CALIFORNIA Lien Mortgage NonJudicial Foreclosure Statutes California Civil Code

2014 0227 The search for this California Code was inspired by Karen Michele Rozier’s case… Karen Michele Rozier ! "# $an% &'th(circ)it* California +on,)dicial -oreclos)re #tat)tes .lters Co//on 0aw +ote 1 Mort2a2e Re3)ire/ent(4 olo!abi!or25!pdf 6! 78#C"##89+ The ban%r)ptcy co)rt did not ab)se its discretion when it entered the #tay Relief 9rder! The only order appealed: and rele ant /atter before )s: is the #tay Relief 9rder!7 Rozier contends that the ban%r)ptcy co)rt erred in enterin2 the #tay Relief 9rder beca)se "!#! $an% did not establish that it was the real party in interest to see% relief fro/ stay a2ainst the ;roperty! #pecifically: she contends that "!#! $an% failed to establish standin2 beca)se it did not file a proof of clai/ in her case: or show that it had any interest in the 200< note! #ec)red creditors s)ch as "!#! $an% are not re3)ired to file proofs of clai/ in chapter 7 cases in order to preser e their sec)rity interests or liens= s)ch interests pass thro)2h the ban%r)ptcy )naffected despite the absence of a proof of clai/! > ?014a5= R)le @0024a5= 7ewsn)p ! Ti//: ?02 "!#! 410: 41A 41''25= 0on2 ! $)llard: 117 "!#! <17: <20B21 41AA<5= $rawders ! Cnty! of 6ent)ra 48n re $rawders5: ?0@ -!@d A?<: A72 4'th Cir! 20075! RozierCs atte/pt to t)rn "!#! $an%Cs sec)red lien into an )nsec)red one by sched)lin2 it as )nsec)red and Ddisp)tedD in her #ched)le - was ineffecti e! .s for her standin2 ar2)/ent: it too lac%s /erit! Motions for relief fro/ stay are contested /atters )nder R)le '014! R)le '0144c5 pro ides that R)le 7017: which in t)rn incorporates ((((((((((( 7 Rozier has not yet recei ed a dischar2e: her chapter 7 case is still open: and the ;roperty has not been sold! Therefore: this appeal is not /oot Ci il R)le 174a5: is applicable to contested /atters! Ci il R)le 174a5415 pro ides that D&a*n action /)st be prosec)ted in the na/e of the real party in interest ! ! ! !D Th)s: to satisfy the re3)ire/ents of pr)dential standin2 and Ci il R)le 174a5415: Dthe action /)st be bro)2ht by the person who: accordin2 to the 2o ernin2 s)bstanti e law: is entitled to enforce the ri2ht!D <. Eri2ht: Miller: Kane 1 Marc)s: -F7! ;R.C! 1 C86! ;R9C! G 1?4@ 4@d ed! 20115= 8n re 6eal: 4?0 $!R! at '0A!A #i/ply p)t: the party /o in2 for relief fro/ the a)to/atic stay /)st be the Dreal party in interest!D "nder > @<24d5: a Dparty in interestD can re3)est relief fro/ the a)to/atic stay! #ection @<24d5415 a)thorizes relief fro/ stay Dfor ca)se: incl)din2 the lac% of ade3)ate protection of an interest in property of s)ch party in interest!D Ehether a /o in2 party is a Dparty in interestD )nder > @<24d5 is deter/ined on a caseBbyBcase basis: ta%in2 into acco)nt both the clai/ed interest and how that interest is affected by the a)to/atic stay! 8n re 6eal: 4?0 $!R! at '1@= Krone/yer ! ./! Contractors 8nde/! Co! 48n re Krone/yer5: 40? $!R! '1?: '1' 4'th Cir! $.; 200'5! . Dparty in interestD can incl)de any party that has a pec)niary interest in the /atter: that has a practical sta%e in the resol)tion of the /atter:

or that is i/pacted by the a)to/atic stay! $rown ! #obcza% 48n re #obcza%5: @<' $!R! ?12: ?17B1A 4'th Cir! $.; 20075! ((((((((((( A Constit)tional standin2 is satisfied beca)se "!#! $an% established the /ini/)/ re3)ire/ents of inH)ry in fact: ca)sation: and redressability! The a)to/atic stayCs prohibition on "!#! $an%Cs ri2ht to eIercise its alle2ed nonban%r)ptcy ri2hts co)ld be redressed by obtainin2 relief fro/ stay! #ee 8n re 6eal: 4?0 $!R! at '0< J. proceedin2 to deter/ine eli2ibility for relief fro/ a stay only deter/ines whether a creditor sho)ld be released fro/ the stay in order to ar2)e the /erits in a separate proceedin2!K .r%ison ! Lriffin 48n re Lriffin5: 71' -!@d 112<: 112A 4'th Cir! 201@5! JLi en the li/ited nat)re of ! ! ! this proceedin2 and beca)se final adH)dication on the parties’ ri2hts and liabilities is yet to occ)r: a party ! ! ! need only establish ! ! ! a colorable clai/ to the property ! ! ! !K 8d! #ee 8n re 6eal: 4?0 $!R! at '1@ 4holdin2 sa/e and citin2 -irst -ed! $an% of Cal! ! Robbins 48n re Robbins5: @10 $!R! <2<: <@1 4'th Cir! $.; 200455= and $i22s ! #to in 48n re 0)I 8ntCl: 0td!5: 21' $!R! A@7: A42 4'th Cir! $.; 1''A5 4an adH)dication of the clai/s: defenses or co)nterclai/s is not in ol ed= only a deter/ination of a colorable clai/ is /ade5! 6eal reco2nized that a /o ant has a colorable clai/ )nder > @<2 if it eitherM 415 owns or has another for/ of property interest in a note sec)red by the debtorCs 4or the estateCs5 property= or 425 is a Dperson entitled to enforce s)ch a note )nder applicable state law!D 4?0 $!R! at '10! 8n 6eal: the ;anel deter/ined that the /ort2a2ee had failed to establish its standin2 to obtain relief fro/ stay beca)se it co)ld not show that it possessed the note: or that it had an interest in the note! 8d! at '1A! 6eal: howe er: is distin2)ishable fro/ the instant case beca)se 6eal was applyin2 8llinois law: which follows the co//on law r)le )nder the "nifor/ Co//ercial Code 4D"CCD5 that a /ort2a2ee /)st hold the note to foreclose! 8d! at '1<! 0i%ewise: )nder the co//on law r)le: an assi2n/ent of a /ort2a2e witho)t the ((((((((( note is a n)llity! 8d! 8n this case: California law applies:' which has altered the co//on law r)le by stat)te! California has enacted nonH)dicial foreclos)re stat)tes that ha e chan2ed the co//on law r)le! 8d! at '1<B17 1 n!@4! CaliforniaCs nonH)dicial foreclos)re stat)tes are 2o erned by CAL. CIV. CODE ("CCC") §§ 2924 through 2924k: which are eIha)sti e! California law does not re3)ire that the party initiating foreclo ure !e in "o e ion of the note! De!runner #. Deut che $ank %at&l 'ru t Co.( 2)4 Cal.A"".4th 4**( 44) (2)+2)(collecting ca e ), Lane #. Vitek -eal E tate In.u . /r".( 0+* 1.2u"".2. +)92( +)99 (E.D. Cal. 2)+))4DThere is no stated re3uire4ent in California& non56u.icial foreclo ure che4e that re3)ires a !eneficial intere t in the %ote to foreclose! Rather: 7CCC § 2924(a)(+)8 !roa.l9 allo: a tr)stee: /ort2a2ee: beneficiary: or an9 of their agent to initiate non56u.icial foreclo ure! .ccordin2ly: the stat)te does not re3)ire a

!eneficial intere t in !oth the %ote an. the Dee. of 'ru t to co44ence a non5 6u.icial foreclo ure ale!D5! Therefore: in California: a party with a nonban%r)ptcy ri2ht to co//ence foreclos)re proceedin2s /ay ha e "ru.ential tan.ing 5 i.e.( a colora!le clai4 to the property B to prosec)te a /otion for relief fro/ stay! $y establishin2 it intere t in the DO': "!#! $an% did not ha#e to ho: that it hel. the original note or (((((((( ' The 79T: the sec)rity instr)/ent at iss)e: contains a choice of law pro ision: which states that it shall be 2o erned by federal law Dand the law of the H)risdiction in which the ;roperty is located!D Nere: that wo)ld be California! .s the ;anel held in 6eal: the for)/ stateCs choice of law r)les deter/ine which stateCs s)bstanti e law applies! 4?0 $!R! at '1< n!@2! 8n California: 2enerally deeds of tr)st as opposed to /ort2a2es are )sed as the sec)rity instr)/ent for the note the 2)); note: or an intere t in either of tho e note : or to "ro.uce the actual note( ) to e ta!li h it tan.ing to "ro ecute the #tay Relief Motion! Li en that "!#! $an% coul. co44ence foreclos)re of the ;roperty :ithout either of the note : it certainly wo)ld not need to possess or show any interest in the/ in the lesser action of establishin2 a colorable clai/ entitlin2 it to relief fro/ stay! Ee concl)de: on this record: that "!#! $an% .e4on trate. that it ha. a colora!le clai4 to the ;roperty! 8n s)pport of the #tay Relief Motion: "!#! $an% offered the 0yons .eclaration! 0yons stated that LM.C was the authori<e. loan er#icing agent for "!#! $an% and that the 79T ha. !een a igne. to "!#! $an%! Attache. :a a co"9 of the original note: the DO': and t:o recor.e. a ign4ent B the a ign4ent of EMCCs !eneficial intere t in the 79T to $an% of ./erica: an. the a ign4ent of the 79T fro4 $an% of ./erica to "!#! $an%! .s the beneficiary )nder the DO': "!#! $an% /ay initiate the foreclos)re process a2ainst the ;roperty! #ee CCC § 2924(a)(+), De!runner( 2)4 Cal.A"".4th at 44). .ccordin2ly: these foreclos)re ri2hts 2i e "!#! $an% a colora!le clai4 in the ;roperty: an. therefore it ha tan.ing to "ro ecute the #tay Relief Motion! =hile RozierCs ar2)/ents on appeal do not appear to eItend beyond challen2in2 "!#! $an%Cs tan.ing: the ban%r)ptcy co)rt foun. that "cau e" e>i te. un.er > @<24d5415 to grant relief fro/ stay! "Cau e" has no clear definition and is deter/ined on a caseBbyBcase basis! Mac 7onald ! Mac 7onald 48n re Mac 7onald5: 7?? -!2d 71?: 717 4'th Cir! 1'A?5= 8n re Krone/yer: 40? $!R! at '21! 9nce a party see%in2 relief e ta!li he a "ri4a facie ca e ((((((((((( that cau e eIists for relief )nder > @<24d5415: the !ur.en hift to the .e!tor to ho: that relief fro/ the stay i not :arrante.! "#. ! Lo)ld 48n re Lo)ld5: 401 $!R! 41?: 42< 4'th Cir! $.; 200'5! 'he recor. u""ort the ban%r)ptcy co)rtCs findin2 that "cau e" eIisted to ter/inate the a)to/atic stay an. allo: "!#! $an% to eIercise its foreclos)re re/edies a2ainst the ;roperty! "!#! $an% e ta!li he. its tan.ing and a colora!le clai4 to the ;roperty! 8t f)rther established that Rozier had faile. to ten.er

fift95four "a94ent o:ing on the Loan: a fact she did not see/ to .i "ute at the hearin2: and that its debt was )nsec)red by O200:000! . chapter 7 debtorCs fail)re to /a%e /onthly pay/ents to a sec)red creditor can constit)te Dca)seD for 2rantin2 relief fro/ the a)to/atic stay! 8n re $)shee: @1' $!R! ?42: ??2 4$an%r! F!7! Tenn! 20045 4citin2 ;rice ! 7el! #tate ;olice -ed! Credit "nion 48n re ;rice5: @70 -!@d @<2: @7@ 4@d Cir! 200454D. persistent fail)re to /a%e /onthly pay/ents )nder loan doc)/ents can constit)te ca)se for 2rantin2 relief fro/ the a)to/atic stay!D55! #ee also 8n re 6icente: 44< $!R! 2<: @2 4$an%r! 7! Mass! 20115 4chapter 7 debtorCs fail)re to /a%e thirtyBfi e /ort2a2e pay/ents constit)ted ca)se to ter/inate the a)to/atic stay )nder > @<24d54155! Rozier also conceded that she had not paid taIes on the ;roperty since 200A! -inally: the iss)es Rozier wo)ld li%e to resol e a2ainst "!#! $an% with respect to the 0oan: which are strictly state law iss)es: are pendin2 in state co)rt! -or these reasons: Rozier did not /eet her b)rden to show that relief fro/ stay was not warranted! .ccordin2ly: the ban%r)ptcy co)rt did not ab)se its discretion in enterin2 the #tay Relief 9rder: and we .--8RM! ((((((((( $eca)se the record establishes that "!#! $an% was entitled to relief for Jca)seK )nder > @<24d5415: we need not re iew the ban%r)ptcy co)rt’s decision to also 2rant relief )nder > @<24d5425! 68! C9+C0"#89+ Ee .--8RM!

2ee the California Ci#il Co.e in the follo:ing "age !elo: for the California %on?u.icial 1oreclo ure 2tatute cited in the @aren Aichele -o<ier $ankru"tc9 Ca e re2ardin2 an alle2ed Creditor’s 2'A%DI%/ to -9RFC09#F…!

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CIVIL CODE - CIV
TITLE OF THE ACT ( Heading enacted 1872. ) 1. This Act shall be known as The Civil Code of the State of California, and is in Four Divisions, as follows: I.—THE FIR T RE!ATI"# T$ %ER $" . II.—THE E&$"D T$ %R$%ERT'. III.—THE THIRD T$ $(!I#ATI$" . I).—THE F$*RTH &$"TAI" #E"ERA! %R$)I I$" RE!ATI"# T$ THE THREE %RE&EDI"# DI)I I$" .
(Enacted 1872.)

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CN.;TFR 1! 0iens in Leneral 2A72B2'14

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.RT8C0F @! Fffect of 0iens 2AAAB2A'2

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CN.;TFR 2b! .)to/obile #ales -inance .ct 2'A1B2'A4!<

CN.;TFR 2c! Real ;roperty #ales Contracts 2'A?B2'A?!<

CN.;TFR 2d! 6ehicle 0easin2 .ct 2'A?!7B2''@

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CIVIL CODE - CIV

DIVI2IO% *. O$LI/A'IO%2 7+420 5 *202.98 ( Heading of Division 3 amended by Stats. 1988, Ch. 1 !, Sec. 1". ) BA-' 4. O$LI/A'IO%2 A-I2I%/ 1-OA BA-'ICCLA- '-A%2AC'IO%2 7+0*D 5 *202.98 ( #a$t " enacted 1872. ) 'I'LE +4. LIE% 72D02 5 *)D+8 ( %it&e 1" enacted 1872. ) CEAB'E- 2. Aortgage 7292) 5 29;08 ( Cha'te$ 2 enacted 1872. ) ARTICLE 1. Mortgages in General [2920 - 2944. ! ( ($tic&e 1 enacted 1872. ) 2920. +a, A mortgage is a contract b- which s.ecific .ro.ert-, including an estate for years in real property, is h-.othecated for the .erfor/ance of an act, ithout the necessity of a change of possession. +b, !or purposes of Sections "#"$ to "#"$h, inclusive, %mortgage& also means any security device or instrument, other than a deed of trust, that confers a po er of sale affecting real property or an estate for years therein, to be e0ercised after breach of the obli1ation so secured, including a real property sales contract, as defined in Section "#'(, which contains such a .rovision.

(Amended by Stats. 1989, Ch. 698, Sec. 4.)

2920.". For .ur.oses of this article, the followin1 definitions a..l-: +a, 23ort1a1e servicer4 /eans a .erson or entit- who directl- services a loan, or who is res.onsible for interactin1 with the borrower, /ana1in1 the loan account on a dail- basis includin1 collectin1 and creditin1 .eriodic loan .a-/ents, /ana1in1 an- escrow account, or enforcin1 the note and securitinstru/ent, either as the current owner of the .ro/issor- note or as the current owner5s authori6ed a1ent. 23ort1a1e servicer4 also /eans a subservicin1 a1ent to a /aster servicer b- contract. 23ort1a1e servicer4 shall not include a trustee, or a trustee5s authori6ed a1ent, actin1 under a .ower of sale .ursuant to a deed of trust. +b, 2Foreclosure .revention alternative4 /eans a first lien loan /odification or another available loss /iti1ation o.tion. +c, +7, *nless otherwise .rovided and for .ur.oses of ections 898:.;, 898:.<, 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, 898;.7@, and 898;.79, 2borrower4 /eans an- natural .erson who is a /ort1a1or or trustor and who is .otentiall- eli1ible for an- federal, state, or .ro.rietarforeclosure .revention alternative .ro1ra/ offered b-, or throu1h, his or her /ort1a1e servicer. +8, For .ur.oses of the sections listed in .ara1ra.h +7,, 2borrower4 shall not include an- of the followin1: +A, An individual who has surrendered the secured .ro.ert- as evidenced beither a letter confir/in1 the surrender or deliver- of the ke-s to the .ro.ert- to the /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent. +(, An individual who has contracted with an or1ani6ation, .erson, or entitwhose .ri/ar- business is advisin1 .eo.le who have decided to leave their ho/es on how to e0tend the foreclosure .rocess and avoid their contractual obli1ations to /ort1a1ees or beneficiaries. +&, An individual who has filed a case under &ha.ter >, 77, 78, or 7: of Title 77 of the *nited tates &ode and the bankru.tc- court has not entered an order closin1 or dis/issin1 the bankru.tc- case, or 1rantin1 relief fro/ a sta- of foreclosure. +d, 2First lien4 /eans the /ost senior /ort1a1e or deed of trust on the .ro.ert- that is the subAect of the notice of default or notice of sale.
(Added by Stats. 2012, Ch. 86, Sec. 2. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2920.". For .ur.oses of this article, the followin1 definitions a..l-: +a, 23ort1a1e servicer4 /eans a .erson or entit- who directl- services a loan, or who is res.onsible for interactin1 with the borrower, /ana1in1 the loan account on a dail- basis includin1 collectin1 and creditin1 .eriodic loan .a-/ents, /ana1in1 an- escrow account, or enforcin1 the note and securit-

instru/ent, either as the current owner of the .ro/issor- note or as the current owner5s authori6ed a1ent. 23ort1a1e servicer4 also /eans a subservicin1 a1ent to a /aster servicer b- contract. 23ort1a1e servicer4 shall not include a trustee, or a trustee5s authori6ed a1ent, actin1 under a .ower of sale .ursuant to a deed of trust. +b, 2Foreclosure .revention alternative4 /eans a first lien loan /odification or another available loss /iti1ation o.tion. +c, +7, *nless otherwise .rovided and for .ur.oses of ections 898:.;, 898:.<, 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, 898;.7@, and 898;.79, 2borrower4 /eans an- natural .erson who is a /ort1a1or or trustor and who is .otentiall- eli1ible for an- federal, state, or .ro.rietarforeclosure .revention alternative .ro1ra/ offered b-, or throu1h, his or her /ort1a1e servicer. +8, For .ur.oses of the sections listed in .ara1ra.h +7,, 2borrower4 shall not include an- of the followin1: +A, An individual who has surrendered the secured .ro.ert- as evidenced beither a letter confir/in1 the surrender or deliver- of the ke-s to the .ro.ert- to the /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent. +(, An individual who has contracted with an or1ani6ation, .erson, or entitwhose .ri/ar- business is advisin1 .eo.le who have decided to leave their ho/es on how to e0tend the foreclosure .rocess and avoid their contractual obli1ations to /ort1a1ees or beneficiaries. +&, An individual who has filed a case under &ha.ter >, 77, 78, or 7: of Title 77 of the *nited tates &ode and the bankru.tc- court has not entered an order closin1 or dis/issin1 the bankru.tc- case, or 1rantin1 relief fro/ a sta- of foreclosure. +d, 2First lien4 /eans the /ost senior /ort1a1e or deed of trust on the .ro.ert- that is the subAect of the notice of default or notice of sale.
(Added by Stats. 2012, Ch. 87, Sec. 2. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2921. A /ort1a1e /a- be created u.on .ro.ert- held adversel- to the /ort1a1or.
(Enacted 1872.)

2922. A /ort1a1e can be created, renewed, or e0tended, onl- b- writin1, e0ecuted with the for/alities reBuired in the case of a 1rant of real .ro.ert-.
(Enacted 1872.)

292#. The lien of a /ort1a1e is s.ecial, unless otherwise e0.ressl- a1reed, and is inde.endent of .ossession.

(Enacted 1872.)

292#.1. A /ort1a1e broker .rovidin1 /ort1a1e brokera1e services to a borrower is the fiduciar- of the borrower, and an- violation of the broker5s fiduciarduties shall be a violation of the /ort1a1e broker5s license law. This fiduciardut- includes a reBuire/ent that the /ort1a1e broker .lace the econo/ic interest of the borrower ahead of his or her own econo/ic interest. A /ort1a1e broker who .rovides /ort1a1e brokera1e services to the borrower owes this fiduciar- dut- to the borrower +a, re1ardless of whether the /ort1a1e broker is actin1 as an a1ent for an- other .art- in connection with the residential /ort1a1e loan transaction. +b, For .ur.oses of this section, the followin1 definitions a..l-: +7, 2!icensed .erson4 /eans a real estate broker licensed under the Real Estate !aw +%art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode,, a finance lender or broker licensed under the &alifornia Finance !enders !aw +Division 9 +co//encin1 with ection 88???, of the Financial &ode,, a residential /ort1a1e lender licensed under the &alifornia Residential 3ort1a1e !endin1 Act +Division 8? +co//encin1 with ection <????, of the Financial &ode,, a co//ercial or industrial bank or1ani6ed under the (ankin1 !aw +Division 7 +co//encin1 with ection 99, of the Financial &ode,, a savin1s association or1ani6ed under the avin1s Association !aw +Division 8 +co//encin1 with ection <???, of the Financial &ode,, and a credit union or1ani6ed under the &alifornia &redit *nion !aw +Division < +co//encin1 with ection 7;???, of the Financial &ode,. +8, 23ort1a1e broker4 /eans a licensed .erson who .rovides /ort1a1e brokera1e services. For .ur.oses of this section, a licensed .erson who /akes a residential /ort1a1e loan is a 2/ort1a1e broker,4 and subAect to the reBuire/ents of this section a..licable to /ort1a1e brokers, onl- with res.ect to transactions in which the licensed .erson .rovides /ort1a1e brokera1e services. +:, 23ort1a1e brokera1e services4 /eans arran1in1 or atte/.tin1 to arran1e, as e0clusive a1ent for the borrower or as dual a1ent for the borrower and lender, for co/.ensation or in e0.ectation of co/.ensation, .aid directl- or indirectl-, a residential /ort1a1e loan /ade b- an unaffiliated third .art-. +;, 2Residential /ort1a1e loan4 /eans a consu/er credit transaction that is secured b- residential real .ro.ert- that is i/.roved b- four or fewer residential units. +c, The duties set forth in this section shall not be construed to li/it or narrow an- other fiduciar- dut- of a /ort1a1e broker.
(Added by Stats. 2009, Ch. 629, Sec. 2. Effective an!a"y 1, 2010.)

292#.#.

+a, Cith res.ect to residential real .ro.ert- containin1 no /ore than four dwellin1 units, a /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall .rovide to the /ort1a1or or trustor a co.- of the recorded notice of default with an attached se.arate su//ar- docu/ent of the notice of default in En1lish and the lan1ua1es described in ection 7=:8, as set forth in subdivision +c,, and a co.- of the recorded notice of sale with an attached se.arate su//ar- docu/ent of the infor/ation reBuired to be contained in the notice of sale in En1lish and the lan1ua1es described in ection 7=:8, as set forth in subdivision +d,. These su//aries are not reBuired to be recorded or .ublished. This subdivision shall beco/e o.erative on A.ril 7, 8?7:, or 9? da-s followin1 the issuance of the translations b- the De.art/ent of &or.orations, .ursuant to subdivision +b,, whichever is later. +b, +7, The De.art/ent of &or.orations shall .rovide a standard translation of the state/ent in .ara1ra.h +7, of subdivision +c,, and of the su//ar- of the notice of default, as set forth in .ara1ra.h +8, of subdivision +c, in the lan1ua1es described in ection 7=:8. +8, The De.art/ent of &or.orations shall .rovide a standard translation of the state/ent in .ara1ra.h +7, of subdivision +d,, and of the su//ar- of the notice of sale, as set forth in .ara1ra.h +8, of subdivision +d,. +:, The de.art/ent shall /ake the translations described in .ara1ra.hs +7, and +8, available without char1e on its Internet Ceb site. An- /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent who .rovides the de.art/ent5s translations in the /anner .rescribed b- this section shall be in co/.liance with this section. +c, +7, The followin1 state/ent shall a..ear in the lan1ua1es described in ection 7=:8 at the be1innin1 of the notice of default: "$TE: THERE I ATTA&HED. A *33AR' $F THE I"F$R3ATI$" I" THI D$&*3E"T

+8, The followin1 su//ar- of ke- infor/ation shall be attached to the co.of the notice of default .rovided to the /ort1a1or or trustor: *33AR' $F DE' I"F$R3ATI$" The attached notice of default was sent to Ena/e of the trustorF, in relation to Edescri.tion of the .ro.ert- that secures the /ort1a1e or deed of trust in defaultF. This .ro.ert- /a- be sold to satisf- -our obli1ation and an- other obli1ation secured b- the deed of trust or /ort1a1e that is in default. ETrustorF has, as described in the notice of default, breached the /ort1a1e or deed of trust on the .ro.ert- described above. I3%$RTA"T "$TI&E: IF '$*R %R$%ERT' I I" F$RE&!$ *RE (E&A* E '$* ARE (EHI"D I" '$*R %A'3E"T , IT 3A' (E $!D CITH$*T A"' &$*RT A&TI$", and -ou /a- have the le1al ri1ht to brin1 -our account in 1ood standin1 b- .a-in1 all of -our .ast due .a-/ents .lus .er/itted costs and e0.enses within the ti/e .er/itted b- law for reinstate/ent of -our account, which is nor/all- five business da-s .rior to the date set for the sale of -our .ro.ert-. "o sale date /a- be set until a..ro0i/atel- 9? da-s fro/ the date

the attached notice of default /a- be recorded +which date of recordation a..ears on the notice,. This a/ount is GGGGGGGGGGGG as of GGG+date,GGGGGGGGGGGGand will increase until -our account beco/es current. Chile -our .ro.ert- is in foreclosure, -ou still /ust .a- other obli1ations +such as insurance and ta0es, reBuired b- -our note and deed of trust or /ort1a1e. If -ou fail to /ake future .a-/ents on the loan, .a- ta0es on the .ro.ert-, .rovide insurance on the .ro.ert-, or .a- other obli1ations as reBuired in the note and deed of trust or /ort1a1e, the beneficiar- or /ort1a1ee /a- insist that -ou do so in order to reinstate -our account in 1ood standin1. In addition, the beneficiar- or /ort1a1ee /a- reBuire as a condition to reinstate/ent that -ou .rovide reliable written evidence that -ou .aid all senior liens, .ro.ert- ta0es, and ha6ard insurance .re/iu/s. *.on -our written reBuest, the beneficiar- or /ort1a1ee will 1ive -ou a written ite/i6ation of the entire a/ount -ou /ust .a-. 'ou /a- not have to .a- the entire un.aid .ortion of -our account, even thou1h full .a-/ent was de/anded, but -ou /ust .a- all a/ounts in default at the ti/e .a-/ent is /ade. However, -ou and -our beneficiar- or /ort1a1ee /a- /utuall- a1ree in writin1 .rior to the ti/e the notice of sale is .osted +which /a- not be earlier than three /onths after this notice of default is recorded, to, a/on1 other thin1s, +7, .rovide additional ti/e in which to cure the default btransfer of the .ro.ert- or otherwiseH or +8, establish a schedule of .a-/ents in order to cure -our defaultH or both +7, and +8,. Followin1 the e0.iration of the ti/e .eriod referred to in the first .ara1ra.h of this notice, unless the obli1ation bein1 foreclosed u.on or a se.arate written a1ree/ent between -ou and -our creditor .er/its a lon1er .eriod, -ou have onl- the le1al ri1ht to sto. the sale of -our .ro.ert- b- .a-in1 the entire a/ount de/anded b- -our creditor. To find out the a/ount -ou /ust .a-, or to arran1e for .a-/ent to sto. the foreclosure, or if -our .ro.ert- is in foreclosure for an- other reason, contact: GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG +"a/e of beneficiar- or /ort1a1ee, GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG +3ailin1 address, GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG +Tele.hone, If -ou have an- Buestions, -ou should contact a law-er or the 1overn/ental a1enc- which /a- have insured -our loan. "otwithstandin1 the fact that -our .ro.ert- is in foreclosure, -ou /a- offer -our .ro.ert- for sale, .rovided the sale is concluded .rior to the conclusion of the foreclosure. Re/e/ber, '$* 3A' !$ E !E#A! RI#HT IF '$* D$ "$T TADE %R$3%T A&TI$". If -ou would like additional co.ies of this su//ar-, -ou /a- obtain the/ bcallin1 Einsert tele.hone nu/berF. +d, +7, The followin1 state/ent shall a..ear in the lan1ua1es described in ection 7=:8 at the be1innin1 of the notice of sale:

"$TE: THERE I ATTA&HED.

A

*33AR' $F THE I"F$R3ATI$" I" THI

D$&*3E"T

+8, The followin1 su//ar- of ke- infor/ation shall be attached to the co.of the notice of sale .rovided to the /ort1a1or or trustor: *33AR' $F DE' I"F$R3ATI$" The attached notice of sale was sent to EtrustorF, in relation to Edescri.tion of the .ro.ert- that secures the /ort1a1e or deed of trust in defaultF. '$* ARE I" DEFA*!T *"DER A +Deed of trust or /ort1a1e, DATED GGGG. *"!E '$* TADE A&TI$" T$ %R$TE&T '$*R %R$%ERT', IT 3A' (E $!D AT A %*(!I& A!E. IF '$* "EED A" EI%!A"ATI$" $F THE "AT*RE $F THE %R$&EEDI"# A#AI" T '$*, '$* H$*!D &$"TA&T A !AC'ER. The total a/ount due in the notice of sale is GGGG. 'our .ro.ert- is scheduled to be sold on Einsert date and ti/e of saleF at Einsert location of saleF. However, the sale date shown on the attached notice of sale /a- be .ost.oned one or /ore ti/es b- the /ort1a1ee, beneficiar-, trustee, or a court, .ursuant to ection 898;1 of the &alifornia &ivil &ode. The law reBuires that infor/ation about trustee sale .ost.one/ents be /ade available to -ou and to the .ublic, as a courtes- to those not .resent at the sale. If -ou wish to learn whether -our sale date has been .ost.oned, and, if a..licable, the rescheduled ti/e and date for the sale of this .ro.ert-, -ou /a- call Etele.hone nu/ber for infor/ation re1ardin1 the trustee5s saleF or visit this Internet Ceb site EInternet Ceb site address for infor/ation re1ardin1 the sale of this .ro.ert-F, usin1 the file nu/ber assi1ned to this case Ecase file nu/berF. Infor/ation about .ost.one/ents that are vershort in duration or that occur close in ti/e to the scheduled sale /a- not i//ediatel- be reflected in the tele.hone infor/ation or on the Internet Ceb site. The best wa- to verif- .ost.one/ent infor/ation is to attend the scheduled sale. If -ou would like additional co.ies of this su//ar-, -ou /a- obtain the/ bcallin1 Einsert tele.hone nu/berF. +e, Failure to .rovide these su//aries to the /ort1a1or or trustor shall have the sa/e effect as if the notice of default or notice of sale were inco/.lete or not .rovided. +f, This section sets forth a reBuire/ent for translation in lan1ua1es other than En1lish, and a docu/ent co/.l-in1 with the .rovisions of this section /a- be recorded .ursuant to subdivision +b, of ection 8>89: of the #overn/ent &ode. A docu/ent that co/.lies with this section shall not be reAected for recordation on the 1round that so/e .art of the docu/ent is in a lan1ua1e other than En1lish.
(Added by Stats. 2012, Ch. &&6, Sec. 1. Effective an!a"y 1, 201#.)

292#.4. +a, The .ur.ose of the act that added this section is to ensure that, as .art of the nonAudicial foreclosure .rocess, borrowers are considered for, and have a /eanin1ful o..ortunit- to obtain, available loss /iti1ation o.tions, if an-, offered b- or throu1h the borrower5s /ort1a1e servicer, such as loan /odifications or other alternatives to foreclosure. "othin1 in the act that added this section, however, shall be inter.reted to reBuire a .articular result of that .rocess. +b, "othin1 in this article obviates or su.ersedes the obli1ations of the si1natories to the consent Aud1/ent entered in the case entitled *nited tates of A/erica et al. v. (ank of A/erica &or.oration et al., filed in the *nited tates District &ourt for the District of &olu/bia, case nu/ber 7:78J cvJ??:=7 R3&.
(Added by Stats. 2012, Ch. 86, Sec. #. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

292#.4. +a, The .ur.ose of the act that added this section is to ensure that, as .art of the nonAudicial foreclosure .rocess, borrowers are considered for, and have a /eanin1ful o..ortunit- to obtain, available loss /iti1ation o.tions, if an-, offered b- or throu1h the borrower5s /ort1a1e servicer, such as loan /odifications or other alternatives to foreclosure. "othin1 in the act that added this section, however, shall be inter.reted to reBuire a .articular result of that .rocess. +b, "othin1 in this article obviates or su.ersedes the obli1ations of the si1natories to the consent Aud1/ent entered in the case entitled *nited tates of A/erica et al. v. (ank of A/erica &or.oration et al., filed in the *nited tates District &ourt for the District of &olu/bia, case nu/ber 7:78J cvJ??:=7 R3&.
(Added by Stats. 2012, Ch. 87, Sec. #. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 86.)

292#.". +a, +7, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent /a- not record a notice of default .ursuant to ection 898; until both of the followin1: +A, Either :? da-s after initial contact is /ade as reBuired b- .ara1ra.h +8, or :? da-s after satisf-in1 the due dili1ence reBuire/ents as described in subdivision +e,. +(, The /ort1a1e servicer co/.lies with .ara1ra.h +7, of subdivision +a, of ection 898;.7@, if the borrower has .rovided a co/.lete a..lication as defined in subdivision +d, of ection 898;.7@. +8, A /ort1a1e servicer shall contact the borrower in .erson or b- tele.hone in order to assess the borrower5s financial situation and e0.lore o.tions for

the borrower to avoid foreclosure. Durin1 the initial contact, the /ort1a1e servicer shall advise the borrower that he or she has the ri1ht to reBuest a subseBuent /eetin1 and, if reBuested, the /ort1a1e servicer shall schedule the /eetin1 to occur within 7; da-s. The assess/ent of the borrower5s financial situation and discussion of o.tions /a- occur durin1 the first contact, or at the subseBuent /eetin1 scheduled for that .ur.ose. In either case, the borrower shall be .rovided the tollJfree tele.hone nu/ber /ade available b- the *nited tates De.art/ent of Housin1 and *rban Develo./ent +H*D, to find a H*DJcertified housin1 counselin1 a1enc-. An/eetin1 /a- occur tele.honicall-. +b, A notice of default recorded .ursuant to ection 898; shall include a declaration that the /ort1a1e servicer has contacted the borrower, has tried with due dili1ence to contact the borrower as reBuired b- this section, or that no contact was reBuired because the individual did not /eet the definition of 2borrower4 .ursuant to subdivision +c, of ection 898?.<. +c, A /ort1a1e servicer5s loss /iti1ation .ersonnel /a- .artici.ate btele.hone durin1 an- contact reBuired b- this section. +d, A borrower /a- desi1nate, with consent 1iven in writin1, a H*DJcertified housin1 counselin1 a1enc-, attorne-, or other advisor to discuss with the /ort1a1e servicer, on the borrower5s behalf, the borrower5s financial situation and o.tions for the borrower to avoid foreclosure. That contact /ade at the direction of the borrower shall satisf- the contact reBuire/ents of .ara1ra.h +8, of subdivision +a,. An- loan /odification or workout .lan offered at the /eetin1 b- the /ort1a1e servicer is subAect to a..roval b- the borrower. +e, A notice of default /a- be recorded .ursuant to ection 898; when a /ort1a1e servicer has not contacted a borrower as reBuired b- .ara1ra.h +8, of subdivision +a, .rovided that the failure to contact the borrower occurred des.ite the due dili1ence of the /ort1a1e servicer. For .ur.oses of this section, 2due dili1ence4 shall reBuire and /ean all of the followin1: +7, A /ort1a1e servicer shall first atte/.t to contact a borrower b- sendin1 a firstJclass letter that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. +8, +A, After the letter has been sent, the /ort1a1e servicer shall atte/.t to contact the borrower b- tele.hone at least three ti/es at different hours and on different da-s. Tele.hone calls shall be /ade to the .ri/ar- tele.hone nu/ber on file. +(, A /ort1a1e servicer /a- atte/.t to contact a borrower usin1 an auto/ated s-ste/ to dial borrowers, .rovided that, if the tele.hone call is answered, the call is connected to a live re.resentative of the /ort1a1e servicer. +&, A /ort1a1e servicer satisfies the tele.hone contact reBuire/ents of this .ara1ra.h if it deter/ines, after atte/.tin1 contact .ursuant to this .ara1ra.h, that the borrower5s .ri/ar- tele.hone nu/ber and secondartele.hone nu/ber or nu/bers on file, if an-, have been disconnected. +:, If the borrower does not res.ond within two weeks after the tele.hone call reBuire/ents of .ara1ra.h +8, have been satisfied, the /ort1a1e servicer shall then send a certified letter, with return recei.t reBuested.

+;, The /ort1a1e servicer shall .rovide a /eans for the borrower to contact it in a ti/el- /anner, includin1 a tollJfree tele.hone nu/ber that will .rovide access to a live re.resentative durin1 business hours. +<, The /ort1a1e servicer has .osted a .ro/inent link on the ho/e.a1e of its Internet Ceb site, if an-, to the followin1 infor/ation: +A, $.tions that /a- be available to borrowers who are unable to afford their /ort1a1e .a-/ents and who wish to avoid foreclosure, and instructions to borrowers advisin1 the/ on ste.s to take to e0.lore those o.tions. +(, A list of financial docu/ents borrowers should collect and be .re.ared to .resent to the /ort1a1e servicer when discussin1 o.tions for avoidin1 foreclosure. +&, A tollJfree tele.hone nu/ber for borrowers who wish to discuss o.tions for avoidin1 foreclosure with their /ort1a1e servicer. +D, The tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJ certified housin1 counselin1 a1enc-. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, This section shall a..l- onl- to entities described in subdivision +b, of ection 898;.7@. +h, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended by Stats. 2012, Ch. 87, Sec. 4. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See $ate" %(e"ative ve"si%ns added by Ch. 86 and Ch. 87.)

292#.". +a, +7, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent /a- not record a notice of default .ursuant to ection 898; until both of the followin1: +A, Either :? da-s after initial contact is /ade as reBuired b- .ara1ra.h +8, or :? da-s after satisf-in1 the due dili1ence reBuire/ents as described in subdivision +e,. +(, The /ort1a1e servicer co/.lies with subdivision +a, of ection 898;.77, if the borrower has .rovided a co/.lete a..lication as defined in subdivision +f, of ection 898;.77. +8, A /ort1a1e servicer shall contact the borrower in .erson or b- tele.hone in order to assess the borrower5s financial situation and e0.lore o.tions for the borrower to avoid foreclosure. Durin1 the initial contact, the /ort1a1e servicer shall advise the borrower that he or she has the ri1ht to reBuest a subseBuent /eetin1 and, if reBuested, the /ort1a1e servicer shall schedule the /eetin1 to occur within 7; da-s. The assess/ent of the borrower5s financial situation and discussion of o.tions /a- occur durin1 the first contact, or at the subseBuent /eetin1 scheduled for that .ur.ose. In either case, the borrower shall be .rovided the tollJfree tele.hone nu/ber /ade available b- the *nited tates De.art/ent of Housin1 and *rban

Develo./ent +H*D, to find a H*DJcertified housin1 counselin1 a1enc-. An/eetin1 /a- occur tele.honicall-. +b, A notice of default recorded .ursuant to ection 898; shall include a declaration that the /ort1a1e servicer has contacted the borrower, has tried with due dili1ence to contact the borrower as reBuired b- this section, or that no contact was reBuired because the individual did not /eet the definition of 2borrower4 .ursuant to subdivision +c, of ection 898?.<. +c, A /ort1a1e servicer5s loss /iti1ation .ersonnel /a- .artici.ate btele.hone durin1 an- contact reBuired b- this section. +d, A borrower /a- desi1nate, with consent 1iven in writin1, a H*DJcertified housin1 counselin1 a1enc-, attorne-, or other adviser to discuss with the /ort1a1e servicer, on the borrower5s behalf, the borrower5s financial situation and o.tions for the borrower to avoid foreclosure. That contact /ade at the direction of the borrower shall satisf- the contact reBuire/ents of .ara1ra.h +8, of subdivision +a,. An- loan /odification or workout .lan offered at the /eetin1 b- the /ort1a1e servicer is subAect to a..roval b- the borrower. +e, A notice of default /a- be recorded .ursuant to ection 898; when a /ort1a1e servicer has not contacted a borrower as reBuired b- .ara1ra.h +8, of subdivision +a, .rovided that the failure to contact the borrower occurred des.ite the due dili1ence of the /ort1a1e servicer. For .ur.oses of this section, 2due dili1ence4 shall reBuire and /ean all of the followin1: +7, A /ort1a1e servicer shall first atte/.t to contact a borrower b- sendin1 a firstJclass letter that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. +8, +A, After the letter has been sent, the /ort1a1e servicer shall atte/.t to contact the borrower b- tele.hone at least three ti/es at different hours and on different da-s. Tele.hone calls shall be /ade to the .ri/ar- tele.hone nu/ber on file. +(, A /ort1a1e servicer /a- atte/.t to contact a borrower usin1 an auto/ated s-ste/ to dial borrowers, .rovided that, if the tele.hone call is answered, the call is connected to a live re.resentative of the /ort1a1e servicer. +&, A /ort1a1e servicer satisfies the tele.hone contact reBuire/ents of this .ara1ra.h if it deter/ines, after atte/.tin1 contact .ursuant to this .ara1ra.h, that the borrower5s .ri/ar- tele.hone nu/ber and secondartele.hone nu/ber or nu/bers on file, if an-, have been disconnected. +:, If the borrower does not res.ond within two weeks after the tele.hone call reBuire/ents of .ara1ra.h +8, have been satisfied, the /ort1a1e servicer shall then send a certified letter, with return recei.t reBuested. +;, The /ort1a1e servicer shall .rovide a /eans for the borrower to contact it in a ti/el- /anner, includin1 a tollJfree tele.hone nu/ber that will .rovide access to a live re.resentative durin1 business hours. +<, The /ort1a1e servicer has .osted a .ro/inent link on the ho/e.a1e of its Internet Ceb site, if an-, to the followin1 infor/ation: +A, $.tions that /a- be available to borrowers who are unable to afford their /ort1a1e .a-/ents and who wish to avoid foreclosure, and instructions to borrowers advisin1 the/ on ste.s to take to e0.lore those o.tions.

+(, A list of financial docu/ents borrowers should collect and be .re.ared to .resent to the /ort1a1e servicer when discussin1 o.tions for avoidin1 foreclosure. +&, A tollJfree tele.hone nu/ber for borrowers who wish to discuss o.tions for avoidin1 foreclosure with their /ort1a1e servicer. +D, The tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJ certified housin1 counselin1 a1enc-. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
(Added by Stats. 2012, Ch. 86, Sec. &. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87.)

292#.". +a, +7, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent /a- not record a notice of default .ursuant to ection 898; until both of the followin1: +A, Either :? da-s after initial contact is /ade as reBuired b- .ara1ra.h +8, or :? da-s after satisf-in1 the due dili1ence reBuire/ents as described in subdivision +e,. +(, The /ort1a1e servicer co/.lies with subdivision +a, of ection 898;.77, if the borrower has .rovided a co/.lete a..lication as defined in subdivision +f, of ection 898;.77. +8, A /ort1a1e servicer shall contact the borrower in .erson or b- tele.hone in order to assess the borrower5s financial situation and e0.lore o.tions for the borrower to avoid foreclosure. Durin1 the initial contact, the /ort1a1e servicer shall advise the borrower that he or she has the ri1ht to reBuest a subseBuent /eetin1 and, if reBuested, the /ort1a1e servicer shall schedule the /eetin1 to occur within 7; da-s. The assess/ent of the borrower5s financial situation and discussion of o.tions /a- occur durin1 the first contact, or at the subseBuent /eetin1 scheduled for that .ur.ose. In either case, the borrower shall be .rovided the tollJfree tele.hone nu/ber /ade available b- the *nited tates De.art/ent of Housin1 and *rban Develo./ent +H*D, to find a H*DJcertified housin1 counselin1 a1enc-. An/eetin1 /a- occur tele.honicall-. +b, A notice of default recorded .ursuant to ection 898; shall include a declaration that the /ort1a1e servicer has contacted the borrower, has tried with due dili1ence to contact the borrower as reBuired b- this section, or that no contact was reBuired because the individual did not /eet the definition of 2borrower4 .ursuant to subdivision +c, of ection 898?.<. +c, A /ort1a1e servicer5s loss /iti1ation .ersonnel /a- .artici.ate btele.hone durin1 an- contact reBuired b- this section. +d, A borrower /a- desi1nate, with consent 1iven in writin1, a H*DJcertified housin1 counselin1 a1enc-, attorne-, or other advisor to discuss with the /ort1a1e servicer, on the borrower5s behalf, the borrower5s financial situation and o.tions for the borrower to avoid foreclosure. That contact

/ade at the direction of the borrower shall satisf- the contact reBuire/ents of .ara1ra.h +8, of subdivision +a,. An- loan /odification or workout .lan offered at the /eetin1 b- the /ort1a1e servicer is subAect to a..roval b- the borrower. +e, A notice of default /a- be recorded .ursuant to ection 898; when a /ort1a1e servicer has not contacted a borrower as reBuired b- .ara1ra.h +8, of subdivision +a, .rovided that the failure to contact the borrower occurred des.ite the due dili1ence of the /ort1a1e servicer. For .ur.oses of this section, 2due dili1ence4 shall reBuire and /ean all of the followin1: +7, A /ort1a1e servicer shall first atte/.t to contact a borrower b- sendin1 a firstJclass letter that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. +8, +A, After the letter has been sent, the /ort1a1e servicer shall atte/.t to contact the borrower b- tele.hone at least three ti/es at different hours and on different da-s. Tele.hone calls shall be /ade to the .ri/ar- tele.hone nu/ber on file. +(, A /ort1a1e servicer /a- atte/.t to contact a borrower usin1 an auto/ated s-ste/ to dial borrowers, .rovided that, if the tele.hone call is answered, the call is connected to a live re.resentative of the /ort1a1e servicer. +&, A /ort1a1e servicer satisfies the tele.hone contact reBuire/ents of this .ara1ra.h if it deter/ines, after atte/.tin1 contact .ursuant to this .ara1ra.h, that the borrower5s .ri/ar- tele.hone nu/ber and secondartele.hone nu/ber or nu/bers on file, if an-, have been disconnected. +:, If the borrower does not res.ond within two weeks after the tele.hone call reBuire/ents of .ara1ra.h +8, have been satisfied, the /ort1a1e servicer shall then send a certified letter, with return recei.t reBuested. +;, The /ort1a1e servicer shall .rovide a /eans for the borrower to contact it in a ti/el- /anner, includin1 a tollJfree tele.hone nu/ber that will .rovide access to a live re.resentative durin1 business hours. +<, The /ort1a1e servicer has .osted a .ro/inent link on the ho/e.a1e of its Internet Ceb site, if an-, to the followin1 infor/ation: +A, $.tions that /a- be available to borrowers who are unable to afford their /ort1a1e .a-/ents and who wish to avoid foreclosure, and instructions to borrowers advisin1 the/ on ste.s to take to e0.lore those o.tions. +(, A list of financial docu/ents borrowers should collect and be .re.ared to .resent to the /ort1a1e servicer when discussin1 o.tions for avoidin1 foreclosure. +&, A tollJfree tele.hone nu/ber for borrowers who wish to discuss o.tions for avoidin1 foreclosure with their /ort1a1e servicer. +D, The tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJ certified housin1 counselin1 a1enc-. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
('e(ea$ed (in Sec. 4) and added by Stats. 2012, Ch. 87, Sec. &. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86.)

