Article 1. Definitions of California Financial Code >> Division 9. >> Chapter 3. >> Article 1.
"Charges" include the aggregate interest, fees, bonuses,
commissions, brokerage, discounts, expenses, and other forms of costs
charged, contracted for, or received by a licensee or any other
person in connection with the investigating, arranging, negotiating,
procuring, guaranteeing, making, servicing, collecting, and enforcing
of a loan or forbearance of money, credit, goods, or things in
action, or any other service rendered.
"Charges" do not include commissions received as a licensed
insurance agent or broker.
"Commercial loan" means a loan of a principal amount of five
thousand dollars ($5,000) or more, or any loan under an open-end
credit program, whether secured by either real or personal property,
or both, or unsecured, the proceeds of which are intended by the
borrower for use primarily for other than personal, family, or
For purposes of determining whether a loan is a commercial loan,
the lender may rely on any written statement of intended purposes
signed by the borrower. The statement may be a separate statement
signed by the borrower or may be contained in a loan application or
other document signed by the borrower. The lender shall not be
required to ascertain that the proceeds of the loan are used in
accordance with the statement of intended purposes.