This division does not apply to any of the following:

(a) A provider that is a depository institution.

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Terms Used In California Financial Code 22801

  • Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
  • Person: includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. See California Financial Code 18
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

(b) A provider that is a lender regulated under the federal Farm Credit Act (12 U.S.C. § 2001 et seq.).

(c) A commercial financing transaction secured by real property.

(d) A commercial financing transaction in which the recipient is a dealer, as defined by § 285 of the Vehicle Code, or an affiliate of such a dealer, or a vehicle rental company, or an affiliate of such a company, pursuant to a specific commercial financing offer or commercial open-end credit plan of at least fifty thousand dollars ($50,000), including any commercial loan made pursuant to such a commercial financing transaction.

(e) Any person who makes no more than one commercial financing transaction in California in a 12-month period or any person who makes five or fewer commercial financing transactions in California in a 12-month period that are incidental to the business of the person relying upon the exemption.

(Added by Stats. 2018, Ch. 1011, Sec. 2. (SB 1235) Effective January 1, 2019.)