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HomeFinancial CodeDiv. 8Ch. 1Art. 1§ 21001 Loan Compensation Charges

§ 21001 Loan Compensation Charges

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

§ 21001 Loan Compensation Charges

Key Takeaways

  • •Compensation means all the money you pay for a loan, not just the loan amount.
  • •This includes extra costs like fees, interest, and storage charges.
  • •Any money you pay because of the loan counts as compensation.

Example

You borrow $100 from a bank.

If the bank charges you $10 in interest and a $5 fee, all of that ($115 total) is called 'compensation' under the law.

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

Official Source
View on CA.gov

§ 21001 Loan Compensation Charges

“Compensation” includes expenses, interest, disbursements, storage charges, and all other charges of any nature in connection with a loan or forbearance. (Enacted by Stats. 1951, Ch. 364.)

Last verified: January 23, 2026

Key Terms

Compensationexpensesinterestdisbursementsstorage chargesloanforbearance

Related Statutes

  • § 18007 Loan Charges Definition
  • § 18008 Loan Charges Profit Prohibition
  • § 22200 Loan Service Charges
  • § 100000 Debt Collection Licensing Act
  • § 100000.5 Debt Collector Temporary Licensing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 21001.
View Official Source