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TITLE 2. CREDIT SALES
CHAPTER 1. RETAIL INSTALLMENT SALES
Article 2. Definitions
California Civil Code Section 1802-1802.21




1802.  Unless the context or subject matter otherwise requires, the
definitions given in this article govern the construction of this
chapter.


1802.1.  "Goods" means tangible chattels bought for use primarily
for personal, family or household purposes, including certificates or
coupons exchangeable for such goods, and including goods which, at
the time of the sale or subsequently are to be so affixed to real
property as to become a part of such real property whether or not
severable therefrom, but does not include any vehicle required to be
registered under the Vehicle Code, nor any goods sold or leased with
such a vehicle if sold under a contract governed by Section 2982 or
leased under a contract governed by Section 2985.7.  "Goods" also
includes a trailer which is sold in conjunction with a vessel, as
defined in subdivision (a) of Section 9840 of the Vehicle Code,
unless the sales transaction is exempted under Section 1801.4.  As
used in this section, "trailer" means a vehicle designed solely for
carrying vessels.



1802.2.  "Services" means work, labor and services, for other than a
commercial or business use, including services furnished in
connection with the sale or repair of goods as defined in Section
1802.1 or furnished in connection with the repair of motor vehicles
(except for service contracts as defined by subdivision (p) of
Section 2981 which are sold in conjunction with the sale or lease of
a vehicle required to be registered under the Vehicle Code) or in
connection with the improvement of real property or the providing of
insurance, but does not include the services of physicians or
dentists, nor services for which the tariffs, rates, charges, costs
or expenses, including in each instance the deferred payment price,
are required by law to be filed with and approved by the federal
government or any official, department, division, commission or
agency of the United States.



1802.3.  "Retail seller" or "seller" means a person engaged in the
business of selling goods or furnishing services to retail buyers.



1802.4.  "Retail buyer" or "buyer" means a person who buys goods or
obtains services from a retail seller in a retail installment sale
and not principally for the purpose of resale.



1802.5.  "Retail installment sale" or "sale" means the sale of goods
or the furnishing of services by a retail seller to a retail buyer
for a deferred payment price payable in installments.



1802.6.  "Retail installment contract" or "contract" means any
contract for a retail installment sale between a buyer and seller,
entered into or performed in this state, which provides for (a)
repayment in installments, whether or not such contract contains a
title retention provision, and in which the buyer agrees to pay a
finance charge, or in which the buyer does not agree to pay a finance
charge but the goods or services are available at a lesser price if
paid for by either cash or credit card, or in which the buyer would
have received any additional goods or services or any higher quality
goods or services at no added cost over the total amount payable in
installments if the sale had been for cash, or (b) which provides for
payment in more than four installments.  When taken or given in
connection with a retail installment sale, the term includes but is
not limited to a security agreement and a contract for the bailment
or leasing of goods by which the bailee or lessee contracts to pay as
compensation for their use a sum substantially equivalent to or in
excess of their value and by which it is agreed that the bailee or
lessee will become, or for no other or for a nominal consideration
has the option of becoming, the owner of the goods upon full
compliance with the terms of the contract.



1802.7.  "Retail installment account" or "installment account" or
"revolving account" means an account established by an agreement
entered into in this state, pursuant to which the buyer promises to
pay, in installments, to a retail seller, his outstanding balance
incurred in retail installment sales, whether or not a security
interest in the goods sold is retained by the seller, and which
provides for a finance charge which is expressed as a percent of the
periodic balances to accrue thereafter providing such charge is not
capitalized or stated as a dollar amount in such agreement.



1802.8.  "Cash price" means the cash price stated in a retail
installment contract for which the seller would sell or furnish to
the buyer and the buyer would buy or obtain from the seller the goods
or services which are the subject matter of a retail installment
contract if the sale were a sale for cash instead of a retail
installment sale.  The cash price shall include any taxes and cash
prices for accessories and services, if any, included in a retail
installment sale.


1802.9.  "Total sale price" means the total of the cash price of the
goods or services, the amounts, if any, included for insurance,
official fees, and the finance charge.



