§ 22330 Loan Security Restrictions

Financial Code·California

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Key Takeaways

•Lenders can't take your house or property as security for small loans.
•This rule doesn't apply if the loan is $5,000 or more.
•If you owe money because of a court judgment, the lender can put a lien on your property.

Example

You borrow $3,000 from a lender to fix your car.

The lender cannot take your house as security for this loan because it's less than $5,000. But if you don't pay back the money and the lender sues you and wins, they can put a lien on your house to get their money back.

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

Official Source

View on CA.gov

§ 22330 Loan Security Restrictions

No licensee shall take a deed of trust, mortgage, or lien upon real property as security for any loan made under this division, except any lien as is created by law upon the recording of an abstract of judgment. This section shall not apply to any loan of a bona fide principal amount of five thousand dollars ($5,000) or more as determined in accordance with Section 22251. (Amended by Stats. 1999, Ch. 347, Sec. 4. Effective January 1, 2000.)

Last verified: January 23, 2026

Key Terms

deed of trust mortgage lien bona fide principal amount abstract of judgment

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 22330.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References