Under Article XV of the California Constitution, what is the maximum interest rate that may be charged on a loan or forbearance of money that is NOT arranged through a licensed real estate broker?
Correct Answer
B) 10% per annum or 5% plus the Federal Reserve Bank of San Francisco discount rate, whichever is greater
Article XV of the California Constitution sets the usury limit at the greater of 10% per annum or 5% plus the Federal Reserve Bank of San Francisco discount rate on the 25th day of the month preceding the earlier of the date of execution or the date of making of the loan.
Why This Is the Correct Answer
Article XV of the California Constitution sets the usury limit at the greater of 10% per annum or 5% plus the Federal Reserve Bank of San Francisco discount rate on the 25th day of the month preceding the earlier of the date of execution or the date of making of the loan.
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