California Proposition 12, Loan Interest Rates Amendment (1934)
| California Proposition 12 | |
|---|---|
 | |
| Election date November 6, 1934 | |
| Topic Business regulation | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
California Proposition 12 was on the ballot as a legislatively referred constitutional amendment in California on November 6, 1934. It was approved.
A “yes” vote supported prescribing a 7% annual interest rate on loans and forbearances, allowing written contracts for other interest rates, not exceeding 10%, exempting building and loan associations, industrial loan companies, credit unions, pawnbrokers, personal property brokers, banks, and various nonprofit cooperative associations from such restrictions, and allowing the legislature to regulate exempted groups, the maximum interest rate, and regulate loans. |
A “no” vote opposed prescribing a 7% annual interest rate on loans and forbearances, allowing written contracts for other interest rates, not exceeding 10%, exempting building and loan associations, industrial loan companies, credit unions, pawnbrokers, personal property brokers, banks, and various nonprofit cooperative associations from such restrictions, and allowing the legislature to regulate exempted groups, the maximum interest rate, and regulate loans. |
Election results
|
California Proposition 12 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
785,535 | 53.81% | ||
| No | 674,346 | 46.19% | ||
Text of measure
Ballot title
The ballot title for Proposition 12 was as follows:
| “ | Interest Rates | ” |
Ballot summary
The ballot summary for this measure was:
| “ | Assembly Constitutional Amendment 79. Prescribes seven per cent per annum as interest rate upon loan or forbearance of money, goods or things in action, accounts after demand and judgments; permits written contract for rate not exceeding ten per cent per annum, but forbids any charges whereby borrower pays over ten per cent. Exempts from such restrictions building and loan associations, industrial loan companies, credit unions, pawnbrokers, personal property brokers, banks, and various nonprofit cooperative associations, and others, of character therein mentioned. Permits Legislature regulate said exempted classes, prescribe their maximum Interest rate per annum and regulate their charges on loans. | ” |
Full Text
The full text of this measure is available here.
Path to the ballot
- See also: Amending the California Constitution
A two-thirds vote was needed in each chamber of the California State Legislature to refer the constitutional amendment to the ballot for voter consideration.
See also
External links
Footnotes
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State of California Sacramento (capital) |
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