California Per Diem Interest

 The California Per Diem Interest Disclosure is a pre-closing document. Given the disclosure apprises the borrower of interest payment limitations the lender is required to abide by in connection with the disbursement of loan funds, and the borrower's selection of when loan funds shall be disbursed following the closing of the loan, this disclosure is one that would ordinarily be signed in anticipation of the closing of the loan. For this reason, it is not a document GoDocs would include in our California loan doc sets; GoDocs includes documents required to be executed at the time of the closing of the loan.

 

It is our understanding that Cal. Fin. Code 50204 and Cal. Civ. Code 2948.5 (the statutes governing the issue that the disclosure is intended to memorialize compliance with) would likely apply if the collateral real property is residential 1-4 units notwithstanding the purpose of the loan, i.e., regardless of whether the loan is for a business purpose.

 

GoDocs, a software company, cannot provide legal advice or services.