Financial Code section 12318

A prorater shall not take:

(a)

Any contract, promise to pay, or other instrument which has any blank spaces when signed by a debtor;

(b)

Any negotiable instrument for the prorater’s charges;

(c)

Any note, wage assignment, real estate or chattel mortgage, or other security to secure the prorater’s charges;

(d)

Any confession of judgment or power of attorney to confess judgment against the debtor or to appear for the debtor in a judicial proceeding.

(e)

Concurrent with the signing of the contract or as part of the contract or as part of the application for the contract a release of any obligation to be performed on the part of the prorater.

Source: Section 12318, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=12318.­ (updated Jan. 1, 1957; accessed Jul. 21, 2025).

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Verified:
Jul. 21, 2025

§ 12318's source at ca​.gov