Court Explicates Scope of Usury Exemption For Real Estate Brokers
Artistotle didn’t think much of the idea of paying interest: εὐλογώτατα μισεῖται ἡ ὀβολοστατικὴ διὰ τὸ ἀπ᾽ αὐτοῦ τοῦ νομίσματος εἶναι τὴν κτῆσιν καὶ οὐκ ἐφ᾽ ὅπερ ἐπορίσθη. μεταβολῆς γὰρ ἐγένετο χάριν, ὁ δὲ τόκος αὐτὸ ποιεῖ πλέον （ὅθεν καὶ τοὔνομα τοῦτ᾽ εἴληφεν: ὅμοια γὰρ τὰ τικτόμενα τοῖς γεννῶσιν αὐτά ἐστιν, ὁ δὲ τόκος γίνεται νόμισμα ἐκ νομίσματος: ὥστε καὶ μάλιστα παρὰ Read more...
Certification Pursuant To Section 25100(o) – Why It Still Matters (Part 2) And A Comment on H.R. 2483
Section 15100(o) and Usury Yesterday, I wrote about the continued significance of certification by the Commissioner of Corporations of national securities exchanges pursuant to Section 25100(o) of the Corporations Code. Today is Part 2 of that discussion. As discussed in this earlier post (“The ‘Usury Permit’ – Fact or Fiction?”), the California Constitution imposes limitations on the amounts that may be charged Read more...
The “Usury Permit” – Fact Or Fiction?
The California Constitution covers many things – everything from the right of privacy (Art. I, Sec. 1) to the rate of interest that may be imposed on a loan or forbearance (Art. XV). Occasionally, I’m asked about how to obtain a “usury permit” from the Department of Corporations. In fact, the legislature has inserted several exemptions from the constitutional usury limitations into the Corporate Securities Read more...
Usury Exemption Bites Back
Last week, I wrote about the oft overlooked California Finance Lenders (CFL) law. In general, that law provides that anyone engaged in the business of making consumer or commercial loans must obtain a license from the Department of Corporations (unless an exemption is available). CFL licensees do enjoy one benefit. They constitute a class of “exempt persons” for purposes of California’s constitutional Read more...
“License? We Don’t Need No Stinking License”
The Department of Corporations’ jurisdiction is not limited to the Corporate Securities Law of 1968. In fact, it has an entire division dedicated to financial services regulation. The Department’s Financial Services Division, or FSD, has responsibililty for administering the following six laws: California Deferred Deposit Transaction Law California Finance Lenders Law California Foreclosure Prevention Act California Residential Mortgage Lending Act Check Read more...
