Legal Question in Credit and Debt Law in California

The issue of which law will govern the loan depends very largely upon the type of loan. If this is a loan secured by some type of collateral, you generally want a form of note and security agreement that conforms with the laws local to where the property is located. If this is a loan secured by real estate, you have to worry about several other regulations including State and Federal laws. It may also fall under the requirements of Consumer Finance regulations. You need to be concerned with the interest rate being charged - is it usurious? About the only scenario in which I can imagine you have much choice in the form is if the loan is a straight loan of money, it is not secured by any property whatsoever, and the interest rate is below the usury rate. I would suggest then, that you need to contact an attorney in California (to start) to ensure that the loan does not fall under one or more regulations which may dictate the form and venue for the loan documents.

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