General ProvisionsExceptions to This Division

Section § 21050

Explanation

This law section specifies that certain organizations and businesses are not subject to the rules of this division. It does not apply to corporations formed to get credit from federal intermediate credit banks under the Agricultural Credits Act of 1923. It also excludes nonprofit cooperative corporations linked to agriculture as per the Food and Agricultural Code. Lastly, it exempts those involved solely in the nonprofit cooperative marketing of various farm products like fruits, vegetables, dairy, and livestock.

This division does not apply to any of the following:
(a)CA Financial Code § 21050(a) Any corporation organized for the purpose of securing credit from any federal intermediate credit bank organized and existing pursuant to the provisions of an act of Congress entitled “Agricultural Credits Act of 1923.”
(b)CA Financial Code § 21050(b) Any nonprofit cooperative corporation or association with or without capital stock, organized or existing pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code.
(c)CA Financial Code § 21050(c) Any person, corporation, association, syndicate, joint stock company, or partnership, engaged exclusively in the business of marketing agricultural, horticultural, viticultural, dairy, livestock, poultry, and bee products on a cooperative nonprofit basis.
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Section § 21051

Explanation

This law says that certain limits on interest rates and charges for loans don't apply if the loan amount is $2,500 or more, as long as this is not done to avoid the rules. It also notes that when deciding if a loan meets the $2,500 threshold, you should refer to another specific section, which is Section 22054.

(a)CA Financial Code § 21051(a) The limitations with respect to rates and charges set forth in Sections 21200 and 21200.5 do not apply to any loan of a bona fide principal amount of two thousand five hundred dollars ($2,500) or more if this section is not used for the purpose of evading this division.
(b)CA Financial Code § 21051(b) In determining whether a loan is a loan of the principal amount of two thousand five hundred dollars ($2,500), Section 22054 shall apply.
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