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TITLE 1.84. PRECOMPUTED FINANCE CHARGE CONTRACT
California Civil Code Section 1799.8




1799.8.  (a) "Precomputed finance charge" means a finance charge
which is (1) computed by multiplying the original contract balance by
a rate and multiplying that product by the number of payment periods
elapsing between the date of the contract and the date of the last
scheduled payment and (2) either added to the original contract
balance in advance or subtracted from the contract balance.
   (b) "Contract" means any agreement (1) providing for the
construction, sale, or construction and sale of an entire residence,
with or without a parcel of real property or an interest therein, or
for the sale of a lot or parcel of real property, including any site
preparation incidental to such sale, and (2) where the purchaser is a
natural person who enters into such agreement primarily for
personal, family, or household purposes.
   (c) No contract as defined in subdivision (b) shall provide for
the payment of a precomputed finance charge if the date on which the
final installment is due, according to the original terms of the
contract, is more than 62 months after the date of the contract.
   (d) For purposes of determining whether a contract is covered by
this title, the seller may conclusively rely on any written statement
of intended purpose signed by the purchaser.  Such written statement
may be a separate statement signed by the purchaser or may be
contained in a credit application or other document signed by the
purchaser.
   (e) This title shall apply only to contracts entered into on or
after January 1, 1983.

 

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