(a) Except as provided in subdivision (b), a licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal over more than the maximum terms set forth below opposite the respective size of loans.

Principal amount of loan Ask a legal question, get an answer ASAP! Click here to chat with a lawyer about your rights. Terms Used In California Financial Code 22334 bona fide principal amount: as used in this division solely for the purposes of determining whether the loan amount exceeds a regulatory ceiling, and is not intended to affect the meaning of "principal" for any other purpose. See California Financial Code 22251 Contract: A legal written agreement that becomes binding when signed. Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.	Maximum term
Less than $500  ……………………	24 months and 15 days
$500 but less than $1,500  ……………………	36 months and 15 days
$1,500 but less than $3,000  ……………………	48 months and 15 days
$3,000 but less than $10,000  ……………………	60 months and 15 days

(b) The maximum loan term of 60 months and 15 days does not apply to a loan secured by real property of a bona fide principal amount of at least five thousand dollars ($5,000).

(c) A licensee shall not enter into any contract for a loan that provides for a scheduled repayment of principal that is less than 12 months. This subdivision applies to a loan of a bona fide principal amount of at least two thousand five hundred dollars ($2,500), but less than ten thousand dollars ($10,000).

(d) This section does not apply to an open-end loan, a student loan made by an eligible lender under the Higher Education Act of 1965, as amended (20 U.S.C. § 1070 et seq.), or a student loan made pursuant to the Public Health Service Act, as amended (42 U.S.C. § 294 et seq.).

(Amended by Stats. 2019, Ch. 708, Sec. 8. (AB 539) Effective January 1, 2020.)