292#."". +a, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent /a- not record a notice of default .ursuant to ection 898; until all of the followin1: +7, The /ort1a1e servicer has satisfied the reBuire/ents of .ara1ra.h +7, of subdivision +b,. +8, Either :? da-s after initial contact is /ade as reBuired b- .ara1ra.h +8, of subdivision +b, or :? da-s after satisf-in1 the due dili1ence reBuire/ents as described in subdivision +f,. +:, The /ort1a1e servicer co/.lies with subdivision +c, of ection 898:.=, if the borrower has .rovided a co/.lete a..lication as defined in subdivision +h, of ection 898:.=. +b, +7, As s.ecified in subdivision +a,, a /ort1a1e servicer shall send the followin1 infor/ation in writin1 to the borrower: +A, A state/ent that if the borrower is a service/e/ber or a de.endent of a service/e/ber, he or she /a- be entitled to certain .rotections under the federal ervice/e/bers &ivil Relief Act +<? *. .&. A..en. ec. <?7 et seB., re1ardin1 the service/e/ber5s interest rate and the risk of foreclosure, and counselin1 for covered service/e/bers that is available at a1encies such as 3ilitar- $ne ource and Ar/ed Forces !e1al Assistance. +(, A state/ent that the borrower /a- reBuest the followin1: +i, A co.- of the borrower5s .ro/issor- note or other evidence of indebtedness. +ii, A co.- of the borrower5s deed of trust or /ort1a1e. +iii, A co.- of an- assi1n/ent, if a..licable, of the borrower5s /ort1a1e or deed of trust reBuired to de/onstrate the ri1ht of the /ort1a1e servicer to foreclose. +iv, A co.- of the borrower5s .a-/ent histor- since the borrower was last less than =? da-s .ast due. +8, A /ort1a1e servicer shall contact the borrower in .erson or b- tele.hone in order to assess the borrower5s financial situation and e0.lore o.tions for the borrower to avoid foreclosure. Durin1 the initial contact, the /ort1a1e servicer shall advise the borrower that he or she has the ri1ht to reBuest a subseBuent /eetin1 and, if reBuested, the /ort1a1e servicer shall schedule the /eetin1 to occur within 7; da-s. The assess/ent of the borrower5s financial situation and discussion of o.tions /a- occur durin1 the first contact, or at the subseBuent /eetin1 scheduled for that .ur.ose. In either case, the borrower shall be .rovided the tollJfree tele.hone nu/ber /ade available b- the *nited tates De.art/ent of Housin1 and *rban Develo./ent +H*D, to find a H*DJcertified housin1 counselin1 a1enc-. An/eetin1 /a- occur tele.honicall-. +c, A notice of default recorded .ursuant to ection 898; shall include a declaration that the /ort1a1e servicer has contacted the borrower, has tried with due dili1ence to contact the borrower as reBuired b- this section, or that no contact was reBuired because the individual did not /eet the definition of 2borrower4 .ursuant to subdivision +c, of ection 898?.<.

+d, A /ort1a1e servicer5s loss /iti1ation .ersonnel /a- .artici.ate btele.hone durin1 an- contact reBuired b- this section. +e, A borrower /a- desi1nate, with consent 1iven in writin1, a H*DJcertified housin1 counselin1 a1enc-, attorne-, or other adviser to discuss with the /ort1a1e servicer, on the borrower5s behalf, the borrower5s financial situation and o.tions for the borrower to avoid foreclosure. That contact /ade at the direction of the borrower shall satisf- the contact reBuire/ents of .ara1ra.h +8, of subdivision +b,. An- foreclosure .revention alternative offered at the /eetin1 b- the /ort1a1e servicer is subAect to a..roval b- the borrower. +f, A notice of default /a- be recorded .ursuant to ection 898; when a /ort1a1e servicer has not contacted a borrower as reBuired b- .ara1ra.h +8, of subdivision +b,, .rovided that the failure to contact the borrower occurred des.ite the due dili1ence of the /ort1a1e servicer. For .ur.oses of this section, 2due dili1ence4 shall reBuire and /ean all of the followin1: +7, A /ort1a1e servicer shall first atte/.t to contact a borrower b- sendin1 a firstJclass letter that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. After the letter has been sent, the /ort1a1e servicer shall atte/.t to contact the borrower b- tele.hone at least three ti/es at different hours and on different da-s. Tele.hone calls shall be /ade to the .ri/ar- tele.hone nu/ber on +8, +A, file. +(, A /ort1a1e servicer /a- atte/.t to contact a borrower usin1 an auto/ated s-ste/ to dial borrowers, .rovided that, if the tele.hone call is answered, the call is connected to a live re.resentative of the /ort1a1e servicer. +&, A /ort1a1e servicer satisfies the tele.hone contact reBuire/ents of this .ara1ra.h if it deter/ines, after atte/.tin1 contact .ursuant to this .ara1ra.h, that the borrower5s .ri/ar- tele.hone nu/ber and secondartele.hone nu/ber or nu/bers on file, if an-, have been disconnected. +:, If the borrower does not res.ond within two weeks after the tele.hone call reBuire/ents of .ara1ra.h +8, have been satisfied, the /ort1a1e servicer shall then send a certified letter, with return recei.t reBuested, that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. +;, The /ort1a1e servicer shall .rovide a /eans for the borrower to contact it in a ti/el- /anner, includin1 a tollJfree tele.hone nu/ber that will .rovide access to a live re.resentative durin1 business hours. +<, The /ort1a1e servicer has .osted a .ro/inent link on the ho/e.a1e of its Internet Ceb site, if an-, to the followin1 infor/ation: +A, $.tions that /a- be available to borrowers who are unable to afford their /ort1a1e .a-/ents and who wish to avoid foreclosure, and instructions to borrowers advisin1 the/ on ste.s to take to e0.lore those o.tions. +(, A list of financial docu/ents borrowers should collect and be .re.ared to .resent to the /ort1a1e servicer when discussin1 o.tions for avoidin1 foreclosure. +&, A tollJfree tele.hone nu/ber for borrowers who wish to discuss o.tions for avoidin1 foreclosure with their /ort1a1e servicer.

+D, The tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJ certified housin1 counselin1 a1enc-. +1, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +h, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +i, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended (as added by Stats. 2012, Ch. 86, Sec. 6) by Stats. 201#, Ch. 76, Sec. 14. Effective an!a"y 1, 2014. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns.)

292#."". +a, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent /a- not record a notice of default .ursuant to ection 898; until all of the followin1: +7, The /ort1a1e servicer has satisfied the reBuire/ents of .ara1ra.h +7, of subdivision +b,. +8, Either :? da-s after initial contact is /ade as reBuired b- .ara1ra.h +8, of subdivision +b, or :? da-s after satisf-in1 the due dili1ence reBuire/ents as described in subdivision +f,. +:, The /ort1a1e servicer co/.lies with subdivision +c, of ection 898:.=, if the borrower has .rovided a co/.lete a..lication as defined in subdivision +h, of ection 898:.=. +b, +7, As s.ecified in subdivision +a,, a /ort1a1e servicer shall send the followin1 infor/ation in writin1 to the borrower: +A, A state/ent that if the borrower is a service/e/ber or a de.endent of a service/e/ber, he or she /a- be entitled to certain .rotections under the federal ervice/e/bers &ivil Relief Act +<? *. .&. A..en. ec. <?7 et seB., re1ardin1 the service/e/ber5s interest rate and the risk of foreclosure, and counselin1 for covered service/e/bers that is available at a1encies such as 3ilitar- $ne ource and Ar/ed Forces !e1al Assistance. +(, A state/ent that the borrower /a- reBuest the followin1: +i, A co.- of the borrower5s .ro/issor- note or other evidence of indebtedness. +ii, A co.- of the borrower5s deed of trust or /ort1a1e. +iii, A co.- of an- assi1n/ent, if a..licable, of the borrower5s /ort1a1e or deed of trust reBuired to de/onstrate the ri1ht of the /ort1a1e servicer to foreclose. +iv, A co.- of the borrower5s .a-/ent histor- since the borrower was last less than =? da-s .ast due. +8, A /ort1a1e servicer shall contact the borrower in .erson or b- tele.hone in order to assess the borrower5s financial situation and e0.lore o.tions for the borrower to avoid foreclosure. Durin1 the initial contact, the /ort1a1e servicer shall advise the borrower that he or she has the ri1ht to reBuest a subseBuent /eetin1 and, if reBuested, the /ort1a1e servicer shall schedule

the /eetin1 to occur within 7; da-s. The assess/ent of the borrower5s financial situation and discussion of o.tions /a- occur durin1 the first contact, or at the subseBuent /eetin1 scheduled for that .ur.ose. In either case, the borrower shall be .rovided the tollJfree tele.hone nu/ber /ade available b- the *nited tates De.art/ent of Housin1 and *rban Develo./ent +H*D, to find a H*DJcertified housin1 counselin1 a1enc-. An/eetin1 /a- occur tele.honicall-. +c, A notice of default recorded .ursuant to ection 898; shall include a declaration that the /ort1a1e servicer has contacted the borrower, has tried with due dili1ence to contact the borrower as reBuired b- this section, or that no contact was reBuired because the individual did not /eet the definition of 2borrower4 .ursuant to subdivision +c, of ection 898?.<. +d, A /ort1a1e servicer5s loss /iti1ation .ersonnel /a- .artici.ate btele.hone durin1 an- contact reBuired b- this section. +e, A borrower /a- desi1nate, with consent 1iven in writin1, a H*DJcertified housin1 counselin1 a1enc-, attorne-, or other adviser to discuss with the /ort1a1e servicer, on the borrower5s behalf, the borrower5s financial situation and o.tions for the borrower to avoid foreclosure. That contact /ade at the direction of the borrower shall satisf- the contact reBuire/ents of .ara1ra.h +8, of subdivision +b,. An- foreclosure .revention alternative offered at the /eetin1 b- the /ort1a1e servicer is subAect to a..roval b- the borrower. +f, A notice of default /a- be recorded .ursuant to ection 898; when a /ort1a1e servicer has not contacted a borrower as reBuired b- .ara1ra.h +8, of subdivision +b,, .rovided that the failure to contact the borrower occurred des.ite the due dili1ence of the /ort1a1e servicer. For .ur.oses of this section, 2due dili1ence4 shall reBuire and /ean all of the followin1: +7, A /ort1a1e servicer shall first atte/.t to contact a borrower b- sendin1 a firstJclass letter that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-. After the letter has been sent, the /ort1a1e servicer shall atte/.t to contact the borrower b- tele.hone at least three ti/es at different hours and on different da-s. Tele.hone calls shall be /ade to the .ri/ar- tele.hone nu/ber on file. +8, +A, +(, A /ort1a1e servicer /a- atte/.t to contact a borrower usin1 an auto/ated s-ste/ to dial borrowers, .rovided that, if the tele.hone call is answered, the call is connected to a live re.resentative of the /ort1a1e servicer. +&, A /ort1a1e servicer satisfies the tele.hone contact reBuire/ents of this .ara1ra.h if it deter/ines, after atte/.tin1 contact .ursuant to this .ara1ra.h, that the borrower5s .ri/ar- tele.hone nu/ber and secondartele.hone nu/ber or nu/bers on file, if an-, have been disconnected. +:, If the borrower does not res.ond within two weeks after the tele.hone call reBuire/ents of .ara1ra.h +8, have been satisfied, the /ort1a1e servicer shall then send a certified letter, with return recei.t reBuested, that includes the tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJcertified housin1 counselin1 a1enc-.

+;, The /ort1a1e servicer shall .rovide a /eans for the borrower to contact it in a ti/el- /anner, includin1 a tollJfree tele.hone nu/ber that will .rovide access to a live re.resentative durin1 business hours. +<, The /ort1a1e servicer has .osted a .ro/inent link on the ho/e.a1e of its Internet Ceb site, if an-, to the followin1 infor/ation: +A, $.tions that /a- be available to borrowers who are unable to afford their /ort1a1e .a-/ents and who wish to avoid foreclosure, and instructions to borrowers advisin1 the/ on ste.s to take to e0.lore those o.tions. +(, A list of financial docu/ents borrowers should collect and be .re.ared to .resent to the /ort1a1e servicer when discussin1 o.tions for avoidin1 foreclosure. +&, A tollJfree tele.hone nu/ber for borrowers who wish to discuss o.tions for avoidin1 foreclosure with their /ort1a1e servicer. +D, The tollJfree tele.hone nu/ber /ade available b- H*D to find a H*DJ certified housin1 counselin1 a1enc-. +1, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +h, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +i, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended (as added by Stats. 2012, Ch. 87) by Stats. 201#, Ch. 76, Sec. 1&. Effective an!a"y 1, 2014. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n (added by Stats. 2012, Ch. 86), as amended by Stats. 201#, Ch. 76, Sec. 14.)

292#.$. +a, The !e1islature finds and declares that an- dut- that /ort1a1e servicers /a- have to /a0i/i6e net .resent value under their .oolin1 and servicin1 a1ree/ents is owed to all .arties in a loan .ool, or to all investors under a .oolin1 and servicin1 a1ree/ent, not to an- .articular .art- in the loan .ool or investor under a .oolin1 and servicin1 a1ree/ent, and that a /ort1a1e servicer acts in the best interests of all .arties to the loan .ool or investors in the .oolin1 and servicin1 a1ree/ent if it a1rees to or i/.le/ents a loan /odification or workout .lan for which both of the followin1 a..l-: +7, The loan is in .a-/ent default, or .a-/ent default is reasonablforeseeable. +8, Antici.ated recover- under the loan /odification or workout .lan e0ceeds the antici.ated recover- throu1h foreclosure on a net .resent value basis. +b, It is the intent of the !e1islature that the /ort1a1e servicer offer the borrower a loan /odification or workout .lan if such a /odification or .lan is consistent with its contractual or other authorit-. +c, If a borrower sub/its a co/.lete a..lication for a first lien loan /odification offered b-, or throu1h, the borrower5s /ort1a1e servicer, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default or notice of sale, or conduct a trustee5s sale,

while the co/.lete first lien loan /odification a..lication is .endin1. A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default or notice of sale or conduct a trustee5s sale until an- of the followin1 occurs: +7, The /ort1a1e servicer /akes a written deter/ination that the borrower is not eli1ible for a first lien loan /odification, and an- a..eal .eriod .ursuant to subdivision +d, has e0.ired. +8, The borrower does not acce.t an offered first lien loan /odification within 7; da-s of the offer. +:, The borrower acce.ts a written first lien loan /odification, but defaults on, or otherwise breaches the borrower5s obli1ations under, the first lien loan /odification. +d, If the borrower5s a..lication for a first lien loan /odification is denied, the borrower shall have at least :? da-s fro/ the date of the written denial to a..eal the denial and to .rovide evidence that the /ort1a1e servicer5s deter/ination was in error. +e, If the borrower5s a..lication for a first lien loan /odification is denied, the /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default or, if a notice of default has alread- been recorded, record a notice of sale or conduct a trustee5s sale until the later of: +7, Thirt-Jone da-s after the borrower is notified in writin1 of the denial. +8, If the borrower a..eals the denial .ursuant to subdivision +d,, the later of 7< da-s after the denial of the a..eal or 7; da-s after a first lien loan /odification is offered after a..eal but declined b- the borrower, or, if a first lien loan /odification is offered and acce.ted after a..eal, the date on which the borrower fails to ti/el- sub/it the first .a-/ent or otherwise breaches the ter/s of the offer. +f, Followin1 the denial of a first lien loan /odification a..lication, the /ort1a1e servicer shall send a written notice to the borrower identif-in1 the reasons for denial, includin1 the followin1: +7, The a/ount of ti/e fro/ the date of the denial letter in which the borrower /a- reBuest an a..eal of the denial of the first lien loan /odification and instructions re1ardin1 how to a..eal the denial. +8, If the denial was based on investor disallowance, the s.ecific reasons for the investor disallowance. +:, If the denial is the result of a net .resent value calculation, the /onthl1ross inco/e and .ro.ert- value used to calculate the net .resent value and a state/ent that the borrower /a- obtain all of the in.uts used in the net .resent value calculation u.on written reBuest to the /ort1a1e servicer. +;, If a..licable, a findin1 that the borrower was .reviousl- offered a first lien loan /odification and failed to successfull- /ake .a-/ents under the ter/s of the /odified loan. +<, If a..licable, a descri.tion of other foreclosure .revention alternatives for which the borrower /a- be eli1ible, and a list of the ste.s the borrower /ust take in order to be considered for those o.tions. If the /ort1a1e servicer has alread- a..roved the borrower for another foreclosure .revention alternative, infor/ation necessar- to co/.lete the foreclosure .revention alternative.

+1, In order to /ini/i6e the risk of borrowers sub/ittin1 /ulti.le a..lications for first lien loan /odifications for the .ur.ose of dela-, the /ort1a1e servicer shall not be obli1ated to evaluate a..lications fro/ borrowers who have alread- been evaluated or afforded a fair o..ortunit- to be evaluated for a first lien loan /odification .rior to Kanuar- 7, 8?7:, or who have been evaluated or afforded a fair o..ortunit- to be evaluated consistent with the reBuire/ents of this section, unless there has been a /aterial chan1e in the borrower5s financial circu/stances since the date of the borrower5s .revious a..lication and that chan1e is docu/ented b- the borrower and sub/itted to the /ort1a1e servicer. +h, For .ur.oses of this section, an a..lication shall be dee/ed 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +i, ubdivisions +c, to +h,, inclusive, shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +A, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +k, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended by Stats. 2012, Ch. 87, Sec. 7. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See $ate" %(e"ative ve"si%ns added by Ch. 86 and Ch. 87.)

292#.$. +a, The !e1islature finds and declares that an- dut- /ort1a1e servicers /ahave to /a0i/i6e net .resent value under their .oolin1 and servicin1 a1ree/ents is owed to all .arties in a loan .ool, or to all investors under a .oolin1 and servicin1 a1ree/ent, not to an- .articular .art- in the loan .ool or investor under a .oolin1 and servicin1 a1ree/ent, and that a /ort1a1e servicer acts in the best interests of all .arties to the loan .ool or investors in the .oolin1 and servicin1 a1ree/ent if it a1rees to or i/.le/ents a loan /odification or workout .lan for which both of the followin1 a..l-: +7, The loan is in .a-/ent default, or .a-/ent default is reasonablforeseeable. +8, Antici.ated recover- under the loan /odification or workout .lan e0ceeds the antici.ated recover- throu1h foreclosure on a net .resent value basis. +b, It is the intent of the !e1islature that the /ort1a1e servicer offer the borrower a loan /odification or workout .lan if such a /odification or .lan is consistent with its contractual or other authorit-. +c, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
(Added by Stats. 2012, Ch. 86, Sec. 8. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87.)

292#.$. +a, The !e1islature finds and declares that an- dut- /ort1a1e servicers /ahave to /a0i/i6e net .resent value under their .oolin1 and servicin1 a1ree/ents is owed to all .arties in a loan .ool, or to all investors under a .oolin1 and servicin1 a1ree/ent, not to an- .articular .art- in the loan .ool or investor under a .oolin1 and servicin1 a1ree/ent, and that a /ort1a1e servicer acts in the best interests of all .arties to the loan .ool or investors in the .oolin1 and servicin1 a1ree/ent if it a1rees to or i/.le/ents a loan /odification or workout .lan for which both of the followin1 a..l-: +7, The loan is in .a-/ent default, or .a-/ent default is reasonablforeseeable. +8, Antici.ated recover- under the loan /odification or workout .lan e0ceeds the antici.ated recover- throu1h foreclosure on a net .resent value basis. +b, It is the intent of the !e1islature that the /ort1a1e servicer offer the borrower a loan /odification or workout .lan if such a /odification or .lan is consistent with its contractual or other authorit-. +c, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
('e(ea$ed (in Sec. 7) and added by Stats. 2012, Ch. 87, Sec. 8. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86.)

292#. . +a, *.on reBuest fro/ a borrower who reBuests a foreclosure .revention alternative, the /ort1a1e servicer shall .ro/.tl- establish a sin1le .oint of contact and .rovide to the borrower one or /ore direct /eans of co//unication with the sin1le .oint of contact. +b, The sin1le .oint of contact shall be res.onsible for doin1 all of the followin1: +7, &o//unicatin1 the .rocess b- which a borrower /a- a..l- for an available foreclosure .revention alternative and the deadline for an- reBuired sub/issions to be considered for these o.tions. +8, &oordinatin1 recei.t of all docu/ents associated with available foreclosure .revention alternatives and notif-in1 the borrower of an- /issin1 docu/ents necessar- to co/.lete the a..lication. +:, Havin1 access to current infor/ation and .ersonnel sufficient to ti/el-, accuratel-, and adeBuatel- infor/ the borrower of the current status of the foreclosure .revention alternative. +;, Ensurin1 that a borrower is considered for all foreclosure .revention alternatives offered b-, or throu1h, the /ort1a1e servicer, if an-. +<, Havin1 access to individuals with the abilit- and authorit- to sto. foreclosure .roceedin1s when necessar-. +c, The sin1le .oint of contact shall re/ain assi1ned to the borrower5s account until the /ort1a1e servicer deter/ines that all loss /iti1ation o.tions offered b-, or throu1h, the /ort1a1e servicer have been e0hausted or the borrower5s account beco/es current.

+d, The /ort1a1e servicer shall ensure that a sin1le .oint of contact refers and transfers a borrower to an a..ro.riate su.ervisor u.on reBuest of the borrower, if the sin1le .oint of contact has a su.ervisor. +e, For .ur.oses of this section, 2sin1le .oint of contact4 /eans an individual or tea/ of .ersonnel each of who/ has the abilit- and authorit- to .erfor/ the res.onsibilities described in subdivisions +b, to +d,, inclusive. The /ort1a1e servicer shall ensure that each /e/ber of the tea/ is knowled1eable about the borrower5s situation and current status in the alternatives to foreclosure .rocess. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, +7, This section shall not a..l- to a de.ositor- institution chartered under state or federal law, a .erson licensed .ursuant to Division 9 +co//encin1 with ection 88???, or Division 8? +co//encin1 with ection <????, of the Financial &ode, or a .erson licensed .ursuant to %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode, that, durin1 its i//ediatel- .recedin1 annual re.ortin1 .eriod, as established with its .ri/ar- re1ulator, foreclosed on 7>< or fewer residential real .ro.erties, containin1 no /ore than four dwellin1 units, that are located in &alifornia. +8, Cithin three /onths after the close of an- calendar -ear or annual re.ortin1 .eriod as established with its .ri/ar- re1ulator durin1 which an entit- or .erson described in .ara1ra.h +7, e0ceeds the threshold of 7>< s.ecified in .ara1ra.h +7,, that entit- shall notif- its .ri/ar- re1ulator, in a /anner acce.table to its .ri/ar- re1ulator, and an- /ort1a1or or trustor who is delinBuent on a residential /ort1a1e loan serviced b- that entit- of the date on which that entit- will be subAect to this section, which date shall be the first da- of the first /onth that is si0 /onths after the close of the calendar -ear or annual re.ortin1 .eriod durin1 which that entit- e0ceeded the threshold.
(Added by Stats. 2012, Ch. 86, Sec. 9. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

292#. . +a, *.on reBuest fro/ a borrower who reBuests a foreclosure .revention alternative, the /ort1a1e servicer shall .ro/.tl- establish a sin1le .oint of contact and .rovide to the borrower one or /ore direct /eans of co//unication with the sin1le .oint of contact. +b, The sin1le .oint of contact shall be res.onsible for doin1 all of the followin1: +7, &o//unicatin1 the .rocess b- which a borrower /a- a..l- for an available foreclosure .revention alternative and the deadline for an- reBuired sub/issions to be considered for these o.tions. +8, &oordinatin1 recei.t of all docu/ents associated with available foreclosure .revention alternatives and notif-in1 the borrower of an- /issin1 docu/ents necessar- to co/.lete the a..lication.

+:, Havin1 access to current infor/ation and .ersonnel sufficient to ti/el-, accuratel-, and adeBuatel- infor/ the borrower of the current status of the foreclosure .revention alternative. +;, Ensurin1 that a borrower is considered for all foreclosure .revention alternatives offered b-, or throu1h, the /ort1a1e servicer, if an-. +<, Havin1 access to individuals with the abilit- and authorit- to sto. foreclosure .roceedin1s when necessar-. +c, The sin1le .oint of contact shall re/ain assi1ned to the borrower5s account until the /ort1a1e servicer deter/ines that all loss /iti1ation o.tions offered b-, or throu1h, the /ort1a1e servicer have been e0hausted or the borrower5s account beco/es current. +d, The /ort1a1e servicer shall ensure that a sin1le .oint of contact refers and transfers a borrower to an a..ro.riate su.ervisor u.on reBuest of the borrower, if the sin1le .oint of contact has a su.ervisor. +e, For .ur.oses of this section, 2sin1le .oint of contact4 /eans an individual or tea/ of .ersonnel each of who/ has the abilit- and authorit- to .erfor/ the res.onsibilities described in subdivisions +b, to +d,, inclusive. The /ort1a1e servicer shall ensure that each /e/ber of the tea/ is knowled1eable about the borrower5s situation and current status in the alternatives to foreclosure .rocess. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, +7, This section shall not a..l- to a de.ositor- institution chartered under state or federal law, a .erson licensed .ursuant to Division 9 +co//encin1 with ection 88???, or Division 8? +co//encin1 with ection <????, of the Financial &ode, or a .erson licensed .ursuant to %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode, that, durin1 its i//ediatel- .recedin1 annual re.ortin1 .eriod, as established with its .ri/ar- re1ulator, foreclosed on 7>< or fewer residential real .ro.erties, containin1 no /ore than four dwellin1 units, that are located in &alifornia. +8, Cithin three /onths after the close of an- calendar -ear or annual re.ortin1 .eriod as established with its .ri/ar- re1ulator durin1 which an entit- or .erson described in .ara1ra.h +7, e0ceeds the threshold of 7>< s.ecified in .ara1ra.h +7,, that entit- shall notif- its .ri/ar- re1ulator, in a /anner acce.table to its .ri/ar- re1ulator, and an- /ort1a1or or trustor who is delinBuent on a residential /ort1a1e loan serviced b- that entit- of the date on which that entit- will be subAect to this section, which date shall be the first da- of the first /onth that is si0 /onths after the close of the calendar -ear or annual re.ortin1 .eriod durin1 which that entit- e0ceeded the threshold.
(Added by Stats. 2012, Ch. 87, Sec. 9. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924. +a, Ever- transfer of an interest in .ro.ert-, other than in trust, /ade onlas a securit- for the .erfor/ance of another act, is to be dee/ed a /ort1a1e, e0ce.t when in the case of .ersonal .ro.ert- it is acco/.anied b-

actual chan1e of .ossession, in which case it is to be dee/ed a .led1e. Chere, b- a /ort1a1e created after Kul- 8>, 797>, of an- estate in real .ro.ert-, other than an estate at will or for -ears, less than two, or in antransfer in trust /ade after Kul- 8>, 797>, of a like estate to secure the .erfor/ance of an obli1ation, a .ower of sale is conferred u.on the /ort1a1ee, trustee, or an- other .erson, to be e0ercised after a breach of the obli1ation for which that /ort1a1e or transfer is a securit-, the .ower shall not be e0ercised e0ce.t where the /ort1a1e or transfer is /ade .ursuant to an order, Aud1/ent, or decree of a court of record, or to secure the .a-/ent of bonds or other evidences of indebtedness authori6ed or .er/itted to be issued b- the &o//issioner of &or.orations, or is /ade b- a .ublic utilit- subAect to the .rovisions of the %ublic *tilities Act, until all of the followin1 a..l-: +7, The trustee, /ort1a1ee, or beneficiar-, or an- of their authori6ed a1ents shall first file for record, in the office of the recorder of each count- wherein the /ort1a1ed or trust .ro.ert- or so/e .art or .arcel thereof is situated, a notice of default. That notice of default shall include all of the followin1: +A, A state/ent identif-in1 the /ort1a1e or deed of trust b- statin1 the na/e or na/es of the trustor or trustors and 1ivin1 the book and .a1e, or instru/ent nu/ber, if a..licable, where the /ort1a1e or deed of trust is recorded or a descri.tion of the /ort1a1ed or trust .ro.ert-. +(, A state/ent that a breach of the obli1ation for which the /ort1a1e or transfer in trust is securit- has occurred. +&, A state/ent settin1 forth the nature of each breach actuall- known to the beneficiar- and of his or her election to sell or cause to be sold the .ro.ertto satisf- that obli1ation and an- other obli1ation secured b- the deed of trust or /ort1a1e that is in default. +D, If the default is curable .ursuant to ection 898;c, the state/ent s.ecified in .ara1ra.h +7, of subdivision +b, of ection 898;c. +8, "ot less than three /onths shall ela.se fro/ the filin1 of the notice of default. +:, E0ce.t as .rovided in .ara1ra.h +;,, after the la.se of the three /onths described in .ara1ra.h +8,, the /ort1a1ee, trustee, or other .erson authori6ed to take the sale shall 1ive notice of sale, statin1 the ti/e and .lace thereof, in the /anner and for a ti/e not less than that set forth in ection 898;f. +;, "otwithstandin1 .ara1ra.h +:,, the /ort1a1ee, trustee, or other .erson authori6ed to take sale /a- record a notice of sale .ursuant to ection 898;f u. to five da-s before the la.se of the threeJ/onth .eriod described in .ara1ra.h +8,, .rovided that the date of sale is no earlier than three /onths and 8? da-s after the recordin1 of the notice of default. +<, *ntil Kanuar- 7, 8?7@, whenever a sale is .ost.oned for a .eriod of at least 7? business da-s .ursuant to ection 898;1, a /ort1a1ee, beneficiar-, or authori6ed a1ent shall .rovide written notice to a borrower re1ardin1 the new sale date and ti/e, within five business da-s followin1 the .ost.one/ent. Infor/ation .rovided .ursuant to this .ara1ra.h shall not constitute the .ublic declaration reBuired b- subdivision +d, of ection 898;1. Failure to co/.l- with this .ara1ra.h shall not invalidate an- sale

that would otherwise be valid under ection 898;f. This .ara1ra.h shall be ino.erative on Kanuar- 7, 8?7@. +=, "o entit- shall record or cause a notice of default to be recorded or otherwise initiate the foreclosure .rocess unless it is the holder of the beneficial interest under the /ort1a1e or deed of trust, the ori1inal trustee or the substituted trustee under the deed of trust, or the desi1nated a1ent of the holder of the beneficial interest. "o a1ent of the holder of the beneficial interest under the /ort1a1e or deed of trust, ori1inal trustee or substituted trustee under the deed of trust /a- record a notice of default or otherwise co//ence the foreclosure .rocess e0ce.t when actin1 within the sco.e of authorit- desi1nated b- the holder of the beneficial interest. +b, In .erfor/in1 acts reBuired b- this article, the trustee shall incur no liabilit- for an- 1ood faith error resultin1 fro/ reliance on infor/ation .rovided in 1ood faith b- the beneficiar- re1ardin1 the nature and the a/ount of the default under the secured obli1ation, deed of trust, or /ort1a1e. In .erfor/in1 the acts reBuired b- this article, a trustee shall not be subAect to Title 7.=c +co//encin1 with ection 7>@@, of %art ;. +c, A recital in the deed e0ecuted .ursuant to the .ower of sale of co/.liance with all reBuire/ents of law re1ardin1 the /ailin1 of co.ies of notices or the .ublication of a co.- of the notice of default or the .ersonal deliver- of the co.- of the notice of default or the .ostin1 of co.ies of the notice of sale or the .ublication of a co.- thereof shall constitute .ri/a facie evidence of co/.liance with these reBuire/ents and conclusive evidence thereof in favor of bona fide .urchasers and encu/brancers for value and without notice. +d, All of the followin1 shall constitute .rivile1ed co//unications .ursuant to ection ;>: +7, The /ailin1, .ublication, and deliver- of notices as reBuired b- this section. +8, %erfor/ance of the .rocedures set forth in this article. +:, %erfor/ance of the functions and .rocedures set forth in this article if those functions and .rocedures are necessar- to carr- out the duties described in ections >89.?;?, >89.?<?, and >89.?@? of the &ode of &ivil %rocedure. +e, There is a rebuttable .resu/.tion that the beneficiar- actuall- knew of all un.aid loan .a-/ents on the obli1ation owed to the beneficiar- and secured b- the deed of trust or /ort1a1e subAect to the notice of default. However, the failure to include an actuall- known default shall not invalidate the notice of sale and the beneficiar- shall not be .recluded fro/ assertin1 a clai/ to this o/itted default or defaults in a se.arate notice of default. +f, Cith res.ect to residential real .ro.ert- containin1 no /ore than four dwellin1 units, a se.arate docu/ent containin1 a su//ar- of the notice of default infor/ation in En1lish and the lan1ua1es described in ection 7=:8 shall be attached to the notice of default .rovided to the /ort1a1or or trustor .ursuant to ection 898:.:.
(Amended (as amended by Stats. 2010, Ch. 180, Sec. 1) by Stats. 2012, Ch. &&6, Sec. 2.&. Effective an!a"y 1, 201#.)

2924.1. +a, "otwithstandin1 an- other law, the transfer, followin1 the sale, of .ro.ert- in a co//on interest develo./ent, as defined b- ection 7:<7, e0ecuted under the .ower of sale contained in an- deed of trust or /ort1a1e, shall be recorded within :? da-s after the date of sale in the office of the count- recorder where the .ro.ert- or a .ortion of the .ro.ert- is located. +b, An- failure to co/.l- with the .rovisions of this section shall not affect the validit- of a trustee5s sale or a sale in favor of a bona fide .urchaser.
(Added by Stats. 2012, Ch. 2&&, Sec. 1. Effective an!a"y 1, 201#.)

2924.#. +a, E0ce.t as .rovided in subdivisions +b, and +c,, a .erson who has undertaken as an a1ent of a /ort1a1ee, beneficiar-, or owner of a .ro/issor- note secured directl- or collaterall- b- a /ort1a1e or deed of trust on real .ro.ert- or an estate for -ears therein, to /ake collections of .a-/ents fro/ an obli1or under the note, shall /ail the followin1 notices, .osta1e .re.aid, to each /ort1a1ee, beneficiar- or owner for who/ the a1ent has a1reed to /ake collections fro/ the obli1or under the note: +7, A co.- of the notice of default filed in the office of the count- recorder .ursuant to ection 898; on account of a breach of obli1ation under the .ro/issor- note on which the a1ent has a1reed to /ake collections of .a-/ents, within 7< da-s after recordation. +8, "otice that a notice of default has been recorded .ursuant to ection 898; on account of a breach of an obli1ation secured b- a /ort1a1e or deed of trust a1ainst the sa/e .ro.ert- or estate for -ears therein havin1 .rioritover the /ort1a1e or deed of trust securin1 the obli1ation described in .ara1ra.h +7,, within 7< da-s after recordation or within three business da-s after the a1ent receives the infor/ation, whichever is later. +:, "otice of the ti/e and .lace scheduled for the sale of the real .ro.ert- or estate for -ears therein .ursuant to ection 898;f under a .ower of sale in a /ort1a1e or deed of trust securin1 an obli1ation described in .ara1ra.hs +7, or +8,, not less than 7< da-s before the scheduled date of the sale or not later than the ne0t business da- after the a1ent receives the infor/ation, whichever is later. +b, An a1ent who has undertaken to /ake collections on behalf of /ort1a1ees, beneficiaries or owners of .ro/issor- notes secured b/ort1a1es or deeds of trust on real .ro.ert- or an estate for -ears therein shall not be reBuired to co/.l- with the .rovisions of subdivision +a, with res.ect to a /ort1a1ee, beneficiar- or owner who is entitled to receive notice .ursuant to subdivision +c, of ection 898;b or for who/ a reBuest for notice has been recorded .ursuant to subdivision +b, of ection 898;b if the a1ent reasonabl- believes that the address of the /ort1a1ee, beneficiar-, or owner described in ection 898;b is the current business or residence address of that .erson.

+c, An a1ent who has undertaken to /ake collections on behalf of /ort1a1ees, beneficiaries or owners of .ro/issor- notes secured b/ort1a1es or deeds of trust on real .ro.ert- or an estate for -ears therein shall not be reBuired to co/.l- with the .rovisions of .ara1ra.h +7, or +8, of subdivision +a, if the a1ent knows or reasonabl- believes that the default has alread- been cured b- or on behalf of the obli1or. +d, An- failure to co/.l- with the .rovisions of this section shall not affect the validit- of a sale in favor of a bona fide .urchaser or the ri1hts of an encu/brancer for value and without notice.
(Amended by Stats. 1998, Ch. 9#2, Sec. 10. Effective an!a"y 1, 1999.)

2924.". "o clause in an- deed of trust or /ort1a1e on .ro.ert- containin1 four or fewer residential units or on which four or fewer residential units are to be constructed or in an- obli1ation secured b- an- deed of trust or /ort1a1e on .ro.ert- containin1 four or fewer residential units or on which four or fewer residential units are to be constructed that .rovides for the acceleration of the due date of the obli1ation u.on the sale, conve-ance, alienation, lease, succession, assi1n/ent or other transfer of the .ro.ert- subAect to the deed of trust or /ort1a1e shall be valid unless the clause is set forth, in its entiret- in both the bod- of the deed of trust or /ort1a1e and the .ro/issor- note or other docu/ent evidencin1 the secured obli1ation. This section shall a..l- to all such deeds of trust, /ort1a1es, and obli1ations secured thereb- e0ecuted on or after Kul- 7, 79>8.
(Amended by Stats. 1972, Ch. 216.)

2924.$. +a, An obli1ee /a- not accelerate the /aturit- date of the .rinci.al and accrued interest on an- loan secured b- a /ort1a1e or deed of trust on residential real .ro.ert- solel- b- reason of an- one or /ore of the followin1 transfers in the title to the real .ro.ert-: +7, A transfer resultin1 fro/ the death of an obli1or where the transfer is to the s.ouse who is also an obli1or. +8, A transfer b- an obli1or where the s.ouse beco/es a coowner of the .ro.ert-. +:, A transfer resultin1 fro/ a decree of dissolution of the /arria1e or le1al se.aration or fro/ a .ro.ert- settle/ent a1ree/ent incidental to such a decree which reBuires the obli1or to continue to /ake the loan .a-/ents bwhich a s.ouse who is an obli1or beco/es the sole owner of the .ro.ert-. +;, A transfer b- an obli1or or obli1ors into an inter vivos trust in which the obli1or or obli1ors are beneficiaries. +<, uch real .ro.ert- or an- .ortion thereof is /ade subAect to a Aunior encu/brance or lien. +b, An- waiver of the .rovisions of this section b- an obli1or is void and unenforceable and is contrar- to .ublic .olic-.

+c, For the .ur.oses of this section, 2residential real .ro.ert-4 /eans anreal .ro.ert- which contains at least one but not /ore than four housin1 units. +d, This act a..lies onl- to loans e0ecuted or refinanced on or after Kanuar7, 79>=.
(Added by Stats. 197&, Ch. 8&0.)

2924. . +a, The .rovisions of an- deed of trust or /ort1a1e on real .ro.ert- which authori6e an- beneficiar-, trustee, /ort1a1ee, or his or her a1ent or successor in interest, to accelerate the /aturit- date of the .rinci.al and interest on an- loan secured thereb- or to e0ercise an- .ower of sale or other re/ed- contained therein u.on the failure of the trustor or /ort1a1or to .a-, at the ti/es .rovided for under the ter/s of the deed of trust or /ort1a1e, an- ta0es, rents, assess/ents, or insurance .re/iu/s with res.ect to the .ro.ert- or the loan, or an- advances /ade b- the beneficiar-, /ort1a1ee, or his or her a1ent or successor in interest shall be enforceable whether or not i/.air/ent of the securit- interest in the .ro.ert- has resulted fro/ the failure of the trustor or /ort1a1or to .a- the ta0es, rents, assess/ents, insurance .re/iu/s, or advances. +b, The .rovisions of an- deed of trust or /ort1a1e on real .ro.ert- which authori6e an- beneficiar-, trustee, /ort1a1ee, or his or her a1ent or successor in interest, to receive and control the disburse/ent of the .roceeds of an- .olic- of fire, flood, or other ha6ard insurance res.ectin1 the .ro.ert- shall be enforceable whether or not i/.air/ent of the securitinterest in the .ro.ert- has resulted fro/ the event that caused the .roceeds of the insurance .olic- to beco/e .a-able.
(Added by Stats. 1988, Ch. 179, Sec. 2.)

2924.%. +a, +7, *.on .ostin1 a notice of sale .ursuant to ection 898;f, a trustee or authori6ed a1ent shall also .ost the followin1 notice, in the /anner reBuired for .ostin1 the notice of sale on the .ro.ert- to be sold, and a /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent, concurrentl- with the /ailin1 of the notice of sale .ursuant to ection 898;b, shall send b- firstJclass /ail in an envelo.e addressed to the 2Resident of .ro.ert- subAect to foreclosure sale4 the followin1 notice in En1lish and the lan1ua1es described in ection 7=:8: Foreclosure .rocess has be1un on this .ro.ert-, which /a- affect -our ri1ht to continue to live in this .ro.ert-. Twent- da-s or /ore after the date of this notice, this .ro.ert- /a- be sold at foreclosure. If -ou are rentin1 this .ro.ert-, the new .ro.ert- owner /a- either 1ive -ou a new lease or rental a1ree/ent or .rovide -ou with a 9?Jda- eviction notice. 'ou /a- have a ri1ht to sta- in -our ho/e for lon1er than 9? da-s. If -ou have a fi0edJter/

lease, the new owner /ust honor the lease unless the new owner will occu.the .ro.ert- as a .ri/ar- residence or in other li/ited circu/stances. Also, in so/e cases and in so/e cities with a 2Aust cause for eviction4 law, -ou /a- not have to /ove at all. All ri1hts and obli1ations under -our lease or tenanc-, includin1 -our obli1ation to .a- rent, will continue after the foreclosure sale. 'ou /a- wish to contact a law-er or -our local le1al aid office or housin1 counselin1 a1enc- to discuss an- ri1hts -ou /a- have. +8, The a/end/ents to the notice in this subdivision /ade b- the act that added this .ara1ra.h shall beco/e o.erative on 3arch 7, 8?7:, or =? da-s followin1 .ostin1 of a dated notice incor.oratin1 those a/end/ents on the De.art/ent of &onsu/er Affairs Internet Ceb site, whichever date is later. +b, It is an infraction to tear down the notice described in subdivision +a, within >8 hours of .ostin1. )iolators shall be subAect to a fine of one hundred dollars +L7??,. +c, The De.art/ent of &onsu/er Affairs shall /ake available translations of the notice described in subdivision +a, which /a- be used b- a /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent to satisf- the reBuire/ents of this section. +d, This section shall onl- a..l- to loans secured b- residential real .ro.ert-, and if the billin1 address for the /ort1a1e note is different than the .ro.ertaddress. +e, This section shall re/ain in effect onl- until Dece/ber :7, 8?79, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Dece/ber :7, 8?79, deletes or e0tends that date.
(Amended by Stats. 201#, Ch. 76, Sec. 16. Effective an!a"y 1, 2014. 'e(ea$ed as %f *ecembe" #1, 2019, by its %)n ("%visi%ns.)

2924.%". +a, Ever- landlord who offers for rent a sin1leJfa/il- dwellin1, or a /ultifa/il- dwellin1 not e0ceedin1 four units, and who has received a notice of default that has not been rescinded with res.ect to a /ort1a1e or deed of trust secured b- that .ro.ert- shall disclose the notice of default in writin1 to an- .ros.ective tenant .rior to e0ecutin1 a lease a1ree/ent for the .ro.ertsubAect to the notice. +b, A violation of subdivision +a, shall void the lease at the election of the tenant and shall entitle the tenant to recover- of one /onth5s rent or twice the actual da/a1es, whichever is 1reater, and all .re.aid rent fro/ the landlord who received the notice of default, in addition to an- other re/edthat the law /a- .rovide. +c, In lieu of the re/edies in subdivision +b,, if the tenant elects not to ter/inate the lease and the foreclosure sale has not occurred, the tenant /a- elect to deduct a total a/ount eBual to one /onth5s rent fro/ future rent obli1ations owed the landlord who received the notice of default. +d, The written disclosure notice reBuired b- subdivision +a, shall be .rovided in En1lish and the lan1ua1es described in ection 7=:8 substantiall- in the followin1 for/:

The foreclosure .rocess has be1un on this .ro.ert-, and this .ro.ert- /abe sold at foreclosure. If -ou rent this .ro.ert-, and a foreclosure sale occurs, the sale /a- affect -our ri1ht to continue to live in this .ro.ert- in the future. 'our tenanc- /a- continue after the sale. The new owner /ust honor the lease unless the new owner will occu.- the .ro.ert- as a .ri/arresidence, or in other li/ited circu/stances. Also, in so/e cases and in so/e cities with a 2Aust cause for eviction4 law, -ou /a- not have to /ove at all. In order for the new owner to evict -ou, the new owner /ust .rovide -ou with at least 9? da-s5 written eviction notice in /ost cases. +e, A .ro.ert- /ana1er shall not be liable under this section for failure to .rovide the written disclosure notice in subdivision +d, unless the landlord has notified the .ro.ert- /ana1er of the notice of default and directed hi/ or her in writin1 to deliver the written disclosure, in which case the .ro.ert/ana1er shall be liable to the e0tent s.ecified in subdivision +b,. This subdivision shall not .reclude a landlord fro/ bein1 held liable when a tenant does not receive the written disclosure notice in subdivision +d,. +f, The ri1hts and re/edies .rovided b- this section are in addition to and inde.endent of an- other ri1hts and re/edies under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts and re/edies. +1, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. &66, Sec. 1. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns.)

2924.9. +a, *nless a borrower has .reviousl- e0hausted the first lien loan /odification .rocess offered b-, or throu1h, his or her /ort1a1e servicer described in ection 898:.=, within five business da-s after recordin1 a notice of default .ursuant to ection 898;, a /ort1a1e servicer that offers one or /ore foreclosure .revention alternatives shall send a written co//unication to the borrower that includes all of the followin1 infor/ation: +7, That the borrower /a- be evaluated for a foreclosure .revention alternative or, if a..licable, foreclosure .revention alternatives. +8, Chether an a..lication is reBuired to be sub/itted b- the borrower in order to be considered for a foreclosure .revention alternative. +:, The /eans and .rocess b- which a borrower /a- obtain an a..lication for a foreclosure .revention alternative. +b, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +c, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<.

+d, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 86, Sec. 12. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2924.9. +a, *nless a borrower has .reviousl- e0hausted the first lien loan /odification .rocess offered b-, or throu1h, his or her /ort1a1e servicer described in ection 898:.=, within five business da-s after recordin1 a notice of default .ursuant to ection 898;, a /ort1a1e servicer that offers one or /ore foreclosure .revention alternatives shall send a written co//unication to the borrower that includes all of the followin1 infor/ation: +7, That the borrower /a- be evaluated for a foreclosure .revention alternative or, if a..licable, foreclosure .revention alternatives. +8, Chether an a..lication is reBuired to be sub/itted b- the borrower in order to be considered for a foreclosure .revention alternative. +:, The /eans and .rocess b- which a borrower /a- obtain an a..lication for a foreclosure .revention alternative. +b, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +c, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +d, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 87, Sec. 12. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924.10. +a, Chen a borrower sub/its a co/.lete first lien /odification a..lication or an- docu/ent in connection with a first lien /odification a..lication, the /ort1a1e servicer shall .rovide written acknowled1/ent of the recei.t of the docu/entation within five business da-s of recei.t. In its initial acknowled1/ent of recei.t of the loan /odification a..lication, the /ort1a1e servicer shall include the followin1 infor/ation: +7, A descri.tion of the loan /odification .rocess, includin1 an esti/ate of when a decision on the loan /odification will be /ade after a co/.lete a..lication has been sub/itted b- the borrower and the len1th of ti/e the borrower will have to consider an offer of a loan /odification or other foreclosure .revention alternative. +8, An- deadlines, includin1 deadlines to sub/it /issin1 docu/entation, that would affect the .rocessin1 of a first lien loan /odification a..lication. +:, An- e0.iration dates for sub/itted docu/ents.

