In a case of interest decided today the Court of Appeal ruled that California’s usury law does not apply to a judgment creditor’s agreement to forbear collecting on a judgment. The Court concluded that a judgment creditor may, subject to whatever contract defenses the debtor may have, enforce an agreement (otherwise usurious) to delay executing (collecting) on the judgment in exchange for the payment of forbearance fees (otherwise, usurious interest) in addition to statutory postjudgment simple interest of 10% per year.
Bisno v. Kahn – filed April 25, 2014, First District, Div. Three
Cite as 2014 S.O.S. 2011
Full text http://www.metnews.com/sos.cgi?0414//A133537