1802.10.  "Finance charge" means the amount however denominated or
expressed which the retail buyer contracts to pay or pays for the
privilege of purchasing  goods or services to be paid for by the
buyer in installments.  "Finance charge" does not include the
amounts, if any, charged for insurance premiums, including premiums
of the kind and to the extent described in paragraph (2) of
subsection (e) of Section 226.4 of Regulation Z, delinquency charges,
attorney's fees, court costs, collection expenses, official fees,
extension or deferral agreement charges as provided by Section
1807.1, or amounts for insurance, repairs to or preservation of the
goods, or preservation of the holder's security interest therein
advanced by the holder subsequent to the execution of a contract.



1802.11.  (a) "Amount financed" means the amount required to be
disclosed pursuant to paragraph (7) of subdivision (c) of Section
1803.3.
   (b) "Unpaid balance" means the cash price of the goods or services
which are the subject matter of the retail installment sale, plus
the amounts, if any, included in a retail installment sale for
insurance and official fees, minus the amount of the buyer's
downpayment in money or goods.



1802.12.  "Total of payments" means the amount required to be
disclosed pursuant to subdivision (h) of Section 226.18 of Regulation
Z.  The term includes any portion of the downpayment deferred until
not later than the second otherwise scheduled payment and which is
not subject to a finance charge.



1802.13.  "Holder" means the retail seller who acquires a retail
installment contract or installment account executed, incurred or
entered into by a retail buyer, or if the contract or installment
account is purchased by a financing agency or other assignee, the
financing agency or other assignee.  The term does not include the
pledgee of or the holder of a security interest in an aggregate
number of such contracts or installment accounts to secure a bona
fide loan thereon.


1802.14.  "Official fees" means the fees required by law and
actually to be paid to the appropriate public officer to perfect a
lien or other security interest, on or in goods, retained or taken by
a seller under a retail installment contract or installment account,
and license, certificate of title, and registration fees imposed by
law.



1802.15.  "Person" means an individual, partnership, corporation,
limited liability company, association or other group, however
organized.


1802.16.  "Financing agency" means a person engaged in this State in
whole or in part in the business of purchasing retail installment
contracts, or installment accounts from one or more retail sellers.
The term includes but is not limited to a bank, trust company,
private banker, or investment company, if so engaged.




1802.17.  "Billing cycle" means the time interval between regular
monthly billing statement dates.



1802.18.  "Regulation Z" means any rule, regulation, or
interpretation promulgated by the Board of Governors of the Federal
Reserve System ("Board") under the Federal Truth in Lending Act, as
amended (15 U.S.C. 1601, et seq.), and any interpretation or approval
issued by an official or employee of the Federal Reserve System duly
authorized by the board under the Truth in Lending Act, as amended,
to issue such interpretations or approvals.



1802.19.  (a) For the purposes of this chapter, a retail installment
contract, contract, retail installment account, installment account,
or revolving account shall be deemed to have been made in this state
and, therefore, subject to the provisions of this chapter, if either
the seller offers or agrees in this state to sell to a buyer who is
a resident of this state or if such buyer accepts or makes the offer
in this state to buy, regardless of the situs of the contract as
specified therein.
   (b) Any solicitation or communication to sell, oral or written,
originating outside of this state, but forwarded to, and received in
this state by, a buyer who is a resident of this state, shall be
deemed to be an offer or agreement to sell in this state.
   (c) Any solicitation or communication to buy, oral or written,
originating within this state, from a buyer who is a resident of this
state, but forwarded to, and received by, a retail seller outside of
this state, shall be deemed to be an acceptance or offer to buy in
this state.



1802.20.  "Simple-interest basis" means the determination of a
finance charge, other than an administrative finance charge, by
applying a constant rate to the unpaid balance as it changes from
time to time, either:
   (a) Calculated on the basis of a 365-day year and actual days
elapsed (although the seller may, but need not, adjust its
calculations to account for leap years); reference in this chapter to
the "365-day basis" shall mean this method of determining the
finance charge, or
   (b) For contracts entered into prior to January 1, 1988,
calculated on the basis of a 360-day year consisting of 12 months of
30 days each and on the assumption that all payments will be received
by the seller on their respective due dates; reference in this
chapter to the "360-day basis" shall mean this method of determining
the finance charge.



1802.21.  "Precomputed basis" means the determination of a finance
charge by multiplying the original unpaid balance of the contract by
a rate and multiplying that product by the number of payment periods
elapsing between the date on which the finance charge begins to be
assessed and the date of the last scheduled payment.

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