Hard Money Loans - Usury Dodge With Choice Of Law Provision

[Bryan Hancock]

Okay hard money pros...

Scenario:
-A fully licensed real estate (deeds...not money) broker in California wishes to make hard money loans at very high interest rates in trade for aggregating money sources for fix-and-flippers and providing the fund apparatus where they can pool investors' money

-The broker/lender inserts a choice of law provision in the contract stating that the laws of California apply

-The broker/lender loans on projects in other states

I read in other posts that people have received advice from attorneys stating that the choice of law provision somehow "imports" the rules of Cali and allows one to lend at usurious rates.

Thoughts? Comments? Are there other things that need to be considered to determine where the business really transacted? Or does the choice of law trump case law type rules?