BILL NUMBER: AB 268	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dababneh

                        FEBRUARY 10, 2015

   An act to amend Section 22303 of the Financial Code, relating to
consumer loans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 268, as introduced, Dababneh. Consumer loans.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Business Oversight. Under existing law, a finance
lender includes any person who is engaged in the business of making
consumer loans. With respect to consumer loans, existing law
authorizes every licensee under that law who lends money to contract
for and receive charges at a rate not exceeding the sum of certain
percentages on specified parts of the unpaid principal balance,
except as specified.
   This bill would make a nonsubstantive change to that latter
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22303 of the Financial Code is amended to read:

   22303.  Every licensee who lends any sum of money may contract for
and receive charges at a rate not exceeding the sum of the
following:
   (a) Two and one-half percent per month on that part of the unpaid
principal balance of any loan up to, including, but not in excess of
two hundred twenty-five dollars ($225).
   (b) Two percent per month on that  portion  
part  of the unpaid principal balance in excess of two hundred
twenty-five dollars ($225) up to, including, but not in excess of
nine hundred dollars ($900).
   (c) One and one-half percent per month on that part of the unpaid
principal balance in excess of nine hundred dollars ($900) up to,
including, but not in excess of one thousand six hundred fifty
dollars ($1,650).
   (d) One percent per month on any remainder of such unpaid balance
in excess of one thousand six hundred fifty dollars ($1,650).
   This section does not apply to any loan of a bona fide principal
amount of two thousand five hundred dollars ($2,500) or more as
determined in accordance with Section 22251.