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     | Friday, February 18, 2000 - 11:09 am  http://caag.state.ca.us/piu/usury.htm California Usury laws, Excerpt: "The California Constitution allows parties to contract for interest on a loan primarily for personal, family or household purposes at a rate not exceeding 10% per year. As with all other percentages we are listing, this percentage is based on the unpaid balance. For example, if a loan of $1,000 is to be paid at the end of one year and there are no payments during the year, the lender could charge $100 (10%) as interest. However, if payments are to be made during the year, the maximum charge allowed could be much less." ... "The usury laws do not apply to any real estate broker if the loan is secured by real estate. This applies whether or not he or she is acting as a real estate broker. The limitations also do not apply to most lending institutions such as banks, credit unions, finance companies, pawn brokers, etc. State laws place limitations on some of these loans, but at a higher percentage rate than the usury laws listed above." Readers should be aware that unless they are licensed and exempt from the usury laws, it's not a good idea to lend money at a higher rate because the loan may not be legally enforcable and/or the interest may not be collectable.
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