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HomeFinancial CodeDiv. 7Ch. 10Art. 1§ 18665 Foreign Loan Interest Exemption

§ 18665 Foreign Loan Interest Exemption

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 18665 Foreign Loan Interest Exemption

Key Takeaways

  • •Out-of-state loan companies can charge higher interest rates in California than local companies.
  • •These companies still have to follow all other California rules for their business.
  • •This law makes a special group that doesn’t have to follow California’s usual interest rate limits.

Example

A loan company from Nevada gives a car loan to someone in California.

The Nevada company can charge more interest on that loan than a California company could. But they still have to follow all other California loan rules, like not tricking people.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 18665 Foreign Loan Interest Exemption

(a) Any foreign (other state) industrial loan company is exempted from the restrictions of Section 1 of Article XV of the California Constitution relating to rates of interest upon the loan or forbearance of any money, goods, or things in action or on accounts after demand. (b) This section does not exempt a foreign (other state) industrial loan company or any subsidiary, as defined in Section 189 of the Corporations Code, from complying with all other laws and regulations governing the business in which the industrial loan company or subsidiary is engaged. (c) This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. (Added by Stats. 1995, Ch. 479, Sec. 7. Effective October 2, 1995.)

Last verified: January 23, 2026

Key Terms

foreign industrial loan companyexempt classSection 1 of Article XV of the California Constitutioninterest rate restrictions

Related Statutes

  • § 18662 Foreign Loan Company Reports
  • § 18663 Foreign Loan Company Records
  • § 1675 Foreign Bank Interest Exemption
  • § 1320 Bank Property Acquisition Rules
  • § 1321 Bank Property Sale Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18665.
View Official Source