Types (2)
Secured Promissory Note – Requires an individual borrowing money to commit personal assets as collateral.
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Unsecured Promissory Note – A loan recipient is not required to furnish any collateral under this agreement.
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Laws
- Interest & Usury Laws: CONS Article XV
- Usury Rate for Personal, Family, or Household Purposes (CONS Article XV (1)): Over 10%
- Usury Rate for Home Purchases and Improvement, and Business Expenses (CONS Article XV (2)): Over 10% OR over 5% on top of Federal Reserve Bank of San Francisco’s discount rate, whichever is greater.
- Usury Rate for Money Judgment (CCP § 685.010): Over 10%
- Usury Rate for Judgment for Damages (CIV § 3287(c)): Over 7%
- Usury Rate for Pawn Brokers (CIV § 21200): Over 3%