Loans to California officials
Is it ever a good idea to get a title loan?
If you are a high-risk borrower with good credit and have no other debts and are certain that you can pay back the GAD title loans in the shortest amount of time and you are able to pay it back in a timely manner, then a title loan might be a great option. However, you probably don’t be able to afford one of those tiny “car title loans” as well as “payday loan” businesses that you can drive through on the road. Instead, contact your credit union in the area to determine if they offer title loans at less interest. This way, you’ll have a much easier time repaying the loan and won’t be stuck in a cycle of costs.
There are laws of the state of California which regulate loans made to officials of the state. The legal requirements are found in Government Code, Title 9 Chapter 7, Section 4.6 and includes sections 87460 through 87462. Article 4.6 is known as “Loans for Public Officials” which was added into the Government Code in 1997 .
Section 87460(a) is applicable to elected officials of a local or state government entity from the time that the official elected is selected to the time the elected official ceases to perform his duties. The section 87460 bans an official of a state or local government agency from receiving personal loans from any employee, officer or member of the local or state government entity in which the elected official is in charge or for which the organization that is elected holds direction and supervision.
Additionally, Section 87460(b) prohibits any public official required to submit an economic interest statement or does not belong to the civil service of the state system and from receiving personal loans from any executive, employee or member of the local or state public agency for which the public official is performing duties or has control over. official’s agency has the direction and control.
This restriction for personal loans doesn’t apply to loans given to public officials with sole duties of administrative, clerical, or secretarial.
Section 87460(c) is applicable to elected officials of a local or state government agency from the time an elected representative is first elected up to the time the elected official is removed from his or her duties. The law prevents elected officials from taking personal loans from anyone who is a contractual partner of the local or state government agency in which the elected official was elected , or over which the elected official’s organization is under its direction and authority.
This prohibition is not applicable to loans offered by financial institutions such as banks. It also does not apply to any debt that is incurred by an online payment or the use of credit cards.
Section 87460(d) restricts an official of the public sector who is required to declare an financial interest or is not a part of the civil service system of the state and from receiving personal loans from anyone with an agreement with the local or state government agency for which the elected officer was chosen or over whom that elected official’s office is under their direction and control.
This restriction does not apply to loans provided by financial institutions such as banks, or to any debt incurred through an online payment or credit card transaction. Also, it does not apply to loans made to public officials who’s duties are only secretarial or manual.
Section 87460(e) does not apply to the following prohibitions:
- The loan is made to the committee for campaigning that is an elected representative or candidate for an elected office.
- A loan is made by a parents, spouses, children grandparents, grandparents, siblings, parents-inlaw, brother or sister or brother-in law, sister-inlaw niece, nephew, the aunt, uncle, or the first cousin to a government official and the spouses of these individuals in the event that the person who grants the loan isn’t acting as an intermediary or agent for an individual who is not exempted by this section.
- One person can borrow money which, when taken together, cannot exceed 250 dollars at any one time.
Section 87461 forbids any elected official of a local or state government agency from taking out a personal loan of more than $500 provided that the loan agreement is in writing and clearly states the terms of the loan which includes the lenders to the loan. Loan agreement, day of the loan as well as how much the loan is, length of the loan and the dates when payments are to be made on loan, and the amount of payments in addition to the interest rate charged for the loan . This section is not applicable to the types of loans that are specified.
Section 87462 states that personal loans become an offer to the borrower under the following situations:
- If the loan is due on specific dates or repayment dates or when the time limit to bring a default action is over.
- If the loan is not accompanied by a specific date or time for repayment, the loan will be repaid when the loan is due, it will be repaid after one year since the particular time period.
The difference is that Section 87462 is not applicable to these kinds of loans:
- The loan is made to the committee for campaigning for an official elected to office or candidate for an election mandate.
- A loan that would otherwise not be considered a gift.
- A loan that could be considered a grant, but for which the lender has made reasonable efforts to collect the debt.
- A loan which would normally be considered a gift, however the creditor, in light of reasonable business reasons, hasn’t initiated collection actions.
- A loan is made to a debtor who declared bankruptcy. The loan is later removed from bankruptcy.