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HomeFinancial CodeDiv. 7Ch. 3Art. 2§ 18205 Loan Repayment Term Limits

§ 18205 Loan Repayment Term Limits

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

§ 18205 Loan Repayment Term Limits

This law says that a company that lends money for things like cars or furniture can't make a loan that takes more than 10 years and 30 days to pay back.

Key Takeaways

  • •Loans from these companies can't last more than 10 years and 30 days.
  • •This rule is for companies that lend money for things like cars or furniture.
  • •There might be some exceptions to this rule.

Example

You want to buy a car and need a loan to pay for it.

The company can't make you take more than 10 years and 30 days to pay back the loan.

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

Official Source
View on CA.gov

§ 18205 Loan Repayment Term Limits

Except as otherwise provided for in this division, an industrial loan company shall not make any loan or purchase or discount any other obligation that provides for a repayment of principal over more than 120 months and 30 days. (Amended by Stats. 1988, Ch. 427, Sec. 1.)

Last verified: January 11, 2026

Key Terms

industrial loan companyloanpurchase or discountrepayment of principal120 months and 30 days

Related Statutes

  • § 18205.5 Unequal Payment Property Loans
  • § 18207 Consumer Loan Term Limits
  • § 18208 Industrial Loan Collateral Requirements
  • § 18209 Federal Insured Loan Authority
  • § 18211 Loan Commitment Fees

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18205.
View Official Source