Bill Text

Bill Information


Add To My Favorites | print page

AB-512 Contracts: translation.(2007-2008)

SHARE THIS: share this bill in Facebook share this bill in Twitter
AB512:v91#DOCUMENT

Amended  IN  Senate  June 10, 2008
Amended  IN  Senate  September 07, 2007
Amended  IN  Senate  July 05, 2007
Amended  IN  Senate  June 25, 2007
Amended  IN  Assembly  June 05, 2007
Amended  IN  Assembly  May 03, 2007
Amended  IN  Assembly  April 18, 2007
Amended  IN  Assembly  March 26, 2007

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 512

Introduced  by  Assembly Member Lieber, Coto
 (Principal Coauthor(s): Senator Correa)

February 20, 2007

An act to amend repeal and add Section 1632 of the Civil Code, relating to contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 512, as amended, Lieber. Contracts: translation.
Existing law requires a person in a trade or business who negotiates specified contracts or agreements primarily in the languages of Spanish, Chinese, Tagalog, Vietnamese, and or Korean to deliver to the other party prior to execution of the contract or agreement, a translation of the contract or agreement in the applicable foreign language, except as specified. Under existing law, failure to comply with these provisions entitles the aggrieved party to rescind the contract or agreement. Under existing law, these provisions apply to specified loans or extensions of credit subject to the Industrial Loan Law and the California Finance Lenders Law.
This bill would provide that these provisions also apply to specified loans or extensions of credit subject to the California Residential Mortgage Lending Act. The bill would also require supervised financial organizations, as defined, that make loans secured by real property to provide a summary translation of specified contract terms, in a form created by the Secretary of Business, Transportation and Housing, as specified, to be drafted in each of the languages described above. The bill would provide that its provisions are severable expand the scope of those provisions to instead apply to any person in a trade or business who, in the course of entering into any of the specified contracts or agreements, negotiates any material term in those languages to deliver a translation, as described above, or a translation of one or more of the approved disclosures or forms, as specified. The bill would also make specified translation requirements applicable to loans or extensions of credit secured by real property and leases, subleases, and rental contracts or agreements, as specified. The bill would authorize civil penalties against any person who fails to deliver the translation, to be imposed by a court in an action commenced within 3 years of the transaction. The bill would provide for administrative penalties against specified licensed persons for violations of these provisions. The bill would require the Department of Corporations and the Department of Financial Institutions to create new forms for these purposes based on specified forms of the Department of Real Estate. The bill would exempt federally chartered banks and credit unions from these provisions.
These provisions would be operative on January 1, 2009, or 60 days following the issuance of forms by both the Department of Corporations and the Department of Financial Institutions, whichever is later.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1632 of the Civil Code is repealed.
1632.

(a)The Legislature hereby finds and declares all of the following:

(1)This section was enacted in 1976 to increase consumer information and protections for the state’s sizeable and growing Spanish-speaking population.

(2)Since 1976, the state’s population has become increasingly diverse and the number of Californians who speak languages other than English as their primary language at home has increased dramatically.

(3)According to data from the United States Census of 2000, of the more than 12 million Californians who speak a language other than English in the home, approximately 4.3 million speak an Asian dialect or another language other than Spanish. The top five languages other than English most widely spoken by Californians in their homes are Spanish, Chinese, Tagalog, Vietnamese, and Korean. Together, these languages are spoken by approximately 83 percent of all Californians who speak a language other than English in their homes.

(b)Any person engaged in a trade or business who negotiates primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, orally or in writing, in the course of entering into any of the following, shall deliver to the other party to the contract or agreement and prior to the execution thereof, a translation of the contract or agreement in the language in which the contract or agreement was negotiated, which includes a translation of every term and condition in that contract or agreement:

(1)A contract or agreement subject to the provisions of Title 2 (commencing with Section 1801) of, and Chapter 2b (commencing with Section 2981) and Chapter 2d (commencing with Section 2985.7) of Title 14 of, Part 4 of Division 3.

