[Approved by Governor September 22, 2016. Filed with Secretary of State September 22, 2016.]
SB 777, Lara. The California Finance Lenders Law: application.
Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers. Existing law exempts from its provisions, among others, persons making 5 or fewer commercial loans in a 12-month period if the loans are incidental to the business of the person relying upon the exemption.
This bill would also exempt, until January 1, 2022, a person who makes one commercial loan in a 12-month period from regulation pursuant to the California Finance Lenders Law.
The people of the State of California do enact as follows:
Section 22050.5 is added to the Financial Code, to read:
(a) This division does not apply to any person who makes one loan in a 12-month period if that loan is a commercial loan as defined in Section 22502.
(b) This section shall remain in effect only until January 1, 2022, and as of that date is repealed.