California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 7 — Shared Appreciation Loans for Seniors, Article 5 — General Provisions, Section 1917.616
A shared appreciation loan for seniors which 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 actual contingent interest pursuant to this chapter; provided, however, that in no event may the amount of actual contingent interest received by the lender, plus the stated interest received by the lender, result in an annual percentage rate in excess of 1.5 times the applicable usury rate calculated pursuant to Article XV of the California Constitution, when all of such interest is applied over the actual term of the loan.
Notes
Limits a fixed-rate shared appreciation loan for seniors that otherwise complies with constitutional usury rules from becoming usurious solely because actual contingent interest is paid. Caps total actual contingent interest plus stated interest so the resulting annual percentage rate does not exceed 1.5 times the applicable usury rate over the loan's actual term.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.616 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-7/article-5/section-1917-616