Section 18212.1 Of Article 2. Terms And Maximum Charges From California Financial Code >> Division 7. >> Chapter 3. >> Article 2.
18212.1
. As an alternative to the charges authorized by Section
18212 a licensee may contract for and receive charges at a rate not
exceeding five-sixths of 1 percent per month plus a percentage per
month equal to one-twelfth of the annual rate prevailing on the 25th
day of the second month of the quarter preceding the quarter in which
the loan is made as established by the Federal Reserve Bank of San
Francisco on advances to member banks under Section 13 and 13a of the
Federal Reserve Act as now in effect or hereafter from time to time
amended, or if there is no such single determinable rate for
advances, the closest counterpart of such rate as shall be designated
by the commissioner. Charges shall be calculated on the unpaid
principal balance.