California law will probably apply to the transaction. However, since this is for a business and not personal or family use, the 10% usury rate is not applicable. The commercial rate is applicable which is higher. However, there are a lot of exemptions from the usury law depending upon the nature of the company making the loan and the transaction. You would have to review those exemptions to see if they were applicable to your situation. In a business context, usury defenses are hard to make.
To determine whether the loan was usurious, you would have to know the nature of the business, whether it was qualified in CA and also the relevant documents governing the loan would have to be reviewed. For example the documents may apply Ohio law. You would then have some pretty complex issues to evaluate to determine whether CA should apply rather than Ohio law nothwithstanding what was in the documents.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).