California Civil Code Section 1799.5
1799.5. (a) "Precomputed interest" means interest, as that term is
contemplated by the Truth in Lending Act, 15 United States Code 1605
(a)(1), which is (1) computed by multiplying the original balance of
the loan by a rate and multiplying that product by the number of
payment periods elapsing between the date of the loan and the date of
the last scheduled payment and (2) either added to the original
principal balance of the loan in advance or subtracted from the loan
(b) No loan which is made to a natural person primarily for
personal, family, or household purposes shall provide for the payment
of precomputed interest if the date on which the final installment
is due, according to the original terms of the loan, is more than 62
months after the date of the loan.
(c) For purposes of determining whether a loan is covered by this
title, the lender may conclusively rely on any written statement of
intended purpose signed by the borrower. Such written statement may
be a separate statement signed by the borrower or may be contained in
a loan application or other document signed by the borrower.
(d) For purposes of this title, the term "loan" does not include
the forbearance of a debt arising from a sale or lease of property
and does not include any loan arising under an open end credit plan.
(e) This title shall apply only to loans made on or after January