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ARTICLE · 28 FEBRUARY 2022

Will California's De Minimis Exemption Return?

Allen Matkins Leck Gamble Mallory & Natsis LLP
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In this early January post, I noted the passing of one of the de minimis exemptions under the California Financing Law.

United StatesFinance and Banking
Keith P. Bishop
Keith P. Bishop

In this early January post, I noted the passing of one of the de minimis  exemptions under the California Financing Law.  This exemption was available to any person who makes no more than one loan in a 12-month period if that loan is a commercial loan as defined in Financial Code Section 22502.  I am pleased to report that the legislature may soon reinstate the exemption by enacting SB 577 ( Limón).  The bill was amended in the Assembly last month to add an urgency clause so that it could take effect immediately rather than on January 1, 2023.  The urgency clause does come with a price tag, however.  Urgency measures must be passed by a 2/3 vote in each house of the legislature. 

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