Which of the following is TRUE about California's usury law compared to other states?
Correct Answer
B) California's usury limit is set by the state Constitution, making it harder to change than statutory limits in most other states
California's usury limit is established by Article XV of the state Constitution, not by statute. This makes it significantly harder to change because constitutional amendments require either a ballot initiative or a two-thirds legislative vote plus voter approval, unlike simple statutory changes in most states.
Why This Is the Correct Answer
California's usury limit is established by Article XV of the state Constitution, not by statute. This makes it significantly harder to change because constitutional amendments require either a ballot initiative or a two-thirds legislative vote plus voter approval, unlike simple statutory changes in most states.
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