“Charges” include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by a licensee or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, and enforcing of a loan or forbearance of money, credit, goods, or things in action, or any other service rendered.
Commercial LoansDefinitions
Section § 22500
This law section defines 'charges' related to loans and services. It includes various costs like interest, fees, and commissions that a lender or agent may collect when dealing with loans or money-related services.
These charges cover processes like arranging or enforcing loans and any other associated services.
loan charges interest fees
Section § 22501
This law clarifies that when discussing charges, it does not include the commissions earned by someone acting as a licensed insurance agent or broker.
“Charges” do not include commissions received as a licensed insurance agent or broker.
insurance agent commissions insurance broker fees licensed agent
Section § 22502
This law defines a 'commercial loan' as any loan of $5,000 or more, or any loan under an open-end credit program, where the money is used mainly for non-personal, non-family, or non-household purposes. It doesn't matter if the loan is secured or unsecured.
Lenders can trust any written statement from the borrower about the loan's intended use, including loan applications or other signed documents. Lenders don't have to verify that the borrower actually uses the money as stated.
“Commercial loan” means a loan of a principal amount of five thousand dollars ($5,000) or more, or any loan under an open-end credit program, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes.
For purposes of determining whether a loan is a commercial loan, the lender may rely on any written statement of intended purposes signed by the borrower. The statement may be a
separate statement signed by the borrower or may be contained in a loan application or other document signed by the borrower. The lender shall not be required to ascertain that the proceeds of the loan are used in accordance with the statement of intended purposes.
commercial loan principal amount open-end credit program
