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Article 10.5. Retail Installment Account Credit Card Periodic Rate Disclosures
California Civil Code Section 1810.20-1810.21

1810.20.  This article shall be known and may be cited as the
"Areias Retail Installment Account Full Disclosure Act of 1986."

1810.21.  (a) Any application form or preapproved written
solicitation for a credit card issued in connection with a retail
installment account which is mailed on or after October 1, 1987, to a
retail buyer residing in this state by or on behalf of a retail
seller, whether or not the retail seller is located in this state,
other than an application form or solicitation included in a
magazine, newspaper, or other publication distributed by someone
other than the retail seller, shall contain or be accompanied by
either of the following disclosures:
   (1) A disclosure of each of the following, if applicable:
   (A) Any periodic rate or rates that will be used to determine the
finance charge imposed on the balance due under the terms of a retail
installment account, expressed as an annual percentage rate or
   (B) Any membership or participation fee that will be imposed for
availability of a retail installment account in connection with which
a credit card is issued expressed as an annualized amount.
   (C) If the retail seller provides a period during which the retail
buyer may repay the full balance reflected on a billing statement
which is attributable to purchases of goods or services from the
retail seller without the imposition of additional finance charges,
the retail seller shall either disclose the minimum number of days of
that period, calculated from the closing date of the prior billing
cycle to the date designated in the billing statement sent to the
retail buyer as the date by which that payment must be received to
avoid additional finance charges, or describe the manner in which the
period is calculated.  For purposes of this section, the period
shall be referred to as the "free period" or "free-ride period."  If
the retail seller does not provide such a period for purchases, the
disclosure shall so indicate.
   (2) A disclosure that satisfies the initial disclosure statement
requirements of Regulation Z (12 C.F.R. 226.6).
   (b) In the event that an unsolicited application form is mailed or
otherwise delivered to retail buyers in more than one state, the
requirements of subdivision (a) shall be satisfied if on the
application form or the soliciting material there is a notice that
credit terms may vary from state to state and which provides either
the disclosures required by subdivision (a) or an address or phone
number for the customer to use to obtain the disclosure.  The notice
shall be in boldface type no smaller than the largest type used in
the narrative portion, excluding headlines, of the material
soliciting the application.  Any person responding to the notice
shall be given the disclosures required by subdivision (a).
   (c) A retail seller need not present the disclosures required by
paragraph (1) of subdivision (a) in chart form or use any specific
terminology, except as expressly provided in this section.  The
following chart shall not be construed in any way as a standard by
which to determine whether a retail seller who elects not to use the
chart has provided the required disclosures in a manner which
satisfies paragraph (1) of subdivision (a).  However, disclosures
shall be conclusively presumed to satisfy the requirements of
paragraph (1) of subdivision (a) if a chart with captions
substantially as follows is completed with the applicable terms
offered by the retail seller, or if the retail seller presents the
applicable terms in tabular, list, or narrative format using
terminology substantially similar to the captions included in the
following chart:

                   DISCLOSURE ACT OF 1986:
      '               '                '                  '
      '    PERIODIC   '                '                  '
      '     RATES     '    ANNUAL      '    FREE-RIDE     '
      '   (as APRs)   '     FEES       '     PERIOD       '
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '

   (d) For purpose of this section, "Regulation Z" has the meaning
attributed to it under Section 1802.18, and all of the terms used in
this section have the same meaning as attributed to them in federal
Regulation Z (12 C.F.R. Sec. 226.1 et seq.).
   (e) Nothing in this section shall be deemed or construed to
prohibit a retail seller from disclosing additional terms,
conditions, or information, whether or not relating to the
disclosures required under this section, in conjunction with the
disclosures required by this section.  Notwithstanding subdivision
(g) of Section 1748.11, a retail seller that complies with the
requirements of Section 1748.11 shall be deemed to have complied with
the requirements of this section.
   (f) If a retail seller is required under federal law to make any
disclosure of the terms applicable to a retail installment account in
connection with application forms or solicitations, the retail
seller shall be deemed to have complied with the requirements of
paragraph (1) of subdivision (a) with respect to those application
forms or solicitations if the retail seller complies with the federal
disclosure requirement.
   (g) If the disclosure required by this section does not otherwise
appear on an application form or an accompanying retail installment
agreement distributed in this state on or after October 1, 1987,
other than by mail, the application form shall include a statement in
substantially the following form:
   "If you wish to receive disclosure of the terms of this retail
installment account, pursuant to the Areias Retail Installment
Account Full Disclosure Act of 1986, check here and return to the
address on this form."
   A box shall be printed in or next to this statement for placing
such a checkmark.
   (h) This article does not apply to (1) any application form or
preapproved written solicitation for a retail installment account
credit card where the credit to be extended will be secured by a lien
on real or personal property, or both real and personal property,
(2) any application form or written solicitation which invites a
person or persons to apply for a retail installment account credit
card and which is included as part of a catalog which is sent to one
or more persons by a creditor in order to facilitate a credit sale of
goods offered in the catalog, (3) any advertisement which does not
invite, directly or indirectly, an application for a retail
installment account credit card, and (4) any application form or
written advertisement included in a magazine, newspaper, or other
publication distributed in more than one state by someone other than
the creditor.

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