Ca Rule, Civil Signal – CIV § 2954.11. “ Installment financing ” suggests any mortgage given in subdivision (h) lengthened under an installment financing showcase.

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(a) As used in this section:

(1) “Open-end credit score rating plan” provides the meaning set forth in legislation Z in the Federal hold program ( 12 C.F.R. 226.2(a)(20) ).

(2) “ Installment mortgage ” implies any loan specified in subdivision (h) lengthened under an installment mortgage highlight.

(3) “ Installment mortgage function ” indicates a characteristic of an open-end credit program that provides for a separate subaccount of this open-end credit score rating arrange pursuant to which the principal of, and interest on, the mortgage of that subaccount are to be repaid in significantly equal installments over a particular cycle without regard to the amount outstanding under another feature from the open-end credit arrange and/or cost plan with regards to the additional function.

(b)(1) Except as if not offered by statute, the debtor under any installment mortgage will probably be qualified for prepay the or any an element of the installment financing, including any accumulated interest, whenever you want.

(2) With respect to any installment mortgage, nothing contained in this point shall preclude a borrower from becoming obligated, by an understanding in writing, to pay a prepayment fee; but best a prepayment made within 5 years regarding the go out the installment financing is manufactured is subject to a prepayment charge right after which only as here established. A sum maybe not exceeding 20 percent regarding the initial major quantity of the installment mortgage can be prepaid in every one 12-month cycle without running into a prepayment charge. A prepayment fee may be implemented on any levels prepaid service in any 12-month cycle in excess of 20 percent associated with earliest major level of the installment financing, which cost shall perhaps not exceed an amount add up to the fees of half a year’ advance interest on quantity prepaid service over 20% on the earliest main amount of the installment loan.

(c) For purposes of subdivision (b):

(1) If the deed of rely on or mortgage protects payment of greater than one installment mortgage, each of the installment financing will be considered to own come individually made on the date that the proceeds of the installment loan become advanced.

(2) If outstanding balance of that loan sophisticated pursuant to an open-end credit score rating arrange afterwards gets susceptible to an installment mortgage ability of this credit program, the loan will be considered to own started made whenever the loan turns out to be susceptible to the installment mortgage highlight, if the feature was actually offered at the debtor’s choice under initial regards to the open-end credit score rating arrange or perhaps the function after that turned into readily available upon alteration of the initial terms of the open-end credit score rating arrange.

(d) Nonetheless subdivision (b), no prepayment fee are imposed with regards to an installment financing at the mercy of this section if any of after implement:

(1) The domestic framework getting the installment mortgage is broken to these a level by an all-natural tragedy that circumstances of disaster is proclaimed from the Governor, pursuant to Chapter 7 (beginning with area 8550) of Division 1 of subject 2 in the federal government Code , that the residential structure should not be filled and prepayment are causally linked thereto.

(2) The prepayment is created along with a real sale with the genuine residential property securing the installment mortgage.

(3) The lender does not follow subdivision (e).

(4) the word for the installment loan is for not more than five years and also the original principal amount of the installment financing are significantly less than five thousand money ($5,000).

(elizabeth)(1) the financial institution getting a debtor’s responsibility to pay a prepayment charge authorized by subdivision (b) shall provide the borrower with a created disclosure explaining the presence of the prepayment charge obligation, the circumstances under which the prepayment cost will be payable, therefore the way the actual quantity of the prepayment fee will probably be determined. If subdivision (f) offers the debtor with a right to rescind the installment mortgage as well as the associated responsibility to cover a prepayment cost, the disclosure required by this subdivision shall additionally inform the borrower of your right to rescind, just how once to exercise the proper, and where you can mail or bring a notice of rescission.