Any so-called “ballooning” of loan contracts is prohibited. Any scheduled installment that is more than twice the amount of any other scheduled installment will be considered a balloon payment for purposes of this section and Section 22307 of the Financial Code. This section shall not be construed to apply to open end loans.

Note: Authority cited: Section 22150, Financial Code. Reference: Section 22307, Financial Code.

History

1. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).

2. Change without regulatory effect amending section and Note filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).