(2)A loan or extension of credit secured other than by real property, or unsecured, for use primarily for personal, family or household purposes.

(3)A lease, sublease, rental contract or agreement, or other term of tenancy contract or agreement, for a period of longer than one month, covering a dwelling, an apartment, or mobilehome, or other dwelling unit normally occupied as a residence.

(4)Notwithstanding paragraph (2), a loan or extension of credit for use primarily for personal, family or household purposes where the loan or extension of credit is subject to the provisions of Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, or Division 7 (commencing with Section 18000), or Division 9 (commencing with Section 22000) of the Financial Code.

(5)Notwithstanding paragraph (2), a reverse mortgage as described in Chapter 8 (commencing with Section 1923) of Title 4 of Part 4 of Division 3.

(6)A contract or agreement, containing a statement of fees or charges, entered into for the purpose of obtaining legal services, when the person who is engaged in business is currently licensed to practice law pursuant to Chapter 4 (commencing with Section 6000) of Division 3 of the Business and Professions Code.

(c)Notwithstanding subdivision (b), for a loan subject to this part and to Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, the delivery of a translation of the statement to the borrower required by Section 10240 of the Business and Professions Code in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, is in compliance with subdivision (b).

(d)At the time and place where a lease, sublease, or rental contract or agreement described in subdivision (b) is executed, notice in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated shall be provided to the lessee or tenant.

(e)Provision by a supervised financial organization of a translation of the disclosures required by Regulation M or Regulation Z, and, if applicable, Division 7 (commencing with Section 18000) or Division 9 (commencing with Section 22000) of the Financial Code in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, prior to the execution of the contract or agreement, shall also be deemed in compliance with the requirements of subdivision (b) with regard to the original contract or agreement.

(1)“Regulation M” and “Regulation Z” mean any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System and any interpretation or approval issued by an official or employee duly authorized by the board to issue interpretations or approvals dealing with, respectively, consumer leasing or consumer lending, pursuant to the Federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).

(2)As used in this section, “supervised financial organization” means a bank, savings association as defined in Section 5102 of the Financial Code, credit union, or holding company, affiliate, or subsidiary thereof, or any person subject to Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, or Division 7 (commencing with Section 18000) or Division 9 (commencing with Section 22000) of the Financial Code.

(f)At the time and place where a contract or agreement described in paragraph (1) or (2) of subdivision (b) is executed, a notice in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated shall be conspicuously displayed to the effect that the person described in subdivision (b) is required to provide a contract or agreement in the language in which the contract or agreement was negotiated, or a translation of the disclosures required by law in the language in which the contract or agreement was negotiated, as the case may be. If a person described in subdivision (b) does business at more than one location or branch, the requirements of this section shall apply only with respect to the location or branch at which the language in which the contract or agreement was negotiated is used.

(g)The term “contract” or “agreement,” as used in this section, means the document creating the rights and obligations of the parties and includes any subsequent document making substantial changes in the rights and obligations of the parties. The term “contract” or “agreement” does not include any subsequent documents authorized or contemplated by the original document such as periodic statements, sales slips or invoices representing purchases made pursuant to a credit card agreement, a retail installment contract or account or other revolving sales or loan account, memoranda of purchases in an add-on sale, or refinancing of a purchase as provided by, or pursuant to, the original document.

The term “contract” or “agreement” does not include a home improvement contract as defined in Sections 7151.2 and 7159 of the Business and Professions Code, nor does it include plans, specifications, description of work to be done and materials to be used, or collateral security taken or to be taken for the retail buyer’s obligation contained in a contract for the installation of goods by a contractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, if the home improvement contract or installation contract is otherwise a part of a contract described in subdivision (b).

Matters ordinarily incorporated by reference in contracts or agreements as described in paragraph (3) of subdivision (b), including, but not limited to, rules and regulations governing a tenancy and inventories of furnishings to be provided by the person described in subdivision (b), are not included in the term “contract” or “agreement.”

