Bill Text: CA SB217 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Mortgage loan originators: licensure.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-03 - Chaptered by Secretary of State. Chapter 444, Statutes of 2011. [SB217 Detail]

Download: California-2011-SB217-Introduced.html

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BILL NUMBER: SB 217	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Vargas

                        FEBRUARY 9, 2011

   An act to amend Section 21200 of the Financial Code, relating to
pawnbrokers.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 217, as introduced, Vargas. Pawnbrokers.
   Existing law prohibits a pawnbroker from charging or receiving
compensation at a rate exceeding 2.5% per month on that portion of
the unpaid principal balance of any loan up to, including, but not in
excess of $225. For other loan amounts, existing law prohibits a
pawnbroker from charging or receiving compensation at a rate
exceeding specified amounts based upon the unpaid principal balance
of the loan.
   This bill would revise these limits on pawnbroker compensation and
would, instead, prohibit a pawnbroker from charging or receiving
compensation at a rate exceeding 2.5% per month on the unpaid
principal balance of any loan.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 21200 of the Financial Code is amended to read:

   21200.  (a) Except as otherwise provided in this chapter, no
pawnbroker shall charge or receive compensation at a rate exceeding
the sum of the following:
   (1) Two and one-half percent per month on  that portion of
 the unpaid principal balance of any loan  up to,
including, but not in excess of two hundred twenty-five dollars
($225)  . 
   (2) Two percent per month on that portion of the unpaid principal
balance of the loan in excess of two hundred twenty-five dollars
($225) up to, including, but not exceeding nine hundred dollars
($900).  
   (3) One and one-half percent per month on that part of the unpaid
principal balance in excess of nine hundred dollars ($900) up to and
including, but not in excess of, one thousand six hundred fifty
dollars ($1,650).  
   (4) One percent per month on any remainder of the unpaid principal
balance in excess of one thousand six hundred fifty dollars
($1,650).  
   (5) 
    (2)  A charge not exceeding three dollars ($3) a month
on any loan when the monthly charge permitted by this section would
otherwise be less than that minimum charge.
   (b) One month's interest may be charged for any part of the month
in which pawned property is redeemed.