The borrower made two arguments – the loan was not arranged “for another” and the broker had not arranged the loan “in expectation of compensation”. California Capital Loans, Inc., 2013 Cal. In a decision handed down this week, the California Court of Appeal considered whether a loan made by a wholly-owned subsidiary of an individual licensed as a real estate broker was within exemption. acts for compensation or in expectation of compensation for soliciting, negotiating, or arranging a loan for another.” is arranged by a person licensed as a real estate broker when the broker. For example, the Constitution exempts “loans made or arranged by any person licensed as a real estate broker by the State of California and secured in whole or in part by liens on real property.” Civil Code Section 1916.1 further explicates this exemption by providing that “a loan. Not all loans, however, are subject to these constitutional rate limitations. 30.Ĭalifornia permits the charging of interest, but the Constitution limits the amount of interest that may be charged. but when men’s minds began to be more enlarged, when true religion and real liberty revived, commerce grew again into credit and again introduced with itself it’s inseparable companion, the doctrine of loans upon interest.Ĭommentaries on the Laws of England, Book II, Ch. Thus, in the dark ages of monkish superstition and civil tyranny, when interest was laid under a total interdict, commerce was also at it’s lowest ebb. William Blackstone, on the other hand, saw it as a necessity for modern commerce: For money was brought into existence for the purpose of exchange, but interest increases the amount of the money itself (and this is the actual origin of the Greek word: offspring resembles parent, and interest is money born of money) consequently this form of the business of getting wealth is of all forms the most contrary to nature.”)Īristotle, Politics, Book 1, § 1258b (translated by H. (“As this is so, usury is most reasonably hated, because its gain comes from money itself and not from that for the sake of which money was invented. Public Services, Infrastructure, TransportationĪrtistotle didn’t think much of the idea of paying interest:.
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