+;, An- deficienc- in the borrower5s first lien loan /odification a..lication. +b, For .ur.oses of this section, a borrower5s first lien loan /odification a..lication shall be dee/ed to be 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +c, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +d, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +e, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 86, Sec. 1#. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2924.10. +a, Chen a borrower sub/its a co/.lete first lien /odification a..lication or an- docu/ent in connection with a first lien /odification a..lication, the /ort1a1e servicer shall .rovide written acknowled1/ent of the recei.t of the docu/entation within five business da-s of recei.t. In its initial acknowled1/ent of recei.t of the loan /odification a..lication, the /ort1a1e servicer shall include the followin1 infor/ation: +7, A descri.tion of the loan /odification .rocess, includin1 an esti/ate of when a decision on the loan /odification will be /ade after a co/.lete a..lication has been sub/itted b- the borrower and the len1th of ti/e the borrower will have to consider an offer of a loan /odification or other foreclosure .revention alternative. +8, An- deadlines, includin1 deadlines to sub/it /issin1 docu/entation, that would affect the .rocessin1 of a first lien loan /odification a..lication. +:, An- e0.iration dates for sub/itted docu/ents. +;, An- deficienc- in the borrower5s first lien loan /odification a..lication. +b, For .ur.oses of this section, a borrower5s first lien loan /odification a..lication shall be dee/ed to be 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +c, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +d, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +e, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 87, Sec. 1#. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924.11. +a, If a foreclosure .revention alternative is a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +b, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +c, Chen a borrower acce.ts an offered first lien loan /odification or other foreclosure .revention alternative, the /ort1a1e servicer shall .rovide the borrower with a co.- of the full- e0ecuted loan /odification a1ree/ent or a1ree/ent evidencin1 the foreclosure .revention alternative followin1 recei.t of the e0ecuted co.- fro/ the borrower. +d, A /ort1a1ee, beneficiar-, or authori6ed a1ent shall record a rescission of a notice of default or cancel a .endin1 trustee5s sale, if a..licable, u.on the borrower e0ecutin1 a .er/anent foreclosure .revention alternative. In the case of a short sale, the rescission or cancellation of the .endin1 trustee5s sale shall occur when the short sale has been a..roved b- all .arties and .roof of funds or financin1 has been .rovided to the /ort1a1ee, beneficiar-, or authori6ed a1ent. +e, The /ort1a1e servicer shall not char1e an- a..lication, .rocessin1, or other fee for a first lien loan /odification or other foreclosure .revention alternative. +f, The /ort1a1e servicer shall not collect an- late fees for .eriods durin1 which a co/.lete first lien loan /odification a..lication is under consideration or a denial is bein1 a..ealed, the borrower is /akin1 ti/el/odification .a-/ents, or a foreclosure .revention alternative is bein1 evaluated or e0ercised. +1, If a borrower has been a..roved in writin1 for a first lien loan /odification or other foreclosure .revention alternative, and the servicin1 of that borrower5s loan is transferred or sold to another /ort1a1e servicer, the subseBuent /ort1a1e servicer shall continue to honor an- .reviousla..roved first lien loan /odification or other foreclosure .revention

alternative, in accordance with the .rovisions of the act that added this section. +h, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +i, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +A, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.

(Added by Stats. 2012, Ch. 86, Sec. 14. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 14. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.11. +a, If a foreclosure .revention alternative is a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +b, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +c, Chen a borrower acce.ts an offered first lien loan /odification or other foreclosure .revention alternative, the /ort1a1e servicer shall .rovide the borrower with a co.- of the full- e0ecuted loan /odification a1ree/ent or a1ree/ent evidencin1 the foreclosure .revention alternative followin1 recei.t of the e0ecuted co.- fro/ the borrower. +d, A /ort1a1ee, beneficiar-, or authori6ed a1ent shall record a rescission of a notice of default or cancel a .endin1 trustee5s sale, if a..licable, u.on the borrower e0ecutin1 a .er/anent foreclosure .revention alternative. In the case of a short sale, the rescission or cancellation of the .endin1 trustee5s sale shall occur when the short sale has been a..roved b- all .arties and .roof of funds or financin1 has been .rovided to the /ort1a1ee, beneficiar-, or authori6ed a1ent.

+e, The /ort1a1e servicer shall not char1e an- a..lication, .rocessin1, or other fee for a first lien loan /odification or other foreclosure .revention alternative. +f, The /ort1a1e servicer shall not collect an- late fees for .eriods durin1 which a co/.lete first lien loan /odification a..lication is under consideration or a denial is bein1 a..ealed, the borrower is /akin1 ti/el/odification .a-/ents, or a foreclosure .revention alternative is bein1 evaluated or e0ercised. +1, If a borrower has been a..roved in writin1 for a first lien loan /odification or other foreclosure .revention alternative, and the servicin1 of that borrower5s loan is transferred or sold to another /ort1a1e servicer, the subseBuent /ort1a1e servicer shall continue to honor an- .reviousla..roved first lien loan /odification or other foreclosure .revention alternative, in accordance with the .rovisions of the act that added this section. +h, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +i, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +A, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 87, Sec. 14. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 14. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.11. +a, If a borrower sub/its a co/.lete a..lication for a foreclosure .revention alternative offered b-, or throu1h, the borrower5s /ort1a1e servicer, a /ort1a1e servicer, trustee, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale while the co/.lete foreclosure .revention alternative a..lication is .endin1, and until the borrower has been .rovided with a written deter/ination b- the /ort1a1e servicer re1ardin1 that borrower5s eli1ibilit- for the reBuested foreclosure .revention alternative. +b, Followin1 the denial of a first lien loan /odification a..lication, the /ort1a1e servicer shall send a written notice to the borrower identif-in1 with s.ecificit- the reasons for the denial and shall include a state/ent that the borrower /a- obtain additional docu/entation su..ortin1 the denial decision u.on written reBuest to the /ort1a1e servicer. +c, If a foreclosure .revention alternative is a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan.

+8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +d, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +e, This section a..lies onl- to /ort1a1es or deeds of trust as described in ection 898;.7<. +f, For .ur.oses of this section, an a..lication shall be dee/ed 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +1, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
('e(ea$ed (in Sec. 14) and added by Stats. 2012, Ch. 86, Sec. 1&. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 1&.)

2924.11. +a, If a borrower sub/its a co/.lete a..lication for a foreclosure .revention alternative offered b-, or throu1h, the borrower5s /ort1a1e servicer, a /ort1a1e servicer, trustee, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale while the co/.lete foreclosure .revention alternative a..lication is .endin1, and until the borrower has been .rovided with a written deter/ination b- the /ort1a1e servicer re1ardin1 that borrower5s eli1ibilit- for the reBuested foreclosure .revention alternative. +b, Followin1 the denial of a first lien loan /odification a..lication, the /ort1a1e servicer shall send a written notice to the borrower identif-in1 with s.ecificit- the reasons for the denial and shall include a state/ent that the borrower /a- obtain additional docu/entation su..ortin1 the denial decision u.on written reBuest to the /ort1a1e servicer. +c, If a foreclosure .revention alternative is a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and

/ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +d, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +7, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +8, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +e, This section a..lies onl- to /ort1a1es or deeds of trust as described in ection 898;.7<. +f, For .ur.oses of this section, an a..lication shall be dee/ed 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +1, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
('e(ea$ed (in Sec. 14) and added by Stats. 2012, Ch. 87, Sec. 1&. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 1&.)

2924.12. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7>. +8, An- inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An enAoined entit- /a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> b- that /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent, the court /a- award the borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fift- thousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to

the recordation of a trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of a trustee5s deed u.on sale. +d, A violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> b- a .erson licensed b- the De.art/ent of &or.orations, De.art/ent of Financial Institutions, or De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, "o violation of this article shall affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> co//itted b- that thirdJ.art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, A si1nator- to a consent Aud1/ent entered in the case entitled *nited tates of A/erica et al. v. (ank of A/erica &or.oration et al., filed in the *nited tates District &ourt for the District of &olu/bia, case nu/ber 7:78J cvJ??:=7 R3&, that is in co/.liance with the relevant ter/s of the ettle/ent Ter/ heet of that consent Aud1/ent with res.ect to the borrower who brou1ht an action .ursuant to this section while the consent Aud1/ent is in effect shall have no liabilit- for a violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7>. +h, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law. +i, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or was awarded da/a1es .ursuant to this section. +A, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@. +k, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 86, Sec. 16. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 16. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.12. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7>. +8, An- inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An

enAoined entit- /a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> b- that /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent, the court /a- award the borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fift- thousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to the recordation of a trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of a trustee5s deed u.on sale. +d, A violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> b- a .erson licensed b- the De.art/ent of &or.orations, De.art/ent of Financial Institutions, or De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, "o violation of this article shall affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7> co//itted b- that thirdJ.art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, A si1nator- to a consent Aud1/ent entered in the case entitled *nited tates of A/erica et al. v. (ank of A/erica &or.oration et al., filed in the *nited tates District &ourt for the District of &olu/bia, case nu/ber 7:78J cvJ??:=7 R3&, that is in co/.liance with the relevant ter/s of the ettle/ent Ter/ heet of that consent Aud1/ent with res.ect to the borrower who brou1ht an action .ursuant to this section while the consent Aud1/ent is in effect shall have no liabilit- for a violation of ection 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, or 898;.7>. +h, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law. +i, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or was awarded da/a1es .ursuant to this section. +A, This section shall not a..l- to entities described in subdivision +b, of ection 898;.7@.

+k, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.

(Added by Stats. 2012, Ch. 87, Sec. 16. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 16. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.12. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<, 898:.>, 898;.77, or 898;.7>. +8, An- inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An enAoined entit- /a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<, 898:.>, 898;.77, or 898;.7> bthat /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent, the court /a- award the borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fift- thousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of the trustee5s deed u.on sale. +d, A violation of ection 898:.<, 898:.>, 898;.77, or 898;.7> b- a .erson licensed b- the De.art/ent of &or.orations, De.art/ent of Financial Institutions, or De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, "o violation of this article shall affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<, 898:.>, 898;.77, or 898;.7> co//itted b- that thirdJ.art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law.

+h, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or was awarded da/a1es .ursuant to this section. +i, This section shall beco/e o.erative on Kanuar- 7, 8?7@.

('e(ea$ed (in Sec. 16) and added by Stats. 2012, Ch. 86, Sec. 17. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 17.)

2924.12. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<, 898:.>, 898;.77, or 898;.7>. +8, An- inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An enAoined entit- /a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<, 898:.>, 898;.77, or 898;.7> bthat /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent, the court /a- award the borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fift- thousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of the trustee5s deed u.on sale. +d, A violation of ection 898:.<, 898:.>, 898;.77, or 898;.7> b- a .erson licensed b- the De.art/ent of &or.orations, De.art/ent of Financial Institutions, or De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, "o violation of this article shall affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<, 898:.>, 898;.77, or 898;.7> co//itted b- that thirdJ.art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures

under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law. +h, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or was awarded da/a1es .ursuant to this section. +i, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
('e(ea$ed (in Sec. 16) and added by Stats. 2012, Ch. 87, Sec. 17. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 17.)

2924.1". +a, *nless otherwise .rovided, .ara1ra.h +<, of subdivision +a, of ection 898;, and ections 898:.<, 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, and 898;.7@ shall a..l- onl- to first lien /ort1a1es or deeds of trust that are secured b- ownerJoccu.ied residential real .ro.ert- containin1 no /ore than four dwellin1 units. For these .ur.oses, 2ownerJoccu.ied4 /eans that the .ro.ert- is the .rinci.al residence of the borrower and is securit- for a loan /ade for .ersonal, fa/il-, or household .ur.oses. +b, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 86, Sec. 18. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 18. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.1". +a, *nless otherwise .rovided, .ara1ra.h +<, of subdivision +a, of ection 898;, and ections 898:.<, 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, and 898;.7@ shall a..l- onl- to first lien /ort1a1es or deeds of trust that are secured b- ownerJoccu.ied residential real .ro.ert- containin1 no /ore than four dwellin1 units. For these .ur.oses, 2ownerJoccu.ied4 /eans that the .ro.ert- is the .rinci.al residence of the borrower and is securit- for a loan /ade for .ersonal, fa/il-, or household .ur.oses. +b, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 87, Sec. 18. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 18. See $ate" %(e"ative secti%ns added by Ch. 86 and Ch. 87.)

2924.1". +a, *nless otherwise .rovided, ections 898:.<, 898:.>, and 898;.77 shall a..l- onl- to first lien /ort1a1es or deeds of trust that are secured b-

ownerJoccu.ied residential real .ro.ert- containin1 no /ore than four dwellin1 units. For these .ur.oses, 2ownerJoccu.ied4 /eans that the .ro.ert- is the .rinci.al residence of the borrower and is securit- for a loan /ade for .ersonal, fa/il-, or household .ur.oses. +b, This section shall beco/e o.erative on Kanuar- 7, 8?7@.

('e(ea$ed (in Sec. 18) and added by Stats. 2012, Ch. 86, Sec. 19. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87, Sec. 19.)

2924.1". +a, *nless otherwise .rovided, ections 898:.<, 898:.>, and 898;.77 shall a..l- onl- to first lien /ort1a1es or deeds of trust that are secured bownerJoccu.ied residential real .ro.ert- containin1 no /ore than four dwellin1 units. For these .ur.oses, 2ownerJoccu.ied4 /eans that the .ro.ert- is the .rinci.al residence of the borrower and is securit- for a loan /ade for .ersonal, fa/il-, or household .ur.oses. +b, This section shall beco/e o.erative on Kanuar- 7, 8?7@.

('e(ea$ed (in Sec. 18) and added by Stats. 2012, Ch. 87, Sec. 19. Effective an!a"y 1, 201#. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86, Sec. 19.)

2924.1 . +a, A declaration recorded .ursuant to ection 898:.< or, until Kanuar- 7, 8?7@, .ursuant to ection 898:.<<, a notice of default, notice of sale, assi1n/ent of a deed of trust, or substitution of trustee recorded b- or on behalf of a /ort1a1e servicer in connection with a foreclosure subAect to the reBuire/ents of ection 898;, or a declaration or affidavit filed in an- court relative to a foreclosure .roceedin1 shall be accurate and co/.lete and su..orted b- co/.etent and reliable evidence. +b, (efore recordin1 or filin1 an- of the docu/ents described in subdivision +a,, a /ort1a1e servicer shall ensure that it has reviewed co/.etent and reliable evidence to substantiate the borrower5s default and the ri1ht to foreclose, includin1 the borrower5s loan status and loan infor/ation. +c, *ntil Kanuar- 7, 8?7@, an- /ort1a1e servicer that en1a1es in /ulti.le and re.eated uncorrected violations of subdivision +b, in recordin1 docu/ents or filin1 docu/ents in an- court relative to a foreclosure .roceedin1 shall be liable for a civil .enalt- of u. to seven thousand five hundred dollars +L>,<??, .er /ort1a1e or deed of trust in an action brou1ht b- a 1overn/ent entit- identified in ection 7>8?; of the (usiness and %rofessions &ode, or in an ad/inistrative .roceedin1 brou1ht b- the De.art/ent of &or.orations, the De.art/ent of Real Estate, or the De.art/ent of Financial Institutions a1ainst a res.ective licensee, in addition to an- other re/edies available to these entities. This subdivision shall be ino.erative on Kanuar- 7, 8?7@.

(Added by Stats. 2012, Ch. 86, Sec. 20. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2924.1 . +a, A declaration recorded .ursuant to ection 898:.< or, until Kanuar- 7, 8?7@, .ursuant to ection 898:.<<, a notice of default, notice of sale, assi1n/ent of a deed of trust, or substitution of trustee recorded b- or on behalf of a /ort1a1e servicer in connection with a foreclosure subAect to the reBuire/ents of ection 898;, or a declaration or affidavit filed in an- court relative to a foreclosure .roceedin1 shall be accurate and co/.lete and su..orted b- co/.etent and reliable evidence. +b, (efore recordin1 or filin1 an- of the docu/ents described in subdivision +a,, a /ort1a1e servicer shall ensure that it has reviewed co/.etent and reliable evidence to substantiate the borrower5s default and the ri1ht to foreclose, includin1 the borrower5s loan status and loan infor/ation. +c, *ntil Kanuar- 7, 8?7@, an- /ort1a1e servicer that en1a1es in /ulti.le and re.eated uncorrected violations of subdivision +b, in recordin1 docu/ents or filin1 docu/ents in an- court relative to a foreclosure .roceedin1 shall be liable for a civil .enalt- of u. to seven thousand five hundred dollars +L>,<??, .er /ort1a1e or deed of trust in an action brou1ht b- a 1overn/ent entit- identified in ection 7>8?; of the (usiness and %rofessions &ode, or in an ad/inistrative .roceedin1 brou1ht b- the De.art/ent of &or.orations, the De.art/ent of Real Estate, or the De.art/ent of Financial Institutions a1ainst a res.ective licensee, in addition to an- other re/edies available to these entities. This subdivision shall be ino.erative on Kanuar- 7, 8?7@.
(Added by Stats. 2012, Ch. 87, Sec. 20. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924.1%. +a, +7, If a borrower sub/its a co/.lete a..lication for a first lien loan /odification offered b-, or throu1h, the borrower5s /ort1a1e servicer, a /ort1a1e servicer, trustee, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not record a notice of default, notice of sale, or conduct a trustee5s sale while the co/.lete first lien loan /odification a..lication is .endin1, and until the borrower has been .rovided with a written deter/ination b- the /ort1a1e servicer re1ardin1 that borrower5s eli1ibilit- for the reBuested loan /odification. +8, If a foreclosure .revention alternative has been a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +A, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan.

+(, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +:, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +A, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +(, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +b, This section shall a..l- onl- to a de.ositor- institution chartered under state or federal law, a .erson licensed .ursuant to Division 9 +co//encin1 with ection 88???, or Division 8? +co//encin1 with ection <????, of the Financial &ode, or a .erson licensed .ursuant to %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode, that, durin1 its i//ediatel- .recedin1 annual re.ortin1 .eriod, as established with its .ri/ar- re1ulator, foreclosed on 7>< or fewer residential real .ro.erties, containin1 no /ore than four dwellin1 units, that are located in &alifornia. +c, Cithin three /onths after the close of an- calendar -ear or annual re.ortin1 .eriod as established with its .ri/ar- re1ulator durin1 which an entit- or .erson described in subdivision +b, e0ceeds the threshold of 7>< s.ecified in subdivision +b,, that entit- shall notif- its .ri/ar- re1ulator, in a /anner acce.table to its .ri/ar- re1ulator, and an- /ort1a1or or trustor who is delinBuent on a residential /ort1a1e loan serviced b- that entit- of the date on which that entit- will be subAect to ections 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, and 898;.78, which date shall be the first da- of the first /onth that is si0 /onths after the close of the calendar -ear or annual re.ortin1 .eriod durin1 which that entit- e0ceeded the threshold. +d, For .ur.oses of this section, an a..lication shall be dee/ed 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +e, If a borrower has been a..roved in writin1 for a first lien loan /odification or other foreclosure .revention alternative, and the servicin1 of the borrower5s loan is transferred or sold to another /ort1a1e servicer, the subseBuent /ort1a1e servicer shall continue to honor an- .reviousla..roved first lien loan /odification or other foreclosure .revention alternative, in accordance with the .rovisions of the act that added this section. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<.

+1, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.

(Added by Stats. 2012, Ch. 86, Sec. 21. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2924.1%. +a, +7, If a borrower sub/its a co/.lete a..lication for a first lien loan /odification offered b-, or throu1h, the borrower5s /ort1a1e servicer, a /ort1a1e servicer, trustee, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not record a notice of default, notice of sale, or conduct a trustee5s sale while the co/.lete first lien loan /odification a..lication is .endin1, and until the borrower has been .rovided with a written deter/ination b- the /ort1a1e servicer re1ardin1 that borrower5s eli1ibilit- for the reBuested loan /odification. +8, If a foreclosure .revention alternative has been a..roved in writin1 .rior to the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of default under either of the followin1 circu/stances: +A, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +(, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +:, If a foreclosure .revention alternative is a..roved in writin1 after the recordation of a notice of default, a /ort1a1e servicer, /ort1a1ee, trustee, beneficiar-, or authori6ed a1ent shall not record a notice of sale or conduct a trustee5s sale under either of the followin1 circu/stances: +A, The borrower is in co/.liance with the ter/s of a written trial or .er/anent loan /odification, forbearance, or re.a-/ent .lan. +(, A foreclosure .revention alternative has been a..roved in writin1 b- all .arties, includin1, for e0a/.le, the first lien investor, Aunior lienholder, and /ort1a1e insurer, as a..licable, and .roof of funds or financin1 has been .rovided to the servicer. +b, This section shall a..l- onl- to a de.ositor- institution chartered under state or federal law, a .erson licensed .ursuant to Division 9 +co//encin1 with ection 88???, or Division 8? +co//encin1 with ection <????, of the Financial &ode, or a .erson licensed .ursuant to %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode, that, durin1 its i//ediatel- .recedin1 annual re.ortin1 .eriod, as established with its .ri/ar- re1ulator, foreclosed on 7>< or fewer residential real .ro.erties, containin1 no /ore than four dwellin1 units, that are located in &alifornia. +c, Cithin three /onths after the close of an- calendar -ear or annual re.ortin1 .eriod as established with its .ri/ar- re1ulator durin1 which an entit- or .erson described in subdivision +b, e0ceeds the threshold of 7><

s.ecified in subdivision +b,, that entit- shall notif- its .ri/ar- re1ulator, in a /anner acce.table to its .ri/ar- re1ulator, and an- /ort1a1or or trustor who is delinBuent on a residential /ort1a1e loan serviced b- that entit- of the date on which that entit- will be subAect to ections 898:.<<, 898:.=, 898:.>, 898;.9, 898;.7?, 898;.77, and 898;.78, which date shall be the first da- of the first /onth that is si0 /onths after the close of the calendar -ear or annual re.ortin1 .eriod durin1 which that entit- e0ceeded the threshold. +d, For .ur.oses of this section, an a..lication shall be dee/ed 2co/.lete4 when a borrower has su..lied the /ort1a1e servicer with all docu/ents reBuired b- the /ort1a1e servicer within the reasonable ti/efra/es s.ecified b- the /ort1a1e servicer. +e, If a borrower has been a..roved in writin1 for a first lien loan /odification or other foreclosure .revention alternative, and the servicin1 of the borrower5s loan is transferred or sold to another /ort1a1e servicer, the subseBuent /ort1a1e servicer shall continue to honor an- .reviousla..roved first lien loan /odification or other foreclosure .revention alternative, in accordance with the .rovisions of the act that added this section. +f, This section shall a..l- onl- to /ort1a1es or deeds of trust described in ection 898;.7<. +1, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 2012, Ch. 87, Sec. 21. Effective an!a"y 1, 201#. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924.19. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<, 898;.7>, or 898;.7@. +8, An inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An enAoined entit/a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<, 898;.7>, or 898;.7@ b- that /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent, the court /a- award the

borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fiftthousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of the trustee5s deed u.on sale. +d, A violation of ection 898:.<, 898;.7>, or 898;.7@ b- a .erson licensed b- the De.art/ent of &or.orations, the De.art/ent of Financial Institutions, or the De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, A violation of this article shall not affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<, 898;.7>, or 898;.7@, co//itted b- that thirdJ .art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law. +h, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or da/a1es .ursuant to this section. +i, This section shall a..l- onl- to entities described in subdivision +b, of ection 898;.7@. +A, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended (as added by Stats. 2012, Ch. 86) by Stats. 201#, Ch. 76, Sec. 17. Effective an!a"y 1, 2014. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n (added by Stats. 2012, Ch. 87), as amended by Stats. 201#, Ch. 76, Sec. 18.)

2924.19. +a, +7, If a trustee5s deed u.on sale has not been recorded, a borrower /abrin1 an action for inAunctive relief to enAoin a /aterial violation of ection 898:.<, 898;.7>, or 898;.7@. +8, An inAunction shall re/ain in .lace and an- trustee5s sale shall be enAoined until the court deter/ines that the /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent has corrected and re/edied the violation or violations 1ivin1 rise to the action for inAunctive relief. An enAoined entit/a- /ove to dissolve an inAunction based on a showin1 that the /aterial violation has been corrected and re/edied. +b, After a trustee5s deed u.on sale has been recorded, a /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent shall be liable to a borrower for

actual econo/ic da/a1es .ursuant to ection :8@7, resultin1 fro/ a /aterial violation of ection 898:.<, 898;.7>, or 898;.7@ b- that /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent where the violation was not corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale. If the court finds that the /aterial violation was intentional or reckless, or resulted fro/ willful /isconduct b- a /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent, the court /a- award the borrower the 1reater of treble actual da/a1es or statutor- da/a1es of fiftthousand dollars +L<?,???,. +c, A /ort1a1e servicer, /ort1a1ee, beneficiar-, or authori6ed a1ent shall not be liable for an- violation that it has corrected and re/edied .rior to the recordation of the trustee5s deed u.on sale, or that has been corrected and re/edied b- third .arties workin1 on its behalf .rior to the recordation of the trustee5s deed u.on sale. +d, A violation of ection 898:.<, 898;.7>, or 898;.7@ b- a .erson licensed b- the De.art/ent of &or.orations, the De.art/ent of Financial Institutions, or the De.art/ent of Real Estate shall be dee/ed to be a violation of that .erson5s licensin1 law. +e, A violation of this article shall not affect the validit- of a sale in favor of a bona fide .urchaser and an- of its encu/brancers for value without notice. +f, A thirdJ.art- encu/brancer shall not be relieved of liabilit- resultin1 fro/ violations of ection 898:.<, 898;.7>, or 898;.7@, co//itted b- that thirdJ .art- encu/brancer, that occurred .rior to the sale of the subAect .ro.ert- to the bona fide .urchaser. +1, The ri1hts, re/edies, and .rocedures .rovided b- this section are in addition to and inde.endent of an- other ri1hts, re/edies, or .rocedures under an- other law. "othin1 in this section shall be construed to alter, li/it, or ne1ate an- other ri1hts, re/edies, or .rocedures .rovided b- law. +h, A court /a- award a .revailin1 borrower reasonable attorne-5s fees and costs in an action brou1ht .ursuant to this section. A borrower shall be dee/ed to have .revailed for .ur.oses of this subdivision if the borrower obtained inAunctive relief or da/a1es .ursuant to this section. +i, This section shall a..l- onl- to entities described in subdivision +b, of ection 898;.7@. +A, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Amended (as added by Stats. 2012, Ch. 87, Sec. 22) by Stats. 201#, Ch. 76, Sec. 18. Effective an!a"y 1, 2014. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns. See identica$ secti%n (added by Stats. 2012, Ch. 86), as amended by Stats. 201#, Ch. 76, Sec. 17.)

2924.20. &onsistent with their 1eneral re1ulator- authorit-, and notwithstandin1 subdivisions +b, and +c, of ection 898;.7@, the De.art/ent of &or.orations, the De.art/ent of Financial Institutions, and the De.art/ent of Real Estate /a- ado.t re1ulations a..licable to an- entit- or .erson under their

res.ective Aurisdictions that are necessar- to carr- out the .ur.oses of the act that added this section. A violation of the re1ulations ado.ted .ursuant to this section shall onl- be enforceable b- the re1ulator- a1enc-.
(Added by Stats. 2012, Ch. 86, Sec. 2#. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 87.)

2924.20. &onsistent with their 1eneral re1ulator- authorit-, and notwithstandin1 subdivisions +b, and +c, of ection 898;.7@, the De.art/ent of &or.orations, the De.art/ent of Financial Institutions, and the De.art/ent of Real Estate /a- ado.t re1ulations a..licable to an- entit- or .erson under their res.ective Aurisdictions that are necessar- to carr- out the .ur.oses of the act that added this section. A violation of the re1ulations ado.ted .ursuant to this section shall onl- be enforceable b- the re1ulator- a1enc-.
(Added by Stats. 2012, Ch. 87, Sec. 2#. Effective an!a"y 1, 201#. See identica$ secti%n added by Stats. 2012, Ch. 86.)

2924.2". +a, *nless actin1 in the ca.acit- of a trustee, a licensed title co/.an- or underwritten title co/.an- shall not be liable for a violation of ection 898:.<, 898:.<<, 898:.=, 898;.77, 898;.7@, or 898;.79 if it records or causes to record a notice of default or notice of sale at the reBuest of a trustee, substitute trustee, or beneficiar-, in 1ood faith and in the nor/al course of its business activities. +b, This section shall re/ain in effect onl- until Kanuar- 7, 8?7@, and as of that date is re.ealed, unless a later enacted statute, that is enacted before Kanuar- 7, 8?7@, deletes or e0tends that date.
(Added by Stats. 201#, Ch. 2&1, Sec. 1. Effective an!a"y 1, 2014. 'e(ea$ed as %f an!a"y 1, 2018, by its %)n ("%visi%ns.)

2924.2$. +a, *nless actin1 in the ca.acit- of a trustee, a licensed title co/.an- or underwritten title co/.an- shall not be liable for a violation of ection 898:.< or 898;.77 if it records or causes to record a notice of default or notice of sale at the reBuest of a trustee, substitute trustee, or beneficiar-, in 1ood faith and in the nor/al course of its business activities. +b, This section shall beco/e o.erative on Kanuar- 7, 8?7@.
(Added by Stats. 201#, Ch. 2&1, Sec. 2. Effective an!a"y 1, 2014. Secti%n %(e"ative an!a"y 1, 2018, by its %)n ("%visi%ns.)

2924a.

If, b- the ter/s of an- trust or deed of trust a .ower of sale is conferred u.on the trustee, the attorne- for the trustee, or an- dul- authori6ed a1ent, /a- conduct the sale and act in the sale as the auctioneer for the trustee.
(Amended by Stats. 2006, Ch. &7&, Sec. &. Effective an!a"y 1, 2007.)

2924&. +a, An- .erson desirin1 a co.- of an- notice of default and of an- notice of sale under an- deed of trust or /ort1a1e with .ower of sale u.on real .ro.ert- or an estate for -ears therein, as to which deed of trust or /ort1a1e the .ower of sale cannot be e0ercised until these notices are 1iven for the ti/e and in the /anner .rovided in ection 898; /a-, at an- ti/e subseBuent to recordation of the deed of trust or /ort1a1e and .rior to recordation of notice of default thereunder, cause to be filed for record in the office of the recorder of an- count- in which an- .art or .arcel of the real .ro.ert- is situated, a dul- acknowled1ed reBuest for a co.- of the notice of default and of sale. This reBuest shall be si1ned and acknowled1ed b- the .erson /akin1 the reBuest, s.ecif-in1 the na/e and address of the .erson to who/ the notice is to be /ailed, shall identif- the deed of trust or /ort1a1e b- statin1 the na/es of the .arties thereto, the date of recordation thereof, and the book and .a1e where the deed of trust or /ort1a1e is recorded or the recorder5s nu/ber, and shall be in substantiall- the followin1 for/:
2In accordance with ection 898;b, &ivil &ode, reBuest is hereb/ade that a co.- of an- notice of default and a co.- of an- notice of sale under the deed of trust +or /ort1a1e, recorded GGGGGG, GGGG, in (ook GGGGG .a1e GGGG records of GGGG &ount-, +or filed for record with recorder5s serial nu/ber GGGG, GGGGGGG  &ount-, &alifornia, e0ecuted b- GGGG as trustor +or /ort1a1or, in which GGGGGGGG is na/ed as beneficiar- +or /ort1a1ee, and GGGGGGGGGGGGGG as trustee be /ailed to at
"a/e

.
Address

"$TI&E: A co.- of an- notice of default and of an- notice of sale will be sent onl- to the address contained in this recorded reBuest. If -our address chan1es, a new reBuest /ust be recorded. GGGGG i1nature 4

*.on the filin1 for record of the reBuest, the recorder shall inde0 in the 1eneral inde0 of 1rantors the na/es of the trustors +or /ort1a1ors, recited therein and the na/es of .ersons reBuestin1 co.ies. +b, The /ort1a1ee, trustee, or other .erson authori6ed to record the notice of default or the notice of sale shall do each of the followin1: +7, Cithin 7? business da-s followin1 recordation of the notice of default, de.osit or cause to be de.osited in the *nited tates /ail an envelo.e, sent b- re1istered or certified /ail with .osta1e .re.aid, containin1 a co.- of the notice with the recordin1 date shown thereon, addressed to each .erson

whose na/e and address are set forth in a dul- recorded reBuest therefor, directed to the address desi1nated in the reBuest and to each trustor or /ort1a1or at his or her last known address if different than the address s.ecified in the deed of trust or /ort1a1e with .ower of sale. +8, At least 8? da-s before the date of sale, de.osit or cause to be de.osited in the *nited tates /ail an envelo.e, sent b- re1istered or certified /ail with .osta1e .re.aid, containin1 a co.- of the notice of the ti/e and .lace of sale, addressed to each .erson whose na/e and address are set forth in a dul- recorded reBuest therefor, directed to the address desi1nated in the reBuest and to each trustor or /ort1a1or at his or her last known address if different than the address s.ecified in the deed of trust or /ort1a1e with .ower of sale. +:, As used in .ara1ra.hs +7, and +8,, the 2last known address4 of each trustor or /ort1a1or /eans the last business or residence .h-sical address actuall- known b- the /ort1a1ee, beneficiar-, trustee, or other .erson authori6ed to record the notice of default. For the .ur.oses of this subdivision, an address is 2actuall- known4 if it is contained in the ori1inal deed of trust or /ort1a1e, or in an- subseBuent written notification of a chan1e of .h-sical address fro/ the trustor or /ort1a1or .ursuant to the deed of trust or /ort1a1e. For the .ur.oses of this subdivision, 2.h-sical address4 does not include an e/ail or an- for/ of electronic address for a trustor or /ort1a1or. The beneficiar- shall infor/ the trustee of the trustor5s last address actuall- known b- the beneficiar-. However, the trustee shall incur no liabilit- for failin1 to send an- notice to the last address unless the trustee has actual knowled1e of it. +;, A 2.erson authori6ed to record the notice of default or the notice of sale4 shall include an a1ent for the /ort1a1ee or beneficiar-, an a1ent of the na/ed trustee, an- .erson desi1nated in an e0ecuted substitution of trustee, or an a1ent of that substituted trustee. +c, The /ort1a1ee, trustee, or other .erson authori6ed to record the notice of default or the notice of sale shall do the followin1: +7, Cithin one /onth followin1 recordation of the notice of default, de.osit or cause to be de.osited in the *nited tates /ail an envelo.e, sent bre1istered or certified /ail with .osta1e .re.aid, containin1 a co.- of the notice with the recordin1 date shown thereon, addressed to each .erson set forth in .ara1ra.h +8,, .rovided that the estate or interest of an- .erson entitled to receive notice under this subdivision is acBuired b- an instru/ent sufficient to i/.art constructive notice of the estate or interest in the land or .ortion thereof that is subAect to the deed of trust or /ort1a1e bein1 foreclosed, and .rovided the instru/ent is recorded in the office of the count- recorder so as to i/.art that constructive notice .rior to the recordin1 date of the notice of default and .rovided the instru/ent as so recorded sets forth a /ailin1 address that the count- recorder shall use, as instructed within the instru/ent, for the return of the instru/ent after recordin1, and which address shall be the address used for the .ur.oses of /ailin1 notices herein. +8, The .ersons to who/ notice shall be /ailed under this subdivision are:

+A, The successor in interest, as of the recordin1 date of the notice of default, of the estate or interest or an- .ortion thereof of the trustor or /ort1a1or of the deed of trust or /ort1a1e bein1 foreclosed. +(, The beneficiar- or /ort1a1ee of an- deed of trust or /ort1a1e recorded subseBuent to the deed of trust or /ort1a1e bein1 foreclosed, or recorded .rior to or concurrentl- with the deed of trust or /ort1a1e bein1 foreclosed but subAect to a recorded a1ree/ent or a recorded state/ent of subordination to the deed of trust or /ort1a1e bein1 foreclosed. +&, The assi1nee of an- interest of the beneficiar- or /ort1a1ee described in sub.ara1ra.h +(,, as of the recordin1 date of the notice of default. +D, The vendee of an- contract of sale, or the lessee of an- lease, of the estate or interest bein1 foreclosed that is recorded subseBuent to the deed of trust or /ort1a1e bein1 foreclosed, or recorded .rior to or concurrentl- with the deed of trust or /ort1a1e bein1 foreclosed but subAect to a recorded a1ree/ent or state/ent of subordination to the deed of trust or /ort1a1e bein1 foreclosed. +E, The successor in interest to the vendee or lessee described in sub.ara1ra.h +D,, as of the recordin1 date of the notice of default. +F, The office of the &ontroller, acra/ento, &alifornia, where, as of the recordin1 date of the notice of default, a 2"otice of !ien for %ost.oned %ro.ert- Ta0es4 has been recorded a1ainst the real .ro.ert- to which the notice of default a..lies. +:, At least 8? da-s before the date of sale, de.osit or cause to be de.osited in the *nited tates /ail an envelo.e, sent b- re1istered or certified /ail with .osta1e .re.aid, containin1 a co.- of the notice of the ti/e and .lace of sale addressed to each .erson to who/ a co.- of the notice of default is to be /ailed as .rovided in .ara1ra.hs +7, and +8,, and addressed to the office of an- state ta0in1 a1enc-, acra/ento, &alifornia, that has recorded, subseBuent to the deed of trust or /ort1a1e bein1 foreclosed, a notice of ta0 lien .rior to the recordin1 date of the notice of default a1ainst the real .ro.ert- to which the notice of default a..lies. +;, %rovide a co.- of the notice of sale to the Internal Revenue ervice, in accordance with ection >;8< of the Internal Revenue &ode and ana..licable federal re1ulation, if a 2"otice of Federal Ta0 !ien under Internal Revenue !aws4 has been recorded, subseBuent to the deed of trust or /ort1a1e bein1 foreclosed, a1ainst the real .ro.ert- to which the notice of sale a..lies. The failure to .rovide the Internal Revenue ervice with a co.of the notice of sale .ursuant to this .ara1ra.h shall be sufficient cause to rescind the trustee5s sale and invalidate the trustee5s deed, at the o.tion of either the successful bidder at the trustee5s sale or the trustee, and in either case with the consent of the beneficiar-. An- o.tion to rescind the trustee5s sale .ursuant to this .ara1ra.h shall be e0ercised .rior to an- transfer of the .ro.ert- b- the successful bidder to a bona fide .urchaser for value. A rescission of the trustee5s sale .ursuant to this .ara1ra.h /a- be recorded in a notice of rescission .ursuant to ection 7?<@.<. +<, The /ailin1 of notices in the /anner set forth in .ara1ra.h +7, shall not i/.ose u.on an- licensed attorne-, a1ent, or e/.lo-ee of an- .erson entitled to receive notices as herein set forth an- dut- to co//unicate the

notice to the entitled .erson fro/ the fact that the /ailin1 address used bthe count- recorder is the address of the attorne-, a1ent, or e/.lo-ee. +d, An- deed of trust or /ort1a1e with .ower of sale hereafter e0ecuted u.on real .ro.ert- or an estate for -ears therein /a- contain a reBuest that a co.- of an- notice of default and a co.- of an- notice of sale thereunder shall be /ailed to an- .erson or .art- thereto at the address of the .erson 1iven therein, and a co.- of an- notice of default and of an- notice of sale shall be /ailed to each of these at the sa/e ti/e and in the sa/e /anner reBuired as thou1h a se.arate reBuest therefor had been filed b- each of these .ersons as herein authori6ed. If an- deed of trust or /ort1a1e with .ower of sale e0ecuted after e.te/ber 79, 79:9, e0ce.t a deed of trust or /ort1a1e of an- of the classes e0ce.ted fro/ the .rovisions of ection 898;, does not contain a /ailin1 address of the trustor or /ort1a1or therein na/ed, and if no reBuest for s.ecial notice b- the trustor or /ort1a1or in substantiall- the for/ set forth in this section has subseBuentl- been recorded, a co.- of the notice of default shall be .ublished once a week for at least four weeks in a news.a.er of 1eneral circulation in the count- in which the .ro.ert- is situated, the .ublication to co//ence within 7? business da-s after the filin1 of the notice of default. In lieu of .ublication, a co.- of the notice of default /a- be delivered .ersonall- to the trustor or /ort1a1or within the 7? business da-s or at an- ti/e before .ublication is co/.leted, or b- .ostin1 the notice of default in a cons.icuous .lace on the .ro.ert- and /ailin1 the notice to the last known address of the trustor or /ort1a1or. +e, An- .erson reBuired to /ail a co.- of a notice of default or notice of sale to each trustor or /ort1a1or .ursuant to subdivision +b, or +c, b- re1istered or certified /ail shall si/ultaneousl- cause to be de.osited in the *nited tates /ail, with .osta1e .re.aid and /ailed b- firstJclass /ail, an envelo.e containin1 an additional co.- of the reBuired notice addressed to each trustor or /ort1a1or at the sa/e address to which the notice is sent b- re1istered or certified /ail .ursuant to subdivision +b, or +c,. The .erson shall e0ecute and retain an affidavit identif-in1 the notice /ailed, showin1 the na/e and residence or business address of that .erson, that he or she is over 7@ -ears of a1e, the date of de.osit in the /ail, the na/e and address of the trustor or /ort1a1or to who/ sent, and that the envelo.e was sealed and de.osited in the /ail with .osta1e full- .re.aid. In the absence of fraud, the affidavit reBuired b- this subdivision shall establish a conclusive .resu/.tion of /ailin1. +f, +7, "otwithstandin1 subdivision +a,, with res.ect to se.arate interests 1overned b- an association, as defined in ection ;?@? or =<8@, the association /a- cause to be filed in the office of the recorder in the count- in which the se.arate interests are situated a reBuest that a /ort1a1ee, trustee, or other .erson authori6ed to record a notice of default re1ardin1 an- of those se.arate interests /ail to the association a co.- of an- trustee5s deed u.on sale concernin1 a se.arate interest. The reBuest shall include a le1al descri.tion or the assessor5s .arcel nu/ber of all the se.arate interests. A reBuest recorded .ursuant to this subdivision shall include the na/e and address of the association and a state/ent that it is an association as defined

in ection ;?@? or =<8@. ubseBuent reBuests of an association shall su.ersede .rior reBuests. A reBuest .ursuant to this subdivision shall be recorded before the filin1 of a notice of default. The /ort1a1ee, trustee, or other authori6ed .erson shall /ail the reBuested infor/ation to the association within 7< business da-s followin1 the date of the trustee5s sale. Failure to /ail the reBuest, .ursuant to this subdivision, shall not affect the title to real .ro.ert-. +8, A reBuest filed .ursuant to .ara1ra.h +7, does not, for .ur.oses of ection 8>8@@.7 of the #overn/ent &ode, constitute a docu/ent that either effects or evidences a transfer or encu/brance of an interest in real .ro.ertor that releases or ter/inates an- interest, ri1ht, or encu/brance of an interest in real .ro.ert-. +1, "o reBuest for a co.- of an- notice filed for record .ursuant to this section, no state/ent or alle1ation in the reBuest, and no record thereof shall affect the title to real .ro.ert- or be dee/ed notice to an- .erson that an.erson reBuestin1 co.ies of notice has or clai/s an- ri1ht, title, or interest in, or lien or char1e u.on the .ro.ert- described in the deed of trust or /ort1a1e referred to therein. +h, 2(usiness da-,4 as used in this section, has the /eanin1 s.ecified in ection 9.
(Amended by Stats. 201#, Ch. 60&, Sec. 17. Effective an!a"y 1, 2014.)

2924'. +a, +7, Chenever all or a .ortion of the .rinci.al su/ of an- obli1ation secured b- deed of trust or /ort1a1e on real .ro.ert- or an estate for -ears therein hereafter e0ecuted has, .rior to the /aturit- date fi0ed in that obli1ation, beco/e due or been declared due b- reason of default in .a-/ent of interest or of an- install/ent of .rinci.al, or b- reason of failure of trustor or /ort1a1or to .a-, in accordance with the ter/s of that obli1ation or of the deed of trust or /ort1a1e, ta0es, assess/ents, .re/iu/s for insurance, or advances /ade b- beneficiar- or /ort1a1ee in accordance with the ter/s of that obli1ation or of the deed of trust or /ort1a1e, the trustor or /ort1a1or or his or her successor in interest in the /ort1a1ed or trust .ro.ert- or an.art thereof, or an- beneficiar- under a subordinate deed of trust or another .erson havin1 a subordinate lien or encu/brance of record thereon, at an- ti/e within the .eriod s.ecified in subdivision +e,, if the .ower of sale therein is to be e0ercised, or, otherwise at an- ti/e .rior to entr- of the decree of foreclosure, /a- .a- to the beneficiar- or the /ort1a1ee or their successors in interest, res.ectivel-, the entire a/ount due, at the ti/e .a-/ent is tendered, with res.ect to +A, all a/ounts of .rinci.al, interest, ta0es, assess/ents, insurance .re/iu/s, or advances actuall- known b- the beneficiar- to be, and that are, in default and shown in the notice of default, under the ter/s of the deed of trust or /ort1a1e and the obli1ation secured thereb-, +(, all a/ounts in default on recurrin1 obli1ations not shown in the notice of default, and +&, all reasonable costs and e0.enses, subAect to subdivision +c,, which are actuall- incurred in enforcin1 the ter/s of the

obli1ation, deed of trust, or /ort1a1e, and trustee5s or attorne-5s fees, subAect to subdivision +d,, other than the .ortion of .rinci.al as would not then be due had no default occurred, and thereb- cure the default theretofore e0istin1, and thereu.on, all .roceedin1s theretofore had or instituted shall be dis/issed or discontinued and the obli1ation and deed of trust or /ort1a1e shall be reinstated and shall be and re/ain in force and effect, the sa/e as if the acceleration had not occurred. This section does not a..l- to bonds or other evidences of indebtedness authori6ed or .er/itted to be issued b- the &o//issioner of &or.orations or /ade b- a .ublic utilitsubAect to the %ublic *tilities &ode. For the .ur.oses of this subdivision, the ter/ 2recurrin1 obli1ation4 /eans all a/ounts of .rinci.al and interest on the loan, or rents, subAect to the deed of trust or /ort1a1e in default due after the notice of default is recordedH all a/ounts of .rinci.al and interest or rents advanced on senior liens or leaseholds which are advanced after the recordation of the notice of defaultH and .a-/ents of ta0es, assess/ents, and ha6ard insurance advanced after recordation of the notice of default. If the beneficiar- or /ort1a1ee has /ade no advances on defaults which would constitute recurrin1 obli1ations, the beneficiar- or /ort1a1ee /a- reBuire the trustor or /ort1a1or to .rovide reliable written evidence that the a/ounts have been .aid .rior to reinstate/ent. +8, If the trustor, /ort1a1or, or other .erson authori6ed to cure the default .ursuant to this subdivision does cure the default, the beneficiar- or /ort1a1ee or the a1ent for the beneficiar- or /ort1a1ee shall, within 87 da-s followin1 the reinstate/ent, e0ecute and deliver to the trustee a notice of rescission which rescinds the declaration of default and de/and for sale and advises the trustee of the date of reinstate/ent. The trustee shall cause the notice of rescission to be recorded within :? da-s of recei.t of the notice of rescission and of all allowable fees and costs. "o char1e, e0ce.t for the recordin1 fee, shall be /ade a1ainst the trustor or /ort1a1or for the e0ecution and recordation of the notice which rescinds the declaration of default and de/and for sale. +b, +7, The notice, of an- default described in this section, recorded .ursuant to ection 898;, and /ailed to an- .erson .ursuant to ection 898;b, shall be1in with the followin1 state/ent, .rinted or t-.ed thereon:

2I3%$RTA"T "$TI&E E7;J.oint boldface t-.e if .rinted or in ca.ital letters if t-.edF
IF '$*R %R$%ERT' I I" F$RE&!$ *RE (E&A* E '$* ARE (EHI"D I" '$*R %A'3E"T , IT 3A' (E $!D CITH$*T A"' &$*RT A&TI$", E7;J.oint boldface t-.e if .rinted or in ca.ital letters if t-.edF and -ou /a- have the le1al ri1ht to brin1 -our account in 1ood standin1 b- .a-in1 all of -our .ast due .a-/ents .lus .er/itted costs and e0.enses within the ti/e .er/itted b- law for reinstate/ent of -our account, which is nor/all- five business da-s .rior to the date set for the sale of -our .ro.ert-. "o sale date /a- be set until a..ro0i/atel- 9? da-s fro/ the date this notice of default /a- be recorded +which date of recordation a..ears on this notice,.
This a/ount is as of

GGGGG

+Date,

and will increase until -our account beco/es current. Chile -our .ro.ert- is in foreclosure, -ou still /ust .a- other obli1ations +such as insurance and ta0es, reBuired b- -our note and deed of trust or /ort1a1e. If -ou fail to /ake future .a-/ents on the loan, .a- ta0es on the .ro.ert-, .rovide insurance on the .ro.ert-, or .a- other obli1ations as reBuired in the note and deed of trust or /ort1a1e, the beneficiar- or /ort1a1ee /a- insist that -ou do so in order to reinstate -our account in 1ood standin1. In addition, the beneficiar- or /ort1a1ee /a- reBuire as a condition to reinstate/ent that -ou .rovide reliable written evidence that -ou .aid all senior liens, .ro.ert- ta0es, and ha6ard insurance .re/iu/s. *.on -our written reBuest, the beneficiar- or /ort1a1ee will 1ive -ou a written ite/i6ation of the entire a/ount -ou /ust .a-. 'ou /a- not have to .a- the entire un.aid .ortion of -our account, even thou1h full .a-/ent was de/anded, but -ou /ust .a- all a/ounts in default at the ti/e .a-/ent is /ade. However, -ou and -our beneficiar- or /ort1a1ee /a- /utuall- a1ree in writin1 .rior to the ti/e the notice of sale is .osted +which /a- not be earlier than three /onths after this notice of default is recorded, to, a/on1 other thin1s, +7, .rovide additional ti/e in which to cure the default btransfer of the .ro.ert- or otherwiseH or +8, establish a schedule of .a-/ents in order to cure -our defaultH or both +7, and +8,. Followin1 the e0.iration of the ti/e .eriod referred to in the first .ara1ra.h of this notice, unless the obli1ation bein1 foreclosed u.on or a se.arate written a1ree/ent between -ou and -our creditor .er/its a lon1er .eriod, -ou have onl- the le1al ri1ht to sto. the sale of -our .ro.ert- b- .a-in1 the entire a/ount de/anded b- -our creditor. To find out the a/ount -ou /ust .a-, or to arran1e for .a-/ent to sto. the foreclosure, or if -our .ro.ert- is in foreclosure for an- other reason, contact:
GGGGG
GGGGG +"a/e of beneficiar- or /ort1a1ee,

GGGGG
GGGGG +3ailin1 address,

GGGGG
GGGGG +Tele.hone,

If -ou have an- Buestions, -ou should contact a law-er or the 1overn/ental a1enc- which /a- have insured -our loan. "otwithstandin1 the fact that -our .ro.ert- is in foreclosure, -ou /a- offer -our .ro.ert- for sale, .rovided the sale is concluded .rior to the conclusion of the foreclosure. Re/e/ber, '$* 3A' !$ E !E#A! RI#HT IF '$* D$ "$T TADE %R$3%T A&TI$". E7;J.oint boldface t-.e if .rinted or in ca.ital letters if t-.edF4 *nless otherwise s.ecified, the notice, if .rinted, shall a..ear in at least 78J .oint boldface t-.e.

