Bus. & Prof. Code, § 10242 · Article 7. Real Property Loans
Bus. & Prof. Code, § 10242
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
The maximum amount of expenses, charges and interest to be paid by a borrower with respect to any loan subject to this article shall be as follows:
(a) The maximum amount of all costs and expenses referred to in subdivision (a) of Section 10241, exclusive of actual title charges and recording fees, shall not exceed 5 percent of the principal amount of the loan or three hundred ninety dollars ($390), whichever is greater but in no event to exceed seven hundred dollars ($700), provided that in no event shall said maximum amount exceed actual costs and expenses paid, incurred or reasonably earned.
(b) The maximum amount of the charges referred to in subdivision (b) of Section 10241 shall not exceed the following amounts:
(1) In the case of a loan secured directly or collaterally, in whole or in part by a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than three years and 10 percent where the term is a period of three years or more.
(2) In the case of a loan secured directly or collaterally by a trust deed other than a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than two years, 10 percent where the term is a period of two years but less than three years, and 15 percent where the term is a period of three years or more.
(3) With respect to a further advance on a note, the charges shall not exceed the charges for an original loan in the same amount as the further advance and made for a term equal to the remaining term of the note on which the further advance is being made, including any extension thereof.
(c) No interest may be charged with respect to any period prior to the date that the proceeds of the loan are made available to the borrower or are deposited in escrow.
Notes and commentary — not statutory text
History
Amended by Stats. 1990, Ch. 834, Sec. 1.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=10242.
- Text hash
- sha256 1b2cd6c4941e5a0933f73a95121bf299be5bac88a25011d15195afa96c520a60
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business and Professions Code
Cited by 7 provisions
Provisions in this library whose text cites Bus. & Prof. Code, § 10242. Each shows the citation as that text prints it.
Business and Professions Code
- Bus. & Prof. Code, § 10241.1Printed as Section 10242
- Bus. & Prof. Code, § 10244Printed as Section 10242
- Bus. & Prof. Code, § 10246Printed as Section 10242
- Bus. & Prof. Code, § 10248Printed as Section 10242
- Bus. & Prof. Code, § 10248.1Printed as Sections 10241, 10241.1, 10242, and 10242.5
- Bus. & Prof. Code, § 10248.2Printed as Section 10242
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.