INTEREST RATES ALLOWABLE. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Except as to specified exempt lenders, such as banks, credit unions and savings and loan associations, the Constitution permits interest charges of no more than 10% per annum. This amendment would retain the 10% limit on loans made primarily for personal, family or household purposes but would, as to other loans by nonexempt lenders, increase the maximum permissible rate of interest to the higher of (a) 10% or (b) 7% plus the prevailing rate currently charged by the Federal Reserve Bank of San Francisco for monies advanced to member banks. Financial impact: No fiscal effect on state or local government.
Legislative Vote Results
FINAL VOTE CAST BY LEGISLATURE ON SCA 40 (PROPOSITION 5) -- Assembly-Ayes, 55; Noes, 11 -- Senate-Ayes, 28; Noes, 5
Popular Vote Results
Y: 3240967; A: 47.0; N: 3659649; B: 53.0
Senate Constitutional Amendment
State Comp. Ins. Fund v. State Bd. of Equalization: 14 Cal. App. 4th 1295, 1993
Leo T. McCarthy, Speaker of the Assembly, 18th District; Houston I. Flournoy, Dean, Center for Public Affairs, University of Southern California; James S. Lee, President, State Building and Construction Trades Council of California
Bob Wilson, Member of the Assembly, 77th District; Chairman, Committee on Governmental Organization; John J. Miller, Member of the Assembly, 13th District; Chairman, Committee on Judiciary; Omer L. Rains, Member of the Senate, 18th District; Chairman, Committee on Elections and Reapportionment
Rebuttal Against Author
Leo T. McCarthy, Speaker of the Assembly, 18th District; Houston I. Flournoy, Dean, Center for Public Affairs, University of Southern California; James S. Lee, President, California Building and Construction Trades Council
Interest Rates Allowable California Proposition 5 (1976).