If the obli1ation secured b- the deed of trust or /ort1a1e is a contract or a1ree/ent described in .ara1ra.h +7, or +;, of subdivision +a, of ection 7=:8, the notice reBuired herein shall be in .anish if the trustor reBuested a .anish lan1ua1e translation of the contract or a1ree/ent .ursuant to ection 7=:8. If the obli1ation secured b- the deed of trust or /ort1a1e is contained in a ho/e i/.rove/ent contract, as defined in ections >7<7.8 and >7<9 of the (usiness and %rofessions &ode, which is subAect to Title 8 +co//encin1 with ection 7@?7,, the seller shall s.ecif- on the contract whether or not the contract was .rinci.all- ne1otiated in .anish and if the contract was .rinci.all- ne1otiated in .anish, the notice reBuired herein shall be in .anish. "o assi1nee of the contract or .erson authori6ed to record the notice of default shall incur an- obli1ation or liabilit- for failin1 to /ail a notice in .anish unless .anish is s.ecified in the contract or the assi1nee or .erson has actual knowled1e that the secured obli1ation was .rinci.all- ne1otiated in .anish. *nless s.ecified in writin1 to the contrar-, a co.- of the notice reBuired b- subdivision +c, of ection 898;b shall be in En1lish. +8, An- failure to co/.l- with the .rovisions of this subdivision shall not affect the validit- of a sale in favor of a bona fide .urchaser or the ri1hts of an encu/brancer for value and without notice. +c, &osts and e0.enses which /a- be char1ed .ursuant to ections 898; to 898;i, inclusive, shall be li/ited to the costs incurred for recordin1, /ailin1, includin1 certified and e0.ress /ail char1es, .ublishin1, and .ostin1 notices reBuired b- ections 898; to 898;i, inclusive, .ost.one/ent .ursuant to ection 898;1 not to e0ceed fift- dollars +L<?, .er .ost.one/ent and a fee for a trustee5s sale 1uarantee or, in the event of Audicial foreclosure, a liti1ation 1uarantee. For .ur.oses of this subdivision, a trustee or beneficiar/a- .urchase a trustee5s sale 1uarantee at a rate /eetin1 the standards contained in ections 78;?7.7 and 78;?7.: of the Insurance &ode. +d, Trustee5s or attorne-5s fees which /a- be char1ed .ursuant to subdivision +a,, or until the notice of sale is de.osited in the /ail to the trustor as .rovided in ection 898;b, if the sale is b- .ower of sale contained in the deed of trust or /ort1a1e, or, otherwise at an- ti/e .rior to the decree of foreclosure, are hereb- authori6ed to be in a base a/ount that does not e0ceed three hundred dollars +L:??, if the un.aid .rinci.al su/ secured is one hundred fift- thousand dollars +L7<?,???, or less, or two hundred fift- dollars +L8<?, if the un.aid .rinci.al su/ secured e0ceeds one hundred fift- thousand dollars +L7<?,???,, .lus oneJhalf of 7 .ercent of the un.aid .rinci.al su/ secured e0ceedin1 fift- thousand dollars +L<?,???, u. to and includin1 one hundred fift- thousand dollars +L7<?,???,, .lus oneJ Buarter of 7 .ercent of an- .ortion of the un.aid .rinci.al su/ secured e0ceedin1 one hundred fift- thousand dollars +L7<?,???, u. to and includin1 five hundred thousand dollars +L<??,???,, .lus oneJei1hth of 7 .ercent of an- .ortion of the un.aid .rinci.al su/ secured e0ceedin1 five hundred thousand dollars +L<??,???,. An- char1e for trustee5s or attorne-5s fees authori6ed b- this subdivision shall be conclusivel- .resu/ed to be lawful and valid where the char1e does not e0ceed the a/ounts authori6ed herein.

For .ur.oses of this subdivision, the un.aid .rinci.al su/ secured shall be deter/ined as of the date the notice of default is recorded. +e, Reinstate/ent of a /onetar- default under the ter/s of an obli1ation secured b- a deed of trust, or /ort1a1e /a- be /ade at an- ti/e within the .eriod co//encin1 with the date of recordation of the notice of default until five business da-s .rior to the date of sale set forth in the initial recorded notice of sale. In the event the sale does not take .lace on the date set forth in the initial recorded notice of sale or a subseBuent recorded notice of sale is reBuired to be 1iven, the ri1ht of reinstate/ent shall be revived as of the date of recordation of the subseBuent notice of sale, and shall continue fro/ that date until five business da-s .rior to the date of sale set forth in the subseBuentl- recorded notice of sale. In the event the date of sale is .ost.oned on the date of sale set forth in either an initial or an- subseBuent notice of sale, or is .ost.oned on the date declared for sale at an i//ediatel- .recedin1 .ost.one/ent of sale, and, the .ost.one/ent is for a .eriod which e0ceeds five business da-s fro/ the date set forth in the notice of sale, or declared at the ti/e of .ost.one/ent, then the ri1ht of reinstate/ent is revived as of the date of .ost.one/ent and shall continue fro/ that date until five business da-s .rior to the date of sale declared at the ti/e of the .ost.one/ent. "othin1 contained herein shall 1ive rise to a ri1ht of reinstate/ent durin1 the .eriod of five business da-s .rior to the date of sale, whether the date of sale is noticed in a notice of sale or declared at a .ost.one/ent of sale. %ursuant to the ter/s of this subdivision, no beneficiar-, trustee, /ort1a1ee, or their a1ents or successors shall be liable in an- /anner to a trustor, /ort1a1or, their a1ents or successors or an- beneficiar- under a subordinate deed of trust or /ort1a1e or an- other .erson havin1 a subordinate lien or encu/brance of record thereon for the failure to allow a reinstate/ent of the obli1ation secured b- a deed of trust or /ort1a1e durin1 the .eriod of five business da-s .rior to the sale of the securit- .ro.ert-, and no such ri1ht of reinstate/ent durin1 this .eriod is created b- this section. An- ri1ht of reinstate/ent created b- this section is ter/inated five business da-s .rior to the date of sale set forth in the initial date of sale, and is revived onl- as .rescribed herein and onl- as of the date set forth herein. As used in this subdivision, the ter/ 2business da-4 has the sa/e /eanin1 as s.ecified in ection 9.
(Amended by Stats. 2010, Ch. 180, Sec. #. Effective an!a"y 1, 2011.)

2924(. +a, &o//encin1 with the date that the notice of sale is de.osited in the /ail, as .rovided in ection 898;b, and until the .ro.ert- is sold .ursuant to the .ower of sale contained in the /ort1a1e or deed of trust, a beneficiar-, trustee, /ort1a1ee, or his or her a1ent or successor in interest, /a- de/and and receive fro/ a trustor, /ort1a1or, or his or her a1ent or successor in interest, or an- beneficiar- under a subordinate deed of trust, or an- other

.erson havin1 a subordinate lien or encu/brance of record those reasonable costs and e0.enses, to the e0tent allowed b- subdivision +c, of ection 898;c, which are actuall- incurred in enforcin1 the ter/s of the obli1ation and trustee5s or attorne-5s fees which are hereb- authori6ed to be in a base a/ount which does not e0ceed four hundred twent-Jfive dollars +L;8<, if the un.aid .rinci.al su/ secured is one hundred fift- thousand dollars +L7<?,???, or less, or three hundred si0t- dollars +L:=?, if the un.aid .rinci.al su/ secured e0ceeds one hundred fift- thousand dollars +L7<?,???,, .lus 7 .ercent of an- .ortion of the un.aid .rinci.al su/ secured e0ceedin1 fift- thousand dollars +L<?,???, u. to and includin1 one hundred fift- thousand dollars +L7<?,???,, .lus oneJhalf of 7 .ercent of an.ortion of the un.aid .rinci.al su/ secured e0ceedin1 one hundred fiftthousand dollars +L7<?,???, u. to and includin1 five hundred thousand dollars +L<??,???,, .lus oneJBuarter of 7 .ercent of an- .ortion of the un.aid .rinci.al su/ secured e0ceedin1 five hundred thousand dollars +L<??,???,. For .ur.oses of this subdivision, the un.aid .rinci.al su/ secured shall be deter/ined as of the date the notice of default is recorded. An- char1e for trustee5s or attorne-5s fees authori6ed b- this subdivision shall be conclusivel- .resu/ed to be lawful and valid where that char1e does not e0ceed the a/ounts authori6ed herein. An- char1e for trustee5s or attorne-5s fees /ade .ursuant to this subdivision shall be in lieu of and not in addition to those char1es authori6ed b- subdivision +d, of ection 898;c. +b, *.on the sale of .ro.ert- .ursuant to a .ower of sale, a trustee, or his or her a1ent or successor in interest, /a- de/and and receive fro/ a beneficiar-, or his or her a1ent or successor in interest, or /a- deduct fro/ the .roceeds of the sale, those reasonable costs and e0.enses, to the e0tent allowed b- subdivision +c, of ection 898;c, which are actuall- incurred in enforcin1 the ter/s of the obli1ation and trustee5s or attorne-5s fees which are hereb- authori6ed to be in an a/ount which does not e0ceed four hundred twent-Jfive dollars +L;8<, or one .ercent of the un.aid .rinci.al su/ secured, whichever is 1reater. For .ur.oses of this subdivision, the un.aid .rinci.al su/ secured shall be deter/ined as of the date the notice of default is recorded. An- char1e for trustee5s or attorne-5s fees authori6ed bthis subdivision shall be conclusivel- .resu/ed to be lawful and valid where that char1e does not e0ceed the a/ount authori6ed herein. An- char1es for trustee5s or attorne-5s fees /ade .ursuant to this subdivision shall be in lieu of and not in addition to those char1es authori6ed b- subdivision +a, of this section and subdivision +d, of ection 898;c. +c, +7, "o .erson shall .a- or offer to .a- or collect an- rebate or kickback for the referral of business involvin1 the .erfor/ance of an- act reBuired bthis article. +8, An- .erson who violates this subdivision shall be liable to the trustor for three ti/es the a/ount of an- rebate or kickback, .lus reasonable attorne-5s fees and costs, in addition to an- other re/edies .rovided b- law. +:, "o violation of this subdivision shall affect the validit- of a sale in favor of a bona fide .urchaser or the ri1hts of an encu/brancer for value without notice.

+d, It shall not be unlawful for a trustee to .a- or offer to .a- a fee to an a1ent or suba1ent of the trustee for work .erfor/ed b- the a1ent or suba1ent in dischar1in1 the trustee5s obli1ations under the ter/s of the deed of trust. An- .a-/ent of a fee b- a trustee to an a1ent or suba1ent of the trustee for work .erfor/ed b- the a1ent or suba1ent in dischar1in1 the trustee5s obli1ations under the ter/s of the deed of trust shall be conclusivel- .resu/ed to be lawful and valid if the fee, when co/bined with other fees of the trustee, does not e0ceed in the a11re1ate the trustee5s fee authori6ed b- subdivision +d, of ection 898;c or subdivision +a, or +b, of this section. +e, Chen a court issues a decree of foreclosure, it shall have discretion to award attorne-5s fees, costs, and e0.enses as are reasonable, if .rovided for in the note, deed of trust, or /ort1a1e, .ursuant to ection <@?c of the &ode of &ivil %rocedure.
(Amended by Stats. 2001, Ch. 4#8, Sec. 4. Effective +ct%be" 2, 2001. +(e"ative an!a"y 1, 2002, by Sec. 7 %f Ch. 4#8.)

2924e. +a, The beneficiar- or /ort1a1ee of an- deed of trust or /ort1a1e on real .ro.ert- either containin1 one to four residential units or 1iven to secure an ori1inal obli1ation not to e0ceed three hundred thousand dollars +L:??,???, /a-, with the written consent of the trustor or /ort1a1or that is either effected throu1h a si1ned and dated a1ree/ent which shall be se.arate fro/ other loan and securit- docu/ents or disclosed to the trustor or /ort1a1or in at least 7?J.oint t-.e, sub/it a written reBuest b- certified /ail to the beneficiar- or /ort1a1ee of an- lien which is senior to the lien of the reBuester, for written notice of an- or all delinBuencies of four /onths or /ore, in .a-/ents of .rinci.al or interest on an- obli1ation secured b- that senior lien notwithstandin1 that the loan secured b- the lien of the reBuester is not then in default as to .a-/ents of .rinci.al or interest. The reBuest shall be sent to the beneficiar- or /ort1a1ee, or a1ent which it /i1ht desi1nate for the .ur.ose of receivin1 loan .a-/ents, at the address s.ecified for the recei.t of these .a-/ents, if known, or, if not known, at the address shown on the recorded deed of trust or /ort1a1e. +b, The reBuest for notice shall identif- the ownershi. or securit- interest of the reBuester, the date on which the interest of the reBuester will ter/inate as evidenced b- the /aturit- date of the note of the trustor or /ort1a1or in favor of the reBuester, the na/e of the trustor or /ort1a1or and the na/e of the current owner of the securit- .ro.ert- if different fro/ the trustor or /ort1a1or, the street address or other descri.tion of the securit- .ro.ert-, the loan nu/ber +if available to the reBuester, of the loan secured b- the senior lien, the na/e and address to which notice is to be sent, and shall include or be acco/.anied b- the si1ned written consent of the trustor or /ort1a1or, and a fee of fort- dollars +L;?,. For obli1ations secured bresidential .ro.erties, the reBuest shall re/ain valid until withdrawn in writin1 and shall be a..licable to all delinBuencies as .rovided in this section, which occur .rior to the date on which the interest of the reBuester will

ter/inate as s.ecified in the reBuest or the e0.iration date, as a..ro.riate. For obli1ations secured b- nonresidential .ro.erties, the reBuest shall re/ain valid until withdrawn in writin1 and shall be a..licable to all delinBuencies as .rovided in this section, which occur .rior to the date on which the interest of the reBuester will ter/inate as s.ecified in the reBuest or the e0.iration date, as a..ro.riate. The beneficiar- or /ort1a1ee of obli1ations secured bnonresidential .ro.erties that have sent five or /ore notices .rior to the e0.iration of the effective .eriod of the reBuest /a- char1e a fee u. to fifteen dollars +L7<, for each subseBuent notice. A reBuest for notice shall be effective for five -ears fro/ the /ailin1 of the reBuest or the recordin1 of that reBuest, whichever occurs later, and /a- be renewed within si0 /onths .rior to its e0.iration date b- sendin1 the beneficiar- or /ort1a1ee, or a1ent, as the case /a- be, at the address to which ori1inal reBuests for notice are to be sent, a co.- of the earlier reBuest for notice to1ether with a si1ned state/ent that the reBuest is renewed and a renewal fee of fifteen dollars +L7<,. *.on ti/el- sub/ittal of a renewal reBuest for notice, the effectiveness of the ori1inal reBuest is continued for five -ears fro/ the ti/e when it would otherwise have la.sed. ucceedin1 renewal reBuests /a- be sub/itted in the sa/e /anner. The reBuest for notice and renewals thereof shall be recorded in the office of the count- recorder of the count- in which the securit- real .ro.ert- is situated. The ri1hts and obli1ations s.ecified in this section shall inure to the benefit of, or .ass to, as the case /a- be, successors in interest of .arties s.ecified in this section. An- successor in interest of a .art- entitled to notice under this section shall file a reBuest for that notice with an- beneficiar- or /ort1a1ee of the senior lien and shall .aa .rocessin1 fee of fifteen dollars +L7<,. "o new written consent shall be reBuired fro/ the trustor or /ort1a1or. +c, *nless the delinBuenc- has been cured, within 7< da-s followin1 the end of four /onths fro/ an- delinBuenc- in .a-/ents of .rinci.al or interest on an- obli1ation secured b- the senior lien which delinBuenc- e0ists or occurs on or after 7? da-s fro/ the /ailin1 of the reBuest for notice or the recordin1 of that reBuest, whichever occurs later, the beneficiar- or /ort1a1ee shall 1ive written notice to the reBuester of the fact of andelinBuenc- and the a/ount thereof. The notice shall be 1iven b- .ersonal service, or b- de.osit in the /ail, firstJ class .osta1e .aid. Followin1 the recordin1 of an- notice of default .ursuant to ection 898; with res.ect to the sa/e delinBuenc-, no notice or further notice shall be reBuired .ursuant to this section. +d, If the beneficiar- or /ort1a1ee of an- such senior lien fails to 1ive notice to the reBuester as reBuired in subdivision +c,, and a subseBuent foreclosure or trustee5s sale of the securit- .ro.ert- occurs, the beneficiar- or /ort1a1ee shall be liable to the reBuester for an- /onetar- da/a1e due to the failure to .rovide notice within the ti/e .eriod s.ecified in subdivision +c, which the reBuester has sustained fro/ the date on which notice should have been 1iven to the earlier of the date on which the notice is 1iven or the date of the recordin1 of the notice of default under ection 898;, and shall also forfeit to the reBuester the su/ of three hundred dollars +L:??,. A showin1 b- the beneficiar- or /ort1a1ee b- a .re.onderance of the evidence that the failure

to .rovide ti/el- notice as reBuired b- subdivision +c, resulted fro/ a bona fide error notwithstandin1 the /aintenance of .rocedures reasonablada.ted to avoid an- such error shall be a defense to an- liabilit- for that failure. +e, If an- beneficiar- or /ort1a1ee, or a1ent which it had desi1nated for the .ur.ose of receivin1 loan .a-/ents, has been succeeded in interest b- another .erson, an- reBuest for notice received .ursuant to this section shall be trans/itted .ro/.tl- to that .erson. +f, An- failure to co/.l- with the .rovisions of this section shall not affect the validit- of a sale in favor of a bona fide .urchaser or the ri1hts of an encu/brancer for value and without notice. +1, *.on satisfaction of an obli1ation secured b- a Aunior lien with res.ect to which a notice reBuest was /ade .ursuant to this section, the beneficiar- or /ort1a1ee that /ade the reBuest shall co//unicate that fact in writin1 to the senior lienholder to who/ the reBuest was /ade. The co//unication shall s.ecif- that .rovision of notice .ursuant to the .rior reBuest under this section is no lon1er reBuired.
(Amended by Stats. 1990, Ch. 788, Sec. 1.)

2924). +a, As used in this section and ections 898;1 and 898;h, 2.ro.ert-4 /eans real .ro.ert- or a leasehold estate therein, and 2calendar week4 /eans 3onda- throu1h aturda-, inclusive. +b, +7, E0ce.t as .rovided in subdivision +c,, before an- sale of .ro.ert- can be /ade under the .ower of sale contained in an- deed of trust or /ort1a1e, or an- resale resultin1 fro/ a rescission for a failure of consideration .ursuant to subdivision +c, of ection 898;h, notice of the sale thereof shall be 1iven b- .ostin1 a written notice of the ti/e of sale and of the street address and the s.ecific .lace at the street address where the sale will be held, and describin1 the .ro.ert- to be sold, at least 8? da-s before the date of sale in one .ublic .lace in the cit- where the .ro.ert- is to be sold, if the .ro.ert- is to be sold in a cit-, or, if not, then in one .ublic .lace in the Audicial district in which the .ro.ert- is to be sold, and .ublishin1 a co.- once a week for three consecutive calendar weeks. +8, The first .ublication to be at least 8? da-s before the date of sale, in a news.a.er of 1eneral circulation .ublished in the cit- in which the .ro.ertor so/e .art thereof is situated, if an- .art thereof is situated in a cit-, if not, then in a news.a.er of 1eneral circulation .ublished in the Audicial district in which the .ro.ert- or so/e .art thereof is situated, or in case no news.a.er of 1eneral circulation is .ublished in the cit- or Audicial district, as the case /a- be, in a news.a.er of 1eneral circulation .ublished in the count- in which the .ro.ert- or so/e .art thereof is situated, or in case no news.a.er of 1eneral circulation is .ublished in the cit- or Audicial district or count-, as the case /a- be, in a news.a.er of 1eneral circulation .ublished in the count- in this state that is conti1uous to the count- in which the .ro.ert- or so/e .art thereof is situated and has, b- co/.arison with all

si/ilarl- conti1uous counties, the hi1hest .o.ulation based u.on total count.o.ulation as deter/ined b- the /ost recent federal decennial census .ublished b- the (ureau of the &ensus. +:, A co.- of the notice of sale shall also be .osted in a cons.icuous .lace on the .ro.ert- to be sold at least 8? da-s before the date of sale, where .ossible and where not restricted for an- reason. If the .ro.ert- is a sin1leJ fa/il- residence the .ostin1 shall be on a door of the residence, but, if not .ossible or restricted, then the notice shall be .osted in a cons.icuous .lace on the .ro.ert-H however, if access is denied because a co//on entrance to the .ro.ert- is restricted b- a 1uard 1ate or si/ilar i/.edi/ent, the .ro.ert/a- be .osted at that 1uard 1ate or si/ilar i/.edi/ent to an- develo./ent co//unit-. +;, The notice of sale shall confor/ to the /ini/u/ reBuire/ents of ection =?;: of the #overn/ent &ode and be recorded with the count- recorder of the count- in which the .ro.ert- or so/e .art thereof is situated at least 8? da-s .rior to the date of sale. +<, The notice of sale shall contain the na/e, street address in this state, which /a- reflect an a1ent of the trustee, and either a tollJfree tele.hone nu/ber or tele.hone nu/ber in this state of the trustee, and the na/e of the ori1inal trustor, and also shall contain the state/ent reBuired b- .ara1ra.h +:, of subdivision +c,. In addition to an- other descri.tion of the .ro.ert-, the notice shall describe the .ro.ert- b- 1ivin1 its street address, if an-, or other co//on desi1nation, if an-, and a count- assessor5s .arcel nu/berH but if the .ro.ert- has no street address or other co//on desi1nation, the notice shall contain a le1al descri.tion of the .ro.ert-, the na/e and address of the beneficiar- at whose reBuest the sale is to be conducted, and a state/ent that directions /a- be obtained .ursuant to a written reBuest sub/itted to the beneficiar- within 7? da-s fro/ the first .ublication of the notice. Directions shall be dee/ed reasonabl- sufficient to locate the .ro.ert- if infor/ation as to the location of the .ro.ert- is 1iven b- reference to the direction and a..ro0i/ate distance fro/ the nearest crossroads, fronta1e road, or access road. If a le1al descri.tion or a count- assessor5s .arcel nu/ber and either a street address or another co//on desi1nation of the .ro.ert- is 1iven, the validit- of the notice and the validit- of the sale shall not be affected b- the fact that the street address, other co//on desi1nation, na/e and address of the beneficiar-, or the directions obtained therefro/ are erroneous or that the street address, other co//on desi1nation, na/e and address of the beneficiar-, or directions obtained therefro/ are o/itted. +=, The ter/ 2news.a.er of 1eneral circulation,4 as used in this section, has the sa/e /eanin1 as defined in Article 7 +co//encin1 with ection =???, of &ha.ter 7 of Division > of Title 7 of the #overn/ent &ode. +>, The notice of sale shall contain a state/ent of the total a/ount of the un.aid balance of the obli1ation secured b- the .ro.ert- to be sold and reasonabl- esti/ated costs, e0.enses, advances at the ti/e of the initial .ublication of the notice of sale, and, if re.ublished .ursuant to a cancellation of a cash eBuivalent .ursuant to subdivision +d, of ection 898;h, a reference of that factH .rovided, that the trustee shall incur no liabilit- for

an- 1ood faith error in statin1 the .ro.er a/ount, includin1 an- a/ount .rovided in 1ood faith b- or on behalf of the beneficiar-. An inaccurate state/ent of this a/ount shall not affect the validit- of an- sale to a bona fide .urchaser for value, nor shall the failure to .ost the notice of sale on a door as .rovided b- this subdivision affect the validit- of an- sale to a bona fide .urchaser for value. +@, +A, $n and after A.ril 7, 8?78, if the deed of trust or /ort1a1e containin1 a .ower of sale is secured b- real .ro.ert- containin1 fro/ one to four sin1leJfa/il- residences, the notice of sale shall contain substantiall- the followin1 lan1ua1e, in addition to the lan1ua1e reBuired .ursuant to .ara1ra.hs +7, to +>,, inclusive: "$TI&E T$ %$TE"TIA! (IDDER : If -ou are considerin1 biddin1 on this .ro.ert- lien, -ou should understand that there are risks involved in biddin1 at a trustee auction. 'ou will be biddin1 on a lien, not on the .ro.ert- itself. %lacin1 the hi1hest bid at a trustee auction does not auto/aticall- entitle -ou to free and clear ownershi. of the .ro.ert-. 'ou should also be aware that the lien bein1 auctioned off /a- be a Aunior lien. If -ou are the hi1hest bidder at the auction, -ou are or /a- be res.onsible for .a-in1 off all liens senior to the lien bein1 auctioned off, before -ou can receive clear title to the .ro.ert-. 'ou are encoura1ed to investi1ate the e0istence, .riorit-, and si6e of outstandin1 liens that /a- e0ist on this .ro.ert- b- contactin1 the countrecorder5s office or a title insurance co/.an-, either of which /a- char1e -ou a fee for this infor/ation. If -ou consult either of these resources, -ou should be aware that the sa/e lender /a- hold /ore than one /ort1a1e or deed of trust on the .ro.ert-. "$TI&E T$ %R$%ERT' $C"ER: The sale date shown on this notice of sale /a- be .ost.oned one or /ore ti/es b- the /ort1a1ee, beneficiar-, trustee, or a court, .ursuant to ection 898;1 of the &alifornia &ivil &ode. The law reBuires that infor/ation about trustee sale .ost.one/ents be /ade available to -ou and to the .ublic, as a courtes- to those not .resent at the sale. If -ou wish to learn whether -our sale date has been .ost.oned, and, if a..licable, the rescheduled ti/e and date for the sale of this .ro.ert-, -ou /a- call Etele.hone nu/ber for infor/ation re1ardin1 the trustee5s saleF or visit this Internet Ceb site EInternet Ceb site address for infor/ation re1ardin1 the sale of this .ro.ert-F, usin1 the file nu/ber assi1ned to this case Ecase file nu/berF. Infor/ation about .ost.one/ents that are vershort in duration or that occur close in ti/e to the scheduled sale /a- not i//ediatel- be reflected in the tele.hone infor/ation or on the Internet Ceb site. The best wa- to verif- .ost.one/ent infor/ation is to attend the scheduled sale. +(, A /ort1a1ee, beneficiar-, trustee, or authori6ed a1ent shall /ake a 1ood faith effort to .rovide u.JtoJdate infor/ation re1ardin1 sale dates and .ost.one/ents to .ersons who wish this infor/ation. This infor/ation shall be /ade available free of char1e. It /a- be /ade available via an Internet

Ceb site, a tele.hone recordin1 that is accessible 8; hours a da-, seven da-s a week, or throu1h an- other /eans that allows 8; hours a da-, seven da-s a week, noJcost access to u.dated infor/ation. A disru.tion of an- of these /ethods of .rovidin1 sale date and .ost.one/ent infor/ation to allow for reasonable /aintenance or due to a service outa1e shall not be dee/ed to be a violation of the 1ood faith standard. +&, E0ce.t as .rovided in sub.ara1ra.h +(,, nothin1 in the wordin1 of the notices reBuired b- sub.ara1ra.h +A, is intended to /odif- or create ansubstantive ri1hts or obli1ations for an- .erson .rovidin1, or s.ecified in, either of the reBuired notices. Failure to co/.l- with sub.ara1ra.h +A, or +(, shall not invalidate an- sale that would otherwise be valid under ection 898;f. +D, Infor/ation .rovided .ursuant to sub.ara1ra.h +A, does not constitute the .ublic declaration reBuired b- subdivision +d, of ection 898;1. +9, If the sale of the .ro.ert- is to be a unified sale as .rovided in sub.ara1ra.h +(, of .ara1ra.h +7, of subdivision +a, of ection 9=?; of the &o//ercial &ode, the notice of sale shall also contain a descri.tion of the .ersonal .ro.ert- or fi0tures to be sold. In the case where it is conte/.lated that all of the .ersonal .ro.ert- or fi0tures are to be sold, the descri.tion in the notice of the .ersonal .ro.ert- or fi0tures shall be sufficient if it is the sa/e as the descri.tion of the .ersonal .ro.ert- or fi0tures contained in the a1ree/ent creatin1 the securit- interest in or encu/brance on the .ersonal .ro.ert- or fi0tures or the filed financin1 state/ent relatin1 to the .ersonal .ro.ert- or fi0tures. In all other cases, the descri.tion in the notice shall be sufficient if it would be a sufficient descri.tion of the .ersonal .ro.ert- or fi0tures under ection 97?@ of the &o//ercial &ode. Inclusion of a reference to or a descri.tion of .ersonal .ro.ert- or fi0tures in a notice of sale hereunder shall not constitute an election b- the secured .art- to conduct a unified sale .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7, of subdivision +a, of ection 9=?; of the &o//ercial &ode, shall not obli1ate the secured .artto conduct a unified sale .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7, of subdivision +a, of ection 9=?; of the &o//ercial &ode, and in no wa- shall render defective or nonco/.l-in1 either that notice or a sale .ursuant to that notice b- reason of the fact that the sale includes none or less than all of the .ersonal .ro.ert- or fi0tures referred to or described in the notice. This .ara1ra.h shall not otherwise affect the obli1ations or duties of a secured .art- under the &o//ercial &ode. +c, +7, This subdivision a..lies onl- to deeds of trust or /ort1a1es which contain a .ower of sale and which are secured b- real .ro.ert- containin1 a sin1leJfa/il-, ownerJoccu.ied residence, where the obli1ation secured b- the deed of trust or /ort1a1e is contained in a contract for 1oods or services subAect to the .rovisions of the *nruh Act +&ha.ter 7 +co//encin1 with ection 7@?7, of Title 8 of %art ; of Division :,. +8, E0ce.t as otherwise e0.ressl- set forth in this subdivision, all other .rovisions of law relatin1 to the e0ercise of a .ower of sale shall 1overn the e0ercise of a .ower of sale contained in a deed of trust or /ort1a1e described in .ara1ra.h +7,.

+:, If an- default of the obli1ation secured b- a deed of trust or /ort1a1e described in .ara1ra.h +7, has not been cured within :? da-s after the recordation of the notice of default, the trustee or /ort1a1ee shall /ail to the trustor or /ort1a1or, at his or her last known address, a co.- of the followin1 state/ent:
'$* ARE I" DEFA*!T *"DER A , +Deed of trust or /ort1a1e, DATED GGGG. *"!E '$* TADE A&TI$" T$ %R$TE&T '$*R %R$%ERT', IT 3A' (E $!D AT A %*(!I& A!E. IF '$* "EED A" EI%!A"ATI$" $F THE "AT*RE $F THE %R$&EEDI"# A#AI" T '$*, '$* H$*!D &$"TA&T A !AC'ER.

+;, All sales of real .ro.ert- .ursuant to a .ower of sale contained in andeed of trust or /ort1a1e described in .ara1ra.h +7, shall be held in the count- where the residence is located and shall be /ade to the .erson /akin1 the hi1hest offer. The trustee /a- receive offers durin1 the 7?Jda.eriod i//ediatel- .rior to the date of sale and if an- offer is acce.ted in writin1 b- both the trustor or /ort1a1or and the beneficiar- or /ort1a1ee .rior to the ti/e set for sale, the sale shall be .ost.oned to a date certain and .rior to which the .ro.ert- /a- be conve-ed b- the trustor to the .erson /akin1 the offer accordin1 to its ter/s. The offer is revocable until acce.ted. The .erfor/ance of the offer, followin1 acce.tance, accordin1 to its ter/s, b- a conve-ance of the .ro.ert- to the offeror, shall o.erate to ter/inate an- further .roceedin1 under the notice of sale and it shall be dee/ed revoked. +<, In addition to the trustee fee .ursuant to ection 898;c, the trustee or /ort1a1ee .ursuant to a deed of trust or /ort1a1e subAect to this subdivision shall be entitled to char1e an additional fee of fift- dollars +L<?,. +=, This subdivision a..lies onl- to .ro.ert- on which notices of default were filed on or after the effective date of this subdivision. +d, Cith res.ect to residential real .ro.ert- containin1 no /ore than four dwellin1 units, a se.arate docu/ent containin1 a su//ar- of the notice of sale infor/ation in En1lish and the lan1ua1es described in ection 7=:8 shall be attached to the notice of sale .rovided to the /ort1a1or or trustor .ursuant to ection 898:.:.
(Amended (as amended by Stats. 2011, Ch. 229, Sec. 2) by Stats. 2012, Ch. &&6, Sec. 4. Effective an!a"y 1, 201#.)

2924g. +a, All sales of .ro.ert- under the .ower of sale contained in an- deed of trust or /ort1a1e shall be held in the count- where the .ro.ert- or so/e .art thereof is situated, and shall be /ade at auction, to the hi1hest bidder,

between the hours of 9 a./. and < ../. on an- business da-, 3ondathrou1h Frida-. The sale shall co//ence at the ti/e and location s.ecified in the notice of sale. An- .ost.one/ent shall be announced at the ti/e and location s.ecified in the notice of sale for co//ence/ent of the sale or .ursuant to .ara1ra.h +7, of subdivision +c,. If the sale of /ore than one .arcel of real .ro.ert- has been scheduled for the sa/e ti/e and location b- the sa/e trustee, +7, an- .ost.one/ent of an- of the sales shall be announced at the ti/e .ublished in the notice of sale, +8, the first sale shall co//ence at the ti/e .ublished in the notice of sale or i//ediatel- after the announce/ent of an- .ost.one/ent, and +:, each subseBuent sale shall take .lace as soon as .ossible after the .recedin1 sale has been co/.leted. +b, Chen the .ro.ert- consists of several known lots or .arcels, the- shall be sold se.aratel- unless the deed of trust or /ort1a1e .rovides otherwise. Chen a .ortion of the .ro.ert- is clai/ed b- a third .erson, who reBuires it to be sold se.aratel-, the .ortion subAect to the clai/ /a- be thus sold. The trustor, if .resent at the sale, /a- also, unless the deed of trust or /ort1a1e otherwise .rovides, direct the order in which .ro.ert- shall be sold, when the .ro.ert- consists of several known lots or .arcels which /a- be sold to advanta1e se.aratel-, and the trustee shall follow that direction. After sufficient .ro.ert- has been sold to satisf- the indebtedness, no /ore can be sold. If the .ro.ert- under .ower of sale is in two or /ore counties, the .ublic auction sale of all of the .ro.ert- under the .ower of sale /a- take .lace in an- one of the counties where the .ro.ert- or a .ortion thereof is located. +c, +7, There /a- be a .ost.one/ent or .ost.one/ents of the sale .roceedin1s, includin1 a .ost.one/ent u.on instruction b- the beneficiar- to the trustee that the sale .roceedin1s be .ost.oned, at an- ti/e .rior to the co/.letion of the sale for an- .eriod of ti/e not to e0ceed a total of :=< da-s fro/ the date set forth in the notice of sale. The trustee shall .ost.one the sale in accordance with an- of the followin1: +A, *.on the order of an- court of co/.etent Aurisdiction. +(, If sta-ed b- o.eration of law. +&, (- /utual a1ree/ent, whether oral or in writin1, of an- trustor and anbeneficiar- or an- /ort1a1or and an- /ort1a1ee. +D, At the discretion of the trustee. +8, In the event that the sale .roceedin1s are .ost.oned for a .eriod or .eriods totalin1 /ore than :=< da-s, the schedulin1 of an- further sale .roceedin1s shall be .receded b- 1ivin1 a new notice of sale in the /anner .rescribed in ection 898;f. "ew fees incurred for the new notice of sale shall not e0ceed the a/ounts s.ecified in ections 898;c and 898;d, and shall not e0ceed reasonable costs that are necessar- to co/.l- with this .ara1ra.h. +d, The notice of each .ost.one/ent and the reason therefor shall be 1iven b- .ublic declaration b- the trustee at the ti/e and .lace last a..ointed for sale. A .ublic declaration of .ost.one/ent shall also set forth the new date, ti/e, and .lace of sale and the .lace of sale shall be the sa/e .lace as

ori1inall- fi0ed b- the trustee for the sale. "o other notice of .ost.one/ent need be 1iven. However, the sale shall be conducted no sooner than on the seventh da- after the earlier of +7, dis/issal of the action or +8, e0.iration or ter/ination of the inAunction, restrainin1 order, or sta- that reBuired .ost.one/ent of the sale, whether b- entr- of an order b- a court of co/.etent Aurisdiction, o.eration of law, or otherwise, unless the inAunction, restrainin1 order, or subseBuent order e0.ressl- directs the conduct of the sale within that sevenJda- .eriod. For .ur.oses of this subdivision, the sevenJda- .eriod shall not include the da- on which the action is dis/issed, or the da- on which the inAunction, restrainin1 order, or sta- e0.ires or is ter/inated. If the sale had been scheduled to occur, but this subdivision .recludes its conduct durin1 that sevenJda- .eriod, a new notice of .ost.one/ent shall be 1iven if the sale had been scheduled to occur durin1 that sevenJda- .eriod. The trustee shall /aintain records of each .ost.one/ent and the reason therefor. +e, "otwithstandin1 the ti/e .eriods established under subdivision +d,, if .ost.one/ent of a sale is based on a sta- i/.osed b- Title 77 of the *nited tates &ode +bankru.tc-,, the sale shall be conducted no sooner than the e0.iration of the sta- i/.osed b- that title and the sevenJda- .rovision of subdivision +d, shall not a..l-.
(Amended by Stats. 200&, Ch. 224, Sec. 2. Effective an!a"y 1, 2006.)

2924*. +a, Each and ever- bid /ade b- a bidder at a trustee5s sale under a .ower of sale contained in a deed of trust or /ort1a1e shall be dee/ed to be an irrevocable offer b- that bidder to .urchase the .ro.ert- bein1 sold b- the trustee under the .ower of sale for the a/ount of the bid. An- second or subseBuent bid b- the sa/e bidder or an- other bidder for a hi1her a/ount shall be a cancellation of the .rior bid. +b, At the trustee5s sale the trustee shall have the ri1ht +7, to reBuire everbidder to show evidence of the bidder5s abilit- to de.osit with the trustee the full a/ount of his or her final bid in cash, a cashier5s check drawn on a state or national bank, a check drawn b- a state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association, or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent which has been desi1nated in the notice of sale as acce.table to the trustee .rior to, and as a condition to, the reco1ni6in1 of the bid, and to conditionall- acce.t and hold these a/ounts for the duration of the sale, and +8, to reBuire the last and hi1hest bidder to de.osit, if not de.osited .reviousl-, the full a/ount of the bidder5s final bid in cash, a cashier5s check drawn on a state or national bank, a check drawn b- a state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association, or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent which has been desi1nated in the notice of sale as acce.table to the trustee, i//ediatel- .rior to the co/.letion of the

sale, the co/.letion of the sale bein1 so announced b- the fall of the ha//er or in another custo/ar- /anner. The .resent beneficiar- of the deed of trust under foreclosure shall have the ri1ht to offset his or her bid or bids onl- to the e0tent of the total a/ount due the beneficiar- includin1 the trustee5s fees and e0.enses. +c, In the event the trustee acce.ts a check drawn b- a credit union or a savin1s and loan association .ursuant to this subdivision or a cash eBuivalent desi1nated in the notice of sale, the trustee /a- withhold the issuance of the trustee5s deed to the successful bidder sub/ittin1 the check drawn b- a state or federal credit union or savin1s and loan association or the cash eBuivalent until funds beco/e available to the .a-ee or endorsee as a /atter of ri1ht. For the .ur.oses of this subdivision, the trustee5s sale shall be dee/ed final u.on the acce.tance of the last and hi1hest bid, and shall be dee/ed .erfected as of @ a./. on the actual date of sale if the trustee5s deed is recorded within 7< calendar da-s after the sale, or the ne0t business dafollowin1 the 7<th da- if the count- recorder in which the .ro.ert- is located is closed on the 7<th da-. However, the sale is subAect to an auto/atic rescission for a failure of consideration in the event the funds are not 2available for withdrawal4 as defined in ection 78;7:.7 of the Insurance &ode. The trustee shall send a notice of rescission for a failure of consideration to the last and hi1hest bidder sub/ittin1 the check or alternative instru/ent, if the address of the last and hi1hest bidder is known to the trustee. If a sale results in an auto/atic ri1ht of rescission for failure of consideration .ursuant to this subdivision, the interest of an- lienholder shall be reinstated in the sa/e .riorit- as if the .revious sale had not occurred. +d, If the trustee has not reBuired the last and hi1hest bidder to de.osit the cash, a cashier5s check drawn on a state or national bank, a check drawn ba state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association, or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent which has been desi1nated in the notice of sale as acce.table to the trustee in the /anner set forth in .ara1ra.h +8, of subdivision +b,, the trustee shall co/.lete the sale. If the last and hi1hest bidder then fails to deliver to the trustee, when de/anded, the a/ount of his or her final bid in cash, a cashier5s check drawn on a state or national bank, a check drawn b- a state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association, or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent which has been desi1nated in the notice of sale as acce.table to the trustee, that bidder shall be liable to the trustee for all da/a1es which the trustee /a- sustain b- the refusal to deliver to the trustee the a/ount of the final bid, includin1 an- court costs and reasonable attorne-s5 fees. If the last and hi1hest bidder willfull- fails to deliver to the trustee the a/ount of his or her final bid in cash, a cashier5s check drawn on a state or national bank, a check drawn b- a state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association,

or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent which has been desi1nated in the notice of sale as acce.table to the trustee, or if the last and hi1hest bidder cancels a cashiers check drawn on a state or national bank, a check drawn b- a state or federal credit union, or a check drawn b- a state or federal savin1s and loan association, savin1s association, or savin1s bank s.ecified in ection <7?8 of the Financial &ode and authori6ed to do business in this state, or a cash eBuivalent that has been desi1nated in the notice of sale as acce.table to the trustee, that bidder shall be 1uilt- of a /isde/eanor .unishable b- a fine of not /ore than two thousand five hundred dollars +L8,<??,. In the event the last and hi1hest bidder cancels an instru/ent sub/itted to the trustee as a cash eBuivalent, the trustee shall .rovide a new notice of sale in the /anner set forth in ection 898;f and shall be entitled to recover the costs of the new notice of sale as .rovided in ection 898;c. +e, An- .ost.one/ent or discontinuance of the sale .roceedin1s shall be a cancellation of the last bid. +f, In the event that this section conflicts with an- other statute, then this section shall .revail. +1, It shall be unlawful for an- .erson, actin1 alone or in concert with others, +7, to offer to acce.t or acce.t fro/ another, an- consideration of an- t-.e not to bid, or +8, to fi0 or restrain biddin1 in an- /anner, at a sale of .ro.ert- conducted .ursuant to a .ower of sale in a deed of trust or /ort1a1e. However, it shall not be unlawful for an- .erson, includin1 a trustee, to state that a .ro.ert- subAect to a recorded notice of default or subAect to a sale conducted .ursuant to this cha.ter is bein1 sold in an 2asJ is4 condition. In addition to an- other re/edies, an- .erson co//ittin1 an- act declared unlawful b- this subdivision or an- act which would o.erate as a fraud or deceit u.on an- beneficiar-, trustor, or Aunior lienor shall, u.on conviction, be fined not /ore than ten thousand dollars +L7?,???, or i/.risoned in the count- Aail for not /ore than one -ear, or be .unished b- both that fine and i/.rison/ent.
(Amended by Stats. 2004, Ch. 177, Sec. 2. Effective an!a"y 1, 200&.)

2924i. +a, This section a..lies to loans secured b- a deed of trust or /ort1a1e on real .ro.ert- containin1 one to four residential units at least one of which at the ti/e the loan is /ade is or is to be occu.ied b- the borrower if the loan is for a .eriod in e0cess of one -ear and is a balloon .a-/ent loan. +b, This section shall not a..l- to +7, o.en end credit as defined in Re1ulation M, whether or not the transaction is otherwise subAect to Re1ulation M, +8, transactions subAect to ection 89<=, or +:, loans /ade for the .rinci.al .ur.ose of financin1 the construction of one or /ore residential units.

+c, At least 9? da-s but not /ore than 7<? da-s .rior to the due date of the final .a-/ent on a loan that is subAect to this section, the holder of the loan shall deliver or /ail b- firstJclass /ail, with a certificate of /ailin1 obtained fro/ the *nited tates %ostal ervice, to the trustor, or his or her successor in interest, at the last known address of that .erson, a written notice which shall include all of the followin1: +7, A state/ent of the na/e and address of the .erson to who/ the final .a-/ent is reBuired to be .aid. +8, The date on or before which the final .a-/ent is reBuired to be .aid. +:, The a/ount of the final .a-/ent, or if the e0act a/ount is unknown, a 1ood faith esti/ate of the a/ount thereof, includin1 un.aid .rinci.al, interest and an- other char1es, such a/ount to be deter/ined assu/in1 ti/el- .a-/ent in full of all scheduled install/ents co/in1 due between the date the notice is .re.ared and the date when the final .a-/ent is due. +;, If the borrower has a contractual ri1ht to refinance the final .a-/ent, a state/ent to that effect. If the due date of the final .a-/ent of a loan subAect to this section is e0tended .rior to the ti/e notice is otherwise reBuired under this subdivision, this notice reBuire/ent shall a..l- onl- to the due date as e0tended +or as subseBuentl- e0tended,. +d, For .ur.oses of this section: +7, A 2balloon .a-/ent loan4 is a loan which .rovides for a final .a-/ent as ori1inall- scheduled which is /ore than twice the a/ount of an- of the i//ediatel- .recedin1 si0 re1ularl- scheduled .a-/ents or which contains a call .rovisionH .rovided, however, that if the call .rovision is not e0ercised bthe holder of the loan, the e0istence of the une0ercised call .rovision shall not cause the loan to be dee/ed to be a balloon .a-/ent loan. +8, 2&all .rovision4 /eans a loan contract ter/ that .rovides the holder of the loan with the ri1ht to call the loan due and .a-able either after a s.ecified .eriod has ela.sed followin1 closin1 or after a s.ecified date. +:, 2Re1ulation M4 /eans an- rule, re1ulation, or inter.retation .ro/ul1ated b- the (oard of #overnors of the Federal Reserve -ste/ under the Federal Truth in !endin1 Act, as a/ended +7< *. .&. ec. 7=?7 et seB.,, and aninter.retation or a..roval thereof issued b- an official or e/.lo-ee of the Federal Reserve -ste/ dul- authori6ed b- the board under the Truth in !endin1 Act, as a/ended, to issue such inter.retations or a..rovals. +e, Failure to .rovide notice as reBuired b- subdivision +a, does not e0tin1uish an- obli1ation of .a-/ent b- the borrower, e0ce.t that the due date for an- balloon .a-/ent shall be the date s.ecified in the balloon .a-/ent note, or 9? da-s fro/ the date of deliver- or /ailin1 of the notice reBuired b- subdivision +a,, or the due date s.ecified in the notice reBuired b- subdivision +a,, whichever date is later. If the o.eration of this section acts to e0tend the ter/ of an- note, interest shall continue to accrue for the e0tended ter/ at the contract rate and .a-/ents shall continue to be due at an- .eriodic interval and on an- .a-/ent schedule s.ecified in the note and shall be credited to .rinci.al or interest under the ter/s of the note. Default in an- e0tended .eriodic .a-/ent shall be considered a default under ter/s of the note or securit- instru/ent.

+f, +7, The validit- of an- credit docu/ent or of an- securit- docu/ent subAect to the .rovisions of this section shall not be invalidated solelbecause of the failure of an- .erson to co/.l- with this section. However, an- .erson who willfull- violates an- .rovision of this section shall be liable in the a/ount of actual da/a1es suffered b- the debtor as the .ro0i/ate result of the violation, and, if the debtor .revails in an- suit to recover that a/ount, for reasonable attorne-5s fees. +8, "o .erson /a- be held liable in an- action under this section if it is shown b- a .re.onderance of the evidence that the violation was not intentional and resulted fro/ a bona fide error notwithstandin1 the /aintenance of .rocedures reasonabl- ado.ted to avoid an- such error. +1, The .rovisions of this section shall a..l- to an- note e0ecuted on or after Kanuar- 7, 79@;.
(Amended by Stats. 1986, Ch. 1#60, Sec. 1.)

