notice of rescission if subdivision (f) provides the borrower with a right to rescind the installment loan and the related obligation to pay a prepayment charge.

(2) The actual quantity of, or perhaps the way of determining the total amount of, the prepayment cost for the installment loan will be established into the contract regulating the credit plan that is open-end.

(f)(1) The disclosure required by paragraph (1) of subdivision (age) will be furnished when or around 1 month ahead of the borrower signs the contract or any other papers needed because of the loan provider the installment loan, or no sooner than 1 month before nor later than 10 times after the generating of this installment loan, if made without having the debtor needing to signal an understanding or any other paperwork, such as for instance could be the instance in the event that installment loan could be made based on phone or other conversations between your loan provider and also the debtor maybe not place that is taking individual. In the event that installment loan is created ahead of the debtor is furnished because of the disclosure needed by paragraph (1) of subdivision (e), the debtor shall have the proper to rescind the installment loan together with obligation that is related pay a prepayment cost by in person delivering or mailing notice to that particular impact towards loan provider, by first-class mail with postage prepaid, in the loan provider’s location reported with its disclosure in regards to the directly to rescind within 10 times following furnishing of this disclosure.

(2) In the event that disclosure needed by paragraph (1) of subdivision (age) is roofed into the contract or any other document finalized by the borrower the installment loan, the disclosure will be considered offered at that moment. In other instances, the disclosure will be considered furnished whenever actually sent to the debtor or three times after it really is mailed towards the debtor, first-class mail with postage prepaid, in the target that billing statements the open-end credit plan are increasingly being delivered.

(3) The disclosure needed by paragraph (1) of subdivision (age) could be individually furnished or are contained in the contract or any other document the installment loan, so long as a copy of this disclosure that the debtor may retain is furnished towards the debtor.

(4) when there is one or more debtor with regards to the credit that is open-end, a disclosure to virtually any one pursuant to subdivision (age) shall match the demands of the subdivision with regards to them all.

(g) If after an installment loan is created the lending company gets the debtor’s prompt notice associated with the rescission of this installment loan according to subdivision (f), the total amount for the installment loan will be utilized in the open-end subaccount of this open-end credit plan as well as the debtor will be obligated to settle the quantity beneath the same stipulations, and susceptible to the exact same charges along with other costs, because will be relevant had the mortgage at first been extended pursuant on open-end credit plan or had the installment loan never ever been made.

(h) This part relates to any loan that is installment with a deed of trust or home loan or just about any other lien on investment property of four devices or less and Section 2954.9 will not affect such installment loans. This area shall maybe not connect with any loan that’s susceptible to part 10242.6 for the continuing business and careers Code.

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