Proposition Summary

LOAN INTEREST RATES. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Amends constitutional limit of 10 percent on loan interest rates. Applies 10 percent rate limit to loans primarily for personal, family or household purposes. For other purposes authorizes interest rate limit to be higher of 10 percent or 5 percent plus rate of interest charged by San Francisco Federal Reserve Bank to member banks 25 days prior to execution of loan contract or making of loan. Continues exemption of specified lending institutions from rate restrictions. Extends exemption to loans made or arranged by licensed real estate brokers when secured by lien on real property. Financial impact: No direct fiscal effect on state or local government.

Proposition Number

2

Year

1979

Document Type

Proposition

Pass/Fail

Pass

Legislative Vote Results

FINAL VOTE CAST BY LEGISLATURE ON ACA 52 (PROPOSITION 2) -- Assembly-Ayes, 73; Noes, 5 -- Senate-Ayes, 33; Noes, 0

Popular Vote Results

Y: 2256767; A: 64.6; N: 1238633; B: 35.4

Election Type

Special Election

Proposition Type

Assembly Constitutional Amendment

Relevant Case

In re Castillo Lara: 731 F.2d 1455, 9th Cir. 1984; In re Hein: 60 B.R. 769, Bankr. S.D. Cal. 1986; In re Castillo Lara: 28 B.R. 16, B.A.P. 9th Cir. 1983; Fox v. Peck Iron & Metal Co.: 25 B.R. 674, 1982; Del Mar v. Caspe: 222 Cal. App. 3d 1316, 1990; Winnett v. Roberts: 179 Cal. App. 3d 909, 1986; Garcia v. Wetzel: 159 Cal. App. 3d 1093, 1984; Orden v. Crawshaw Mortgage & Inv. Co.: 109 Cal. App. 3d 141, 1980

Code Sections Affected

Amended Cal. Const. art. XV, section 1

For Author

Walter M. Ingalls, Member of the Assembly, 68th District; William Campbell, State Senator, 33rd District Senate Minority Floor Leader

Against Author

Herschel Rosenthal, Member of the Assembly, 45th District

Rebuttal Against Author

Walter M. Ingalls, Member of the Assembly, 68th District; William Campbell, State Senator, 33rd District Senate Minority Floor Leader

Download

Share

COinS