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USTmedium11% of exam

Which of the following entities is EXEMPT from California's constitutional usury limits under Article XV?

Correct Answer

A) A California-licensed real estate broker arranging a loan secured by real property

Article XV of the California Constitution specifically exempts loans made or arranged by licensed real estate brokers when secured by real property. This exemption allows broker-arranged loans to carry interest rates above the constitutional usury ceiling.

Answer Options
A
A California-licensed real estate broker arranging a loan secured by real property
B
A private individual lending personal funds
C
A seller carrying back a purchase money note on personal property
D
An unlicensed mortgage company

Why This Is the Correct Answer

Article XV of the California Constitution specifically exempts loans made or arranged by licensed real estate brokers when secured by real property. This exemption allows broker-arranged loans to carry interest rates above the constitutional usury ceiling.

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