(h)This section does not apply to any person engaged in a trade or business who negotiates primarily in a language other than English, as described by subdivision (b), if the party with whom he or she is negotiating is a buyer of goods or services, or receives a loan or extension of credit, or enters an agreement obligating himself or herself as a tenant, lessee, or sublessee, or similarly obligates himself or herself by contract or lease, and the party negotiates the terms of the contract, lease, or other obligation through his or her own interpreter.

As used in this subdivision, “his or her own interpreter” means a person, not a minor, able to speak fluently and read with full understanding both the English language and any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, and who is not employed by, or whose service is made available through, the person engaged in the trade or business.

(i)Notwithstanding subdivision (b), a translation may retain the following elements of the executed English-language contract or agreement without translation: names and titles of individuals and other persons, addresses, brand names, trade names, trademarks, registered service marks, full or abbreviated designations of the make and model of goods or services, alphanumeric codes, numerals, dollar amounts expressed in numerals, dates, and individual words or expressions having no generally accepted non-English translation. It is permissible, but not required, that this translation be signed.

(j)The terms of the contract or agreement which is executed in the English language shall determine the rights and obligations of the parties. However, the translation of the contract or the disclosures required by subdivision (e) in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated shall be admissible in evidence only to show that no contract was entered into because of a substantial difference in the material terms and conditions of the contract and the translation.

(k)Upon a failure to comply with the provisions of this section, the person aggrieved may rescind the contract or agreement in the manner provided by this chapter. When the contract for a consumer credit sale or consumer lease which has been sold and assigned to a financial institution is rescinded pursuant to this subdivision, the consumer shall make restitution to and have restitution made by the person with whom he or she made the contract, and shall give notice of rescission to the assignee. Notwithstanding that the contract was assigned without recourse, the assignment shall be deemed rescinded and the assignor shall promptly repurchase the contract from the assignee.

SEC. 2.

 Section 1632 is added to the Civil Code, to read:

1632.
 (a) The Legislature hereby finds and declares all of the following:
(1) This section was enacted in 1976 to increase consumer information and protections for the state’s sizeable and growing Spanish-speaking population.
(2) Since 1976, the state’s population has become increasingly diverse and the number of Californians who speak languages other than English as their primary language at home has increased dramatically.
(3) According to data from the United States Census of 2000, of the more than 12 million Californians who speak a language other than English in the home, approximately 4.3 million speak an Asian dialect or another language other than Spanish. The top five languages other than English most widely spoken by Californians in their homes are Spanish, Chinese, Tagalog, Vietnamese, and Korean. Together, these languages are spoken by approximately 83 percent of all Californians who speak a language other than English in their homes.
(b) Any person engaged in a trade or business who, in the course of entering into any of the following contracts or agreements, negotiates any material term in Spanish, Chinese, Tagalog, Vietnamese, or Korean, whether orally or in writing, shall comply with subdivision (c).
(1) A contract or agreement subject to the provisions of Title 2 (commencing with Section 1801) of, and Chapter 2b (commencing with Section 2981) and Chapter 2d (commencing with Section 2985.7) of, Title 14 of Part 4.
(2) A loan or extension of credit secured other than by real property, or unsecured, for use primarily for personal, family or household purposes.
(3) A lease, sublease, rental contract or agreement, or other term of tenancy contract or agreement, for a period of longer than one month, covering a dwelling, an apartment, or mobile home, or other dwelling unit normally occupied as a residence.
(4) A loan or extension of credit for use primarily for personal, family, or household purposes where the loan or extension of credit is subject to the provisions of Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, or, is made by a supervised financial organization.
(5) Notwithstanding paragraph (2), a reverse mortgage as described in Chapter 8 (commencing with Section 1923) of Title 4 of Part 4 of Division 3.
(6) A contract or agreement, containing a statement of fees or charges, entered into for the purpose of obtaining legal services, when the person who is engaged in business is currently licensed to practice law pursuant to Chapter 4 (commencing with Section 6000) of Division 3 of the Business and Professions Code.
(c) Any person who comes within the description in subdivision (b) shall deliver to the other party to the contract or agreement and prior to the execution thereof, either of the following:
(1) A translation of the contract or agreement in the language in which the contract or agreement was negotiated, which includes a translation of every term and condition in that contract or agreement.
(2) A translation of one or more of the approved disclosures or forms described in subdivision (d) to (f), inclusive, or subdivision (l), as applicable to the specific contract or agreement at issue. Each translation shall bear an acknowledgment of receipt to be signed by the contracting consumer prior to consummation of the transaction. Persons subject to this subdivision shall retain a true and correct copy of all signed translations on file for a period of five years or the length of the contract or agreement, whichever is longer.
(d) For a loan subject to this part and to Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, the delivery of a translation of the statements or disclosures, or both, to the borrower required by Section 10240 or 10241 of the Business and Professions Code in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, is in compliance with subdivision (c).
(e) For a loan or extension of credit secured other than by real property, or unsecured, for use primarily for personal, family, or household purposes, delivery by a supervised financial organization of a translation of the disclosures required by Regulation M or Regulation Z of the federal Truth in Lending Act (15 U.S.C. Sec. 1601 et seq.), and, if applicable, Division 7 (commencing with Section 18000) or Division 9 (commencing with Section 22000) of the Financial Code in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, prior to the execution of the contract or agreement, is in compliance with subdivision (c).
(f) For a loan or extension of credit secured by real property made by a supervised financial organization, as described in paragraph (4) of subdivision (b), delivery of the form disclosures described in subdivision (l) is in compliance with subdivision (c). Delivery of such disclosures is required whether or not the transaction is also subject to the requirements of Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, and subdivision (c). The supervised financial organization shall provide the form or forms to the borrower no later than seven calendar days before closing, and, if any of the loan terms summarized therein change after provision of the translation but prior to consummation of the loan, shall provide an updated version of the form or forms before closing.
(g) (1) At the time and place where an applicable contract or agreement is executed, a notice in the language in which the contract or agreement was negotiated, shall be conspicuously displayed, that states the translation requirements set forth in subdivision (c). If the person does business at more than one location or branch, the requirements of this section shall apply only with respect to the location or branch at which the language in which the contract or agreement was negotiated is used.
(2) For any loan or extension of credit secured by real property covered by this section, every English contract or agreement shall include the following statement in no smaller than 10-point font and contained in a demarcated rectangle, at the top of the first page of the contract or agreement, translated into Spanish, Chinese, Tagalog, Vietnamese, and Korean: “If you negotiated any material term of this contract in [language], you are entitled by law to have the contract, or a summary of important terms, translated into [language].” This subdivision applies to all contracts specified in this subsection, regardless of whether any term was negotiated in one of these five languages, and regardless of whether the business person conducts business in any one of these five languages.