2924+. +a, *nless an inter.leader action has been filed, within :? da-s of the e0ecution of the trustee5s deed resultin1 fro/ a sale in which there are .roceeds re/ainin1 after .a-/ent of the a/ounts reBuired b- .ara1ra.hs +7, and +8, of subdivision +a, of ection 898;k, the trustee shall send written notice to all .ersons with recorded interests in the real .ro.ert- as of the date i//ediatel- .rior to the trustee5s sale who would be entitled to notice .ursuant to subdivisions +b, and +c, of ection 898;b. The notice shall be sent b- firstJclass /ail in the /anner .rovided in .ara1ra.h +7, of subdivision +c, of ection 898;b and infor/ each entitled .erson of each of the followin1: +7, That there has been a trustee5s sale of the described real .ro.ert-. +8, That the noticed .erson /a- have a clai/ to all or a .ortion of the sale .roceeds re/ainin1 after .a-/ent of the a/ounts reBuired b- .ara1ra.hs +7, and +8, of subdivision +a, of ection 898;k. +:, The noticed .erson /a- contact the trustee at the address .rovided in the notice to .ursue an- .otential clai/. +;, That before the trustee can act, the noticed .erson /a- be reBuired to .resent .roof that the .erson holds the beneficial interest in the obli1ation and the securit- interest therefor. In the case of a .ro/issor- note secured b- a deed of trust, .roof that the .erson holds the beneficial interest /ainclude the ori1inal .ro/issor- note and assi1n/ent of beneficial interests related thereto. The noticed .erson shall also sub/it a written clai/ to the trustee, e0ecuted under .enalt- of .erAur-, statin1 the followin1: +A, The a/ount of the clai/ to the date of trustee5s sale. +(, An ite/i6ed state/ent of the .rinci.al, interest, and other char1es. +&, That clai/s /ust be received b- the trustee at the address stated in the notice no later than :? da-s after the date the trustee sends notice to the .otential clai/ant. +b, The trustee shall e0ercise due dili1ence to deter/ine the .riorit- of the written clai/s received b- the trustee to the trustee5s sale sur.lus .roceeds

fro/ those .ersons to who/ notice was sent .ursuant to subdivision +a,. In the event there is no dis.ute as to the .riorit- of the written clai/s sub/itted to the trustee, .roceeds shall be .aid within :? da-s after the conclusion of the notice .eriod. If the trustee has failed to deter/ine the .riorit- of written clai/s within 9? da-s followin1 the :?Jda- notice .eriod, then within 7? da-s thereafter the trustee shall de.osit the funds with the clerk of the court .ursuant to subdivision +c, or file an inter.leader action .ursuant to subdivision +e,. "othin1 in this section shall .reclude an- .erson fro/ .ursuin1 other re/edies or clai/s as to sur.lus .roceeds. +c, If, after due dili1ence, the trustee is unable to deter/ine the .riorit- of the written clai/s received b- the trustee to the trustee5s sale sur.lus of /ulti.le .ersons or if the trustee deter/ines there is a conflict between .otential clai/ants, the trustee /a- file a declaration of the unresolved clai/s and de.osit with the clerk of the su.erior court of the count- in which the sale occurred, that .ortion of the sales .roceeds that cannot be distributed, less an- fees char1ed b- the clerk .ursuant to this subdivision. The declaration shall s.ecif- the date of the trustee5s sale, a descri.tion of the .ro.ert-, the na/es and addresses of all .ersons sent notice .ursuant to subdivision +a,, a state/ent that the trustee e0ercised due dili1ence .ursuant to subdivision +b,, that the trustee .rovided written notice as reBuired b- subdivisions +a, and +d, and the a/ount of the sales .roceeds de.osited b- the trustee with the court. Further, the trustee shall sub/it a co.- of the trustee5s sales 1uarantee and an- infor/ation relevant to the identit-, location, and .riorit- of the .otential clai/ants with the court and shall file .roof of service of the notice reBuired b- subdivision +d, on all .ersons described in subdivision +a,. The clerk shall de.osit the a/ount with the count- treasurer or, if a bank account has been established for /one-s held in trust under .ara1ra.h +8, of subdivision +a, of ection >>??9 of the #overn/ent &ode, in that account, subAect to order of the court u.on the a..lication of an- interested .art-. The clerk /a- char1e a reasonable fee for the .erfor/ance of activities .ursuant to this subdivision eBual to the fee for filin1 an inter.leader action .ursuant to &ha.ter <.@ +co//encin1 with ection >?=??, of Title @ of the #overn/ent &ode. *.on de.osit of that .ortion of the sale .roceeds that cannot be distributed b- due dili1ence, the trustee shall be dischar1ed of further res.onsibilit- for the disburse/ent of sale .roceeds. A de.osit with the clerk of the court .ursuant to this subdivision /a- be either for the total .roceeds of the trustee5s sale, less an- fees char1ed b- the clerk, if a conflict or conflicts e0ist with res.ect to the total .roceeds, or that .ortion that cannot be distributed after due dili1ence, less an- fees char1ed b- the clerk. +d, (efore the trustee de.osits the funds with the clerk of the court .ursuant to subdivision +c,, the trustee shall send written notice b- firstJclass /ail, .osta1e .re.aid, to all .ersons described in subdivision +a, infor/in1 the/ that the trustee intends to de.osit the funds with the clerk of the court and that a clai/ for the funds /ust be filed with the court within :? da-s fro/ the date of the notice, .rovidin1 the address of the court in which the funds were de.osited, and a tele.hone nu/ber for obtainin1 further infor/ation.

Cithin 9? da-s after de.osit with the clerk, the court shall consider all clai/s filed at least 7< da-s before the date on which the hearin1 is scheduled bthe court, the clerk shall serve written notice of the hearin1 b- firstJclass /ail on all clai/ants identified in the trustee5s declaration at the addresses s.ecified therein. Chere the a/ount of the de.osit is twent-Jfive thousand dollars +L8<,???, or less, a .roceedin1 .ursuant to this section is a li/ited civil case. The court shall distribute the de.osited funds to an- and all clai/ants entitled thereto. +e, "othin1 in this section restricts the abilit- of a trustee to file an inter.leader action in order to resolve a dis.ute about the .roceeds of a trustee5s sale. $nce an inter.leader action has been filed, thereafter the .rovisions of this section do not a..l-. +f, 2Due dili1ence,4 for the .ur.oses of this section /eans that the trustee researched the written clai/s sub/itted or other evidence of conflicts and deter/ined that a conflict of .riorities e0ists between two or /ore clai/ants which the trustee is unable to resolve. +1, To the e0tent reBuired b- the *nclai/ed %ro.ert- !aw, a trustee in .ossession of sur.lus .roceeds not reBuired to be de.osited with the court .ursuant to subdivision +b, shall co/.l- with the *nclai/ed %ro.ert- !aw +&ha.ter > +co//encin1 with ection 7<??, of Title 7? of %art : of the &ode of &ivil %rocedure,. +h, The trustee, beneficiar-, or counsel to the trustee or beneficiar-, is not liable for .rovidin1 to an- .erson who is entitled to notice .ursuant to this section, infor/ation set forth in, or a co.- of, subdivision +h, of ection 89;<.:.
(Amended by Stats. 200&, Ch. 7&, Sec. 1&. Effective !$y 19, 200&. +(e"ative an!a"y 1, 2006, by Sec. 1&6 %f Ch. 7&.)

2924,. +a, The trustee, or the clerk of the court u.on order to the clerk .ursuant to subdivision +d, of ection 898;A, shall distribute the .roceeds, or a .ortion of the .roceeds, as the case /a- be, of the trustee5s sale conducted .ursuant to ection 898;h in the followin1 order of .riorit-: +7, To the costs and e0.enses of e0ercisin1 the .ower of sale and of sale, includin1 the .a-/ent of the trustee5s fees and attorne-5s fees .er/itted .ursuant to subdivision +b, of ection 898;d and subdivision +b, of this section. +8, To the .a-/ent of the obli1ations secured b- the deed of trust or /ort1a1e which is the subAect of the trustee5s sale. +:, To satisf- the outstandin1 balance of obli1ations secured b- an- Aunior liens or encu/brances in the order of their .riorit-. +;, To the trustor or the trustor5s successor in interest. In the event the .ro.ert- is sold or transferred to another, to the vested owner of record at the ti/e of the trustee5s sale. +b, A trustee /a- char1e costs and e0.enses incurred for such ite/s as /ailin1 and a reasonable fee for services rendered in connection with the distribution of the .roceeds fro/ a trustee5s sale, includin1, but not li/ited

to, the investi1ation of .riorit- and validit- of clai/s and the disburse/ent of funds. If the fee char1ed for services rendered .ursuant to this subdivision does not e0ceed one hundred dollars +L7??,, or one hundred twent-Jfive dollars +L78<, where there are obli1ations s.ecified in .ara1ra.h +:, of subdivision +a,, the fee is conclusivel- .resu/ed to be reasonable.
(Amended by Stats. 1999, Ch. 974, Sec. 12. Effective an!a"y 1, 2000.)

2924l. +a, In the event that a trustee under a deed of trust is na/ed in an action or .roceedin1 in which that deed of trust is the subAect, and in the event that the trustee /aintains a reasonable belief that it has been na/ed in the action or .roceedin1 solel- in its ca.acit- as trustee, and not arisin1 out of an- wron1ful acts or o/issions on its .art in the .erfor/ance of its duties as trustee, then, at an- ti/e, the trustee /a- file a declaration of non/onetarstatus. The declaration shall be served on the .arties in the /anner set forth in &ha.ter < +co//encin1 with ection 7?7?, of Title 7; of the &ode of &ivil %rocedure. +b, The declaration of non/onetar- status shall set forth the status of the trustee as trustee under the deed of trust that is the subAect of the action or .roceedin1, that the trustee knows or /aintains a reasonable belief that it has been na/ed as a defendant in the .roceedin1 solel- in its ca.acit- as a trustee under the deed of trust, its reasonable belief that it has not been na/ed as a defendant due to an- acts or o/issions on its .art in the .erfor/ance of its duties as trustee, the basis for that knowled1e or reasonable belief, and that it a1rees to be bound b- whatever order or Aud1/ent is issued b- the court re1ardin1 the subAect deed of trust. +c, The .arties who have a..eared in the action or .roceedin1 shall have 7< da-s fro/ the service of the declaration b- the trustee in which to obAect to the non/onetar- Aud1/ent status of the trustee. An- obAection shall set forth the factual basis on which the obAection is based and shall be served on the trustee. +d, In the event that no obAection is served within the 7<Jda- obAection .eriod, the trustee shall not be reBuired to .artici.ate an- further in the action or .roceedin1, shall not be subAect to an- /onetar- awards as and for da/a1es, attorne-s5 fees or costs, shall be reBuired to res.ond to andiscover- reBuests as a non.art-, and shall be bound b- an- court order relatin1 to the subAect deed of trust that is the subAect of the action or .roceedin1. +e, In the event of a ti/el- obAection to the declaration of non/onetarstatus, the trustee shall thereafter be reBuired to .artici.ate in the action or .roceedin1. Additionall-, in the event that the .arties elect not to, or fail to, ti/el- obAect to the declaration of non/onetar- status, but later throu1h discover-, or otherwise, deter/ine that the trustee should .artici.ate in the action because of the .erfor/ance of its duties as a trustee, the .arties /a- file and serve on all .arties and the trustee a /otion .ursuant to ection ;>: of

the &ode of &ivil %rocedure that s.ecifies the factual basis for the de/and. *.on the court5s 1rantin1 of the /otion, the trustee shall thereafter be reBuired to .artici.ate in the action or .roceedin1, and the court shall .rovide sufficient ti/e .rior to trial for the trustee to be able to res.ond to the co/.laint, to conduct discover-, and to brin1 other .retrial /otions in accordance with the &ode of &ivil %rocedure. +f, *.on the filin1 of the declaration of non/onetar- status, the ti/e within which the trustee is reBuired to file an answer or other res.onsive .leadin1 shall be tolled for the .eriod of ti/e within which the o..osin1 .arties /ares.ond to the declaration. *.on the ti/el- service of an obAection to the declaration on non/onetar- status, the trustee shall have :? da-s fro/ the date of service within which to file an answer or other res.onsive .leadin1 to the co/.laint or crossJco/.laint. +1, For .ur.oses of this section, 2trustee4 includes an- a1ent or e/.lo-ee of the trustee who .erfor/s so/e or all of the duties of a trustee under this article, and includes substituted trustees and a1ents of the beneficiar- or trustee.
(Amended by Stats. 2004, Ch. 177, Sec. 4. Effective an!a"y 1, 200&.)

292". The fact that a transfer was /ade subAect to defeasance on a condition, /a-, for the .ur.ose of showin1 such transfer to be a /ort1a1e, be .roved +e0ce.t as a1ainst a subseBuent .urchaser or incu/brancer for value and without notice,, thou1h the fact does not a..ear b- the ter/s of the instru/ent.
(Enacted 1872.)

292$. A /ort1a1e is a lien u.on ever-thin1 that would .ass b- a 1rant of the .ro.ert-.
(Enacted 1872.)

292 . A /ort1a1e does not entitle the /ort1a1ee to the .ossession of the .ro.ert-, unless authori6ed b- the e0.ress ter/s of the /ort1a1eH but after the e0ecution of the /ort1a1e the /ort1a1or /a- a1ree to such chan1e of .ossession without a new consideration.
(Enacted 1872.)

292%.

A /ort1a1e does not bind the /ort1a1or .ersonall- to .erfor/ the act for the .erfor/ance of which it is a securit-, unless there is an e0.ress covenant therein to that effect.
(Enacted 1872.)

2929. "o .erson whose interest is subAect to the lien of a /ort1a1e /a- do an- act which will substantiall- i/.air the /ort1a1ee5s securit-.
(Enacted 1872.)

2929.#. +a, +7, A le1al owner shall /aintain vacant residential .ro.ert- .urchased bthat owner at a foreclosure sale, or acBuired b- that owner throu1h foreclosure under a /ort1a1e or deed of trust. A 1overn/ental entit- /ai/.ose a civil fine of u. to one thousand dollars +L7,???, .er da- for a violation. If the 1overn/ental entit- chooses to i/.ose a fine .ursuant to this section, it shall 1ive notice of the alle1ed violation, includin1 a descri.tion of the conditions that 1ave rise to the alle1ation, and notice of the entit-5s intent to assess a civil fine if action to correct the violation is not co//enced within a .eriod of not less than 7; da-s and co/.leted within a .eriod of not less than :? da-s. The notice shall be /ailed to the address .rovided in the deed or other instru/ent as s.ecified in subdivision +a, of ection 8>:87.< of the #overn/ent &ode, or, if none, to the return address .rovided on the deed or other instru/ent. +8, The 1overn/ental entit- shall .rovide a .eriod of not less than :? da-s for the le1al owner to re/ed- the violation .rior to i/.osin1 a civil fine and shall allow for a hearin1 and o..ortunit- to contest an- fine i/.osed. In deter/inin1 the a/ount of the fine, the 1overn/ental entit- shall take into consideration an- ti/el- and 1ood faith efforts b- the le1al owner to re/edthe violation. The /a0i/u/ civil fine authori6ed b- this section is one thousand dollars +L7,???, for each da- that the owner fails to /aintain the .ro.ert-, co//encin1 on the da- followin1 the e0.iration of the .eriod to re/ed- the violation established b- the 1overn/ental entit-. +:, ubAect to the .rovisions of this section, a 1overn/ental entit- /aestablish different co/.liance .eriods for different conditions on the sa/e .ro.ert- in the notice of alle1ed violation /ailed to the le1al owner. +b, For .ur.oses of this section, 2failure to /aintain4 /eans failure to care for the e0terior of the .ro.ert-, includin1, but not li/ited to, .er/ittin1 e0cessive folia1e 1rowth that di/inishes the value of surroundin1 .ro.erties, failin1 to take action to .revent tres.assers or sBuatters fro/ re/ainin1 on the .ro.ert-, or failin1 to take action to .revent /osBuito larvae fro/ 1rowin1 in standin1 water or other conditions that create a .ublic nuisance. +c, "otwithstandin1 subdivisions +a, and +b,, a 1overn/ental entit- /a.rovide less than :? da-s5 notice to re/ed- a condition before i/.osin1 a civil fine if the entit- deter/ines that a s.ecific condition of the .ro.ert-

threatens .ublic health or safet- and .rovided that notice of that deter/ination and ti/e for co/.liance is 1iven. +d, Fines and .enalties collected .ursuant to this section shall be directed to local nuisance abate/ent .ro1ra/s, includin1, but not li/ited to, le1al abate/ent .roceedin1s. +e, A 1overn/ental entit- /a- not i/.ose fines on a le1al owner under both this section and a local ordinance. +f, These .rovisions shall not .ree/.t an- local ordinance. +1, This section shall onl- a..l- to residential real .ro.ert-. +h, The ri1hts and re/edies .rovided in this section are cu/ulative and in addition to an- other ri1hts and re/edies .rovided b- law.
(Amended by Stats. 2012, Ch. 201, Sec. 1. Effective an!a"y 1, 201#.)

2929.4. +a, %rior to i/.osin1 a fine or .enalt- for failure to /aintain a vacant .ro.ert- that is subAect to a notice of default, that is .urchased at a foreclosure sale, or that is acBuired throu1h foreclosure under a /ort1a1e or deed of trust, a 1overn/ental entit- shall .rovide the owner of that .ro.ertwith a notice of the violation and an o..ortunit- to correct that violation. +b, This section shall not a..l- if the 1overn/ental entit- deter/ines that a s.ecific condition of the .ro.ert- threatens .ublic health or safet-.
(Added by Stats. 2010, Ch. &27, Sec. 1. Effective an!a"y 1, 2011.)

2929.4". +a, An assess/ent or lien to recover the costs of nuisance abate/ent /easures taken b- a 1overn/ental entit- with re1ard to .ro.ert- that is subAect to a notice of default, that is .urchased at a foreclosure sale, or that is acBuired throu1h foreclosure under a /ort1a1e or deed of trust, shall not e0ceed the actual and reasonable costs of nuisance abate/ent. +b, A 1overn/ental entit- shall not i/.ose an assess/ent or lien unless the costs that constitute the assess/ent or lien have been ado.ted b- the elected officials of that 1overn/ental entit- at a .ublic hearin1.
(Added by Stats. 2010, Ch. &27, Sec. 2. Effective an!a"y 1, 2011.)

2929.". +a, A secured lender /a- enter and ins.ect the real .ro.ert- securit- for the .ur.ose of deter/inin1 the e0istence, location, nature, and /a1nitude of an.ast or .resent release or threatened release of an- ha6ardous substance into, onto, beneath, or fro/ the real .ro.ert- securit- on either of the followin1: +7, *.on reasonable belief of the e0istence of a .ast or .resent release or threatened release of an- ha6ardous substance into, onto, beneath, or fro/ the real .ro.ert- securit- not .reviousl- disclosed in writin1 to the secured

lender in conAunction with the /akin1, renewal, or /odification of a loan, e0tension of credit, 1uarant-, or other obli1ation involvin1 the borrower. +8, After the co//ence/ent of nonAudicial or Audicial foreclosure .roceedin1s a1ainst the real .ro.ert- securit-. +b, The secured lender shall not abuse the ri1ht of entr- and ins.ection or use it to harass the borrower or tenant of the .ro.ert-. E0ce.t in case of an e/er1enc-, when the borrower or tenant of the .ro.ert- has abandoned the .re/ises, or if it is i/.racticable to do so, the secured lender shall 1ive the borrower or tenant of the .ro.ert- reasonable notice of the secured lender5s intent to enter, and enter onl- durin1 the borrower5s or tenant5s nor/al business hours. Twent-Jfour hours5 notice shall be .resu/ed to be reasonable notice in the absence of evidence to the contrar-. +c, The secured lender shall rei/burse the borrower for the cost of re.air of an- .h-sical inAur- to the real .ro.ert- securit- caused b- the entr- and ins.ection. +d, If a secured lender is refused the ri1ht of entr- and ins.ection b- the borrower or tenant of the .ro.ert-, or is otherwise unable to enter and ins.ect the .ro.ert- without a breach of the .eace, the secured lender /a-, u.on .etition, obtain an order fro/ a court of co/.etent Aurisdiction to e0ercise the secured lender5s ri1hts under subdivision +a,, and that action shall not constitute an action within the /eanin1 of subdivision +a, of ection >8= of the &ode of &ivil %rocedure. +e, For .ur.oses of this section: +7, 2(orrower4 /eans the trustor under a deed of trust, or a /ort1a1or under a /ort1a1e, where the deed of trust or /ort1a1e encu/bers real .ro.ert- securit- and secures the .erfor/ance of the trustor or /ort1a1or under a loan, e0tension of credit, 1uarant-, or other obli1ation. The ter/ includes an- successorJinJinterest of the trustor or /ort1a1or to the real .ro.ert- securit- before the deed of trust or /ort1a1e has been dischar1ed, reconve-ed, or foreclosed u.on. +8, 2Ha6ardous substance4 includes all of the followin1: +A, An- 2ha6ardous substance4 as defined in subdivision +h, of ection 8<8@7 of the Health and afet- &ode. +(, An- 2waste4 as defined in subdivision +d, of ection 7:?<? of the Cater &ode. +&, %etroleu/, includin1 crude oil or an- fraction thereof, natural 1as, natural 1as liBuids, liBuefied natural 1as, or s-nthetic 1as usable for fuel, or an/i0ture thereof. +:, 2Real .ro.ert- securit-4 /eans an- real .ro.ert- and i/.rove/ents, other than a se.arate interest and an- related interest in the co//on area of a residential co//on interest develo./ent, as the ter/s 2se.arate interest,4 2co//on area,4 and 2co//on interest develo./ent4 are defined in ections ;?9<, ;7??, and ;7@<, or real .ro.ert- consistin1 of one acre or less which contains 7 to 7< dwellin1 units. +;, 2Release4 /eans an- s.illin1, leakin1, .u/.in1, .ourin1, e/ittin1, e/.t-in1, dischar1in1, inAectin1, esca.in1, leachin1, du/.in1, or dis.osin1 into the environ/ent, includin1 continuin1 /i1ration, of ha6ardous substances into, onto, or throu1h soil, surface water, or 1roundwater.

+<, 2 ecured lender4 /eans the beneficiar- under a deed of trust a1ainst the real .ro.ert- securit-, or the /ort1a1ee under a /ort1a1e a1ainst the real .ro.ert- securit-, and an- successorJinJinterest of the beneficiar- or /ort1a1ee to the deed of trust or /ort1a1e.
(Amended by Stats. 2012, Ch. 181, Sec. 40. Effective an!a"y 1, 201#. +(e"ative an!a"y 1, 2014, by Sec. 86 %f Ch. 181.)

[29#0.! ection Twent-Jnine Hundred and Thirt-. Title acBuired b- the /ort1a1or subseBuent to the e0ecution of the /ort1a1e, inures to the /ort1a1ee as securit- for the debt in like /anner as if acBuired before the e0ecution.
(Amended by C%de Amendments 187#,74, Ch. 612.)

29#1. A /ort1a1ee /a- foreclose the ri1ht of rede/.tion of the /ort1a1or in the /anner .rescribed b- the &ode of &ivil %rocedure.
(Enacted 1872.)

29#1a. In an- action brou1ht to deter/ine conflictin1 clai/s to real .ro.ert-, or for .artition of real .ro.ert- or an estate for -ears therein, or to foreclose a deed of trust, /ort1a1e, or other lien u.on real .ro.ert-, or in all e/inent do/ain .roceedin1s under ection 78<?.77? et seB., of the &ode of &ivil %rocedure a1ainst real .ro.ert- u.on which e0ists a lien to secure the .a-/ent of ta0es or other obli1ations to an a1enc- of the tate of &alifornia, other than ad valore/ ta0es u.on the real .ro.ert-, the state a1enc- char1ed with the collection of the ta0 obli1ation /a- be /ade a .art-. In such an action, the court shall have Aurisdiction to deter/ine the .riorit- and effect of the liens described in the co/.laint in or u.on the real .ro.ert- or estate for -ears therein, but the Aurisdiction of the court in the action shall not include a deter/ination of the validit- of the ta0 1ivin1 rise to the lien or clai/ of lien. The co/.laint or .etition in the action shall contain a descri.tion of the lien sufficient to enable the ta0 or other obli1ation, .a-/ent of which it secures, to be identified with certaint-, and shall include the na/e and address of the .erson owin1 the ta0 or other obli1ation, the na/e of the state a1enc- that recorded the lien, and the date and .lace where the lien was recorded. ervices of .rocess in the action shall be /ade u.on the a1enc-, officer, board, co//ission, de.art/ent, division, or other bod- char1ed with the collection of the ta0 or obli1ation. It shall be the dut- of the Attorne- #eneral to re.resent the state a1enc- in the action.
(Amended by Stats. 1989, Ch. 698, Sec. 8.)

29#1&.

In all actions in which the tate of &alifornia is na/ed a .art- .ursuant to the .rovisions of ection 89:7a and in which real .ro.ert- or an estate for -ears therein is sou1ht to be sold, the Attorne- #eneral /a-, with the consent of the De.art/ent of Finance, bid u.on and .urchase that real .ro.ert- or estate for -ears.
(Amended by Stats. 1989, Ch. 698, Sec. 9.)

29#1'. The Attorne- #eneral /a- brin1 an action in the courts of this or an- other state or of the *nited tates to enforce an- lien to secure the .a-/ent of ta0es or other obli1ations to the tate of &alifornia under the *ne/.lo-/ent Insurance &ode, the Revenue and Ta0ation &ode, or &ha.ter = +co//encin1 with ection 7=7@?, of %art 7 of Division ; of Title 8 of the #overn/ent &ode or to subAect to .a-/ent of the liabilit- 1ivin1 rise to the lien an- .ro.ert- in which the debtor has an- ri1ht, title, or interest. In an- action brou1ht under this section the court shall have Aurisdiction to deter/ine the .riorit- and effect of the lien in or u.on the .ro.ert-, but the Aurisdiction of the court in such action shall not e0tend to a deter/ination of the validit- of the liabilit1ivin1 rise to the lien.
(Amended by Stats. 1977, Ch. 1242.)

29#2. A .ower of sale /a- be conferred b- a /ort1a1e u.on the /ort1a1ee or another .erson, to be e0ercised after a breach of the obli1ation for which the /ort1a1e is a securit-.
(Enacted 1872.)

29#2.". Chere a .ower to sell real .ro.ert- is 1iven to a /ort1a1ee, or other encu/brancer, in an instru/ent intended to secure the .a-/ent of /one-, the .ower is .art of the securit- and vests in an- .erson who b- assi1n/ent beco/es entitled to .a-/ent of the /one- secured b- the instru/ent. The .ower of sale /a- be e0ercised b- the assi1nee if the assi1n/ent is dulacknowled1ed and recorded.
(Added by Stats. 1986, Ch. 820, Sec. 11. +(e"ative !$y 1, 1987, by Sec. 4# %f Ch. 820.)

29#2.$. +a, "otwithstandin1 an- other .rovision of law, a financial institution /aundertake to re.air an- .ro.ert- acBuired throu1h foreclosure under a /ort1a1e or deed of trust.

+b, As used in this section, the ter/ 2financial institution4 includes, but is not li/ited to, banks, savin1s associations, credit unions, and industrial loan co/.anies. +c, The ri1hts 1ranted to a financial institution b- this section are in addition to, and not in dero1ation of, the ri1hts of a financial institution which otherwise e0ist.
(Amended by Stats. 1988, Ch. 12&, Sec. 1.)

29##. A .ower of attorne- to e0ecute a /ort1a1e /ust be in writin1, subscribed, acknowled1ed, or .roved, certified, and recorded in like /anner as .owers of attorne- for 1rants of real .ro.ert-.
(Enacted 1872.)

29#4. An- assi1n/ent of a /ort1a1e and an- assi1n/ent of the beneficial interest under a deed of trust /a- be recorded, and fro/ the ti/e the sa/e is filed for record o.erates as constructive notice of the contents thereof to all .ersonsH and an- instru/ent b- which an- /ort1a1e or deed of trust of, lien u.on or interest in real .ro.ert-, +or b- which an- /ort1a1e of, lien u.on or interest in .ersonal .ro.ert- a docu/ent evidencin1 or creatin1 which is reBuired or .er/itted b- law to be recorded,, is subordinated or waived as to .riorit- /a- be recorded, and fro/ the ti/e the sa/e is filed for record o.erates as constructive notice of the contents thereof, to all .ersons.
(Amended by Stats. 19#&, Ch. 818.)

29#4a. +a, +7, The trustee under a trust deed u.on real .ro.ert- or an estate for -ears therein 1iven to secure an obli1ation to .a- /one- and conferrin1 no other duties u.on the trustee than those which are incidental to the e0ercise of the .ower of sale therein conferred, /a- be substituted b- the recordin1 in the count- in which the .ro.ert- is located of a substitution e0ecuted and acknowled1ed b-: +A, all of the beneficiaries under the trust deed, or their successors in interest, and the substitution shall be effective notwithstandin1 an- contrar- .rovision in an- trust deed e0ecuted on or after Kanuar- 7, 79=@H or +(, the holders of /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests in a note secured b- real .ro.ert- eBuivalent to a series transaction, e0clusive of an- notes or interests of a licensed real estate broker that is the issuer or servicer of the notes or interests or of an- affiliate of that licensed real estate broker.

+8, A substitution e0ecuted .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7, is not effective unless all the .arties si1nin1 the substitution si1n, under .enalt- of .erAur-, a se.arate written docu/ent statin1 the followin1: +A, The substitution has been si1ned .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7,. +(, "one of the undersi1ned is a licensed real estate broker or an affiliate of the broker that is the issuer or servicer of the obli1ation secured b- the deed of trust. +&, The undersi1ned to1ether hold /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests in a note secured b- real .ro.ert- eBuivalent to a series transaction. +D, "otice of the substitution was sent b- certified /ail, .osta1e .re.aid, with return recei.t reBuested to each holder of an interest in the obli1ation secured b- the deed of trust who has not Aoined in the e0ecution of the substitution or the se.arate docu/ent. The se.arate docu/ent shall be attached to the substitution and be recorded in the office of the count- recorder of each count- in which the real .ro.ertdescribed in the deed of trust is located. $nce the docu/ent reBuired b- this .ara1ra.h is recorded, it shall constitute conclusive evidence of co/.liance with the reBuire/ents of this .ara1ra.h in favor of substituted trustees actin1 .ursuant to this section, subseBuent assi1nees of the obli1ation secured b- the deed of trust, and subseBuent bona fide .urchasers or encu/brancers for value of the real .ro.ert- described therein. +:, For .ur.oses of this section, 2affiliate of the licensed real estate broker4 includes an- .erson as defined in ection 8<?7: of the &or.orations &ode that is controlled b-, or is under co//on control with, or who controls, a licensed real estate broker. 2&ontrol4 /eans the .ossession, direct or indirect, of the .ower to direct or cause the direction of /ana1e/ent and .olicies. +;, The substitution shall contain the date of recordation of the trust deed, the na/e of the trustor, the book and .a1e or instru/ent nu/ber where the trust deed is recorded, and the na/e of the new trustee. Fro/ the ti/e the substitution is filed for record, the new trustee shall succeed to all the .owers, duties, authorit-, and title 1ranted and dele1ated to the trustee na/ed in the deed of trust. A substitution /a- be acco/.lished, with res.ect to /ulti.le deeds of trust which are recorded in the sa/e count- in which the substitution is bein1 recorded and which all have the sa/e trustee and beneficiar- or beneficiaries, b- recordin1 a sin1le docu/ent, co/.l-in1 with the reBuire/ents of this section, substitutin1 trustees for all those deeds of trust. +b, If the substitution is effected after a notice of default has been recorded but .rior to the recordin1 of the notice of sale, the beneficiar- or beneficiaries shall cause a co.- of the substitution to be /ailed, .rior to the recordin1 thereof, in the /anner .rovided in ection 898;b, to the trustee then of record and to all .ersons to who/ a co.- of the notice of default would be reBuired to be /ailed b- the .rovisions of ection 898;b. An

affidavit shall be attached to the substitution that notice has been 1iven to those .ersons and in the /anner reBuired b- this subdivision. +c, "otwithstandin1 an- .rovision of this section or an- .rovision in an- deed of trust, unless a new notice of sale containin1 the na/e, street address, and tele.hone nu/ber of the substituted trustee is 1iven .ursuant to ection 898;f, an- sale conducted b- the substituted trustee shall be void. +d, This section shall re/ain in effect onl- until Kanuar- 7, 799@, and shall have no force or effect after that date, unless a later enacted statute, which is enacted before Kanuar- 7, 799@, deletes or e0tends that date.
(Amended (as amended by Stats. 199#, Ch. 7&4, Sec. 1.&) by Stats. 1996, Ch. 8#9, Sec. 1. Effective an!a"y 1, 1997. -n%(e"ative (b!t n%t "e(ea$ed) %n an!a"y 1, 1998, by its %)n ("%visi%ns. See $ate" %(e"ative secti%n (added by Stats. 199#, Ch. 7&4, Sec. 2.&), as amended by Stats. 2004, Ch. 177.)

29#4a. +a, +7, The trustee under a trust deed u.on real .ro.ert- or an estate for -ears therein 1iven to secure an obli1ation to .a- /one- and conferrin1 no other duties u.on the trustee than those which are incidental to the e0ercise of the .ower of sale therein conferred, /a- be substituted b- the recordin1 in the count- in which the .ro.ert- is located of a substitution e0ecuted and acknowled1ed b-: +A, all of the beneficiaries under the trust deed, or their successors in interest, and the substitution shall be effective notwithstandin1 an- contrar- .rovision in an- trust deed e0ecuted on or after Kanuar- 7, 79=@H or +(, the holders of /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests in a note secured b- real .ro.ert- eBuivalent to a series transaction, e0clusive of an- notes or interests of a licensed real estate broker that is the issuer or servicer of the notes or interests or of an- affiliate of that licensed real estate broker. +8, A substitution e0ecuted .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7, is not effective unless all the .arties si1nin1 the substitution si1n, under .enalt- of .erAur-, a se.arate written docu/ent statin1 the followin1: +A, The substitution has been si1ned .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7,. +(, "one of the undersi1ned is a licensed real estate broker or an affiliate of the broker that is the issuer or servicer of the obli1ation secured b- the deed of trust. +&, The undersi1ned to1ether hold /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests in a note secured b- real .ro.ert- eBuivalent to a series transaction. +D, "otice of the substitution was sent b- certified /ail, .osta1e .re.aid, with return recei.t reBuested to each holder of an interest in the obli1ation secured b- the deed of trust who has not Aoined in the e0ecution of the substitution or the se.arate docu/ent. The se.arate docu/ent shall be attached to the substitution and be recorded in the office of the count- recorder of each count- in which the real .ro.ert-

described in the deed of trust is located. $nce the docu/ent reBuired b- this .ara1ra.h is recorded, it shall constitute conclusive evidence of co/.liance with the reBuire/ents of this .ara1ra.h in favor of substituted trustees actin1 .ursuant to this section, subseBuent assi1nees of the obli1ation secured b- the deed of trust and subseBuent bona fide .urchasers or encu/brancers for value of the real .ro.ert- described therein. +:, For .ur.oses of this section, 2affiliate of the licensed real estate broker4 includes an- .erson as defined in ection 8<?7: of the &or.orations &ode that is controlled b-, or is under co//on control with, or who controls, a licensed real estate broker. 2&ontrol4 /eans the .ossession, direct or indirect, of the .ower to direct or cause the direction of /ana1e/ent and .olicies. +;, The substitution shall contain the date of recordation of the trust deed, the na/e of the trustor, the book and .a1e or instru/ent nu/ber where the trust deed is recorded, and the na/e of the new trustee. Fro/ the ti/e the substitution is filed for record, the new trustee shall succeed to all the .owers, duties, authorit-, and title 1ranted and dele1ated to the trustee na/ed in the deed of trust. A substitution /a- be acco/.lished, with res.ect to /ulti.le deeds of trust which are recorded in the sa/e count- in which the substitution is bein1 recorded and which all have the sa/e trustee and beneficiar- or beneficiaries, b- recordin1 a sin1le docu/ent, co/.l-in1 with the reBuire/ents of this section, substitutin1 trustees for all those deeds of trust. +b, If the substitution is e0ecuted, but not recorded, .rior to or concurrentlwith the recordin1 of the notice of default, the beneficiar- or beneficiaries or their authori6ed a1ents shall cause notice of the substitution to be /ailed .rior to or concurrentl- with the recordin1 thereof, in the /anner .rovided in ection 898;b, to all .ersons to who/ a co.- of the notice of default would be reBuired to be /ailed b- the .rovisions of ection 898;b. An affidavit shall be attached to the substitution that notice has been 1iven to those .ersons and in the /anner reBuired b- this subdivision. +c, If the substitution is effected after a notice of default has been recorded but .rior to the recordin1 of the notice of sale, the beneficiar- or beneficiaries or their authori6ed a1ents shall cause a co.- of the substitution to be /ailed, .rior to, or concurrentl- with, the recordin1 thereof, in the /anner .rovided in ection 898;b, to the trustee then of record and to all .ersons to who/ a co.- of the notice of default would be reBuired to be /ailed b- the .rovisions of ection 898;b. An affidavit shall be attached to the substitution that notice has been 1iven to those .ersons and in the /anner reBuired b- this subdivision. +d, A trustee na/ed in a recorded substitution of trustee shall be dee/ed to be authori6ed to act as the trustee under the /ort1a1e or deed of trust for all .ur.oses fro/ the date the substitution is e0ecuted b- the /ort1a1ee, beneficiaries, or b- their authori6ed a1ents. "othin1 herein reBuires that a trustee under a recorded substitution acce.t the substitution. $nce recorded, the substitution shall constitute conclusive evidence of the authorit- of the substituted trustee or his or her a1ents to act .ursuant to this section.

+e, "otwithstandin1 an- .rovision of this section or an- .rovision in andeed of trust, unless a new notice of sale containin1 the na/e, street address, and tele.hone nu/ber of the substituted trustee is 1iven .ursuant to ection 898;f after e0ecution of the substitution, an- sale conducted bthe substituted trustee shall be void. +f, This section shall beco/e o.erative on Kanuar- 7, 799@.
(Amended (as amended by Stats. 1999, Ch. 974) by Stats. 2004, Ch. 177, Sec. &. Effective an!a"y 1, 200&.)

29#4&. ections 7<=;: and 7@7?8 of the %robate &ode a..l- to trustees under deeds of trust 1iven to secure obli1ations.
(Added by Stats. 1986, Ch. 820, Sec. 12. +(e"ative !$y 1, 1987, by Sec. 4# %f Ch. 820.)

29#". Chen a /ort1a1e or deed of trust is e0ecuted as securit- for /one- due or to beco/e due, on a .ro/issor- note, bond, or other instru/ent, desi1nated in the /ort1a1e or deed of trust, the record of the assi1n/ent of the /ort1a1e or of the assi1n/ent of the beneficial interest under the deed of trust, is not of itself notice to the debtor, his heirs, or .ersonal re.resentatives, so as to invalidate an- .a-/ent /ade b- the/, or an- of the/, to the .erson holdin1 such note, bond, or other instru/ent.
(Amended by Stats. 19#1, Ch. 80.)

29#$. The assi1n/ent of a debt secured b- /ort1a1e carries with it the securit-.
(Enacted 1872.)

29# . +a, The !e1islature hereb- finds and declares that borrowers or subseBuent obli1ors have the ri1ht to know when a .erson holdin1 a .ro/issor- note, bond, or other instru/ent transfers servicin1 of the indebtedness secured ba /ort1a1e or deed of trust on real .ro.ert- containin1 one to four residential units located in this state. The !e1islature also finds that notification to the borrower or subseBuent obli1or of the transfer /a- .rotect the borrower or subseBuent obli1or fro/ fraudulent business .ractices and /a- ensure ti/el- .a-/ents. It is the intent of the !e1islature in enactin1 this section to /andate that a borrower or subseBuent obli1or be 1iven written notice when a .erson transfers the servicin1 of the indebtedness on notes, bonds, or other

instru/ents secured b- a /ort1a1e or deed of trust on real .ro.ertcontainin1 one to four residential units and located in this state. +b, An- .erson transferrin1 the servicin1 of indebtedness as .rovided in subdivision +a, to a different servicin1 a1ent and an- .erson assu/in1 fro/ another res.onsibilit- for servicin1 the instru/ent evidencin1 indebtedness, shall 1ive written notice to the borrower or subseBuent obli1or before the borrower or subseBuent obli1or beco/es obli1ated to /ake .a-/ents to a new servicin1 a1ent. +c, In the event a notice of default has been recorded or a Audicial foreclosure .roceedin1 has been co//enced, the .erson transferrin1 the servicin1 of the indebtedness and the .erson assu/in1 fro/ another the dut- of servicin1 the indebtedness shall 1ive written notice to the trustee or attorne- na/ed in the notice of default or Audicial foreclosure of the transfer. A notice of default, notice of sale, or Audicial foreclosure shall not be invalidated solel- because the servicin1 a1ent is chan1ed durin1 the foreclosure .rocess. +d, An- .erson transferrin1 the servicin1 of indebtedness as .rovided in subdivision +a, to a different servicin1 a1ent shall .rovide to the new servicin1 a1ent all e0istin1 insurance .olic- infor/ation that the .erson is res.onsible for /aintainin1, includin1, but not li/ited to, flood and ha6ard insurance .olic- infor/ation. +e, The notices reBuired b- subdivision +b, shall be sent b- firstJclass /ail, .osta1e .re.aid, to the borrower5s or subseBuent obli1or5s address desi1nated for loan .a-/ent billin1s, or if escrow is .endin1, as .rovided in the escrow, and shall contain each of the followin1: +7, The na/e and address of the .erson to which the transfer of the servicin1 of the indebtedness is /ade. +8, The date the transfer was or will be co/.leted. +:, The address where all .a-/ents .ursuant to the transfer are to be /ade. +f, An- .erson assu/in1 fro/ another res.onsibilit- for servicin1 the instru/ent evidencin1 indebtedness shall include in the notice reBuired bsubdivision +b, a state/ent of the due date of the ne0t .a-/ent. +1, The borrower or subseBuent obli1or shall not be liable to the holder of the note, bond, or other instru/ent or to an- servicin1 a1ent for .a-/ents /ade to the .revious servicin1 a1ent or for late char1es if these .a-/ents were /ade .rior to the borrower or subseBuent obli1or receivin1 written notice of the transfer as .rovided b- subdivision +e, and the .a-/ents were otherwise on ti/e. +h, For .ur.oses of this section, the ter/ servicin1 a1ent shall not include a trustee e0ercisin1 a .ower of sale .ursuant to a deed of trust.
(Amended by Stats. 2002, Ch. 70, Sec. 1. Effective an!a"y 1, 200#.)

29# . . In an- action affectin1 the interest of an- trustor or beneficiar- under a deed of trust or /ort1a1e, service of .rocess to the trustee does not constitute service to the trustor or beneficiar- and does not i/.ose an- obli1ation on the trustee to notif- the trustor or beneficiar- of the action.
(Added by Stats. 1988, Ch. &#0, Sec. 1.)

29#%. +a, A written assi1n/ent of an interest in leases, rents, issues, or .rofits of real .ro.ert- /ade in connection with an obli1ation secured b- real .ro.ert-, irres.ective of whether the assi1n/ent is denoted as absolute, absolute conditioned u.on default, additional securit- for an obli1ation, or otherwise, shall, u.on e0ecution and deliver- b- the assi1nor, be effective to create a .resent securit- interest in e0istin1 and future leases, rents, issues, or .rofits of that real .ro.ert-. As used in this section, 2leases, rents, issues, and .rofits of real .ro.ert-4 includes the cash .roceeds thereof. 2&ash .roceeds4 /eans cash, checks, de.osit accounts, and the like. +b, An assi1n/ent of an interest in leases, rents, issues, or .rofits of real .ro.ert- /a- be recorded in the records of the count- recorder in the countin which the underl-in1 real .ro.ert- is located in the sa/e /anner as another conve-ance of an interest in real .ro.ert-, whether the assi1n/ent is in a se.arate docu/ent or .art of a /ort1a1e or deed of trust, and when so dul- recorded in accordance with the /ethods, .rocedures, and reBuire/ents for recordation of conve-ances of other interests in real .ro.ert-, +7, the assi1n/ent shall be dee/ed to 1ive constructive notice of the content of the assi1n/ent with the sa/e force and effect as an- other dul- recorded conve-ance of an interest in real .ro.ert- and +8, the interest 1ranted b- the assi1n/ent shall be dee/ed full- .erfected as of the ti/e of recordation with the sa/e force and effect as an- other dul- recorded conve-ance of an interest in real .ro.ert-, notwithstandin1 a .rovision of the assi1n/ent or a .rovision of law that would otherwise .reclude or defer enforce/ent of the ri1hts 1ranted the assi1nee under the assi1n/ent until the occurrence of a subseBuent event, includin1, but not li/ited to, a subseBuent default of the assi1nor, or the assi1nee5s obtainin1 .ossession of the real .ro.ert- or the a..oint/ent of a receiver. +c, *.on default of the assi1nor under the obli1ation secured b- the assi1n/ent of leases, rents, issues, and .rofits, the assi1nee shall be entitled to enforce the assi1n/ent in accordance with this section. $n and after the date the assi1nee takes one or /ore of the enforce/ent ste.s described in this subdivision, the assi1nee shall be entitled to collect and receive all rents, issues, and .rofits that have accrued but re/ain un.aid and uncollected bthe assi1nor or its a1ent or for the assi1nor5s benefit on that date, and all rents, issues, and .rofits that accrue on or after the date. The assi1n/ent shall be enforced b- one or /ore of the followin1: +7, The a..oint/ent of a receiver. +8, $btainin1 .ossession of the rents, issues, or .rofits. +:, Deliver- to an- one or /ore of the tenants of a written de/and for turnover of rents, issues, and .rofits in the for/ s.ecified in subdivision +k,, a co.- of which de/and shall also be delivered to the assi1norH and a co.- of which shall be /ailed to all other assi1nees of record of the leases, rents, issues, and .rofits of the real .ro.ert- at the address for notices .rovided in the assi1n/ent or, if none, to the address to which the recorded assi1n/ent was to be /ailed after recordin1.

