California Proposition 5, Maximum Interest Rates Amendment (1976)
| California Proposition 5 | |
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| Election date |
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| Topic Business regulations |
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| Status |
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| Type Legislatively referred constitutional amendment |
Origin |
California Proposition 5 was on the ballot as a legislatively referred constitutional amendment in California on November 2, 1976. It was defeated.
A “yes” vote supported this amendment to allow the interest rate for non-personal, non-family, non-household loans and credit advances to be 10% annually or 7% plus the prevailing interest rate, whichever is higher. |
A “no” vote opposed this initiative, thus continuing to require that the interest rate for non-personal, non-family, non-household loans and credit advances be no more than 10% annually. |
Election results
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California Proposition 5 |
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| Result | Votes | Percentage | ||
| Yes | 3,240,967 | 46.97% | ||
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3,659,649 | 53.03% | ||
Text of measure
Ballot title
The ballot title for Proposition 5 was as follows:
| “ | Interest Rates Allowable. Legislative Constitutional Amendment. | ” |
Ballot summary
The ballot summary for this measure was:
| “ | Except as to specified exempt lenders, such as banks, credit unions and savings and loan associations, the Constitution permits interest charges of no more than 10% per annum. This amendment would retain the 10% limit on loans made primarily for personal, family or household purposes but would, as to other loans by nonexempt lenders, increase the maximum permissible rate of interest to the higher of (a) 10% or (b) 7% plus the prevailing rate currently charged by the Federal Reserve Bank of San Francisco for monies advanced to member banks. Financial impact: No fiscal effect on state or local government. | ” |
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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