(h) At the time and place where a lease, sublease, or rental contract or agreement described in paragraph (3) of subdivision (b) is executed, notice in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated shall be provided to the lessee or tenant.
(i) Notwithstanding subdivision (c), a translation may retain the following elements of the executed English-language contract or agreement without translation: names and titles of individuals and other persons, addresses, brand names, trade names, trademarks, registered service marks, full or abbreviated designations of the make and model of goods or services, alphanumeric codes, numerals, dollar amounts expressed in numerals, dates, and individual words or expressions having no generally accepted non-English translation.
(j) The terms of the contract or agreement which is executed in the English language shall determine the rights and obligations of the parties. However, the translation of the contract or the disclosures required by this section in any of the languages specified in subdivision (b) in which the contract or agreement was negotiated shall be admissible in evidence only to show that no contract was entered into because of a substantial difference in the material terms and conditions of the contract and the translation.
(k) (1) Any person who fails, prior to execution of the contract or agreement, to deliver the translation required by subdivision (c) herein, is liable to the person aggrieved thereby, in an amount equal to the sum of.
(A) Any actual damage sustained by that person as a result of the failure.
(B) (i)  In the case of a loan or extension of credit secured other than by real property, or unsecured, for use primarily for personal, family, or household purposes, in an amount equal to 50 percent of the total amount of payments under the loan or extension of credit, except that the liability under this subparagraph shall not be less than two hundred dollars ($200) nor greater than five thousand dollars ($5,000) per violation.
(ii) In the case of a loan or extension of credit secured by real property, in an amount not less than five hundred dollars ($500) nor greater than ten thousand dollars ($10,000) per violation.
(iii) In the case of any other contract or agreement, in an amount not less than two hundred dollars ($200) nor greater than three thousand dollars ($3,000) per violation.
(C) In the case of any successful action to enforce the liability pursuant to this subdivision or in any action in which a person is determined to have a right of rescission under paragraph (6), the costs of the action, together with a reasonable attorney’s fee as determined by the court.
(2) Any person who fails to comply with the notice requirements of either subdivision (g) or (h) is liable to the contracting consumer in an amount equal to five hundred dollars ($500) per violation, plus the costs of the action, together with a reasonable attorney’s fee as determined by the court.
(3) (A) In addition to any civil liability, upon a finding that any licensed person has violated subdivision (c), a court shall impose a civil penalty in the amount of two thousand five hundred dollars ($2,500) for the first violation, five thousand dollars ($5,000) for a second violation, ten thousand dollars ($10,000) for a third violation, and twenty-five thousand dollars ($25,000) each for each subsequent violation.
(B) In addition to any civil liability, upon a finding that any licensed person has violated subdivision (g) or (h), a court shall impose a penalty in the amount of one thousand dollars ($1,000) for the first violation, three thousand dollars ($3,000) for a second violation, seven thousand five hundred dollars ($7,500) for a third violation, and fifteen thousand dollars ($15,000) each for each subsequent violation.
(C) The amounts collected under this paragraph shall be deposited in the appropriate fund of the licensing agency to be used by that licensing agency, subject to appropriation by the Legislature, for the purposes of education and enforcement in connection with this section.
(4) Any action brought under paragraph (1) or (2) shall be commenced not more than three years from the date of the transaction.
(5) (A) A licensing agency may, after appropriate notice and opportunity for hearing, by order levy administrative penalties against a person who violates any provision of this section, and the person shall be liable for administrative penalties, in the amounts described in subparagraphs (A) and (B) of paragraph (3). Except for licensing agencies exempt from the provisions of the Administrative Procedure Act, any hearing shall be held in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the licensing agency shall have all the powers granted under that act. A licensing agency may not impose any penalty for a particular violation if a court has already imposed a penalty for that violation pursuant to subparagraphs (A) and (B) of paragraph (3).
(B) A licensing agency may exercise the authority and powers available to it under any other provisions of law, to administer and enforce this section, including, but not limited to, investigating and examining the licensed person’s books and records, and charging and collecting the reasonable costs for these activities. The licensing agency shall not charge a licensed person twice for the same service.
(C) After any action under this subdivision resulting in a finding of liability or an administrative action pursuant to this paragraph, the licensing agency may bring a proceeding to suspend the license of the licensed person for not less than six months and not more than three years. After any action under this subdivision resulting in a second or subsequent finding of liability, or any administrative action pursuant to this paragraph on a second or subsequent violation of this section, the licensing agency may bring a proceeding to permanently revoke the license of the licensed person or impose any lesser licensed sanction for at least three years.
