California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 2 — Credit Sales, Chapter 1 — Retail Installment Sales, Article 5 — Finance Charge Limitation, Section 1805.7
All contracts entered into between a buyer and a seller on or after January 1, 1983, shall provide for the calculation of the finance charge contemplated by item (1) of subdivision (a) of Section 1805.1 on the simple-interest basis if the date on which the final installment is due, according to the original terms of the contract, is more than 62 months after the date of the contract.
Notes
Requires contracts entered into on or after January 1, 1983, to calculate the referenced finance charge on a simple-interest basis when the final installment, under the contract’s original terms, is due more than 62 months after the contract date. Applies this simple-interest requirement to buyer-seller contracts meeting that maturity threshold.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1805.7 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-2/chapter-1/article-5/section-1805-7