California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 5 — Shared Appreciation Loans, Article 6 — General Provisions, Section 1917.167
A shared appreciation loan which at origination bears a fixed interest rate complying with the usury provisions of Article XV of the California Constitution shall not be deemed to become usurious by reason of the payment of contingent deferred interest pursuant to this chapter.
Notes
Prohibits a fixed-rate shared appreciation loan that complied with constitutional usury requirements when originated from being treated as usurious solely because the borrower later pays contingent deferred interest under the chapter. The rule preserves the loan's nonusurious status based specifically on payment of that contingent deferred interest.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.167 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-5/article-6/section-1917-167