(6) In addition to the civil liability set forth in paragraphs (1) and (2), upon a failure, prior to execution of the contract or agreement, to deliver a materially complete translation of the contract, or of any of the approved alternative disclosures or forms, or both, required by subdivision (c), the person aggrieved may rescind the contract or agreement in the manner provided by this subdivision. When the contract for a consumer credit sale or consumer lease which has been sold and assigned to a financial institution is rescinded pursuant to this subdivision, the consumer shall make restitution to and have restitution made by the person with whom he or she made the contract, and shall give notice of rescission to the assignee. Notwithstanding that the contract was assigned without recourse, the assignment shall be deemed rescinded and the assignor shall promptly repurchase the contract from the assignee.
With respect to a mortgage loan contract covered by this section, the aggrieved person’s right to rescind shall expire six years after the date of the contract, or, for any adjustable rate mortgage contracts, the right to rescind shall expire after six years, or 90 days following the expiration of the fixed rate term, whichever is later.
(l) The Department of Corporations and the Department of Financial Institutions shall create new forms that are based on the Department of Real Estate’s Forms 883 and 885 and that modify those forms solely to delete information that is inapplicable to lender-originated loans or that is otherwise inapplicable. These modified forms shall be made available in each of the languages set forth in subdivision (b) for use by a supervised financial organization to summarize the terms of a mortgage loan pursuant to subdivision (f).
(m) As used in this section:
(1) (A) The term “contract” or “agreement” means the document creating the rights and obligations of the parties and includes any subsequent document making substantial changes in the rights and obligations of the parties. The term “contract” or “agreement” does not include any subsequent documents authorized or contemplated by the original document such as periodic statements, sales slips, or invoices representing purchases made pursuant to a credit card agreement, a retail installment contract or account or other revolving sales or loan account, memoranda of purchases in an add-on sale, or refinancing of a purchase as provided by, or pursuant to, the original document.
(B) The term “contract” or “agreement” does not include a home improvement contract as defined in Sections 7151.2 and 7159 of the Business and Professions Code, nor does it include plans, specifications, description of work to be done and materials to be used, or collateral security taken or to be taken for the retail buyer’s obligation contained in a contract for the installation of goods by a contractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, if the home improvement contract or installation contract is otherwise a part of a contract described in subdivision (b).
(C) Matters ordinarily incorporated by reference in contracts or agreements as described in paragraph (3) of subdivision (b), including, but not limited to, rules and regulations governing a tenancy and inventories of furnishings to be provided by the person described in subdivision (b), are not included in the term “contract” or “agreement.”
(2) “Licensed person” means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Finance Lenders Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), a commercial or industrial bank organized under the Banking Law (Division 1 (commencing with Section 99) of the Financial Code), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000) of the Financial Code), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000) of the Financial Code). “Licensed person” includes a person engaged in any practice governed by any of the laws identified in this paragraph for which a license is required, but whose license is invalid, suspended, or revoked, or where no license has been obtained.
(3) “Regulation M” and “Regulation Z” mean any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System and any interpretation or approval issued by an official or employee duly authorized by the board to issue interpretations or approvals dealing with, respectively, consumer leasing or consumer lending, pursuant to the federal Truth in Lending Act (15 U.S.C. Sec. 1601 et seq.), as amended.
(4) “Supervised financial organization” means a bank, savings association as defined in Section 5102 of the Financial Code, credit union, or holding company, affiliate, or subsidiary thereof, or any person subject to Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, or Division 7 (commencing with Section 18000) of the Financial Code, or Division 9 (commencing with Section 22000) of the Financial Code, or Division 20 (commencing with Section 50000) of the Financial Code.
(n) (1) This section does not apply to federally chartered banks or credit unions.
(2) This section does not apply to any person engaged in a trade or business who negotiates primarily in a language other than English, as described by subdivision (b), if the party with whom he or she is negotiating is a buyer of goods or services, or receives a loan or extension of credit, or enters an agreement obligating himself or herself as a tenant, lessee, or sublessee, or similarly obligates himself or herself by contract or lease, and the party negotiates the terms of the contract, lease, or other obligation through his or her own interpreter. As used in this paragraph, “his or her own interpreter” means a person, who is not a minor, who is able to speak fluently and read with full understanding both the English language and any of the languages specified in subdivision (b) in which the contract or agreement was negotiated, and who is not employed by, or whose service is not made available through, the person engaged in the trade or business.

SEC. 3.

 This act shall be operative beginning on January 1, 2009, or 60 days following the issuance of forms by both the Department of Corporations and the Department of Financial Institutions pursuant to subdivision (l) of Section 1632 of the Civil Code, whichever is later.

SEC. 4.

 The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.