Secretary of State No.
INTEREST RATES - LOANS AND JUDGMENTS. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends usury provisions of Article XV. Maintains existing limitation on loan interest rates at 7% per year. Extends limitation to court judgments thereby eliminating existing power of Legislature to set a rate of up to 10% for court judgments. Permits parties to any loan to contract in writing for a higher rate not to exceed 12 1/2% per year instead of existing maximum of 10%. Eliminates existing provisions exempting certain types of organizations from interest rate limitations. Provides that effective date of this amendment shall be January 1, 1981. Financial impact: Could have negative impact on taxable sales due to reduction in availability of credit. Will result in some gains and some losses in state revenue, with a probable overall decrease in state and local revenues.
Mr. Charles W. Dailey, 430 W. Adams Park Drive, Covina, California 91722
Failed to Qualify
Interest Rates - Loans And Judgments. California Initiative 191 (1979).