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Which of the following loans would be subject to California's constitutional usury limits?

Correct Answer

D) A personal loan between two private individuals with no broker involvement

A personal loan between private individuals with no broker involvement is subject to the constitutional usury limit. Banks, credit unions, and CFL-licensed finance companies are all exempt from usury limits under Article XV and related statutes.

Answer Options
A
A mortgage loan made by a federally chartered bank
B
A home loan originated by a credit union
C
A commercial loan from a California-licensed finance company under the CFL
D
A personal loan between two private individuals with no broker involvement

Why This Is the Correct Answer

A personal loan between private individuals with no broker involvement is subject to the constitutional usury limit. Banks, credit unions, and CFL-licensed finance companies are all exempt from usury limits under Article XV and related statutes.

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