+;, Deliver- to the assi1nor of a written de/and for the rents, issues, or .rofits, a co.- of which shall be /ailed to all other assi1nees of record of the leases, rents, issues, and .rofits of the real .ro.ert- at the address for notices .rovided in the assi1n/ent or, if none, to the address to which the recorded assi1n/ent was to be /ailed after recordin1. 3one-s received b- the assi1nee .ursuant to this subdivision, net of a/ounts .aid .ursuant to subdivision +1,, if an-, shall be a..lied b- the assi1nee to the debt or otherwise in accordance with the assi1n/ent or the .ro/issornote, deed of trust, or other instru/ent evidencin1 the obli1ation, .rovided, however, that neither the a..lication nor the failure to so a..l- the rents, issues, or .rofits shall result in a loss of an- lien or securit- interest that the assi1nee /a- have in the underl-in1 real .ro.ert- or an- other collateral, render the obli1ation unenforceable, constitute a violation of ection >8= of the &ode of &ivil %rocedure, or otherwise li/it a ri1ht available to the assi1nee with res.ect to its securit-. +d, If an assi1nee elects to take the action .rovided for under .ara1ra.h +:, of subdivision +c,, the de/and .rovided for therein shall be si1ned under .enalt- of .erAur- b- the assi1nee or an authori6ed a1ent of the assi1nee and shall be effective as a1ainst the tenant when actuall- received b- the tenant at the address for notices .rovided under the lease or other contractual a1ree/ent under which the tenant occu.ies the .ro.ert- or, if no address for notices is so .rovided, at the .ro.ert-. *.on recei.t of this de/and, the tenant shall be obli1ated to .a- to the assi1nee all rents, issues, and .rofits that are .ast due and .a-able on the date of recei.t of the de/and, and all rents, issues, and .rofits co/in1 due under the lease followin1 the date of recei.t of the de/and, unless either of the followin1 occurs: +7, The tenant has .reviousl- received a de/and that is valid on its face fro/ another assi1nee of the leases, issues, rents, and .rofits sent b- the other assi1nee in accordance with this subdivision and subdivision +c,. +8, The tenant, in 1ood faith and in a /anner that is not inconsistent with the lease, has .reviousl- .aid, or within 7? da-s followin1 recei.t of the de/and notice .a-s, the rent to the assi1nor. %a-/ent of rent to an assi1nee followin1 a de/and under an assi1n/ent of leases, rents, issues, and .rofits shall satisf- the tenant5s obli1ation to .athe a/ounts under the lease. If a tenant .a-s rent to the assi1nor after recei.t of a de/and other than under the circu/stances described in this subdivision, the tenant shall not be dischar1ed of the obli1ation to .a- rent to the assi1nee, unless the tenant occu.ies the .ro.ert- for residential .ur.oses. The obli1ation of a tenant to .a- rent .ursuant to this subdivision and subdivision +c, shall continue until recei.t b- the tenant of a written notice fro/ a court directin1 the tenant to .a- the rent in a different /anner or recei.t b- the tenant of a written notice fro/ the assi1nee fro/ who/ the de/and was received cancelin1 the de/and, whichever occurs first. This subdivision does not affect the entitle/ent to rents, issues, or .rofits as between assi1nees as set forth in subdivision +h,. +e, An enforce/ent action of the t-.e authori6ed b- subdivision +c,, and a collection, distribution, or a..lication of rents, issues, or .rofits b- the

assi1nee followin1 an enforce/ent action of the t-.e authori6ed bsubdivision +c,, shall not do an- of the followin1: +7, 3ake the assi1nee a /ort1a1ee in .ossession of the .ro.ert-, e0ce.t if the assi1nee obtains actual .ossession of the real .ro.ert-, or an a1ent of the assi1nor. +8, &onstitute an action, render the obli1ation unenforceable, violate ection >8= of the &ode of &ivil %rocedure, or, other than with res.ect to /arshalin1 reBuire/ents, otherwise li/it an- ri1hts available to the assi1nee with res.ect to its securit-. +:, (e dee/ed to create a bar to a deficienc- Aud1/ent .ursuant to a .rovision of law 1overnin1 or relatin1 to deficienc- Aud1/ents followin1 the enforce/ent of an- encu/brance, lien, or securit- interest, notwithstandin1 that the action, collection, distribution, or a..lication /a- reduce the indebtedness secured b- the assi1n/ent or b- a deed of trust or other securit- instru/ent. The a..lication of rents, issues, or .rofits to the secured obli1ation shall satisf- the secured obli1ation to the e0tent of those rents, issues, or .rofits, and, notwithstandin1 an- .rovisions of the assi1n/ent or other loan docu/ents to the contrar-, shall be credited a1ainst an- a/ounts necessarto cure an- /onetar- default for .ur.oses of reinstate/ent under ection 898;c. +f, If cash .roceeds of rents, issues, or .rofits to which the assi1nee is entitled followin1 enforce/ent as set forth in subdivision +c, are received bthe assi1nor or its a1ent for collection or b- another .erson who has collected such rents, issues, or .rofits for the assi1nor5s benefit, or for the benefit of a subseBuent assi1nee under the circu/stances described in subdivision +h,, followin1 the takin1 b- the assi1nee of either of the enforce/ent actions authori6ed in .ara1ra.h +:, or +;, of subdivision +c,, and the assi1nee has not authori6ed the assi1nor5s dis.osition of the cash .roceeds in a writin1 si1ned b- the assi1nee, the ri1hts to the cash .roceeds and to the recover- of the cash .roceeds shall be deter/ined b- the followin1: +7, The assi1nee shall be entitled to an i//ediate turnover of the cash .roceeds received b- the assi1nor or its a1ent for collection or an- other .erson who has collected the rents, issues, or .rofits for the assi1nor5s benefit, or for the benefit of a subseBuent assi1nee under the circu/stances described in subdivision +h,, and the assi1nor or other described .art- in .ossession of those cash .roceeds shall turn over the full a/ount of cash .roceeds to the assi1nee, less an- a/ount re.resentin1 .a-/ent of e0.enses authori6ed b- the assi1nee in writin1. The assi1nee shall have a ri1ht to brin1 an action for recover- of the cash .roceeds, and to recover the cash .roceeds, without the necessit- of brin1in1 an action to foreclose a securit- interest that it /a- have in the real .ro.ert-. This action shall not violate ection >8= of the &ode of &ivil %rocedure or otherwise li/it a ri1ht available to the assi1nee with res.ect to its securit-. +8, As between an assi1nee with an interest in cash .roceeds .erfected in the /anner set forth in subdivision +b, and enforced in accordance with .ara1ra.h +:, or +;, of subdivision +c, and another .erson clai/in1 an

interest in the cash .roceeds, other than the assi1nor or its a1ent for collection or one collectin1 rents, issues, and .rofits for the benefit of the assi1nor, and subAect to subdivision +h,, the assi1nee shall have a continuousl- .erfected securit- interest in the cash .roceeds to the e0tent that the cash .roceeds are identifiable. For .ur.oses hereof, cash .roceeds are identifiable if the- are either +A, se1re1ated or +(, if co//in1led with other funds of the assi1nor or its a1ent or one actin1 on its behalf, can be traced usin1 the lowest inter/ediate balance .rinci.le, unless the assi1nor or other .art- clai/in1 an interest in .roceeds shows that so/e other /ethod of tracin1 would better serve the interests of Austice and eBuit- under the circu/stances of the case. The .rovisions of this .ara1ra.h are subAect to an- 1enerall- a..licable law with res.ect to .a-/ents /ade in the o.eration of the assi1nor5s business. +1, +7, If the assi1nee enforces the assi1n/ent under subdivision +c, b/eans other than the a..oint/ent of a receiver and receives rents, issues, or .rofits .ursuant to this enforce/ent, the assi1nor or another assi1nee of the affected real .ro.ert- /a- /ake written de/and u.on the assi1nee to .a- the reasonable costs of .rotectin1 and .reservin1 the .ro.ert-, includin1 .a-/ent of ta0es and insurance and co/.liance with buildin1 and housin1 codes, if an-. +8, $n and after the date of recei.t of the de/and, the assi1nee shall .a- for the reasonable costs of .rotectin1 and .reservin1 the real .ro.ert- to the e0tent of an- rents, issues, or .rofits actuall- received b- the assi1nee, .rovided, however, that no such acts b- the assi1nee shall cause the assi1nee to beco/e a /ort1a1ee in .ossession and the assi1nee5s duties under this subdivision, u.on recei.t of a de/and fro/ the assi1nor or another assi1nee of the leases, rents, issues, and .rofits .ursuant to .ara1ra.h +7,, shall not be construed to reBuire the assi1nee to o.erate or /ana1e the .ro.ert-, which obli1ation shall re/ain that of the assi1nor. +:, The obli1ation of the assi1nee hereunder shall continue until the earlier of +A, the date on which the assi1nee obtains the a..oint/ent of a receiver for the real .ro.ert- .ursuant to a..lication to a court of co/.etent Aurisdiction, or +(, the date on which the assi1nee ceases to enforce the assi1n/ent. +;, This subdivision does not su.ersede or di/inish the ri1ht of the assi1nee to the a..oint/ent of a receiver. +h, The lien .riorities, ri1hts, and interests a/on1 creditors concernin1 rents, issues, or .rofits collected before the enforce/ent b- the assi1nee shall be 1overned b- subdivisions +a, and +b,. Cithout li/itin1 the 1eneralit- of the fore1oin1, if an assi1nee who has recorded its interest in leases, rents, issues, and .rofits .rior to the recordation of that interest b- a subseBuent assi1nee seeks to enforce its interest in those rents, issues, or .rofits in accordance with this section after an- enforce/ent action has been taken ba subseBuent assi1nee, the .rior assi1nee shall be entitled onl- to the rents, issues, and .rofits that are accrued and un.aid as of the date of its enforce/ent action and un.aid rents, issues, and .rofits accruin1 thereafter. The .rior assi1nee shall have no ri1ht to rents, issues, or .rofits .aid .rior to the date of the enforce/ent action, whether in the hands of the assi1nor or an- subseBuent assi1nee. *.on recei.t of notice that the .rior assi1nee has

enforced its interest in the rents, issues, and .rofits, the subseBuent assi1nee shall i//ediatel- send a notice to an- tenant to who/ it has 1iven notice under subdivision +c,. The notice shall infor/ the tenant that the subseBuent assi1nee cancels its de/and that the tenant .a- rent to the subseBuent assi1nee. +i, +7, This section shall a..l- to contracts entered into on or after Kanuar- 7, 799>. +8, ections 89:@ and 89:@.7, as these sections were in effect .rior to Kanuar- 7, 799>, shall 1overn contracts entered into .rior to Kanuar- 7, 799>, and shall 1overn actions and .roceedin1s initiated on the basis of these contracts. +A, 2Real .ro.ert-,4 as used in this section, /eans real .ro.ert- or an- estate or interest therein. +k, The de/and reBuired b- .ara1ra.h +:, of subdivision +c, shall be in the followin1 for/:
DE3A"D T$ %A' RE"T T$ %ART' $THER THA" !A"D!$RD + E&TI$" 89:@ $F THE &I)I! &$DE,

Tenant:E"a/e of TenantF

%ro.ert- $ccu.ied b- Tenant:EAddressF

!andlord:E"a/e of !andlordF

ecured %art-:E"a/e of

ecured %art-F

Address:EAddress for %a-/ent of Rent to Further Infor/ationF:

ecured %art- and for

The secured .art- na/ed above is the assi1nee of leases, rents, issues, and .rofits under Ena/e of docu/entF dated GGGGGG, and recorded at Erecordin1 infor/ationF in the official records of GGGGGGGGGGG &ount-, &alifornia. 'ou /a- reBuest a co.- of the assi1n/ent fro/ the secured .art- at GGGG +address,.

THI "$TI&E AFFE&T '$*R !EA E $R RE"TA! A#REE3E"T RI#HT A"D $(!I#ATI$" . '$* ARE THEREF$RE AD)I ED T$ &$" *!T A" ATT$R"E' &$"&ER"I"# TH$ E RI#HT A"D $(!I#ATI$" IF '$* HA)E A"' N*E TI$" RE#ARDI"# '$*R RI#HT A"D $(!I#ATI$" *"DER THI "$TI&E.

I" A&&$RDA"&E CITH *(DI)I I$" +&, $F E&TI$" 89:@ $F THE &I)I! &$DE, '$* ARE HERE(' DIRE&TED T$ %A' T$ THE E&*RED %ART', GGGG +"A3E $F E&*RED %ART', AT GGGG +ADDRE ,, A!! RE"T *"DER '$*R !EA E $R $THER RE"TA! A#REE3E"T CITH THE !A"D!$RD $R %REDE&E $R I" I"TERE T $F !A"D!$RD, F$R THE $&&*%A"&' $F THE %R$%ERT' AT GGGG +ADDRE $F RE"TA! %RE3I E , CHI&H ARE %A T D*E A"D %A'A(!E $" THE DATE '$* RE&EI)E THI DE3A"D, A"D A!! RE"T &$3I"# D*E *"DER THE !EA E $R $THER RE"TA! A#REE3E"T F$!!$CI"# THE DATE '$* RE&EI)E THI DE3A"D *"!E '$* HA)E A!READ' %AID THI RE"T T$ THE !A"D!$RD I" #$$D FAITH A"D I" A 3A""ER "$T I"&$" I TE"T CITH THE A#REE3E"T (ETCEE" '$* A"D THE !A"D!$RD. I" THI &A E, THI DE3A"D "$TI&E HA!! REN*IRE '$* T$ %A' T$ THE E&*RED %ART', GGGG +"A3E $F THE E&*RED %ART',, A!! RE"T THAT &$3E D*E F$!!$CI"# THE DATE $F THE %A'3E"T T$ THE !A"D!$RD.

IF '$* %A' THE RE"T T$ THE *"DER I#"ED E&*RED %ART', GGGG +"A3E $F E&*RED %ART',, I" A&&$RDA"&E CITH THI "$TI&E, '$* D$ "$T HA)E T$ %A' THE RE"T T$ THE !A"D!$RD. '$* CI!! "$T (E *(KE&T T$ DA3A#E $R $(!I#ATED T$ %A' RE"T T$ THE E&*RED %ART' IF '$* HA)E %RE)I$* !' RE&EI)ED A DE3A"D $F THI T'%E FR$3 A DIFFERE"T E&*RED %ART'.

EFor other than residential tenantsF IF '$* %A' RE"T T$ THE !A"D!$RD THAT (' THE TER3 $F THI DE3A"D '$* ARE REN*IRED T$ %A' T$ THE E&*RED %ART', '$* 3A' (E *(KE&T T$ DA3A#E I"&*RRED (' THE E&*RED %ART' (' REA $" $F '$*R FAI!*RE T$ &$3%!' CITH THI DE3A"D, A"D '$* 3A' "$T (E DI &HAR#ED FR$3 '$*R $(!I#ATI$" T$ %A' THAT RE"T T$ THE E&*RED %ART'. '$* CI!! "$T (E *(KE&T T$ TH$ E DA3A#E $R $(!I#ATED T$ %A' THAT RE"T T$ THE E&*RED %ART' IF '$* HA)E %RE)I$* !' RE&EI)ED A DE3A"D $F THI T'%E FR$3 A DIFFERE"T A I#"EE.

'our obli1ation to .a- rent under this de/and shall continue until -ou receive either +7, a written notice fro/ a court directin1 -ou to .athe rent in a /anner .rovided therein, or +8, a written notice fro/ the secured .art- na/ed above cancelin1 this de/and.

The undersi1ned hereb- certifies, under .enalt- of .erAur-, that the undersi1ned is an authori6ed officer or a1ent of the secured .artand that the secured .art- is the assi1nee, or the current successor to the assi1nee, under an assi1n/ent of leases, rents, issues, or .rofits e0ecuted b- the landlord, or a .redecessor in interest, that is bein1 enforced .ursuant to and in accordance with ection 89:@ of the &ivil &ode.

E0ecuted at GGGGGGGGG, &alifornia, this GGGG da- of GGGGGGGGG, GGGGG.

E ecured %art-F GGGGG "a/e: GGGGG Title: (Amended by Stats. 2008, Ch. 179, Sec. ##. Effective an!a"y 1, 2009.)

29#9. A recorded /ort1a1e /ust be dischar1ed b- a certificate si1ned b- the /ort1a1ee, his .ersonal re.resentatives or assi1ns, acknowled1ed or .roved and certified as .rescribed b- the cha.ter on 2recordin1 transfers,4 statin1 that the /ort1a1e has been .aid, satisfied, or dischar1ed. Reference shall be /ade in said certificate to the book and .a1e where the /ort1a1e is recorded.
(Amended by Stats. 19&7, Ch. 186&.)

29#9.". Forei1n e0ecutors, ad/inistrators and 1uardians /a- satisf- /ort1a1es u.on the records of an- count- in this state, u.on .roducin1 and recordin1 in the office of the count- recorder of the count- in which such /ort1a1e is recorded, a dul- certified and authenticated co.- of their letters testa/entar-, or of ad/inistration or of 1uardianshi., and which certificate or authentication shall also recite that said letters have not been revoked. For the .ur.oses of this section, 21uardian4 includes a forei1n conservator, co//ittee, or co/.arable fiduciar-.
(Added by "en!mbe"in. Secti%n 29#9/ by Stats. 1979, Ch. 7#0.)

2940. A certificate of the dischar1e of a /ort1a1e, and the .roof or acknowled1/ent thereof, /ust be recorded in the office of the countrecorder in which the /ort1a1e is recorded.
(Amended by Stats. 19&7, Ch. 186&.)

2941. +a, Cithin :? da-s after an- /ort1a1e has been satisfied, the /ort1a1ee or the assi1nee of the /ort1a1ee shall e0ecute a certificate of the dischar1e

thereof, as .rovided in ection 89:9, and shall record or cause to be recorded in the office of the count- recorder in which the /ort1a1e is recorded. The /ort1a1ee shall then deliver, u.on the written reBuest of the /ort1a1or or the /ort1a1or5s heirs, successors, or assi1nees, as the case /a- be, the ori1inal note and /ort1a1e to the .erson /akin1 the reBuest. +b, +7, Cithin :? calendar da-s after the obli1ation secured b- an- deed of trust has been satisfied, the beneficiar- or the assi1nee of the beneficiarshall e0ecute and deliver to the trustee the ori1inal note, deed of trust, reBuest for a full reconve-ance, and other docu/ents as /a- be necessarto reconve-, or cause to be reconve-ed, the deed of trust. +A, The trustee shall e0ecute the full reconve-ance and shall record or cause it to be recorded in the office of the count- recorder in which the deed of trust is recorded within 87 calendar da-s after recei.t b- the trustee of the ori1inal note, deed of trust, reBuest for a full reconve-ance, the fee that /abe char1ed .ursuant to subdivision +e,, recorder5s fees, and other docu/ents as /a- be necessar- to reconve-, or cause to be reconve-ed, the deed of trust. +(, The trustee shall deliver a co.- of the reconve-ance to the beneficiar-, its successor in interest, or its servicin1 a1ent, if known. The reconve-ance instru/ent shall s.ecif- one of the followin1 o.tions for deliver- of the instru/ent, the addresses of which the recorder has no dut- to validate: +i, The trustor or successor in interest, and that .erson5s last known address, as the .erson to who/ the recorder will deliver the recorded instru/ent .ursuant to ection 8>:87 of the #overn/ent &ode. +ii, That the recorder shall deliver the recorded instru/ent to the trustee5s address. If the trustee5s address is s.ecified for deliver-, the trustee shall /ail the recorded instru/ent to the trustor or the successor in interest to the last known address for that .art-. +&, Followin1 e0ecution and recordation of the full reconve-ance, u.on recei.t of a written reBuest b- the trustor or the trustor5s heirs, successors, or assi1nees, the trustee shall then deliver, or caused to be delivered, the ori1inal note and deed of trust to the .erson /akin1 that reBuest. +D, If the note or deed of trust, or an- co.- of the note or deed of trust, is electronic, u.on satisfaction of an obli1ation secured b- a deed of trust, anelectronic ori1inal, or electronic co.- which has not been .reviousl- /arked solel- for use as a co.-, of the note and deed of trust, shall be altered to indicate that the obli1ation is .aid in full. +8, If the trustee has failed to e0ecute and record, or cause to be recorded, the full reconve-ance within =? calendar da-s of satisfaction of the obli1ation, the beneficiar-, u.on recei.t of a written reBuest b- the trustor or trustor5s heirs, successor in interest, a1ent, or assi1nee, shall e0ecute and acknowled1e a docu/ent .ursuant to ection 89:;a substitutin1 itself or another as trustee and issue a full reconve-ance. +:, If a full reconve-ance has not been e0ecuted and recorded .ursuant to either .ara1ra.h +7, or .ara1ra.h +8, within >< calendar da-s of satisfaction of the obli1ation, then a title insurance co/.an- /a- .re.are and record a release of the obli1ation. However, at least 7? da-s .rior to the issuance and recordin1 of a full release .ursuant to this .ara1ra.h, the title insurance

co/.an- shall /ail b- firstJclass /ail with .osta1e .re.aid, the intention to release the obli1ation to the trustee, trustor, and beneficiar- of record, or their successor in interest of record, at the last known address. +A, The release shall set forth: +i, The na/e of the beneficiar-. +ii, The na/e of the trustor. +iii, The recordin1 reference to the deed of trust. +iv, A recital that the obli1ation secured b- the deed of trust has been .aid in full. +v, The date and a/ount of .a-/ent. +(, The release issued .ursuant to this subdivision shall be entitled to recordation and, when recorded, shall be dee/ed to be the eBuivalent of a reconve-ance of a deed of trust. +;, Chere an obli1ation secured b- a deed of trust was .aid in full .rior to Kul- 7, 79@9, and no reconve-ance has been issued and recorded b- $ctober 7, 79@9, then a release of obli1ation as .rovided for in .ara1ra.h +:, /a- be issued. +<, %ara1ra.hs +8, and +:, do not e0cuse the beneficiar- or the trustee fro/ co/.liance with .ara1ra.h +7,. %ara1ra.h +:, does not e0cuse the beneficiar- fro/ co/.liance with .ara1ra.h +8,. +=, In addition to an- other re/ed- .rovided b- law, a title insurance co/.an- .re.arin1 or recordin1 the release of the obli1ation shall be liable to an- .art- for da/a1es, includin1 attorne-5s fees, which an- .erson /asustain b- reason of the issuance and recordin1 of the release, .ursuant to .ara1ra.hs +:, and +;,. +>, A beneficiar- /a-, at its discretion, in accordance with the reBuire/ents and .rocedures of ection 89:;a, substitute the title co/.an- conductin1 the escrow throu1h which the obli1ation is satisfied for the trustee of record, in which case the title co/.an- assu/es the obli1ation of a trustee under this subdivision, and /a- collect the fee authori6ed b- subdivision +e,. +@, In lieu of deliverin1 the ori1inal note and deed of trust to the trustee within :? da-s of loan satisfaction, as reBuired b- .ara1ra.h +7, of subdivision +b,, a beneficiar- who e0ecutes and delivers to the trustee a reBuest for a full reconve-ance within :? da-s of loan satisfaction /a-, within 78? da-s of loan satisfaction, deliver the ori1inal note and deed of trust to either the trustee or trustor. If the note and deed of trust are delivered as .rovided in this .ara1ra.h, u.on satisfaction of the note and deed of trust, the note and deed of trust shall be altered to indicate that the obli1ation is .aid in full. "othin1 in this .ara1ra.h alters the reBuire/ents and obli1ations set forth in .ara1ra.hs +8, and +:,. +c, For the .ur.oses of this section, the .hrases 2cause to be recorded4 and 2cause it to be recorded4 include, but are not li/ited to, sendin1 b- certified /ail with the *nited tates %ostal ervice or b- an inde.endent courier service usin1 its trackin1 service that .rovides docu/entation of recei.t and deliver-, includin1 the si1nature of the reci.ient, the full reconve-ance or certificate of dischar1e in a recordable for/, to1ether with .a-/ent for all reBuired fees, in an envelo.e addressed to the count- recorder5s office of the count- in which the deed of trust or /ort1a1e is recorded. Cithin two

business da-s fro/ the da- of recei.t, if received in recordable for/ to1ether with all reBuired fees, the count- recorder shall sta/. and record the full reconve-ance or certificate of dischar1e. &o/.liance with this subdivision shall entitle the trustee to the benefit of the .resu/.tion found in ection =;7 of the Evidence &ode. +d, The violation of this section shall /ake the violator liable to the .erson affected b- the violation for all da/a1es which that .erson /a- sustain breason of the violation, and shall reBuire that the violator forfeit to that .erson the su/ of five hundred dollars +L<??,. +e, +7, The trustee, beneficiar-, or /ort1a1ee /a- char1e a reasonable fee to the trustor or /ort1a1or, or the owner of the land, as the case /a- be, for all services involved in the .re.aration, e0ecution, and recordation of the full reconve-ance, includin1, but not li/ited to, docu/ent .re.aration and forwardin1 services rendered to effect the full reconve-ance, and, in addition, /a- collect official fees. This fee /a- be /ade .a-able no earlier than the o.enin1 of a bona fide escrow or no /ore than =? da-s .rior to the full satisfaction of the obli1ation secured b- the deed of trust or /ort1a1e. +8, If the fee char1ed .ursuant to this subdivision does not e0ceed fort-Jfive dollars +L;<,, the fee is conclusivel- .resu/ed to be reasonable. +:, The fee described in .ara1ra.h +7, /a- not be char1ed unless de/and for the fee was included in the .a-off de/and state/ent described in ection 89;:. +f, For .ur.oses of this section, 2ori1inal4 /a- include an o.ticall- i/a1ed re.roduction when the followin1 reBuire/ents are /et: +7, The trustee receivin1 the reBuest for reconve-ance and e0ecutin1 the reconve-ance as .rovided in subdivision +b, is an affiliate or subsidiar- of the beneficiar- or an affiliate or subsidiar- of the assi1nee of the beneficiar-, res.ectivel-. +8, The o.tical i/a1e stora1e /edia used to store the docu/ent shall be nonerasable write once, read /an- +C$R3, o.tical i/a1e /edia that does not allow chan1es to the stored docu/ent. +:, The o.tical i/a1e re.roduction shall be /ade consistent with the /ini/u/ standards of Bualit- a..roved b- either the "ational Institute of tandards and Technolo1- or the Association for Infor/ation and I/a1e 3ana1e/ent. +;, Critten authentication identif-in1 the o.tical i/a1e re.roduction as an unaltered co.- of the note, deed of trust, or /ort1a1e shall be sta/.ed or .rinted on the o.tical i/a1e re.roduction. +1, "o fee or char1e /a- be i/.osed on the trustor in connection with, or relatin1 to, an- act described in this section e0ce.t as e0.ressl- authori6ed b- this section. +h, The a/end/ents to this section enacted at the 7999O8??? Re1ular ession shall a..l- onl- to a /ort1a1e or an obli1ation secured b- a deed of trust that is satisfied on or after Kanuar- 7, 8??7. +i, +7, In an- action filed before Kanuar- 7, 8??8, that is dis/issed as a result of the a/end/ents to this section enacted at the 8??7O?8 Re1ular ession, the .laintiff shall not be reBuired to .a- the defendant5s costs.

+8, An- clai/ant, includin1 a clai/ant in a class action lawsuit, whose clai/ is dis/issed or barred as a result of the a/end/ents to this section enacted at the 8??7O?8 Re1ular ession, /a-, within = /onths of the dis/issal or barrin1 of the action or clai/, file or refile a clai/ for actual da/a1es occurrin1 before Kanuar- 7, 8??8, that were .ro0i/atel- caused b- a ti/e la.se between loan satisfaction and the co/.letion of the beneficiar-5s obli1ations as reBuired under .ara1ra.h +7, of subdivision +b,. In an- action brou1ht under this section, the defendant /a- be found liable for actual da/a1es, but /a- not be found liable for an- civil .enalt- authori6ed bection 89;7. +A, "otwithstandin1 an- other .enalties, if a beneficiar- collects a fee for reconve-ance and thereafter has knowled1e, or should have knowled1e, that no reconve-ance has been recorded, the beneficiar- shall cause to be recorded the reconve-ance, or in the event a release of obli1ation is earlier and ti/el- recorded, the beneficiar- shall refund to the trustor the fee char1ed to .erfor/ the reconve-ance. Evidence of knowled1e includes, but is not li/ited to, notice of a release of obli1ation .ursuant to .ara1ra.h +:, of subdivision +b,.
(Amended by Stats. 200#, Ch. 62, Sec. 20. Effective an!a"y 1, 2004.)

2941.1. "otwithstandin1 an- other .rovision of law, if no .a-off de/and state/ent is issued .ursuant to ection 89;:, nothin1 in ection 89;7 shall be construed to .rohibit the char1in1 of a reconve-ance fee.
(Added by Stats. 2001, Ch. 4#8, Sec. 6. Effective +ct%be" 2, 2001. +(e"ative an!a"y 1, 2002, by Sec. 7 %f Ch. 4#8.)

2941.". Ever- .erson who willfull- violates ection 89;7 is 1uilt- of a /isde/eanor .unishable b- fine of not less than fift- dollars +L<?, nor /ore than four hundred dollars +L;??,, or b- i/.rison/ent in the count- Aail for not to e0ceed si0 /onths, or b- both such fine and i/.rison/ent. For .ur.oses of this section, 2willfull-4 /eans si/.l- a .ur.ose or willin1ness to co//it the act, or /ake the o/ission referred to. It does not reBuire an intent to violate the law, to inAure another, or to acBuire an- advanta1e.

(Amended by Stats. 1988, Ch. 1006, Sec. 2. +(e"ative !$y 1, 1989, by Sec. # %f Ch. 1006.)

2941. . Chenever the obli1ation secured b- a /ort1a1e or deed of trust has been full- satisfied and the .resent /ort1a1ee or beneficiar- of record cannot be located after dili1ent search, or refuses to e0ecute and deliver a .ro.er certificate of dischar1e or reBuest for reconve-ance, or whenever a s.ecified

balance, includin1 .rinci.al and interest, re/ains due and the /ort1a1or or trustor or the /ort1a1or5s or trustor5s successor in interest cannot, after dili1ent search, locate the then /ort1a1ee or beneficiar- of record, the lien of an- /ort1a1e or deed of trust shall be released when the /ort1a1or or trustor or the /ort1a1or5s or trustor5s successor in interest records or causes to be recorded, in the office of the count- recorder of the count- in which the encu/bered .ro.ert- is located, a cor.orate bond acco/.anied b- a declaration, as s.ecified in subdivision +b,, and with res.ect to a deed of trust, a reconve-ance as hereinafter .rovided. +a, The bond shall be acce.table to the trustee and shall be issued b- a cor.oration lawfull- authori6ed to issue suret- bonds in the tate of &alifornia in a su/ eBual to the 1reater of either +7, two ti/es the a/ount of the ori1inal obli1ation secured b- the /ort1a1e or deed of trust and anadditional .rinci.al a/ounts, includin1 advances, shown in an- recorded a/end/ent thereto, or +8, oneJhalf of the total a/ount co/.uted .ursuant to +7, and an- accrued interest on such a/ount, and shall be conditioned for .a-/ent of an- su/ which the /ort1a1ee or beneficiar- /a- recover in an action on the obli1ation secured b- the /ort1a1e or deed of trust, with costs of suit and reasonable attorne-s5 fees. The obli1ees under the bond shall be the /ort1a1ee or /ort1a1ee5s successor in interest or the trustee who e0ecutes a reconve-ance under this section and the beneficiar- or beneficiar-5s successor in interest. The bond recorded b- the /ort1a1or or trustor or /ort1a1or5s or trustor5s successor in interest shall contain the followin1 infor/ation describin1 the /ort1a1e or deed of trust: +7, Recordin1 date and instru/ent nu/ber or book and .a1e nu/ber of the recorded instru/ent. +8, "a/es of ori1inal /ort1a1or and /ort1a1ee or trustor and beneficiar-. +:, A/ount shown as ori1inal .rinci.al su/ secured thereb-. +;, The recordin1 infor/ation and new .rinci.al a/ount shown in anrecorded a/end/ent thereto. +b, The declaration acco/.an-in1 the cor.orate bond recorded b- the /ort1a1or or trustor or the /ort1a1or5s or trustor5s successor in interest shall state: +7, That it is recorded .ursuant to this section. +8, The na/e of the ori1inal /ort1a1or or trustor and /ort1a1ee or beneficiar-. +:, The na/e and address of the .erson /akin1 the declaration. +;, That either the obli1ation secured b- the /ort1a1e or deed of trust has been full- satisfied and the .resent /ort1a1ee or beneficiar- of record cannot be located after dili1ent search, or refuses to e0ecute and deliver a .ro.er certificate of dischar1e or reBuest for reconve-ance as reBuired under ection 89;7H or that a s.ecified balance, includin1 .rinci.al and interest, re/ains due and the /ort1a1or or trustor or /ort1a1or5s or trustor5s successor in interest cannot, after dili1ent search, locate the then /ort1a1ee or beneficiar-. +<, That the declarant has /ailed b- certified /ail, return recei.t reBuested, to the last address of the .erson to who/ .a-/ents under the /ort1a1e or

deed of trust were /ade and to the last /ort1a1ee or beneficiar- of record at the address for such /ort1a1ee or beneficiar- shown on the instru/ent creatin1, assi1nin1, or conve-in1 the interest, a notice of recordin1 a declaration and bond under this section and infor/in1 the reci.ient of the na/e and address of the /ort1a1or or trustee, if an-, and of the ri1ht to record a written obAection with res.ect to the release of the lien of the /ort1a1e or, with res.ect to a deed of trust, notif- the trustee in writin1 of an- obAection to the reconve-ance of the deed of trust. The declaration shall state the date an- notices were /ailed .ursuant to this section and the na/es and addresses of all .ersons to who/ /ailed. The declaration .rovided for in this section shall be si1ned b- the /ort1a1or or trustor under .enalt- of .erAur-. +c, Cith res.ect to a deed of trust, after the e0.iration of :? da-s followin1 the recordin1 of the cor.orate bond and acco/.an-in1 declaration .rovided in subdivisions +a, and +b,, and deliver- to the trustee of the usual reconve-ance fees .lus costs and a de/and for reconve-ance under this section, the trustee shall e0ecute and record, or otherwise deliver as .rovided in ection 89;7, a reconve-ance in the sa/e for/ as if the beneficiar- had delivered to the trustee a .ro.er reBuest for reconve-ance, .rovided that the trustee has not received a written obAection to the reconve-ance fro/ the beneficiar- of record. "o trustee shall have anliabilit- to an- .erson b- reason of its e0ecution of a reconve-ance in reliance u.on a trustor5s or trustor5s successor5s in interest substantial co/.liance with this section. The sole re/ed- of an- .erson da/a1ed breason of the reconve-ance shall be a1ainst the trustor, the affiant, or the bond. Cith res.ect to a /ort1a1e, a /ort1a1e shall be satisfied of record when :? da-s have e0.ired followin1 recordation of the cor.orate bond and acco/.an-in1 declaration, .rovided no obAection to satisfaction has been recorded b- the /ort1a1ee within that .eriod. A bona fide .urchaser or encu/brancer for value shall take the interest conve-ed free of such /ort1a1e, .rovided there has been co/.liance with subdivisions +a, and +b, and the deed to the .urchaser recites that no obAections b- the /ort1a1ee have been recorded. *.on recordin1 of a reconve-ance under this section, or, in the case of a /ort1a1e the e0.iration of :? da-s followin1 recordation of the cor.orate bond and acco/.an-in1 declaration without obAection thereto havin1 been recorded, interest shall no lon1er accrue as to an- balance re/ainin1 due to the e0tent the balance due has been alle1ed in the declaration recorded under subdivision +b,. The su/ of an- s.ecified balance, includin1 .rinci.al and interest, which re/ains due and which is re/itted to an- issuer of a cor.orate bond in conAunction with the issuance of a bond .ursuant to this section shall, if unclai/ed, escheat to the state after three -ears .ursuant to the *nclai/ed %ro.ert- !aw. Fro/ the date of escheat the issuer of the bond shall be relieved of an- liabilit- to .a- to the beneficiar- or his or her heirs or other successors in interest the escheated funds and the sole re/ed- shall be a clai/ for .ro.ert- .aid or delivered to the &ontroller .ursuant to the *nclai/ed %ro.ert- !aw.

+d, The ter/ 2dili1ent search,4 as used in this section, shall /ean all of the followin1: +7, The /ailin1 of notices as .rovided in .ara1ra.h +<, of subdivision +b,, and to an- other address that the declarant has used to corres.ond with or contact the /ort1a1ee or beneficiar-. +8, A check of the tele.hone director- in the cit- where the /ort1a1ee or beneficiar- /aintained the /ort1a1ee5s or beneficiar-5s last known address or .lace of business. +:, In the event the /ort1a1ee or beneficiar- or the /ort1a1ee5s or beneficiar-5s successor in interest is a cor.oration, a check of the records of the &alifornia ecretar- of tate and the secretar- of state in the state of incor.oration, if known. +;, In the event the /ort1a1ee or beneficiar- is a state or national bank or a state or federal savin1s and loan association, an inBuir- of the re1ulatorauthorit- of such bank or savin1s and loan association. +e, This section shall not be dee/ed to create an e0clusive .rocedure for the issuance of reconve-ances and the issuance of bonds and declarations to release the lien of a /ort1a1e and shall not affect an- other .rocedures, whether or not such .rocedures are set forth in statute, for the issuance of reconve-ances and the issuance of bonds and declarations to release the lien of a /ort1a1e. +f, For .ur.oses of this section, the trustor or trustor5s successor in interest /a- substitute the .resent trustee of record without conferrin1 an- duties u.on the trustee other than those that are incidental to the e0ecution of a reconve-ance .ursuant to this section if all of the followin1 reBuire/ents are /et: +7, The .resent trustee of record and the .resent /ort1a1ee or beneficiarof record cannot be located after dili1ent search. +8, The declaration filed .ursuant to subdivision +b, shall state in addition that it is filed .ursuant to this subdivision, and shall, in lieu of the .rovisions of .ara1ra.h +;, of subdivision +b,, state that the obli1ation secured b- the /ort1a1e or deed of trust has been full- satisfied and the .resent trustee of record and .resent /ort1a1ee or beneficiar- of record cannot be located after dili1ent search. +:, The substitute trustee is a title insurance co/.an- that a1rees to acce.t the substitution. This subdivision shall not i/.ose a dut- u.on a title insurance co/.an- to acce.t the substitution. +;, The cor.orate bond reBuired in subdivision +a, is for a .eriod of five or /ore -ears.
(Amended by Stats. 1996, Ch. 762, Sec. 2. Effective an!a"y 1, 1997.)

2941.9. +a, The .ur.ose of this section is to establish a .rocess throu1h which all of the beneficiaries under a trust deed /a- a1ree to be 1overned bbeneficiaries holdin1 /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests

in a note secured b- real .ro.ert- eBuivalent to a series transaction, e0clusive of an- notes or interests of a licensed real estate broker that is the issuer or servicer of the notes or interests or an- affiliate of that licensed real estate broker. +b, All holders of notes secured b- the sa/e real .ro.ert- or a series of undivided interests in notes secured b- real .ro.ert- eBuivalent to a series transaction /a- a1ree in writin1 to be 1overned b- the desires of the holders of /ore than <? .ercent of the record beneficial interest of those notes or interests, e0clusive of an- notes or interests of a licensed real estate broker that is the issuer or servicer of the notes or interests of an- affiliate of the licensed real estate broker, with res.ect to actions to be taken on behalf of all holders in the event of default or foreclosure for /atters that reBuire direction or a..roval of the holders, includin1 desi1nation of the broker, servicin1 a1ent, or other .erson actin1 on their behalf, and the sale, encu/brance, or lease of real .ro.ert- owned b- the holders resultin1 fro/ foreclosure or recei.t of a deed in lieu of foreclosure. +c, A descri.tion of the a1ree/ent authori6ed in subdivision +b, of this section shall be disclosed .ursuant to ection 7?8:8.< of the (usiness and %rofessions &ode and shall be included in a recorded docu/ent such as the deed of trust or the assi1n/ent of interests. +d, An- action taken .ursuant to the authorit- 1ranted in this section is not effective unless all the .arties a1reein1 to the action si1n, under .enalt- of .erAur-, a se.arate written docu/ent entitled 23aAorit- Action Affidavit4 statin1 the followin1: +7, The action has been authori6ed .ursuant to this section. +8, "one of the undersi1ned is a licensed real estate broker or an affiliate of the broker that is the issuer or servicer of the obli1ation secured b- the deed of trust. +:, The undersi1ned to1ether hold /ore than <? .ercent of the record beneficial interest of a series of notes secured b- the sa/e real .ro.ert- or of undivided interests in a note secured b- real .ro.ert- eBuivalent to a series transaction. +;, "otice of the action was sent b- certified /ail, .osta1e .re.aid, with return recei.t reBuested, to each holder of an interest in the obli1ation secured b- the deed of trust who has not Aoined in the e0ecution of the substitution or this docu/ent. This docu/ent shall be recorded in the office of the count- recorder of each count- in which the real .ro.ert- described in the deed of trust is located. $nce the docu/ent in this subdivision is recorded, it shall constitute conclusive evidence of co/.liance with the reBuire/ents of this subdivision in favor of trustees actin1 .ursuant to this section, substituted trustees actin1 .ursuant to ection 89:;a, subseBuent assi1nees of the obli1ation secured b- the deed of trust, and subseBuent bona fide .urchasers or encu/brancers for value of the real .ro.ert- described therein. +e, For .ur.oses of this section, 2affiliate of the licensed real estate broker4 includes an- .erson as defined in ection 8<?7: of the &or.orations &ode who is controlled b-, or is under co//on control with, or who controls, a licensed real estate broker. 2&ontrol4 /eans the .ossession, direct or

indirect, of the .ower to direct or cause the direction of /ana1e/ent and .olicies.
(Added by Stats. 1996, Ch. 8#9, Sec. #. Effective an!a"y 1, 1997.)

2942. &ontracts of botto/r- or res.ondentia, althou1h in the nature of /ort1a1es, are not affected b- an- of the .rovisions of this &ha.ter.
(Enacted 1872.)

294#. +a, As used in this section: +7, 2(eneficiar-4 /eans a /ort1a1ee or beneficiar- of a /ort1a1e or deed of trust, or his or her assi1nees. +8, 2(eneficiar- state/ent4 /eans a written state/ent showin1: +A, The a/ount of the un.aid balance of the obli1ation secured b- the /ort1a1e or deed of trust and the interest rate, to1ether with the total a/ounts, if an-, of all overdue install/ents of either .rinci.al or interest, or both. +(, The a/ounts of .eriodic .a-/ents, if an-. +&, The date on which the obli1ation is due in whole or in .art. +D, The date to which real estate ta0es and s.ecial assess/ents have been .aid to the e0tent the infor/ation is known to the beneficiar-. +E, The a/ount of ha6ard insurance in effect and the ter/ and .re/iu/ of that insurance to the e0tent the infor/ation is known to the beneficiar-. +F, The a/ount in an account, if an-, /aintained for the accu/ulation of funds with which to .a- ta0es and insurance .re/iu/s. +#, The nature and, if known, the a/ount of an- additional char1es, costs, or e0.enses .aid or incurred b- the beneficiar- which have beco/e a lien on the real .ro.ert- involved. +H, Chether the obli1ation secured b- the /ort1a1e or deed of trust can or /a- be transferred to a new borrower. +:, 2Deliver-4 /eans de.ositin1 or causin1 to be de.osited in the *nited tates /ail an envelo.e with .osta1e .re.aid, containin1 a co.- of the docu/ent to be delivered, addressed to the .erson whose na/e and address is set forth in the de/and therefor. The docu/ent /a- also be trans/itted b- facsi/ile /achine to the .erson whose na/e and address is set forth in the de/and therefor. +;, 2Entitled .erson4 /eans the trustor or /ort1a1or of, or his or her successor in interest in, the /ort1a1ed or trust .ro.ert- or an- .art thereof, an- beneficiar- under a deed of trust, an- .erson havin1 a subordinate lien or encu/brance of record thereon, the escrowholder licensed as an a1ent .ursuant to Division = +co//encin1 with ection 7>???, of the Financial &ode, or the .art- e0e/.t b- virtue of ection 7>??= of the Financial &ode who is actin1 as the escrowholder.

+<, 2%a-off de/and state/ent4 /eans a written state/ent, .re.ared in res.onse to a written de/and /ade b- an entitled .erson or authori6ed a1ent, settin1 forth the a/ounts reBuired as of the date of .re.aration bthe beneficiar-, to full- satisf- all obli1ations secured b- the loan that is the subAect of the .a-off de/and state/ent. The written state/ent shall include infor/ation reasonabl- necessar- to calculate the .a-off a/ount on a .er die/ basis for the .eriod of ti/e, not to e0ceed :? da-s, durin1 which the .er die/ a/ount is not chan1ed b- the ter/s of the note. +b, +7, A beneficiar-, or his or her authori6ed a1ent, shall, within 87 da-s of the recei.t of a written de/and b- an entitled .erson or his or her authori6ed a1ent, .re.are and deliver to the .erson de/andin1 it a true, correct, and co/.lete co.- of the note or other evidence of indebtedness with an/odification thereto, and a beneficiar- state/ent. +8, A reBuest .ursuant to this subdivision /a- be /ade b- an entitled .erson or his or her authori6ed a1ent at an- ti/e before, or within two /onths after, the recordin1 of a notice of default under a /ort1a1e or deed of trust, or /a- otherwise be /ade /ore than :? da-s .rior to the entr- of the decree of foreclosure. +c, A beneficiar-, or his or her authori6ed a1ent, shall, on the written de/and of an entitled .erson, or his or her authori6ed a1ent, .re.are and deliver a .a-off de/and state/ent to the .erson de/andin1 it within 87 da-s of the recei.t of the de/and. However, if the loan is subAect to a recorded notice of default or a filed co/.laint co//encin1 a Audicial foreclosure, the beneficiar- shall have no obli1ation to .re.are and deliver this state/ent as .rescribed unless the written de/and is received .rior to the first .ublication of a notice of sale or the notice of the first date of sale established b- a court. +d, +7, A beneficiar- state/ent or .a-off de/and state/ent /a- be relied u.on b- the entitled .erson or his or her authori6ed a1ent in accordance with its ter/s, includin1 with res.ect to the .a-off de/and state/ent reliance for the .ur.ose of establishin1 the a/ount necessar- to .a- the obli1ation in full. If the beneficiar- notifies the entitled .erson or his or her authori6ed a1ent of an- a/end/ent to the state/ent, then the a/ended state/ent /a- be relied u.on b- the entitled .erson or his or her authori6ed a1ent as .rovided in this subdivision. +8, If notification of an- a/end/ent to the state/ent is not 1iven in writin1, then a written a/end/ent to the state/ent shall be delivered to the entitled .erson or his or her authori6ed a1ent no later than the ne0t business daafter notification. +:, *.on the dates s.ecified in sub.ara1ra.hs +A, and +(, an- su/s that were due and for an- reason not included in the state/ent or a/ended state/ent shall continue to be recoverable b- the beneficiar- as an unsecured obli1ation of the obli1or .ursuant to the ter/s of the note and e0istin1 .rovisions of law. +A, If the transaction is voluntar-, the entitled .art- or his or her authori6ed a1ent /a- rel- u.on the state/ent or a/ended state/ent u.on the earlier of +i, the close of escrow, +ii, transfer of title, or +iii, recordation of a lien.

+(, If the loan is subAect to a recorded notice of default or a filed co/.laint co//encin1 a Audicial foreclosure, the entitled .art- or his or her authori6ed a1ent /a- rel- u.on the state/ent or a/ended state/ent u.on the acce.tance of the last and hi1hest bid at a trustee5s sale or a court su.ervised sale. +e, The followin1 .rovisions a..l- to a de/and for either a beneficiarstate/ent or a .a-off de/and state/ent: +7, If an entitled .erson or his or her authori6ed a1ent reBuests a state/ent .ursuant to this section and does not s.ecif- a beneficiar- state/ent or a .a-off de/and state/ent the beneficiar- shall treat the reBuest as a reBuest for a .a-off de/and state/ent. +8, If the entitled .erson or the entitled .erson5s authori6ed a1ent includes in the written de/and a s.ecific reBuest for a co.- of the deed of trust or /ort1a1e, it shall be furnished with the written state/ent at no additional char1e. +:, The beneficiar- /a-, before deliverin1 a state/ent, reBuire reasonable .roof that the .erson /akin1 the de/and is, in fact, an entitled .erson or an authori6ed a1ent of an entitled .erson, in which event the beneficiar- shall not be subAect to the .enalties of this section until 87 da-s after recei.t of the .roof herein .rovided for. A state/ent in writin1 si1ned b- the entitled .erson a..ointin1 an authori6ed a1ent when delivered .ersonall- to the beneficiar- or delivered b- re1istered return recei.t /ail shall constitute reasonable .roof as to the identit- of an a1ent. i/ilar deliver- of a .olic- of title insurance, .reli/inar- re.ort issued b- a title co/.an-, ori1inal or .hoto1ra.hic co.- of a 1rant deed or certified co.- of letters testa/entar-, 1uardianshi., or conservatorshi. shall constitute reasonable .roof as to the identit- of a successor in interest, .rovided the .erson de/andin1 a state/ent is na/ed as successor in interest in the docu/ent. +;, If a beneficiar- for a .eriod of 87 da-s after recei.t of the written de/and willfull- fails to .re.are and deliver the state/ent, he or she is liable to the entitled .erson for all da/a1es which he or she /a- sustain b- reason of the refusal and, whether or not actual da/a1es are sustained, he or she shall forfeit to the entitled .erson the su/ of three hundred dollars +L:??,. Each failure to .re.are and deliver the state/ent, occurrin1 at a ti/e when, .ursuant to this section, the beneficiar- is reBuired to .re.are and deliver the state/ent, creates a se.arate cause of action, but a Aud1/ent awardin1 an entitled .erson a forfeiture, or da/a1es and forfeiture, for an- failure to .re.are and deliver a state/ent bars recover- of da/a1es and forfeiture for an- other failure to .re.are and deliver a state/ent, with res.ect to the sa/e obli1ation, in co/.liance with a de/and therefor /ade within si0 /onths before or after the de/and as to which the award was /ade. For the .ur.oses of this subdivision, 2willfull-4 /eans an intentional failure to co/.lwith the reBuire/ents of this section without Aust cause or e0cuse. +<, If the beneficiar- has /ore than one branch, office, or other .lace of business, then the de/and shall be /ade to the branch or office address set forth in the .a-/ent billin1 notice or .a-/ent book, and the state/ent, unless it s.ecifies otherwise, shall be dee/ed to a..l- onl- to the un.aid balance of the sin1le obli1ation na/ed in the reBuest and secured b- the

/ort1a1e or deed of trust which is .a-able at the branch or office whose address a..ears on the aforesaid billin1 notice or .a-/ent book. +=, The beneficiar- /a- /ake a char1e not to e0ceed thirt- dollars +L:?, for furnishin1 each reBuired state/ent. The .rovisions of this .ara1ra.h shall not a..l- to /ort1a1es or deeds of trust insured b- the Federal Housin1 Ad/inistrator or 1uaranteed b- the Ad/inistrator of )eterans Affairs. +f, The .re.aration and deliver- of a beneficiar- state/ent or a .a-off de/and state/ent .ursuant to this section shall not chan1e a date of sale established .ursuant to ection 898;1. +1, This section shall beco/e o.erative on Kanuar- 7, 8?7;.
('e(ea$ed (in Sec. &) and added by Stats. 2009, Ch. 4#, Sec. 6. Effective an!a"y 1, 2010. Secti%n %(e"ative an!a"y 1, 2014, by its %)n ("%visi%ns.)

2944. "one of the .rovisions of this cha.ter a..lies to an- transaction or securitinterest 1overned b- the &o//ercial &ode, e0ce.t to the e0tent /ade a..licable b- reason of an election /ade b- the secured .art- .ursuant to sub.ara1ra.h +(, of .ara1ra.h +7, of subdivision +a, of ection 9=?; of the &o//ercial &ode.

