News & Analysis as of

California Interest Rates

Allen Matkins

Veering in the Direction of a Turnaround

Allen Matkins on

There hasn’t been much good news for the office sector for several years, but positive sentiment is picking up. While there are a few California markets with a negative outlook, there has been marked improvement in San...more

Allen Matkins

What kinds of assets are investors targeting in today’s shifting political and economic climate?

Allen Matkins on

“I am seeing continued enthusiasm for existing multifamily assets – particularly those with a value-add opportunity. Although renovations are expensive, the improvement of an existing multifamily asset provides investors with...more

King & Spalding

Southern District of California Determines That a Convertible Note With an Original Issue Discount Is Subject to California Usury...

King & Spalding on

In 2019, LGH Investments, LLC loaned $100,000 to Social Life Network, Inc., a software licensing company, in exchange for a convertible note, common stock, and stock warrant for 412,500 shares at a strike price of $0.20. The...more

Troutman Pepper Locke

Opportunity Financial Scores Big Win in CA DFPI’s “True Lender” Lawsuit

Troutman Pepper Locke on

A California state court recently denied a preliminary injunction sought by the California Department of Financial Protection and Innovation (the DFPI) in its long-running litigation against Opportunity Financial (OppFi)...more

Sheppard Mullin Richter & Hampton LLP

California Court Denies DFPI’s Motion for Preliminary Injunction Against Fintech

On October 30, the Superior Court of California County of Los Angeles denied the DFPI’s motion for a preliminary injunction to force a Chicago-based fintech company to stop facilitating loans to California borrowers from its...more

Ballard Spahr LLP

California DFPI is Wrong on Both Law and Facts, per OppFi

Ballard Spahr LLP on

In its April 2023 Opposition to the California Department of Financial Protection and Innovation (DFPI) motion for preliminary injunction, Opportunity Financial, LLC (OppFi) presents a spirited riposte, drilling down into the...more

Allen Matkins

Ninth Circuit Declines To Aggregate Loans For Usury Exemption

Allen Matkins on

California limits the amount of interest that may be charged on loans and forbearances.  While that is the general rule, there are numerous statutory exemptions.  One of those exemptions can be found in California...more

Buchalter

Caution to Lenders – New Pitfalls to Imposing Default Interest and Late Fees on Defaulted Loans

Buchalter on

On September 29, 2022, the California Court of Appeal First Appellate District, in Honchariw v. FJM Private Mortgage Fund, LLC, held a private lender’s imposition of late charges and default interest constituted an unlawful...more

Allen Matkins

California Court Of Appeal Says Forum Selection Clause Should Not Be Enforced In Usury Case

Allen Matkins on

Does California's usury limitations constitute a "strong public policy"?  Seemingly, that question was decided over a half-century ago by the First District Court of Appeal in Ury v. Jewelers Acceptance Corp., 227 Cal. App....more

Patton Sullivan Brodehl LLP

Default Interest Based on Single Late Payment Declared Unenforceable

It is not uncommon for loan agreements to provide for fees, penalties, and default interest in the event of the borrower’s late payment. However, a case recently published by California’s First Appellate District — Honchariw...more

Allen Matkins

The DFPI's Subterranean "True Lender" Doctrine

Allen Matkins on

Some readers may recall that two years ago the Office of the Comptroller of the Currency adopted a "true lender" rule.  That rule  The rule specified that a bank makes a loan and is the true lender if, as of the date of...more

Allen Matkins

Court: OTC Company Has The Capacity To Protect Its Own Interests

Allen Matkins on

Notably, California has a constitutional limitation on interest rates (Cal. Const. Art. XV, Section 1).   Section 25118 exempts certain evidences of indebtedness that meet specified conditions.  One of these conditions is...more

Sheppard Mullin Richter & Hampton LLP

DFPI Issues Consent Order to Auto Title Lender

On December 14, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with an LA-based auto title lender to resolve allegations that the company violated...more

Snell & Wilmer

Can a State Law Tax Foreclosure Sale Be Avoided in Bankruptcy?

Snell & Wilmer on

Preference actions have been vexing creditors for as long as the Bankruptcy Code has been around. Indeed, a creditor who receives a pre-petition transfer in violation of the preference statute may have to give the transferred...more

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