Each pension fund or retirement system which is subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406), shall not be required to obtain any license or certificate in order to provide funds for any type of loan transaction permitted by law.
LoanLoans of E.r.i.s.a. Pension Funds
Section § 1917.210
If a pension fund or retirement system follows the federal Employee Retirement Income Security Act (ERISA), it doesn't need to get a license or certification to provide money for loans, as long as the loan is legally allowed.
pension fund retirement system ERISA
Section § 1917.220
This law states that pension funds or retirement systems covered under a federal law called the Employee Retirement Income Security Act of 1974 (ERISA) are not limited by California's usual interest rate restrictions. This means that these specific pension funds and retirement systems can agree to any rate of interest without being confined by state-imposed limits.
Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any obligation of, loan made by, or forbearance of, any pension fund or retirement system which is subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406).
This section creates and authorizes pension funds or retirement systems subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406) as an exempt class of persons pursuant to Section 1 of Article XV
of the Constitution.
Employee Retirement Income Security Act ERISA pension funds