(Amended by Stats. 1999, Ch. 991, Sec. 7. Effective an!a"y 1, 2000. +(e"ative !$y 1, 2001, by Sec. 7& %f Ch. 991.)

2944.". "o lender, /ort1a1ee, or an- third .art- havin1 an interest in real or .ersonal .ro.ert- shall refuse to acce.t a .olic- issued b- an ad/itted insurer solel- because the .olic- is issued for a continuous .eriod without a fi0ed e0.iration date even thou1h the .olic- .re/iu/ is due and .a-able ever- si0 /onths, .rovided the lender, /ort1a1ee, or third .art- is entitled to receive +a, notice of renewal fro/ the insurer within 7< da-s of recei.t of .a-/ent on the .olic- b- the insured or +b, notice of cancellation or nonrenewal under the ter/s and conditions set forth in ections =>@ and 8?>;.@ of the Insurance &ode, whichever is a..licable.
(Added by Stats. 199#, Ch. &22, Sec. 1. Effective an!a"y 1, 1994.)

2944.$. +a, "otwithstandin1 an- other .rovision of law, an- .erson who ne1otiates, atte/.ts to ne1otiate, arran1es, atte/.ts to arran1e, or otherwise offers to .erfor/ a /ort1a1e loan /odification or other for/ of /ort1a1e loan forbearance for a fee or other co/.ensation .aid b- the borrower, shall .rovide the followin1 to the borrower, as a se.arate state/ent, in not less than 7;J.oint bold t-.e, .rior to enterin1 into an- fee a1ree/ent with the borrower:

It is not necessar- to .a- a third .art- to arran1e for a loan /odification or other for/ of forbearance fro/ -our /ort1a1e lender or servicer. 'ou /acall -our lender directl- to ask for a chan1e in -our loan ter/s. "on.rofit housin1 counselin1 a1encies also offer these and other for/s of borrower assistance free of char1e. A list of non.rofit housin1 counselin1 a1encies a..roved b- the *nited tates De.art/ent of Housin1 and *rban Develo./ent +H*D, is available fro/ -our local H*D office or b- visitin1 www.hud.1ov. +b, If loan /odification or other /ort1a1e loan forbearance services are offered or ne1otiated in one of the lan1ua1es set forth in ection 7=:8, a translated co.- of the state/ent in subdivision +a, shall be .rovided to the borrower in that forei1n lan1ua1e. +c, A violation of this section b- a natural .erson is a .ublic offense .unishable b- a fine not e0ceedin1 ten thousand dollars +L7?,???,, bi/.rison/ent in the count- Aail for a ter/ not to e0ceed one -ear, or b- both that fine and i/.rison/ent, or if b- a business entit-, the violation is .unishable b- a fine not e0ceedin1 fift- thousand dollars +L<?,???,. These .enalties are cu/ulative to an- other re/edies or .enalties .rovided b- law. +d, This section does not a..l- to a .erson, or an a1ent actin1 on that .erson5s behalf, offerin1 loan /odification or other loan forbearance services for a loan owned or serviced b- that .erson. +e, This section shall a..l- onl- to /ort1a1es and deeds of trust secured bresidential real .ro.ert- containin1 four or fewer dwellin1 units.
(Added by Stats. 2009, Ch. 6#0, Sec. 9. Effective +ct%be" 11, 2009.)

2944. . +a, "otwithstandin1 an- other .rovision of law, it shall be unlawful for an.erson who ne1otiates, atte/.ts to ne1otiate, arran1es, atte/.ts to arran1e, or otherwise offers to .erfor/ a /ort1a1e loan /odification or other for/ of /ort1a1e loan forbearance for a fee or other co/.ensation .aid bthe borrower, to do an- of the followin1: +7, &lai/, de/and, char1e, collect, or receive an- co/.ensation until after the .erson has full- .erfor/ed each and ever- service the .erson contracted to .erfor/ or re.resented that he or she would .erfor/. +8, Take an- wa1e assi1n/ent, an- lien of an- t-.e on real or .ersonal .ro.ert-, or other securit- to secure the .a-/ent of co/.ensation. +:, Take an- .ower of attorne- fro/ the borrower for an- .ur.ose. +b, A violation of this section b- a natural .erson is a .ublic offense .unishable b- a fine not e0ceedin1 ten thousand dollars +L7?,???,, bi/.rison/ent in the count- Aail for a ter/ not to e0ceed one -ear, or b- both that fine and i/.rison/ent, or if b- a business entit-, the violation is .unishable b- a fine not e0ceedin1 fift- thousand dollars +L<?,???,. These .enalties are cu/ulative to an- other re/edies or .enalties .rovided b- law. +c, "othin1 in this section .recludes a .erson, or an a1ent actin1 on that .erson5s behalf, who offers loan /odification or other loan forbearance

services for a loan owned or serviced b- that .erson, fro/ doin1 an- of the followin1: +7, &ollectin1 .rinci.al, interest, or other char1es under the ter/s of a loan, before the loan is /odified, includin1 char1es to establish a new .a-/ent schedule for a nondelinBuent loan, after the borrower reduces the un.aid .rinci.al balance of that loan for the e0.ress .ur.ose of lowerin1 the /onthl.a-/ent due under the ter/s of the loan. +8, &ollectin1 .rinci.al, interest, or other char1es under the ter/s of a loan, after the loan is /odified. +:, Acce.tin1 .a-/ent fro/ a federal a1enc- in connection with the federal 3akin1 Ho/e Affordable %lan or other federal .lan intended to hel. borrowers refinance or /odif- their loans or otherwise avoid foreclosures. +d, This section shall a..l- onl- to /ort1a1es and deeds of trust secured bresidential real .ro.ert- containin1 four or fewer dwellin1 units.
(Amended by Stats. 2012, Ch. &69, Sec. #. Effective an!a"y 1, 201#.)

ARTICLE 1.". Mortgage Fore'los-re Cons-ltants [294" - 294".11! ( ($tic&e 1.) added by Stats. 1979, Ch. 1!29. ) 294". +a, The !e1islature finds and declares that ho/eowners whose residences are in foreclosure are subAect to fraud, dece.tion, harass/ent, and unfair dealin1 b- foreclosure consultants fro/ the ti/e a "otice of Default is recorded .ursuant to ection 898; until the ti/e sur.lus funds fro/ anforeclosure sale are distributed to the ho/eowner or his or her successor. Foreclosure consultants re.resent that the- can assist ho/eowners who have defaulted on obli1ations secured b- their residences. These foreclosure consultants, however, often char1e hi1h fees, the .a-/ent of which is often secured b- a deed of trust on the residence to be saved, and .erfor/ no service or essentiall- a worthless service. Ho/eowners, rel-in1 on the foreclosure consultants5 .ro/ises of hel., take no other action, are diverted fro/ lawful businesses which could render beneficial services, and often lose their ho/es, so/eti/es to the foreclosure consultants who .urchase ho/es at a fraction of their value before the sale. )ulnerable ho/eowners are increasin1l- rel-in1 on the services of foreclosure consultants who advise the ho/eowner that the foreclosure consultant can obtain the re/ainin1 funds fro/ the foreclosure sale if the ho/eowner e0ecutes an assi1n/ent of the sur.lus, a deed, or a .ower of attorne- in favor of the foreclosure consultant. This results in the ho/eowner .a-in1 an e0orbitant fee for a service when the ho/eowner could have obtained the re/ainin1 funds fro/ the trustee5s sale fro/ the trustee directl- for /ini/al cost if the ho/eowner had consulted le1al counsel or had sufficient ti/e to receive notices fro/ the trustee .ursuant to ection 898;A re1ardin1 how and where to /ake a clai/ for e0cess .roceeds.

+b, The !e1islature further finds and declares that foreclosure consultants have a si1nificant i/.act on the econo/- of this state and on the welfare of its citi6ens. +c, The intent and .ur.oses of this article are the followin1: +7, To reBuire that foreclosure consultant service a1ree/ents be e0.ressed in writin1H to safe1uard the .ublic a1ainst deceit and financial hardshi.H to .er/it rescission of foreclosure consultation contractsH to .rohibit re.resentations that tend to /isleadH and to encoura1e fair dealin1 in the rendition of foreclosure services. +8, The .rovisions of this article shall be liberall- construed to effectuate this intent and to achieve these .ur.oses.
(Amended by Stats. 2004, Ch. 177, Sec. 6. Effective an!a"y 1, 200&.)

294".1. The followin1 definitions a..l- to this cha.ter: +a, 2Foreclosure consultant4 /eans an- .erson who /akes an- solicitation, re.resentation, or offer to an- owner to .erfor/ for co/.ensation or who, for co/.ensation, .erfor/s an- service which the .erson in an- /anner re.resents will in an- /anner do an- of the followin1: +7, to. or .ost.one the foreclosure sale. +8, $btain an- forbearance fro/ an- beneficiar- or /ort1a1ee. +:, Assist the owner to e0ercise the ri1ht of reinstate/ent .rovided in ection 898;c. +;, $btain an- e0tension of the .eriod within which the owner /a- reinstate his or her obli1ation. +<, $btain an- waiver of an acceleration clause contained in an- .ro/issornote or contract secured b- a deed of trust or /ort1a1e on a residence in foreclosure or contained that deed of trust or /ort1a1e. +=, Assist the owner to obtain a loan or advance of funds. +>, Avoid or a/eliorate the i/.air/ent of the owner5s credit resultin1 fro/ the recordin1 of a notice of default or the conduct of a foreclosure sale. +@, ave the owner5s residence fro/ foreclosure. +9, Assist the owner in obtainin1 fro/ the beneficiar-, /ort1a1ee, trustee under a .ower of sale, or counsel for the beneficiar-, /ort1a1ee, or trustee, the re/ainin1 .roceeds fro/ the foreclosure sale of the owner5s residence. +b, A foreclosure consultant does not include an- of the followin1: +7, A .erson licensed to .ractice law in this state when the .erson renders service in the course of his or her .ractice as an attorne- at law. +8, A .erson licensed under Division : +co//encin1 with ection 78???, of the Financial &ode when the .erson is actin1 as a .rorater as defined therein. +:, A .erson licensed under %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode when the .erson is actin1 under the authorit- of that license, as described in ection 7?7:7 or 7?7:7.7 of the (usiness and %rofessions &ode.

+;, A .erson licensed under &ha.ter 7 +co//encin1 with ection <???, of Division : of the (usiness and %rofessions &ode when the .erson is actin1 in an- ca.acit- for which the .erson is licensed under those .rovisions. +<, A .erson or his or her authori6ed a1ent actin1 under the e0.ress authorit- or written a..roval of the De.art/ent of Housin1 and *rban Develo./ent or other de.art/ent or a1enc- of the *nited tates or this state to .rovide services. +=, A .erson who holds or is owed an obli1ation secured b- a lien on anresidence in foreclosure when the .erson .erfor/s services in connection with this obli1ation or lien. +>, An- .erson licensed to /ake loans .ursuant to Division 9 +co//encin1 with ection 88???, of the Financial &ode when the .erson is actin1 under the authorit- of that license. +@, An- .erson or entit- doin1 business under an- law of this state, or of the *nited tates relatin1 to banks, trust co/.anies, savin1s and loan associations, industrial loan co/.anies, .ension trusts, credit unions, insurance co/.anies, or an- .erson or entit- authori6ed under the laws of this state to conduct a title or escrow business, or a /ort1a1ee which is a *nited tates De.art/ent of Housin1 and *rban Develo./ent a..roved /ort1a1ee and an- subsidiar- or affiliate of the above, and an- a1ent or e/.lo-ee of the above while en1a1ed in the business of these .ersons or entities. +9, A .erson licensed as a residential /ort1a1e lender or servicer .ursuant to Division 8? +co//encin1 with ection <????, of the Financial &ode, when actin1 under the authorit- of that license. +c, "otwithstandin1 subdivision +b,, an- .erson who .rovides services .ursuant to .ara1ra.h +9, of subdivision +a, is a foreclosure consultant unless he or she is the owner5s attorne-. +d, 2%erson4 /eans an- individual, .artnershi., cor.oration, li/ited liabilitco/.an-, association or other 1rou., however or1ani6ed. +e, 2 ervice4 /eans and includes, but is not li/ited to, an- of the followin1: +7, Debt, bud1et, or financial counselin1 of an- t-.e. +8, Receivin1 /one- for the .ur.ose of distributin1 it to creditors in .a-/ent or .artial .a-/ent of an- obli1ation secured b- a lien on a residence in foreclosure. +:, &ontactin1 creditors on behalf of an owner of a residence in foreclosure. +;, Arran1in1 or atte/.tin1 to arran1e for an e0tension of the .eriod within which the owner of a residence in foreclosure /a- cure his or her default and reinstate his or her obli1ation .ursuant to ection 898;c. +<, Arran1in1 or atte/.tin1 to arran1e for an- dela- or .ost.one/ent of the ti/e of sale of the residence in foreclosure. +=, Advisin1 the filin1 of an- docu/ent or assistin1 in an- /anner in the .re.aration of an- docu/ent for filin1 with an- bankru.tc- court. +>, #ivin1 an- advice, e0.lanation, or instruction to an owner of a residence in foreclosure which in an- /anner relates to the cure of a default in or the reinstate/ent of an obli1ation secured b- a lien on the residence in foreclosure, the full satisfaction of that obli1ation, or the .ost.one/ent or

avoidance of a sale of a residence in foreclosure .ursuant to a .ower of sale contained in an- deed of trust. +@, Arran1in1 or atte/.tin1 to arran1e for the .a-/ent b- the beneficiar-, /ort1a1ee, trustee under a .ower of sale, or counsel for the beneficiar-, /ort1a1ee, or trustee, of the re/ainin1 .roceeds to which the owner is entitled fro/ a foreclosure sale of the owner5s residence in foreclosure. Arran1in1 or atte/.tin1 to arran1e for the .a-/ent shall include anarran1e/ent where the owner transfers or assi1ns the ri1ht to the re/ainin1 .roceeds of a foreclosure sale to the foreclosure consultant or an- .erson desi1nated b- the foreclosure consultant, whether that transfer is effected ba1ree/ent, assi1n/ent, deed, .ower of attorne-, or assi1n/ent of clai/. +9, Arran1in1 or atte/.tin1 to arran1e an audit of an- obli1ation secured ba lien on a residence in foreclosure. +f, 2Residence in foreclosure4 /eans a residence in foreclosure as defined in ection 7=9<.7. +1, 2$wner4 /eans a .ro.ert- owner as defined in ection 7=9<.7. +h, 2&ontract4 /eans an- a1ree/ent, or an- ter/ thereof, between a foreclosure consultant and an owner for the rendition of an- service as defined in subdivision +e,.
(Amended by Stats. 2010, Ch. &96, Sec. 1. Effective an!a"y 1, 2011.)

294".2. +a, In addition to an- other ri1ht under law to rescind a contract, an owner has the ri1ht to cancel such a contract until /idni1ht of the fifth business da-, as defined in subdivision +e, of ection 7=@9.<, after the da- on which the owner si1ns a contract that co/.lies with ection 89;<.:. +b, &ancellation occurs when the owner 1ives written notice of cancellation to the foreclosure consultant b- /ail at the address s.ecified in the contract, or b- facsi/ile or electronic /ail at the nu/ber or address identified in the contract. +c, "otice of cancellation, if 1iven b- /ail, is effective when de.osited in the /ail .ro.erl- addressed with .osta1e .re.aid. If 1iven b- facsi/ile or electronic /ail, notice of cancellation is effective when successfulltrans/itted. +d, "otice of cancellation 1iven b- the owner need not take the .articular for/ as .rovided with the contract and, however e0.ressed, is effective if it indicates the intention of the owner not to be bound b- the contract.
(Amended by Stats. 2008, Ch. 278, Sec. 2. Effective an!a"y 1, 2009. +(e"ative !$y 1, 2009, by Sec. 7 %f Ch. 278.)

294".#. +a, Ever- contract shall be in writin1 and shall full- disclose the e0act nature of the foreclosure consultant5s services and the total a/ount and ter/s of co/.ensation.

+b, The followin1 notice, .rinted in at least 7;J.oint boldface t-.e and co/.leted with the na/e of the foreclosure consultant, shall be .rinted i//ediatel- above the state/ent reBuired b- subdivision +d,:
2"$TI&E REN*IRED (' &A!IF$R"IA !AC or an-one workin1 +"a/e, for hi/ or her &A""$T: +7, Take an- /one- fro/ -ou or ask -ou for /oneuntilhas +"a/e, co/.letel- finished doin1 ever-thin1 he or she said he or she would doH and +8, Ask -ou to si1n or have -ou si1n an- lien, deed of trust, or deed.4

+c, The contract shall be written in the sa/e lan1ua1e as .rinci.all- used bthe foreclosure consultant to describe his or her services or to ne1otiate the contract. In addition, the foreclosure consultant shall .rovide the owner, before the owner si1ns the contract, with a co.- of a co/.leted contract written in an- other lan1ua1e used in an- co//unication between the foreclosure consultant and the owner and in an- lan1ua1e described in subdivision +b, of ection 7=:8 and reBuested b- the owner. If En1lish is the lan1ua1e .rinci.all- used b- the foreclosure consultant to describe the foreclosure consultant5s services or to ne1otiate the contract, the foreclosure consultant shall notif- the owner orall- and in writin1 before the owner si1ns the contract that the owner has the ri1ht to ask for a co/.leted co.- of the contract in a lan1ua1e described in subdivision +b, of ection 7=:8. +d, The contract shall be dated and si1ned b- the owner and shall contain in i//ediate .ro0i/it- to the s.ace reserved for the owner5s si1nature a cons.icuous state/ent in a si6e eBual to at least 7?J.oint boldface t-.e, as follows: 2'ou, the owner, /a- cancel this transaction at an- ti/e .rior to /idni1ht of the fifth business da- after the date of this transaction. ee the attached notice of cancellation for/ for an e0.lanation of this ri1ht.4 +e, The contract shall contain on the first .a1e, in a t-.e si6e no s/aller than that 1enerall- used in the bod- of the docu/ent, each of the followin1: +7, The na/e, /ailin1 address, electronic /ail address, and facsi/ile nu/ber of the foreclosure consultant to which the notice of cancellation is to be /ailed. +8, The date the owner si1ned the contract. +f, The contract shall be acco/.anied b- a co/.leted for/ in du.licate, ca.tioned 2notice of cancellation,4 which shall be attached to the contract, shall be easil- detachable, and shall contain in t-.e of at least 7?J.oint the followin1 state/ent written in the sa/e lan1ua1e as used in the contract:
2"$TI&E $F &A"&E!!ATI$"    

+Enter date of transaction, +Date,

'ou /a- cancel this transaction, without an- .enalt- or obli1ation, within five business da-s fro/ the above date.

To cancel this transaction, /ail or deliver a si1ned and dated co.- of this cancellation notice, or an- other written notice, or send a tele1ra/,

to  +"a/e of foreclosure consultant, at +Address of foreclosure consultant5s .lace of business,

'ou /a- also cancel b- sendin1 a facsi/ile +fa0, of a si1ned and dated co.- of this cancellation notice, or an- other written notice, to the followin1 nu/ber:

+Facsi/ile tele.hone nu/ber of foreclosure consultant5s .lace of business, 'ou /a- also cancel b- sendin1 an eJ/ail cancelin1 this transaction to the followin1 eJ/ail address:

+EJ/ail address of foreclosure consultant5s business,

I  hereb-  cancel this transaction . +Date, 4  +$wner5s si1nature,

+1, The foreclosure consultant shall .rovide the owner with a co.- of the contract and the attached notice of cancellation. +h, *ntil the foreclosure consultant has co/.lied with this section, the owner /a- cancel the contract.

(Amended by Stats. 2008, Ch. 278, Sec. #. Effective an!a"y 1, 2009. +(e"ative !$y 1, 2009, by Sec. 7 %f Ch. 278.)

294".4. It shall be a violation for a foreclosure consultant to: +a, &lai/, de/and, char1e, collect, or receive an- co/.ensation until after the foreclosure consultant has full- .erfor/ed each and ever- service the foreclosure consultant contracted to .erfor/ or re.resented that he or she would .erfor/. +b, &lai/, de/and, char1e, collect, or receive an- fee, interest, or an- other co/.ensation for an- reason which e0ceeds 7? .ercent .er annu/ of the a/ount of an- loan which the foreclosure consultant /a- /ake to the owner. +c, Take an- wa1e assi1n/ent, an- lien of an- t-.e on real or .ersonal .ro.ert-, or other securit- to secure the .a-/ent of co/.ensation. That securit- shall be void and unenforceable. +d, Receive an- consideration fro/ an- third .art- in connection with services rendered to an owner unless that consideration is full- disclosed to the owner. +e, AcBuire an- interest in a residence in foreclosure fro/ an owner with who/ the foreclosure consultant has contracted. An- interest acBuired in violation of this subdivision shall be voidable, .rovided that nothin1 herein shall affect or defeat the title of a bona fide .urchaser or encu/brancer for value and without notice of a violation of this article. Dnowled1e that the .ro.ert- was 2residential real .ro.ert- in foreclosure,4 does not constitute notice of a violation of this article. This subdivision /a- not be dee/ed to abro1ate an- dut- of inBuir- which e0ists as to ri1hts or interests of .ersons in .ossession of residential real .ro.ert- in foreclosure. +f, Take an- .ower of attorne- fro/ an owner for an- .ur.ose. +1, Induce or atte/.t to induce an- owner to enter into a contract which does not co/.l- in all res.ects with ections 89;<.8 and 89;<.:. +h, Enter into an a1ree/ent at an- ti/e to assist the owner in arran1in1, or arran1e for the owner, the release of sur.lus funds after the trustee5s sale is conducted, whether the a1ree/ent involves direct .a-/ent, assi1n/ent, deed, .ower of attorne-, assi1n/ent of clai/ fro/ an owner to the foreclosure consultant or an- .erson desi1nated b- the foreclosure consultant, or an- other co/.ensation.
(Amended by Stats. 2008, Ch. 278, Sec. 4. Effective an!a"y 1, 2009. +(e"ative !$y 1, 2009, by Sec. 7 %f Ch. 278.)

294".4". +a, E0ce.t as .rovided in subdivision +b, of ection 89;<.7, a .erson shall not take an- action s.ecified in subdivision +a, of ection 89;<.7 unless the .erson satisfies the followin1 reBuire/ents:

+7, The .erson re1isters with, and is issued and /aintains a certificate of re1istration fro/, the De.art/ent of Kustice in accordance with the followin1 reBuire/ents: +A, The .erson shall sub/it a co/.leted re1istration for/, alon1 with a..licable fees, to the de.art/ent. The re1istration for/ shall include the na/e, address, and tele.hone nu/ber of the foreclosure consultant, all of the na/es, addresses, tele.hone nu/bers, Internet Ceb sites, and eJ/ail addresses used or .ro.osed to be used in connection with actin1 as a foreclosure consultant, a state/ent that the .erson has not been convicted of, or .led nolo contendere to, an- cri/e involvin1 fraud, /isre.resentation, dishonest-, or a violation of this article, a state/ent that the .erson has not been liable under an- civil Aud1/ent for fraud, /isre.resentation, or violations of this article or of ection 7>8?? or 7><?? of the (usiness and %rofessions &ode, and an- additional infor/ation reBuired b- the de.art/ent. +(, The re1istration for/ shall be acco/.anied b- a co.- of all .rint or electronic advertisin1 and other .ro/otional /aterial, and scri.ts of all tele.honic or broadcast advertisin1 and other state/ents used or .ro.osed to be used in connection with actin1 as a foreclosure consultant. +&, The re1istration for/ shall be acco/.anied b- a co.- of the bond reBuired .ursuant to .ara1ra.h +8,. +D, The .erson shall file an u.date of an- /aterial chan1e in the infor/ation reBuired b- sub.ara1ra.hs +A, and +(, with the de.art/ent. +E, The .erson shall .a- an- fee set b- the de.art/ent to defra- reasonable costs incurred in connection with the de.art/ent5s res.onsibilities under this article. +8, The .erson obtains and /aintains in force a suret- bond in the a/ount of one hundred thousand dollars +L7??,???,. The bond shall be e0ecuted b- a cor.orate suret- ad/itted to do business in this state. The bond shall be /ade in favor of the tate of &alifornia for the benefit of ho/eowners for da/a1es caused b- the foreclosure consultant5s violation of this article or an- other .rovision of law. A co.- of the bond shall be filed with the ecretar- of tate, with a co.- .rovided to the de.art/ent .ursuant to sub.ara1ra.h +&, of .ara1ra.h +7,. +b, The Foreclosure &onsultant Re1ulation Fund is hereb- created in the tate Treasur- for the de.osit of fees sub/itted to the De.art/ent of Kustice .ursuant to sub.ara1ra.h +A, of .ara1ra.h +7, of subdivision +a, for re1istration as a foreclosure consultant. 3one-s in the fund shall be available, u.on a..ro.riation b- the !e1islature, for the costs of the de.art/ent incurred in connection with the ad/inistration of the re1istration .ro1ra/. +c, The De.art/ent of Kustice /a- refuse to issue, or /a- revoke, a certificate of re1istration because of an- /isstate/ent in the re1istration for/, because the foreclosure consultant has been held liable for the violation of an- law described in sub.ara1ra.h +A, of .ara1ra.h +7, of subdivision +a,, because the foreclosure consultant has failed to /aintain the bond reBuired under .ara1ra.h +8, of subdivision +a,, or because of anviolation of this cha.ter.

+d, A .erson who violates subdivision +a, shall be .unished, for each violation, b- a fine of not less than one thousand dollars +L7,???, and not /ore than twent-Jfive thousand dollars +L8<,???,, b- i/.rison/ent in the count- Aail for not /ore than one -ear, or b- both that fine and i/.rison/ent. The i/.osition of a .enalt- .ursuant to this subdivision shall not be affected b- the availabilit- of an- other relief, re/ed-, or .enalt.rovided b- law, and shall not affect the availabilit- of an- such relief, re/ed-, or .enalt-.
(Added by Stats. 2008, Ch. 278, Sec. &. Effective an!a"y 1, 2009. +(e"ative !$y 1, 2009, by Sec. 7 %f Ch. 278.)

294".". An- waiver b- an owner of the .rovisions of this article shall be dee/ed void and unenforceable as contrar- to .ublic .olic-. An- atte/.t b- a foreclosure consultant to induce an owner to waive his ri1hts shall be dee/ed a violation of this article.
(Amended by Stats. 1980, Ch. 676, Sec. &#.)

294".$. +a, An owner /a- brin1 an action a1ainst a foreclosure consultant for anviolation of this cha.ter. Kud1/ent shall be entered for actual da/a1es, reasonable attorne-s5 fees and costs, and a..ro.riate eBuitable relief. The court also /a-, in its discretion, award e0e/.lar- da/a1es and shall award e0e/.lar- da/a1es eBuivalent to at least three ti/es the co/.ensation received b- the foreclosure consultant in violation of subdivision +a,, +b,, or +d, of ection 89;<.;, and three ti/es the owner5s actual da/a1es for anviolation of subdivision +c,, +e,, or +1, of ection 89;<.;, in addition to another award of actual or e0e/.lar- da/a1es. +b, The ri1hts and re/edies .rovided in subdivision +a, are cu/ulative to, and not a li/itation of, an- other ri1hts and re/edies .rovided b- law. Anaction brou1ht .ursuant to this section shall be co//enced within four -ears fro/ the date of the alle1ed violation.
(Amended by Stats. 1997, Ch. &0, Sec. &. Effective an!a"y 1, 1998.)

294". . An- .erson who co//its an- violation described in ection 89;<.; shall be .unished b- a fine of not /ore than ten thousand dollars +L7?,???,, bi/.rison/ent in the count- Aail for not /ore than one -ear, or .ursuant to subdivision +h, of ection 77>? of the %enal &ode, or b- both that fine and i/.rison/ent for each violation. These .enalties are cu/ulative to an- other re/edies or .enalties .rovided b- law.
(Amended by Stats. 2011, Ch. 1&, Sec. #&. Effective A("i$ 4, 2011. +(e"ative +ct%be" 1, 2011, by Sec. 6#6 %f Ch. 1&, as amended by Stats. 2011, Ch. #9, Sec. 68.)

294".%. If an- .rovision of this article or the a..lication thereof to an- .erson or circu/stance is held to be unconstitutional, the re/ainder of the article and the a..lication of such .rovision to other .ersons and circu/stances shall not be affected thereb-.
(Added by Stats. 1979, Ch. 1029.)

294".9. +a, A foreclosure consultant is liable for all da/a1es resultin1 fro/ anstate/ent /ade or act co//itted b- the foreclosure consultant5s re.resentative in an- /anner connected with the foreclosure consultant5s +7, .erfor/ance, offer to .erfor/, or contract to .erfor/ an- of the services described in subdivision +a, of ection 89;<.7, +8, recei.t of anconsideration or .ro.ert- fro/ or on behalf of an owner, or +:, .erfor/ance of an- act .rohibited b- this article. +b, 2Re.resentative4 for the .ur.oses of this section /eans a .erson who in an- /anner solicits, induces, or causes +7, an- owner to contract with a foreclosure consultant, +8, an- owner to .a- an- consideration or transfer title to the residence in foreclosure to the foreclosure consultant, or +:, an/e/ber of the owner5s fa/il- or household to induce or cause an- owner to .a- an- consideration or transfer title to the residence in foreclosure to the foreclosure consultant.
(Amended by Stats. 2006, Ch. &#8, Sec. &&. Effective an!a"y 1, 2007.)

294".10. +a, An- .rovision in a contract which atte/.ts or .ur.orts to li/it the liabilitof the foreclosure consultant under ection 89;<.9 shall be void and shall at the o.tion of the owner render the contract void. The foreclosure consultant shall be liable to the owner for all da/a1es .ro0i/atel- caused b- that .rovision. An- .rovision in a contract which atte/.ts or .ur.orts to reBuire arbitration of an- dis.ute arisin1 under this cha.ter shall be void at the o.tion of the owner onl- u.on 1rounds as e0ist for the revocation of ancontract. +b, This section shall a..l- to an- contract entered into on or after Kanuar7, 7997.
(Added by Stats. 1990, Ch. 1&#7, Sec. &.)

294".11. +a, An- re.resentative, as defined in subdivision +b, of ection 89;<.9, dee/ed to be the a1ent or e/.lo-ee or both the a1ent and the e/.lo-ee of the foreclosure consultant shall be reBuired to .rovide both of the followin1:

+7, Critten .roof to the owner that the re.resentative has a valid current &alifornia Real Estate ales !icense and that the re.resentative is bonded ban ad/itted suret- insurer in an a/ount eBual to at least twice the fair /arket value of the real .ro.ert- that is the subAect of the contract. +8, A state/ent in writin1, under .enalt- of .erAur-, that the re.resentative has a valid current &alifornia Real Estate ales !icense, that the re.resentative is bonded b- an ad/itted suret- insurer in an a/ount eBual to at least twice the value of the real .ro.ert- that is the subAect of the contract and has co/.lied with .ara1ra.h +7,. The written state/ent reBuired b- this .ara1ra.h shall be .rovided to all .arties to the contract .rior to the transfer of an- interest in the real .ro.ert- that is the subAect of the contract. +b, The failure to co/.l- with subdivision +a, shall, at the o.tion of the owner, render the contract void and the foreclosure consultant shall be liable to the owner for all da/a1es .ro0i/atel- caused b- the failure to co/.l-.
(Amended by Stats. 1996, Ch. 124, Sec. 8. Effective an!a"y 1, 1997.)

ARTICLE 2. Mortgage o) Real .ro/ert0 [294 - 29""."! ( ($tic&e 2 enacted 1872. ) 294 . An- interest in real .ro.ert- which is ca.able of bein1 transferred /a- be /ort1a1ed.
(Enacted 1872.)

294%. A /ort1a1e of real .ro.ert- /a- be /ade in substantiall- the followin1 for/:
This /ort1a1e, /ade the GGGG da- of GGGGGGGG, in the -ear GGGG, b- A (, of GGGGG, /ort1a1or, to & D, of GGGGGG, /ort1a1ee, witnesseth: That the /ort1a1or /ort1a1es to the /ort1a1ee Ehere describe the .ro.ert-F, as securit- for the .a-/ent to hi/ of GGGGGGG dollars, on Eor beforeF the GGGGG da- of GGGGGGGG, in the -ear GGGG, with interest thereon Eor as securit- for the .a-/ent of an obli1ation, describin1 it, etc.F A (.

(Enacted 1872.)

294%.". +a, A borrower shall not be reBuired to .a- interest on a .rinci.al obli1ation under a .ro/issor- note secured b- a /ort1a1e or deed of trust on real .ro.ert- i/.roved with between one to four residential dwellin1 units for an.eriod that /eets an- of the followin1 reBuire/ents:

+7, Is /ore than one da- .rior to the date that the loan .roceeds are disbursed fro/ escrow. +8, In the event of no escrow, if a reBuest for recordin1 is /ade in connection with the disburse/ent, is /ore than one da- .rior to the date the loan .roceeds are disbursed to the borrower, to a third .art- on behalf of the borrower, or to the lender to satisf- an e0istin1 obli1ation of the borrower. +:, In all other circu/stances where there is no escrow and no reBuest for recordin1, is .rior to the date funds are disbursed to the borrower, to a third .art- on behalf of the borrower, or to the lender to satisf- an e0istin1 obli1ation of the borrower. +b, Interest /a- co//ence to accrue on the business da- i//ediatel.recedin1 the da- of disburse/ent, for obli1ations described in .ara1ra.hs +7, and +8, of subdivision +a, if both of the followin1 occur: +7, The borrower affir/ativel- reBuests, and the lender a1rees, that the disburse/ent will occur on 3onda-, or a da- i//ediatel- followin1 a bank holida-. +8, The followin1 infor/ation is disclosed to the borrower in writin1: +A, the a/ount of additional .er die/ interest char1ed to facilitate disburse/ent on 3onda- or the da- followin1 a holida-, as the case /a- be, and +(, that it /a- be .ossible to avoid the additional .er die/ interest char1e bdisbursin1 the loan .roceeds on a da- i//ediatel- followin1 a business da-. This disclosure shall be .rovided to the borrower and acknowled1ed b- the borrower b- si1nin1 a co.- of the disclosure docu/ent .rior to .lacin1 funds in escrow. +c, This section does not a..l- to a loan that is subAect to subdivision +c, of ection 7?8;8 of the (usiness and %rofessions &ode.
(Amended by Stats. 200#, Ch. &&4, Sec. 1. Effective an!a"y 1, 2004.)

2949. +a, "o /ort1a1e or deed of trust on real .ro.ert- containin1 onl- a sin1leJ fa/il-, ownerJoccu.ied dwellin1 /a- be declared in default, nor /a- the /aturit- date of the indebtedness secured thereb- be accelerated, solel- breason of the owner further encu/berin1 the real .ro.ert- or an- .ortion thereof, with a Aunior /ort1a1e or Aunior deed of trust. +b, As used in this section, 2sin1leJfa/il-, ownerJoccu.ied dwellin14 /eans a dwellin1 which will be owned and occu.ied b- a si1nator- to the /ort1a1e or deed of trust secured b- such dwellin1 within 9? da-s of the e0ecution of such /ort1a1e or deed of trust.
(Added by Stats. 1972, Ch. 698.)

29"0. Chen a 1rant of real .ro.ert- .ur.orts to be an absolute conve-ance, but is intended to be defeasible on the .erfor/ance of certain conditions, such 1rant is not defeated or affected as a1ainst an- .erson other than the 1rantee or his or her heirs or devisees, or .ersons havin1 actual notice,

unless an instru/ent of defeasance, dul- e0ecuted and acknowled1ed, shall have been recorded in the office of the count- recorder of the count- where the .ro.ert- is situated.
(Amended by Stats. 201#, Ch. 76, Sec. 19. Effective an!a"y 1, 2014.)

29"2. 3ort1a1es and deeds of trust of real .ro.ert- /a- be acknowled1ed or .roved, certified and recorded, in like /anner and with like effect, as 1rants thereofH .rovided, however, that a /ort1a1e or deed of trust of real .ro.ert/a- be recorded and constructive notice of the sa/e and the contents thereof 1iven in the followin1 /anner: An- .erson /a- record in the office of the count- recorder of an- countfictitious /ort1a1es and deeds of trust of real .ro.ert-. Those fictitious /ort1a1es and deeds of trust need not be acknowled1ed, or .roved or certified to be recorded or entitled to record. Those /ort1a1es and deeds of trust shall have noted u.on the face thereof that the- are fictitious. The count- recorder shall inde0 and record fictitious /ort1a1es and deeds of trust in the sa/e /anner as other /ort1a1es and deeds of trust are recorded, and shall note on all indices and records of the sa/e that the- are fictitious. Thereafter, an- of the .rovisions of an- recorded fictitious /ort1a1e or deed of trust /a- be included for an- and all .ur.oses in an/ort1a1e or deed of trust b- reference therein to an- of those .rovisions, without settin1 the sa/e forth in fullH .rovided, the fictitious /ort1a1e or deed of trust is of record in the count- in which the /ort1a1e or deed of trust ado.tin1 or includin1 b- reference an- of the .rovisions thereof is recorded. The reference shall contain a state/ent, as to each count- in which the /ort1a1e or deed of trust containin1 such a reference is recorded, of the date the fictitious /ort1a1e or deed of trust was recorded, the countrecorder5s office wherein it is recorded, and the book or volu/e and the first .a1e of the records in the recorder5s office wherein and at which the fictitious /ort1a1e or deed of trust was recorded, and a state/ent b- .ara1ra.h nu/bers or an- other /ethod that will definitel- identif- the sa/e, of the s.ecific .rovisions of the fictitious /ort1a1e or deed of trust that are bein1 so ado.ted and included therein. The recordin1 of an- /ort1a1e or deed of trust which has included therein an- of those .rovisions b- reference as aforesaid shall o.erate as constructive notice of the whole thereof includin1 the ter/s, as a .art of the written contents of the /ort1a1e or deed of trust, of those .rovisions so included b- reference as thou1h the sa/e were written in full therein. The .arties bound or to be bound b- .rovisions so ado.ted and included b- reference shall be bound thereb- in the sa/e /anner and with like effect for all .ur.oses as thou1h those .rovisions had been and were set forth in full in an- /ort1a1e or deed of trust. The a/end/ent to this section enacted b- the 79<> Re1ular ession of the !e1islature does not constitute a chan1e in, but is declarator- of, the .ree0istin1 law.
(Amended by Stats. 2000, Ch. 924, Sec. 1. Effective an!a"y 1, 2001.)

29"#. An- e0.ress a1ree/ent /ade or entered into b- a borrower at the ti/e of or in connection with the /akin1 of or renewin1 of an- loan secured b- a deed of trust, /ort1a1e or other instru/ent creatin1 a lien on real .ro.ert-, whereb- the borrower a1rees to waive the ri1hts, or .rivile1es conferred u.on hi/ b- ections 898;, 898;b, 898;c of the &ivil &ode or b- ections <@?a or >8= of the &ode of &ivil %rocedure, shall be void and of no effect. The .rovisions of this section shall not a..l- to an- deed of trust, /ort1a1e or other liens 1iven to secure the .a-/ent of bonds or other evidences of indebtedness authori6ed or .er/itted to be issued b- the &o//issioner of &or.orations, or is /ade b- a .ublic utilit- subAect to the .rovisions of the %ublic *tilities Act.
(Amended by Stats. 1941, Ch. &99.)

29"#.1. As used in this section: +a, 2Real .ro.ert- securit- instru/ent4 shall include an- /ort1a1e or trust deed or land contract in or on real .ro.ert-. +b, 2 ubordination clause4 shall /ean a clause in a real .ro.ert- securitinstru/ent whereb- the holder of the securit- interest under such instru/ent a1rees that u.on the occurrence of conditions or circu/stances s.ecified therein his securit- interest will beco/e subordinate to or he will e0ecute an a1ree/ent subordinatin1 his interest to the lien of another real .ro.ertsecurit- instru/ent which would otherwise be of lower .riorit- than his lien or securit- interest. +c, 2 ubordination a1ree/ent4 shall /ean a se.arate a1ree/ent or instru/ent whereb- the holder of the securit- interest under a real .ro.ertsecurit- instru/ent a1rees that +7, his e0istin1 securit- interest is subordinate to, or +8, u.on the occurrence of conditions or circu/stances s.ecified in such se.arate a1ree/ent his securit- interest will beco/e subordinate to, or +:, he will e0ecute an a1ree/ent subordinatin1 his interest to, the lien of another real .ro.ert- securit- instru/ent which would otherwise be of lower .riorit- than his lien or securit- interest.
(Added by Stats. 196#, Ch. 1861.)

29"#.2. Ever- real .ro.ert- securit- instru/ent which contains or has attached a subordination clause shall contain: +a, At the to. of the real .ro.ert- securit- instru/ent there shall a..ear in at least 7?J.oint bold t-.e, or, if t-.ewritten, in ca.ital letters and underlined, the word 2 ubordinated4 followed b- a descri.tion of the t-.e of securitinstru/ent. +b, A notice in at least ei1htJ.oint bold t-.e, or, if t-.ewritten, in ca.ital letters, shall a..ear i//ediatel- below the le1end reBuired b- subdivision

+a, of this section readin1 as follows: 2"otice: This +insert descri.tion of real .ro.ert- securit- instru/ent, contains a subordination clause which /aresult in -our securit- interest in the .ro.ert- beco/in1 subAect to and of lower .riorit- than the lien of so/e other or later securit- instru/ent.4 +c, If the ter/s of the subordination clause allow the obli1or on the debt secured b- the real .ro.ert- securit- instru/ent to obtain a loan, secured banother real .ro.ert- securit- instru/ent coverin1 all or an- .art of the sa/e .arcel of real .ro.ert-, the .roceeds of which /a- be used for an.ur.ose or .ur.oses other than defra-in1 the costs for i/.rove/ent of the land covered b- the real .ro.ert- securit- instru/ent containin1 the subordination clause, a notice in at least ei1htJ.oint bold t-.e, or, if t-.ewritten, in ca.ital letters shall a..ear directl- above the s.ace reserved for the si1nature of the .erson whose securit- interest is to be subordinated, readin1 as follows: 2"otice: This +insert descri.tion of real .ro.ert- securitinstru/ent, contains a subordination clause which allows the .erson obli1ated on -our real .ro.ert- securit- instru/ent to obtain a loan a .ortion of which /a- be e0.ended for other .ur.oses than i/.rove/ent of the land.4
(Added by Stats. 196#, Ch. 1861.)

29"#.#. Ever- subordination a1ree/ent shall contain: +a, At the to. of the subordination a1ree/ent there shall a..ear in at least 7?J.oint bold t-.e, or, if t-.ewritten, in ca.ital letters and underlined, the words 2 ubordination A1ree/ent.4 +b, A notice in at least ei1htJ.oint bold t-.e, or, if t-.ewritten, in ca.ital letters, shall a..ear i//ediatel- below the le1end reBuired b- subdivision +a, of this section readin1 as follows: 2"otice: This subordination a1ree/ent +2/a- result4 or 2results4 as a..ro.riate, in -our securit- interest in the .ro.ert- beco/in1 subAect to and of lower .riorit- than the lien of so/e other or later securit- instru/ent.4 +c, If the ter/s of the subordination a1ree/ent .rovide that the obli1or on the debt secured b- the real .ro.ert- securit- instru/ent /a- either obtain a loan, or obtain an a1ree/ent fro/ the holder of the real .ro.ert- securitwhich will allow hi/ to obtain a loan, the .roceeds of which /a- be used for an- .ur.ose or .ur.oses other than defra-in1 the actual contract costs for i/.rove/ent of the land, covered b- the real .ro.ert- securit- instru/ent which is, or is to beco/e subordinated, a notice in at least ei1htJ.oint bold t-.e or, if t-.ewritten, in ca.ital letters, shall a..ear directl- above the s.ace reserved for the si1nature of the .erson whose securit- interest is to be subordinated, readin1 as follows: 2"otice: This subordination a1ree/ent contains a .rovision which +2allows4 or 2/a- allow4 as a..ro.riate, the .erson obli1ated on -our real .ro.ert- securit- to obtain a loan a .ortion of which /a- be e0.ended for other .ur.oses than i/.rove/ent of the land.4
(Added by Stats. 196#, Ch. 1861.)

29"#.4. +a, An- subordination clause and an- subordination a1ree/ent which is e0ecuted after the effective date of this act and which does not substantiallco/.l- with the .rovisions of ection 89<:.8 or ection 89<:.: shall be voidable u.on the election of the .erson whose securit- interest is to be subordinated or his successorJinJinterest e0ercised within two -ears of the date on which the instru/ent to which his securit- interest is subordinated is e0ecutedH .rovided that such .ower of avoidance shall not be e0ercisable ban- .erson havin1 actual knowled1e of the e0istence and ter/s of the subordination clause or a1ree/ent. +b, The .erson whose securit- interest was to be subordinated or his successorJinJinterest shall e0ercise his election to void the subordination clause or subordination a1ree/ent .rovided b- subdivision +a, of this section b- recordin1 a notice statin1 that the .rovisions of &ivil &ode ection 89<:.8 or &ivil &ode ection 89<:.: have not been co/.lied with, and that he is the holder of the securit- instru/ent which is or was to beco/e subordinated and that he elects to avoid the effect of the subordination clause or subordination a1ree/ent. +c, The .rovisions of this section /a- be waived b- the subseBuent e0ecution and recordation b- the holder of the securit- interest which is or /abeco/e subordinated, of a state/ent that he knows of the e0istence of the subordination clause or a1ree/ent and of its ter/s and that he waives the .rovisions of this section and the reBuire/ents of ections 89<:.7, 89<:.8, and 89<:.:.
(Added by Stats. 196#, Ch. 1861.)

29"#.". +a, ections 89<:.7 throu1h 89<:.; shall not a..l- to an- subordination clause or subordination a1ree/ent which e0.ressl- states that the subordinatin1 loan shall e0ceed twent-Jfive thousand dollars +L8<,???,. +b, ections 89<:.7 throu1h 89<:.; shall not a..l- to an- subordination clause or subordination a1ree/ent which is e0ecuted in connection with a loan which e0ceeds twent-Jfive thousand dollars +L8<,???,.
(Added by Stats. 196#, Ch. 1861.)

29"4. +a, +7, "o i/.ound, trust, or other t-.e of account for .a-/ent of ta0es on the .ro.ert-, insurance .re/iu/s, or other .ur.oses relatin1 to the .ro.ertshall be reBuired as a condition of a real .ro.ert- sale contract or a loan secured b- a deed of trust or /ort1a1e on real .ro.ert- containin1 onl- a sin1leJfa/il-, ownerJoccu.ied dwellin1, e0ce.t: +A, where reBuired b- a state or federal re1ulator- authorit-, +(, where a loan is /ade, 1uaranteed, or insured b- a state or federal 1overn/ental lendin1 or insurin1 a1enc-, +&, u.on a failure of the .urchaser or borrower to .a- two consecutive ta0

install/ents on the .ro.ert- .rior to the delinBuenc- date for such .a-/ents, +D, where the ori1inal .rinci.al a/ount of such a loan is +i, 9? .ercent or /ore of the sale .rice, if the .ro.ert- involved is sold, or is +ii, 9? .ercent or /ore of the a..raised value of the .ro.ert- securin1 the loan, +E, whenever the co/bined .rinci.al a/ount of all loans secured b- the real .ro.ert- e0ceeds @? .ercent of the a..raised value of the .ro.ert- securin1 the loans, +F, where a loan is /ade in co/.liance with the reBuire/ents for hi1her .riced /ort1a1e loans established in Re1ulation M, whether or not the loan is a hi1her .riced /ort1a1e loan, or +#, where a loan is refinanced or /odified in connection with a lender5s ho/eownershi. .reservation .ro1ra/ or a lender5s .artici.ation in such a .ro1ra/ s.onsored b- a federal, state, or local 1overn/ent authorit- or a non.rofit or1ani6ation. "othin1 contained in this section shall .reclude establish/ent of such an account on ter/s /utuall- a1reeable to the .arties to the loan, if, .rior to the e0ecution of the loan or sale a1ree/ent, the seller or lender has furnished to the .urchaser or borrower a state/ent in writin1, which /a- be set forth in the loan a..lication, to the effect that the establish/ent of such an account shall not be reBuired as a condition to the e0ecution of the loan or sale a1ree/ent, and further, statin1 whether or not interest will be .aid on the funds in such an account. An i/.ound, trust, or other t-.e of account for the .a-/ent of ta0es, insurance .re/iu/s, or other .ur.oses relatin1 to .ro.ert- established in violation of this subdivision is voidable, at the o.tion of the .urchaser or borrower, at an- ti/e, but shall not otherwise affect the validit- of the loan or sale. +8, For the .ur.oses of this subdivision, 2Re1ulation M4 /eans an- rule, re1ulation, or inter.retation .ro/ul1ated b- the (oard of #overnors of the Federal Reserve -ste/ and an- inter.retation or a..roval issued b- an official or e/.lo-ee dul- authori6ed b- the board to issue inter.retations or a..rovals dealin1 with, res.ectivel-, consu/er leasin1 or consu/er lendin1, .ursuant to the federal Truth in !endin1 Act, as a/ended +7< *. .&. ec. 7=?7 et seB.,. +b, Ever- /ort1a1ee of real .ro.ert-, beneficiar- under a deed of trust on real .ro.ert-, or vendor on a real .ro.ert- sale contract u.on the written reBuest of the /ort1a1or, trustor, or vendee shall furnish to the /ort1a1or, trustor, or vendee for each calendar -ear within =? da-s after the end of the -ear an ite/i6ed accountin1 of /one-s received for interest and .rinci.al re.a-/ent and received and held in or disbursed fro/ an i/.ound or trust account, if an-, for .a-/ent of ta0es on the .ro.ert-, insurance .re/iu/s, or other .ur.oses relatin1 to the .ro.ert- subAect to the /ort1a1e, deed of trust, or real .ro.ert- sale contract. The /ort1a1or, trustor, or vendee shall be entitled to receive one such accountin1 for each calendar -ear without char1e and shall be entitled to additional si/ilar accountin1s for one or /ore /onths u.on written reBuest and on .a-/ent in advance of fees as follows: +7, Fift- cents +L?.<?, .er state/ent when reBuested in advance on a /onthl- basis for one or /ore -ears. +8, $ne dollar +L7, .er state/ent when reBuested for onl- one /onth.

