California Civil Code

§ 2982.10

CIV § 2982.10 Effective Jan 1, 2006Div. 3 · Title 14 · Part 4 · Ch. 2b

Statute text

(a)In consideration of the assignment of a conditional sale contract, the seller shall not receive or accept from the assignee any payment or credit based upon any amount collected or received, or to be collected or received, under the contract as a finance charge except to the extent the payment or credit does not exceed the amount that would be calculated in accordance with Regulation Z, whether or not Regulation Z applies to the contract, as the contract’s finance charge using, for the purposes of the calculation, an annual percentage rate equal to 2.5 percent for a contract having an original scheduled term of 60 monthly payments or less or 2 percent for a contract having an original scheduled term of more than 60 monthly payments.

(b)Subdivision (a) does not apply in the following circumstances:

(1)An assignment that is with full recourse or under other terms requiring the seller to bear the entire risk of financial performance of the buyer.

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Legislative history

Added by Stats. 2005, Ch. 128, Sec. 5. Effective January 1, 2006. Operative July 1, 2006, by Sec. 12 of Ch. 128.