Section 405 Of Chapter 7.5. Protections From California Military And Veterans Code >> Division 2. >> Part 1. >> Chapter 7.5.
405
. (a) No obligation or liability bearing interest at a rate in
excess of 6 percent per year incurred by a service member before that
person's entry into service shall, except as provided in subdivision
(b), bear interest at a rate in excess of 6 percent per year as
follows:
(1) For an obligation or liability consisting of a mortgage, trust
deed, or other security in the nature of a mortgage, during any part
of the period of military service and one year thereafter.
(2) For any other obligation or liability, during any part of the
period of military service.
(b) Notwithstanding subdivision (a), if in the opinion of a court,
upon application thereto by the obligee, the ability of the service
member to pay interest upon an obligation or liability at a rate in
excess of 6 percent per year is not materially affected by reason of
that service, the court may make that order as in its opinion may be
just.
(c) As used in this section, "interest" includes service charges,
renewal charges, fees, or any other charges, except bona fide
insurance, in respect of any obligation or liability.
(d) Any person violating this section shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party.