Usury and Financial Lender’s Licenses - Avoiding Issues With Private Financing
Thursday, June 8, 2017
Commercial Law & Bankruptcy Section
Bank lending is down and is often subject to strict guidelines, giving private lenders an opportunity to make working capital and bridge loans to businesses. But such lenders often want to charge more than the legally allowed interest rate of 10% under California law, and may need California Financial Lender’s Licenses to make loans in California.
This panel will explore usury law as both a shield and sword for the borrower, and how private lenders can avoid the trap of usury through various statutory exemptions and licensing. Did you know that a borrower can recover treble damages from a lender which charges usurious rates? Do points, late charges and other fees count in determining interest rates? Can lenders avoid usury by joint venture agreements?
In addition, if lenders want to be licensed, what does the process look like and how can the lenders’ counsel get those license applications quickly approved by the Department of Business Oversight?
Susan R. Goldfarb, Proskauer
Tom McCurnin, Barton, Klugman & Oetting
Los Angeles County Bar Association
1055 W. 7th Street, 27th Floor
Los Angeles. CA 90017
CLE Credit: 1 hr. CLE credit
Self-Parking available for $10 with validation.
Registration/Lunch: 11:30 a.m.
Program: 12:00 - 1:00 p.m.
Additional Information: This program is appropriate for all levels.
Commercial Law & Bankruptcy Section Members
*CLE+ Members can purchase the meal below for an additional $25.00
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