On open-end loans, the licensee may contract for and receive the fees, costs, and expenses permitted on other loans, including those permitted by subdivisions (a), (b), (c), and (d) of Section 22313 and subdivision (d) of Section 22314, except that the charge for credit insurance under Section 22314 shall be on a monthly basis and shall be actuarially consistent with the premium rate for the same coverage.

This section does not apply to any open-end loan of a bona fide principal amount of ten thousand dollars ($10,000) or more as determined in accordance with Section 22467.

Terms Used In California Financial Code 22454

  • bona fide principal amount: as used in this division solely for the purposes of determining whether the loan amount exceeds a regulatory ceiling, and is not intended to affect the meaning of "principal" for any other purpose. See California Financial Code 22251
  • Contract: A legal written agreement that becomes binding when signed.
  • Credit insurance: means credit life, disability, and loss-of-income insurance, or any combination of these coverages. See California Financial Code 22314

(Amended by Stats. 2019, Ch. 708, Sec. 11. (AB 539) Effective January 1, 2020.)

  Previous section
Next section  
 Article 5 Contents