+:, Five dollars +L<, if reBuested for a sin1le cu/ulative state/ent 1ivin1 all the infor/ation described above back to the last state/ent rendered. If the /ort1a1ee, beneficiar-, or vendor trans/its to the /ort1a1or, trustor, or vendee a /onthl- state/ent or .assbook showin1 /one-s received for interest and .rinci.al re.a-/ent and received and held in and disbursed fro/ an i/.ound or trust account, if an-, the /ort1a1ee, beneficiar-, or vendor shall be dee/ed to have co/.lied with this section. "o increase in the /onthl- rate of .a-/ent of a /ort1a1or, trustor, or vendee on a real .ro.ert- sale contract for i/.ound or trust accounts shall be effective until after the /ort1a1ee, beneficiar-, or vendor has furnished the /ort1a1or, trustor, or vendee with an ite/i6ed accountin1 of the /one-s .resentl- held b- it in the accounts, and a state/ent of the new /onthl- rate of .a-/ent, and an e0.lanation of the factors necessitatin1 the increase. The .rovisions of this section shall be in addition to the obli1ations of the .arties as stated b- ection 89;:. Ever- .erson who willfull- or re.eatedl- violates this subdivision shall be subAect to .unish/ent b- a fine of not less than fift- dollars +L<?, nor /ore than two hundred dollars +L8??,. +c, As used in this section, 2sin1leJfa/il-, ownerJoccu.ied dwellin14 /eans a dwellin1 that will be owned and occu.ied b- a si1nator- to the /ort1a1e or deed of trust secured b- that dwellin1 within 9? da-s of the e0ecution of the /ort1a1e or deed of trust.
(Amended by Stats. 2010, Ch. #28, Sec. #0. Effective an!a"y 1, 2011.)

29"4.1. "o lender or .erson who .urchases obli1ations secured b- real .ro.ert-, or an- a1ent of such lender or .erson, who /aintains an i/.ound, trust, or other t-.e of account for the .a-/ent of ta0es and assess/ents on real .ro.ert-, insurance .re/iu/s, or other .ur.oses relatin1 to such .ro.ertshall do an- of the followin1: +a, ReBuire the borrower or vendee to de.osit in such account in an- /onth an a/ount in e0cess of that which would be .er/itted in connection with a federall- related /ort1a1e loan .ursuant to ection 7? of the Real Estate ettle/ent %rocedures Act of 79>; +78 *. .&. 8=?9,, as a/ended. +b, ReBuire the su/s /aintained in such account to e0ceed at an- ti/e the a/ount or a/ounts reasonabl- necessar- to .a- such obli1ations as thebeco/e due. An- su/ held in e0cess of the reasonable a/ount shall be refunded within :? da-s unless the .arties /utuall- a1ree to the contrar-. uch an a1ree/ent /a- be rescinded at an- ti/e b- an- .art-. +c, 3ake .a-/ents fro/ the account in a /anner so as to cause an- .olicof insurance to be canceled or so as to cause .ro.ert- ta0es or other si/ilar .a-/ents to beco/e delinBuent. "othin1 contained herein shall .rohibit reBuirin1 additional a/ounts to be .aid into an i/.ound account in order to recover an- deficienc- which /ae0ist in the account.

An- .erson har/ed b- a violation of this section shall be entitled to sue to recover his or her da/a1es or for inAunctive reliefH but such violation shall not otherwise affect the validit- of the loan or sale. This section a..lies to all such accounts /aintained after the effective date of this act.
(Amended by Stats. 198#, Ch. 74, Sec. 1.)

29"4.2. +a, Ever- /ort1a1ee of record of real .ro.ert- containin1 onl- a oneJ to fourJfa/il- residence, when the /ort1a1e is 1iven to secure .a-/ent of the balance of the .urchase .rice of the .ro.ert- or to refinance such a /ort1a1e, shall furnish to the /ort1a1or within =? da-s after the end of each calendar -ear a written state/ent showin1 the a/ount of /one-s received for interest and .rinci.al re.a-/ent, late char1es, /one-s received and held in or disbursed fro/ an i/.ound account, if an-, for the .a-/ent of ta0es on the .ro.ert-, insurance .re/iu/s, bond assess/ents, or other .ur.oses relatin1 to the .ro.ert-, and interest credited to the account, if an-. The written state/ent reBuired to be furnished b- this section shall be dee/ed furnished if the /ort1a1ee of record trans/its to the /ort1a1or of record cu/ulative state/ents or recei.ts which, for each calendar -ear, .rovide in one of the state/ents or recei.ts the infor/ation reBuired b- this section. The /ort1a1or, trustor or vendee shall be entitled to receive one such state/ent for each calendar -ear without char1e and without reBuest. uch state/ent shall include a notification in 7?J.oint t-.e that additional accountin1s can be reBuested b- the /ort1a1or, trustor, or vendee, .ursuant to ection 89<;. +b, For the .ur.oses of this section: +7, 23ort1a1ee4 includes a beneficiar- under a deed of trust, a vendor under a real .ro.ert- sale contract, and an or1ani6ation which services a /ort1a1e or deed of trust b- receivin1 and disbursin1 .a-/ents for the /ort1a1ee or beneficiar-. +8, 23ort1a1e4 includes a first or second /ort1a1e, a first or second deed of trust, and a real .ro.ert- sale contract. +:, 2I/.ound account4 includes a trust or other t-.e of account established for the .ur.oses described in subdivision +a,. +c, The reBuire/ents of this section shall be in addition to the reBuire/ents of ection 89<;. +d, This section shall beco/e o.erative on Dece/ber :7, 79>@, and a..l- to /one-s received b- a /ort1a1ee on and after Kanuar- 7, 79>@.
(Added by Stats. 1976, Ch. 774.)

29"4.4. +a, A char1e that /a- be i/.osed for late .a-/ent of an install/ent due on a loan secured b- a /ort1a1e or a deed of trust on real .ro.ert- containin1 onl- a sin1leJfa/il-, ownerJoccu.ied dwellin1, shall not e0ceed either +7, the

eBuivalent of = .ercent of the install/ent due that is a..licable to .a-/ent of .rinci.al and interest on the loan, or +8, five dollars +L<,, whichever is 1reater. A char1e /a- not be i/.osed /ore than once for the late .a-/ent of the sa/e install/ent. However, the i/.osition of a late char1e on an- late .a-/ent does not eli/inate or su.ersede late char1es i/.osed on .rior late .a-/ents. A .a-/ent is not a 2late .a-/ent4 for the .ur.oses of this section until at least 7? da-s followin1 the due date of the install/ent. +b, A late char1e /a- not be i/.osed on an- install/ent which is .aid or tendered in full on or before its due date, or within 7? da-s thereafter, even thou1h an earlier install/ent or install/ents, or an- late char1e thereon, /a- not have been .aid in full when due. For the .ur.oses of deter/inin1 whether late char1es /a- be i/.osed, an- .a-/ent tendered b- the borrower shall be a..lied b- the lender to the /ost recent install/ent due. +c, A late .a-/ent char1e described in subdivision +a, is valid if it satisfies the reBuire/ents of this section and ection 89<;.<. +d, "othin1 in this section shall be construed to alter in an- wa- the dut- of the borrower to .a- an- install/ent then due or to alter the ri1hts of the lender to enforce the .a-/ent of the install/ents. +e, This section is not a..licable to loans /ade b- a credit union subAect to Division < +co//encin1 with ection 7;???, of the Financial &ode, b- an industrial loan co/.an- subAect to Division > +co//encin1 with ection 7@???, of the Financial &ode, or b- a finance lender subAect to Division 9 +co//encin1 with ection 88???, of the Financial &ode, and is not a..licable to loans /ade or ne1otiated b- a real estate broker subAect to Article > +co//encin1 with ection 7?8;?, of &ha.ter : of %art 7 of Division ; of the (usiness and %rofessions &ode. +f, As used in this section, 2sin1leJfa/il-, ownerJoccu.ied dwellin14 /eans a dwellin1 that will be owned and occu.ied b- a si1nator- to the /ort1a1e or deed of trust secured b- the dwellin1 within 9? da-s of the e0ecution of the /ort1a1e or deed of trust. +1, This section a..lies to loans e0ecuted on and after Kanuar- 7, 79>=.
(Amended by Stats. 2001, Ch. 1&9, Sec. #&. Effective an!a"y 1, 2002.)

29"4.". +a, (efore the first default, delinBuenc-, or late .a-/ent char1e /a- be assessed b- an- lender on a delinBuent .a-/ent of a loan, other than a loan /ade .ursuant to Division 9 +co//encin1 with ection 88???, of the Financial &ode, secured b- real .ro.ert-, and before the borrower beco/es obli1ated to .a- this char1e, the borrower shall either +7, be notified in writin1 and 1iven at least 7? da-s fro/ /ailin1 of the notice in which to cure the delinBuenc-, or +8, be infor/ed, b- a billin1 or notice sent for each .a-/ent due on the loan, of the date after which this char1e will be assessed. The notice .rovided in either .ara1ra.h +7, or +8, shall contain the a/ount of the char1e or the /ethod b- which it is calculated.

+b, If a subseBuent .a-/ent beco/es delinBuent the borrower shall be notified in writin1, before the late char1e is to be i/.osed, that the char1e will be i/.osed if .a-/ent is not received, or the borrower shall be notified at least se/iannuall- of the total a/ount of late char1es i/.osed durin1 the .eriod covered b- the notice. +c, "otice .rovided b- this section shall be sent to the address s.ecified bthe borrower, or, if no address is s.ecified, to the borrower5s address as shown in the lender5s records. +d, In case of /ulti.le borrowers obli1ated on the sa/e loan, a notice /ailed to one shall be dee/ed to co/.l- with this section. +e, The failure of the lender to co/.l- with the reBuire/ents of this section does not e0cuse or defer the borrower5s .erfor/ance of an- obli1ation incurred in the loan transaction, other than his or her obli1ation to .a- a late .a-/ent char1e, nor does it i/.air or defer the ri1ht of the lender to enforce an- other obli1ation includin1 the costs and e0.enses incurred in anenforce/ent authori6ed b- law. +f, The .rovisions of this section as added b- &ha.ter 7;:? of the tatutes of 79>? shall onl- affect loans /ade on and after Kanuar- 7, 79>7. The a/end/ents to this section /ade at the 79><O>= Re1ular ession of the !e1islature shall onl- a..l- to loans e0ecuted on and after Kanuar- 7, 79>=.
(Amended by Stats. 2001, Ch. 1&9, Sec. #6. Effective an!a"y 1, 2002.)

29"4.$. +a, If .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance, as defined in subdivision +a, of ection 78=;?.?8 of the Insurance &ode, is reBuired as a condition of a loan secured b- a deed of trust or /ort1a1e on real .ro.ert-, the lender or .erson /akin1 or arran1in1 the loan shall notifthe borrower whether or not the borrower has the ri1ht to cancel the insurance. If the borrower has the ri1ht to cancel, then the lender or .erson /akin1 or arran1in1 the loan shall notif- the borrower in writin1 of the followin1: +7, An- identif-in1 loan or insurance infor/ation necessar- to .er/it the borrower to co//unicate with the insurer or the lender concernin1 the insurance. +8, The conditions that are reBuired to be satisfied before the .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance /a- be subAect to cancellation, which shall include, but is not li/ited to, both of the followin1: +A, If the condition is a /ini/u/ ratio between the re/ainin1 .rinci.al balance of the loan and the ori1inal or current value of the .ro.ert-, that ratio shall be stated. +(, Infor/ation concernin1 whether or not an a..raisal /a- be necessar-. +:, The .rocedure the borrower is reBuired to follow to cancel the .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance. +b, The notice reBuired in subdivision +a, shall be 1iven to the borrower no later than :? da-s after the close of escrow. The notice shall be set forth in at least 7?J.oint bold t-.e.

+c, Cith res.ect to an- loan s.ecified in subdivision +a, for which .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance is still /aintained, the lender or .erson /akin1, arran1in1, or servicin1 the loan shall .rovide the borrower with a notice containin1 the sa/e infor/ation as s.ecified in subdivision +a, or a clear and cons.icuous written state/ent indicatin1 that +7, the borrower /a- be able to cancel the .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance based u.on various factors, includin1 a..reciation of the value of the .ro.ert- derived fro/ a current a..raisal .erfor/ed b- an a..raiser selected b- the lender or servicer, and .aid for bthe borrower, and +8, the borrower /a- contact the lender or .erson /akin1, arran1in1, or servicin1 the loan at a desi1nated address and tele.hone nu/ber to deter/ine whether the borrower has a ri1ht of cancellation and, if so, the conditions and .rocedure to effect cancellation. The notice or state/ent reBuired b- this subdivision shall be .rovided in or with each written state/ent reBuired b- ection 89<;.8. +d, The notice reBuired under this section shall be .rovided without cost to the borrower. +e, An- .erson har/ed b- a violation of this section /a- obtain inAunctive relief and /a- recover treble da/a1es and reasonable attorne-5s fees and costs. +f, This section shall not a..l- to an- /ort1a1e funded with bond .roceeds issued under an indenture reBuirin1 /ort1a1e insurance for the life of the loan nor to an- insurance issued .ursuant to %art ; +co//encin1 with ection <7=??, of Division :7 of the Health and afet- &ode, or loans insured b- the Federal Housin1 Ad/inistration or )eterans Ad/inistration.
(Amended by Stats. 2001, Ch. 1#7, Sec. 1. Effective an!a"y 1, 2002. +(e"ative !$y 1, 2002, by Sec. 2 %f Ch. 1#7.)

29"4.$". Cithin :? da-s after notice of cancellation fro/ the insured, a .rivate /ort1a1e insurer or /ort1a1e 1uarant- insurer shall, if the .olic- is cancellable, refund the re/ainin1 .ortion of the unused .re/iu/ to the .erson or .ersons desi1nated b- the insured.
(Added by Stats. 1990, Ch. 1099, Sec. 2.)

29"4. . E0ce.t when a statute, re1ulation, rule, or written 1uideline .ro/ul1ated ban institutional third .art- a..licable to notes or evidence of indebtedness secured b- a deed of trust or /ort1a1e .urchased in whole or in .art b- an institutional third .art- s.ecificall- .rohibits cancellation durin1 the ter/ of the indebtedness, if a borrower so reBuests and the conditions established b.ara1ra.hs +7, to +<,, inclusive, of subdivision +a, are /et, a borrower /ater/inate future .a-/ents for .rivate /ort1a1e insurance, or /ort1a1e 1uarant- insurance as defined in subdivision +a, of ection 78=;?.?8 of the Insurance &ode, issued as a condition to the e0tension of credit in the for/

of a loan evidenced b- a note or other evidence of indebtedness that is secured b- a deed of trust or /ort1a1e on the subAect real .ro.ert-. +a, The followin1 conditions shall be satisfied in order for a borrower to be entitled to ter/inate .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance: +7, The reBuest to ter/inate future .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance shall be in writin1. +8, The ori1ination date of the note or evidence of indebtedness shall be at least two -ears .rior to the date of the reBuest. +:, The note or evidence of indebtedness shall be for .ersonal, fa/il-, household, or .urchase /one- .ur.oses, secured b- a deed of trust or /ort1a1e on ownerJoccu.ied, oneJ to fourJunit, residential real .ro.ert-. +;, The un.aid .rinci.al balance owed on the secured obli1ation that is the subAect of the .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance shall not be /ore than >< .ercent, unless the borrower and lender or servicer of the loan a1ree in writin1 u.on a hi1her loanJtoJvalue ratio, of either of the followin1: +A, The sale .rice of the .ro.ert- at the ori1ination date of the note or evidence of indebtedness, .rovided that the current fair /arket value of the .ro.ert- is eBual to or 1reater than the ori1inal a..raised value used at the ori1ination date. +(, The current fair /arket value of the .ro.ert- as deter/ined b- an a..raisal, the cost of which shall be .aid for b- the borrower. The a..raisal shall be ordered and the a..raiser shall be selected b- the lender or servicer of the loan. +<, The borrower5s /onthl- install/ents of .rinci.al, interest, and escrow obli1ations on the encu/brance or encu/brances secured b- the real .ro.ert- shall be current at the ti/e the reBuest is /ade and those install/ents shall not have been /ore than :? da-s .ast due over the 8;J /onth .eriod i//ediatel- .recedin1 the reBuest, .rovided further, that no notice of default has been recorded a1ainst the securit- real .ro.ert.ursuant to ection 898;, as a result of a non/onetar- default b- the borrower +trustor, durin1 the 8;J/onth .eriod i//ediatel- .recedin1 the reBuest. +b, This section does not a..l- to an- of the followin1: +7, A note or evidence of indebtedness secured b- a deed of trust or /ort1a1e, or /ort1a1e insurance, e0ecuted under the authorit- of %art : +co//encin1 with ection <?9??, or %art ; +co//encin1 with ection <7=??, of Division :7 of the Health and afet- &ode. +8, An- note or evidence of indebtedness secured b- a deed of trust or /ort1a1e that is funded in whole or in .art .ursuant to authorit- 1ranted bstatute, re1ulation, or rule that, as a condition of that fundin1, .rohibits or li/its ter/ination of .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance durin1 the ter/ of the indebtedness. +:, "otes or evidence of indebtedness that reBuire .rivate /ort1a1e insurance and were e0ecuted .rior to Kanuar- 7, 7997. +c, If the note secured b- the deed of trust or /ort1a1e will be or has been sold in whole or in .art to an institutional third .art-, adherence to the

institutional third .art-5s standards for ter/ination of future .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance shall be dee/ed in co/.liance with the reBuire/ents of this section. +d, For the .ur.oses of this section, 2institutional third .art-4 /eans the Federal "ational 3ort1a1e Association, the Federal Ho/e !oan 3ort1a1e &or.oration, the #overn/ent "ational 3ort1a1e Association, and other substantiall- si/ilar institutions, whether .ublic or .rivate, .rovided the institutions establish and adhere to rules a..licable to the ri1ht of cancellation of .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance, which are the sa/e or substantiall- the sa/e as those utili6ed b- the aboveJ na/ed institutions.
(Amended by Stats. 2006, Ch. &#8, Sec. &6. Effective an!a"y 1, 2007.)

29"4.%. +a, Ever- financial institution that /akes loans u.on the securit- of real .ro.ert- containin1 onl- a oneJ to fourJfa/il- residence and located in this state or .urchases obli1ations secured b- such .ro.ert- and that receives /one- in advance for .a-/ent of ta0es and assess/ents on the .ro.ert-, for insurance, or for other .ur.oses relatin1 to the .ro.ert-, shall .ainterest on the a/ount so held to the borrower. The interest on such a/ounts shall be at the rate of at least 8 .ercent si/.le interest .er annu/. uch interest shall be credited to the borrower5s account annuall- or u.on ter/ination of such account, whichever is earlier. +b, "o financial institution subAect to the .rovisions of this section shall i/.ose an- fee or char1e in connection with the /aintenance or disburse/ent of /one- received in advance for the .a-/ent of ta0es and assess/ents on real .ro.ert- securin1 loans /ade b- such financial institution, or for the .a-/ent of insurance, or for other .ur.oses relatin1 to such real .ro.ert-, that will result in an interest rate of less than 8 .ercent .er annu/ bein1 .aid on the /one-s so received. +c, For the .ur.oses of this section, 2financial institution4 /eans a bank, savin1s and loan association or credit union chartered under the laws of this state or the *nited tates, or an- other .erson or or1ani6ation /akin1 loans u.on the securit- of real .ro.ert- containin1 onl- a oneJ to fourJfa/ilresidence. +d, The .rovisions of this section do not a..l- to an- of the followin1: +7, !oans e0ecuted .rior to the effective date of this section. +8, 3one-s which are reBuired b- a state or federal re1ulator- authorit- to be .laced b- a financial institution other than a bank in a nonJinterestJ bearin1 de/and trust fund account of a bank. The a/end/ent of this section /ade b- the 79>9O@? Re1ular ession of the !e1islature shall onl- a..l- to loans e0ecuted on or after Kanuar- 7, 79@?.
(Amended by Stats. 1979, Ch. 80#.)

29"4.9.

+a, +7, E0ce.t as otherwise .rovided b- statute, where the ori1inal .rinci.al obli1ation is a loan for residential .ro.ert- of four units or less, the borrower under an- note or evidence of indebtedness secured b- a deed of trust or /ort1a1e or an- other lien on real .ro.ert- shall be entitled to .re.a- the whole or an- .art of the balance due, to1ether with accrued interest, at anti/e. +8, "othin1 in this subdivision shall .revent a borrower fro/ obli1atin1 hi/self, b- an a1ree/ent in writin1, to .a- a .re.a-/ent char1e. +:, This subdivision does not a..l- durin1 an- calendar -ear to a bona fide loan secured b- a deed of trust or /ort1a1e 1iven back durin1 such calendar -ear to the seller b- the .urchaser on account of the .urchase .rice if the seller does not take back four or /ore such deeds of trust or /ort1a1es durin1 such calendar -ear. "othin1 in this subdivision shall be construed to .rohibit a borrower fro/ /akin1 a .re.a-/ent b- an a1ree/ent in writin1 with the lender. +b, E0ce.t as otherwise .rovided in ection 7?8;8.= of the (usiness and %rofessions &ode, the .rinci.al and accrued interest on an- loan secured b- a /ort1a1e or deed of trust on ownerJoccu.ied residential real .ro.ertcontainin1 onl- four units or less /a- be .re.aid in whole or in .art at anti/e but onl- a .re.a-/ent /ade within five -ears of the date of e0ecution of such /ort1a1e or deed of trust /a- be subAect to a .re.a-/ent char1e and then solel- as herein set forth. An a/ount not e0ceedin1 8? .ercent of the ori1inal .rinci.al a/ount /a- be .re.aid in an- 78J/onth .eriod without .enalt-. A .re.a-/ent char1e /a- be i/.osed on an- a/ount .re.aid in an- 78J/onth .eriod in e0cess of 8? .ercent of the ori1inal .rinci.al a/ount of the loan which char1e shall not e0ceed an a/ount eBual to the .a-/ent of si0 /onths5 advance interest on the a/ount .re.aid in e0cess of 8? .ercent of the ori1inal .rinci.al a/ount. +c, "otwithstandin1 subdivisions +a, and +b,, there shall be no .re.a-/ent .enalt- char1ed to a borrower under a loan subAect to this section if the residential structure securin1 the loan has been da/a1ed to such an e0tent b- a natural disaster for which a state of e/er1enc- is declared b- the #overnor, .ursuant to &ha.ter > +co//encin1 with ection @<<?, of Division 7 of Title 8 of the #overn/ent &ode, that the residential structure cannot be occu.ied and the .re.a-/ent is causall- related thereto.
(Amended by Stats. 1990, Ch. 66#, Sec. 2.)

29"4.10. An obli1ee which accelerates the /aturit- date of the .rinci.al and accrued interest, .ursuant to contract, on an- loan secured b- a /ort1a1e or deed of trust on real .ro.ert- or an estate for -ears therein, u.on the conve-ance of an- ri1ht, title, or interest in that .ro.ert-, /a- not clai/, e0act, or collect an- char1e, fee, or .enalt- for an- .re.a-/ent resultin1 fro/ that acceleration. The .rovisions of this section shall not a..l- to a loan other than a loan secured b- residential real .ro.ert- or an- interest therein containin1 four

units or less, in which the obli1or has e0.ressl- waived, in writin1, the ri1ht to re.a- in whole or .art without .enalt-, or has e0.ressl- a1reed, in writin1, to the .a-/ent of a .enalt- for .re.a-/ent u.on acceleration. For an- loan e0ecuted on or after Kanuar- 7, 79@;, this waiver or a1ree/ent shall be se.aratel- si1ned or initialed b- the obli1or and its enforce/ent shall be su..orted b- evidence of a course of conduct b- the obli1ee of individual wei1ht to the consideration in that transaction for the waiver or a1ree/ent.
(Amended by Stats. 1989, Ch. 698, Sec. 11.)

29"4.11. +a, As used in this section: +7, 2$.enJend credit .lan4 has the /eanin1 set forth in Re1ulation M of the Federal Reserve -ste/ +78 &.F.R. 88=.8+a,+8?,,. +8, 2Install/ent loan4 /eans an- loan s.ecified in subdivision +h, e0tended under an install/ent loan feature. +:, 2Install/ent loan feature4 /eans a feature of an o.enJend credit .lan which .rovides for a se.arate subaccount of the o.enJend credit .lan .ursuant to which the .rinci.al of, and interest on, the loan associated with that subaccount are to be re.aid in substantiall- eBual install/ents over a s.ecified .eriod without re1ard to the a/ount outstandin1 under an- other feature of the o.enJend credit .lan or the .a-/ent schedule with res.ect to the other feature. +b, +7, E0ce.t as otherwise .rovided b- statute, the borrower under aninstall/ent loan shall be entitled to .re.a- the whole or an- .art of the install/ent loan, to1ether with an- accrued interest, at an- ti/e. +8, Cith res.ect to an- install/ent loan, nothin1 in this section shall .reclude a borrower fro/ beco/in1 obli1ated, b- an a1ree/ent in writin1, to .a- a .re.a-/ent char1eH but onl- a .re.a-/ent /ade within five -ears of the date the install/ent loan is /ade /a- be subAect to a .re.a-/ent char1e and then solel- as herein set forth. An a/ount not e0ceedin1 8? .ercent of the ori1inal .rinci.al a/ount of the install/ent loan /a- be .re.aid in anone 78J/onth .eriod without incurrin1 a .re.a-/ent char1e. A .re.a-/ent char1e /a- be i/.osed on an- a/ount .re.aid in an- 78J/onth .eriod in e0cess of 8? .ercent of the ori1inal .rinci.al a/ount of the install/ent loan, which char1e shall not e0ceed an a/ount eBual to the .a-/ent of si0 /onths5 advance interest on the a/ount .re.aid in e0cess of 8? .ercent of the ori1inal .rinci.al a/ount of the install/ent loan. +c, For .ur.oses of subdivision +b,: +7, If the deed of trust or /ort1a1e secures re.a-/ent of /ore than one install/ent loan, each of the install/ent loans shall be dee/ed to have been se.aratel- /ade on the date that the .roceeds of the install/ent loan are advanced. +8, If the outstandin1 balance of a loan advanced .ursuant to an o.enJend credit .lan thereafter beco/es subAect to an install/ent loan feature of the credit .lan, the loan shall be dee/ed to have been /ade when the loan beco/es subAect to the install/ent loan feature, whether the feature was

available at the borrower5s o.tion under ori1inal ter/s of the o.enJend credit .lan or the feature thereafter beca/e available u.on /odification of the ori1inal ter/s of the o.enJend credit .lan. +d, "otwithstandin1 subdivision +b,, no .re.a-/ent char1e /a- be i/.osed with res.ect to an install/ent loan subAect to this section if an- of the followin1 a..l-: +7, The residential structure securin1 the install/ent loan has been da/a1ed to such an e0tent b- a natural disaster for which a state of e/er1enc- is declared b- the #overnor, .ursuant to &ha.ter > +co//encin1 with ection @<<?, of Division 7 of Title 8 of the #overn/ent &ode, that the residential structure cannot be occu.ied and the .re.a-/ent is causall- related thereto. +8, The .re.a-/ent is /ade in conAunction with a bona fide sale of the real .ro.ert- securin1 the install/ent loan. +:, The lender does not co/.l- with subdivision +e,. +;, The ter/ of the install/ent loan is for not /ore than five -ears and the ori1inal .rinci.al a/ount of the install/ent loan is less than five thousand dollars +L<,???,. +e, +7, The lender receivin1 a borrower5s obli1ation to .a- a .re.a-/ent char1e authori6ed b- subdivision +b, shall furnish the borrower with a written disclosure describin1 the e0istence of the .re.a-/ent char1e obli1ation, the conditions under which the .re.a-/ent char1e shall be .a-able, and the /ethod b- which the a/ount of the .re.a-/ent char1e shall be deter/ined. If subdivision +f, .rovides the borrower with a ri1ht to rescind the install/ent loan and the related obli1ation to .a- a .re.a-/ent char1e, the disclosure reBuired b- this subdivision shall also infor/ the borrower of this ri1ht to rescind, how and when to e0ercise the ri1ht, and where to /ail or deliver a notice of rescission. +8, The a/ount of, or the /ethod for deter/inin1 the a/ount of, the .re.a-/ent char1e for an install/ent loan shall be set forth in the a1ree/ent 1overnin1 the o.enJend credit .lan. +f, +7, The disclosure reBuired b- .ara1ra.h +7, of subdivision +e, shall be furnished when or u. to :? da-s before the borrower si1ns the a1ree/ent or other docu/ents reBuired b- the lender for the install/ent loan, or no earlier than :? da-s before nor later than 7? da-s followin1 the /akin1 of the install/ent loan, if /ade without the borrower havin1 to si1n an a1ree/ent or other docu/entation, such as /a- be the case if the install/ent loan /abe /ade on the basis of tele.hone or other discussions between the lender and the borrower not takin1 .lace in .erson. If the install/ent loan is /ade before the borrower has been furnished with the disclosure reBuired b.ara1ra.h +7, of subdivision +e,, the borrower shall have the ri1ht to rescind the install/ent loan and the related obli1ation to .a- a .re.a-/ent char1e b- .ersonall- deliverin1 or /ailin1 notice to that effect to the lender, b- firstJ class /ail with .osta1e .re.aid, at the lender5s location stated in its disclosure concernin1 the ri1ht to rescind within 7? da-s followin1 the furnishin1 of the disclosure. +8, If the disclosure reBuired b- .ara1ra.h +7, of subdivision +e, is included in the a1ree/ent or other docu/ent si1ned b- the borrower for the install/ent loan, the disclosure shall be dee/ed 1iven at that ti/e. In other

cases, the disclosure shall be dee/ed furnished when .ersonall- delivered to the borrower or three da-s after it is /ailed to the borrower, firstJclass /ail with .osta1e .re.aid, at the address to which billin1 state/ents for the o.enJend credit .lan are bein1 sent. +:, The disclosure reBuired b- .ara1ra.h +7, of subdivision +e, /a- be se.aratel- furnished or /a- be included in the a1ree/ent or other docu/ent for the install/ent loan, .rovided that a co.- of the disclosure that the borrower /a- retain is furnished to the borrower. +;, If there is /ore than one borrower with res.ect to the o.enJend credit .lan, a disclosure to an- one of the/ .ursuant to subdivision +e, shall satisfthe reBuire/ents of that subdivision with res.ect to all of the/. +1, If after an install/ent loan is /ade the lender receives the borrower5s ti/el- notice of the rescission of the install/ent loan in accordance with subdivision +f,, the balance of the install/ent loan shall be transferred to the o.enJend subaccount of the o.enJend credit .lan and the borrower shall be obli1ated to re.a- the a/ount under the sa/e ter/s and conditions, and subAect to the sa/e fees and other char1es, as would be a..licable had the loan initiall- been e0tended .ursuant to the o.enJend credit .lan or had the install/ent loan never been /ade. +h, This section a..lies to an- install/ent loan secured b- a deed of trust or /ort1a1e or an- other lien on residential .ro.ert- of four units or less and ection 89<;.9 does not a..l- to such install/ent loans. This section shall not a..l- to an- loan that is subAect to ection 7?8;8.= of the (usiness and %rofessions &ode.
(Added by Stats. 1996, Ch. #2, Sec. 1. Effective an!a"y 1, 1997.)

29"4.12. +a, "otwithstandin1 ection 89<;.>, and e0ce.t when a statute, re1ulation, rule, or written 1uideline .ro/ul1ated b- an institutional third .arta..licable to notes or evidence of indebtedness secured b- a deed of trust or /ort1a1e .urchased in whole or in .art b- an institutional third .arts.ecificall- .rohibits cancellation durin1 the ter/ of the indebtedness, the lender or servicer of a loan evidenced b- a note or other evidence of indebtedness that is secured b- a deed of trust or /ort1a1e on the subAect .ro.ert- /a- not char1e or collect future .a-/ents fro/ a borrower for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance as defined in subdivision +a, of ection 78=;?.?8 of the Insurance &ode, if all of the followin1 conditions are satisfied: +7, The loan is for .ersonal, fa/il-, household, or .urchase /one- .ur.oses, the subAect .ro.ert- is ownerJoccu.ied, oneJtoJfour unit residential real .ro.ert-, and the outstandin1 .rinci.al balance of the note or evidence of indebtedness secured b- the senior deed of trust or /ort1a1e on the subAect .ro.ert- is eBual to or less than >< .ercent of the lesser of +A, if the loan was /ade for .urchase of the .ro.ert-, the sales .rice of the .ro.ert- under such .urchaseH or +(, the a..raised value of the .ro.ert-, as deter/ined bthe a..raisal conducted in connection with the /akin1 of the loan.

+8, The borrower5s scheduled .a-/ent of /onthl- install/ents of .rinci.al, interest, and escrow obli1ations is current at the ti/e the ri1ht to cancellation of /ort1a1e insurance accrues. +:, Durin1 the 78 /onths .rior to the date u.on which the ri1ht to cancellation accrues, the borrower has not been assessed /ore than one late .enalt- for an- scheduled .a-/ent and has not /ade an- scheduled .a-/ent /ore than :? da-s late. +;, The loan evidenced b- a note or evidence of indebtedness was /ade or e0ecuted on or after Kanuar- 7, 799@. +<, "o notice of default has been recorded a1ainst the real .ro.ert- .ursuant to ection 898;, as a result of a non/onetar- default on the e0tension of credit b- the borrower durin1 the last 78 /onths .rior to the accrual of the borrower5s ri1ht to cancellation. +b, This section does not a..l- to an- of the followin1: +7, A note or evidence of indebtedness secured b- a deed of trust or /ort1a1e, or /ort1a1e insurance, e0ecuted under the authorit- of %art : +co//encin1 with ection <?9??, or %art ; +co//encin1 with ection <7=??, of Division :7 of the Health and afet- &ode. +8, An- note or evidence of indebtedness secured b- a deed of trust or /ort1a1e that is funded in whole or in .art .ursuant to authorit- 1ranted bstatute, re1ulation, or rule that, as a condition of that fundin1, .rohibits or li/its ter/ination of .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance durin1 the ter/ of the indebtedness. +c, If the note secured b- the deed of trust or /ort1a1e will be or has been sold in whole or in .art to an institutional third .art-, adherence to the institutional third .art-5s standards for ter/ination of future .a-/ents for .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance shall be dee/ed in co/.liance with the reBuire/ents of this section. +d, For the .ur.oses of this section, 2institutional third .art-4 /eans the Federal "ational 3ort1a1e Association, the Federal Ho/e !oan 3ort1a1e &or.oration, the #overn/ent "ational 3ort1a1e Association and other substantiall- si/ilar institutions, whether .ublic or .rivate, .rovided the institutions establish and adhere to rules a..licable to the ri1ht of cancellation of .rivate /ort1a1e insurance or /ort1a1e 1uarant- insurance, which are the sa/e or substantiall- the sa/e as those utili6ed b- the aboveJ na/ed institutions.
(Added by Stats. 1997, Ch. 62, Sec. 1. Effective an!a"y 1, 1998.)

29"". +a, 3one- held b- a /ort1a1ee or a beneficiar- of a deed of trust on real .ro.ert- in this state, or held b- a vendor on a contract of sale of real .ro.ert- in this state, in an i/.ound account for the .a-/ent of ta0es and assess/ents or insurance .re/iu/s or other .ur.oses on or relatin1 to the .ro.ert-, shall be retained in this state and, if invested, shall be invested onl- with residents of this state in the case of individuals, or with

.artnershi.s, cor.orations, or other .ersons, or the branches or subsidiaries thereof, which are en1a1ed in business within this state. +b, "otwithstandin1 subdivision +a,, a /ort1a1ee or beneficiar- of a deed of trust, secured b- a first lien on real .ro.ert-, /a- de.osit /one- held for the .a-/ent of ta0es and assess/ents or insurance .re/iu/s or other .ur.oses in an i/.ound account in an outJofJstate de.ositor- institution insured b- the Federal De.osit Insurance &or.oration if the /ort1a1ee or beneficiar- is anone of the followin1: +7, The Federal "ational 3ort1a1e Association, the #overn/ent "ational 3ort1a1e Association, the Federal Ho/e !oan 3ort1a1e &or.oration, the Federal Housin1 Ad/inistration, or the )eteran5s Ad/inistration. +8, A bank or subsidiar- thereof, bank holdin1 co/.an- or subsidiarthereof, trust co/.an-, savin1s bank or savin1s and loan association or subsidiar- thereof, savin1s bank or savin1s association holdin1 co/.an- or subsidiar- thereof, credit union, industrial bank or industrial loan co/.an-, co//ercial finance lender, .ersonal .ro.ert- broker, consu/er finance lender, or insurer doin1 business under the authorit- of and in accordance with the laws of this state, an- other state, or of the *nited tates relatin1 to banks, trust co/.anies, savin1s banks or savin1s associations, credit unions, industrial banks or industrial loan co/.anies, co//ercial finance lenders, .ersonal .ro.ert- brokers, consu/er finance lenders, or insurers, as evidenced b- a license, certificate, or charter issued b- the *nited tates or a state, district, territor-, or co//onwealth of the *nited tates. +:, Trustees of a .ension, .rofitJsharin1, or welfare fund, if the .ension, .rofitJsharin1, or welfare fund has a net worth of not less than fifteen /illion dollars +L7<,???,???,. +;, A cor.oration with outstandin1 securities re1istered under ection 78 of the ecurities E0chan1e Act of 79:;, or a wholl- owned subsidiar- of that cor.oration. +<, A s-ndication or other co/bination of an- of the entities s.ecified in .ara1ra.hs +7, to +;,, inclusive, that is or1ani6ed to .urchase the .ro/issornote. +=, The &alifornia Housin1 Finance A1enc- or a local housin1 finance a1encor1ani6ed under the Health and afet- &ode. +>, A licensed real estate broker sellin1 all or .art of the loan, note, or contract to a lender or .urchaser described in .ara1ra.hs +7, to +=,, inclusive, of this subdivision. +@, A licensed residential /ort1a1e lender or servicer when actin1 under the authorit- of that license. +c, A /ort1a1ee or beneficiar- of a deed of trust who de.osits funds held in trust in an outJofJstate de.ositor- institution in accordance with subdivision +b, shall /ake available, in this state, the books, records, and files .ertainin1 to those trust accounts to the a..ro.riate state re1ulator- de.art/ent or a1enc-, or .a- the reasonable e0.enses for travel and lod1in1 incurred bthe re1ulator- de.art/ent or a1enc- in order to conduct an e0a/ination at an outJofJstate location. +d, The Attorne- #eneral /a- brin1 an action on behalf of the .eo.le of &alifornia to enAoin a violation of subdivision +a, or subdivision +b,.

(Amended (as amended by Stats. 1992, Ch. 10&&, Sec. #) by Stats. 199&, Ch. &64, Sec. &. Effective an!a"y 1, 1996.)

29"".1. +a, An- lender ori1inatin1 a loan secured b- the borrower5s se.arate interest in a condo/iniu/ .roAect, as defined in ection ;78< or =<;8, which reBuires earthBuake insurance or i/.oses a fee or an- other condition in lieu thereof .ursuant to an underwritin1 reBuire/ent i/.osed b- an institutional thirdJ .art- .urchaser shall disclose all of the followin1 to the .otential borrower: +7, That the lender or the institutional third .art- in Buestion reBuires earthBuake insurance or i/.oses a fee or an- other condition in lieu thereof .ursuant to an underwritin1 reBuire/ent i/.osed b- an institutional thirdJ .art- .urchaser. +8, That not all lenders or institutional third .arties reBuire earthBuake insurance or i/.ose a fee or an- other condition in lieu thereof .ursuant to an underwritin1 reBuire/ent i/.osed b- an institutional thirdJ.art.urchaser. +:, EarthBuake insurance /a- be reBuired on the entire condo/iniu/ .roAect. +;, That lenders or institutional third .arties /a- also reBuire that a condo/iniu/ .roAect /aintain, or de/onstrate an abilit- to /aintain, financial reserves in the a/ount of the earthBuake insurance deductible. +b, For the .ur.oses of this section, 2institutional third .art-4 /eans the Federal Ho/e !oan 3ort1a1e &or.oration, the Federal "ational 3ort1a1e Association, the #overn/ent "ational 3ort1a1e Association, and other substantiall- si/ilar institutions, whether .ublic or .rivate. +c, The disclosure reBuired b- this section shall be /ade in writin1 b- the lender as soon as reasonabl- .racticable.
(Amended (as amended by Stats. 2012, Ch. 181, Sec. 41) by Stats. 201#, Ch. 60&, Sec. 18. Effective an!a"y 1, 2014.)

29"".". +a, "o lender shall reBuire a borrower, as a condition of receivin1 or /aintainin1 a loan secured b- real .ro.ert-, to .rovide ha6ard insurance covera1e a1ainst risks to the i/.rove/ents on that real .ro.ert- in an a/ount e0ceedin1 the re.lace/ent value of the i/.rove/ents on the .ro.ert-. +b, A lender shall disclose to a borrower, in writin1, the contents of subdivision +a,, as soon as .racticable, but before e0ecution of an- note or securit- docu/ents. +c, An- .erson har/ed b- a violation of this section shall be entitled to obtain inAunctive relief and /a- recover da/a1es and reasonable attorne-5s fees and costs. +d, A violation of this section does not affect the validit- of the loan, note secured b- a deed of trust, /ort1a1e, or deed of trust.

+e, For .ur.oses of this section: +7, 2Ha6ard insurance covera1e4 /eans insurance a1ainst losses caused b.erils which are co//onl- covered in .olicies described as a 2Ho/eowner5s %olic-,4 2#eneral %ro.ert- For/,4 2#uaranteed Re.lace/ent &ost Insurance,4 2 .ecial (uildin1 For/,4 2 tandard Fire,4 2 tandard Fire with E0tended &overa1e,4 2 tandard Fire with .ecial For/ Endorse/ent,4 or co/.arable insurance covera1e to .rotect the real .ro.ert- a1ainst loss or da/a1e fro/ fire and other .erils covered within the sco.e of a standard e0tended covera1e endorse/ent. +8, 2I/.rove/ents4 /eans buildin1s or structures attached to the real .ro.ert-.

(Amended by Stats. 1999, Ch. 412, Sec. 1. Effective an!a"y 1, 2000. +(e"ative !$y 1, 2000, by Sec. 2 %f Ch. 412.)

ARTICLE #. 1is'los-res on .-r'*ase Mone0 Liens on Resi(ential .ro/ert0 [29"$ 29$ ! ( ($tic&e 3 added by Stats. 1982, Ch. 9 8, Sec. 1. ) 29"$. In a transaction for the .urchase of a dwellin1 for not /ore than four fa/ilies in which there is an arran1er of credit, which .urchase includes an e0tension of credit b- the vendor, a written disclosure with res.ect to that credit transaction shall be /ade, as reBuired b- this article: +a, To the .urchaser, b- the arran1er of credit and the vendor +with res.ect to infor/ation within the knowled1e of the vendor,. +b, To the vendor, b- the arran1er of credit and the .urchaser +with res.ect to infor/ation within the knowled1e of the .urchaser,. If there is /ore than one arran1er of credit and one of those arran1ers has obtained the offer b- the .urchaser to .urchase the .ro.ert-, that arran1er shall /ake the disclosure, unless the .arties desi1nate another .erson in writin1.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29" . The followin1 definitions shall a..l- for the .ur.oses of this article: +a, 2Arran1er of credit4 /eans: +7, A .erson, other than a .art- to the credit transaction +e0ce.t as .rovided in .ara1ra.h +8,,, who is involved in develo.in1 or ne1otiatin1 credit ter/s, .artici.ates in the co/.letion of the credit docu/ents, and directl- or indirectl- receives co/.ensation for arran1e/ent of the credit or fro/ antransaction or transfer of the real .ro.ert- which is facilitated b- that e0tension of credit. As used in this .ara1ra.h, 2arran1er of credit4 does not

a..l- to an attorne- who is re.resentin1 one of the .arties to the credit transaction. +8, A .art- to the transaction who is either a real estate licensee, licensed under .rovisions of %art 7 +co//encin1 with ection 7????, of Division ; of the (usiness and %rofessions &ode, or is an attorne- licensed under &ha.ter ; +co//encin1 with ection =???, of Division : of the (usiness and %rofessions &ode if neither .art- to the transaction is re.resented b- an a1ent who is a real estate licensee. In an- transaction in which disclosure is reBuired solel- b- the .rovisions of this .ara1ra.h, the obli1ations of this article shall a..l- onl- to a real estate licensee or attorne- who is a .art- to the transaction, and not to an- other .art-. +:, An arran1er of credit does not include a .erson actin1 in the ca.acit- as an escrow in the transaction. +;, %ersons described in .ara1ra.h +8, who are actin1 in the ca.acit- as an escrowholder in the transaction shall nevertheless be dee/ed arran1ers of credit where such .ersons act on behalf of a .art- to the transaction or an a1ent of such .art- in the develo./ent or ne1otiation of credit ter/s. "either the co/.letion of credit docu/ents in accordance with instructions of a .art- or his or her a1ent nor the furnishin1 of infor/ation re1ardin1 credit ter/s to a .art- or his or her a1ent shall be considered to be the develo./ent or ne1otiation of credit ter/s. +b, 2(alloon .a-/ent note4 /eans a note which .rovides for a final .a-/ent as ori1inall- scheduled which is /ore than twice the a/ount of an- of the i//ediatel- .recedin1 si0 re1ularl- scheduled .a-/ents or which contains a call .rovisionH .rovided, however, that if the call .rovision is not e0ercised bthe holder of the note, the e0istence of the une0ercised call .rovision shall not cause the note to be dee/ed to be a balloon .a-/ent note. +c, 2&all .rovision4 /eans a note contract ter/ that .rovides the holder of the note with the ri1ht to call the note due and .a-able either after a s.ecified .eriod has ela.sed followin1 closin1 or after a s.ecified date. +d, 2&redit4 /eans the ri1ht 1ranted b- a vendor to a .urchaser to .urchase .ro.ert- and to defer .a-/ent therefore. The credit involved /ust be subAect to a finance char1e or .a-able b- written a1ree/ent in /ore than four install/ents, whether .rovidin1 for .a-/ent of .rinci.al and interest, or interest onl-, not includin1 a down.a-/ent. +e, 2&redit docu/ents4 are those docu/ents which contain the bindin1 credit ter/s, and include a note or a contract of sale if the contract s.ells out ter/s u.on which a vendor a1rees to .rovide financin1 for a .urchaser. +f, 2%urchase4 includes acBuisition of eBuitable title b- a real .ro.ert- sales contract as defined in ection 89@<, or lease with an o.tion to .urchase, where the facts de/onstrate intent to transfer eBuitable title. +1, 2 ecurit- docu/ents4 include a /ort1a1e, deed of trust, real .ro.ertsales contract as defined in ection 89@<, or lease with an o.tion to .urchase, where the facts de/onstrate an intent to transfer eBuitable title. +h, 2All inclusive trust deed4 is an instru/ent which secures indebtedness owed b- the trustor to the beneficiar-, which indebtedness includes a debt or debts owed b- that beneficiar- to the beneficiar- of another securitdocu/ent secured b- the sa/e .ro.ert- which is senior in .riorit-.

(Amended by Stats. 1986, Ch. 1#60, Sec. 2.)

29"%. A disclosure is not reBuired under this article, to a .urchaser when that .urchaser is entitled to receive, a disclosure .ursuant to the Federal TruthJ InJ!endin1 Act +7< *. . &ode 7=?;, as a/ended,, the Real Estate ettle/ent %rocedures Act +78 *. . &ode 8=?7, as a/ended,, or ection 7?8;? of the (usiness and %rofessions &odeH or to a vendor if the vendor is entitled to receive, a disclosure .ursuant to ections 7?8:8.; and 7?8:8.< of the (usiness and %rofessions &ode, or disclosure .ursuant to a Bualification under ection 8<77? of the &or.orations &ode or disclosure .ursuant to re1ulations of the De.art/ent of &or.orations 1rantin1 an e0e/.tion fro/ ection 8<77? of the &or.orations &ode.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29"9. The disclosures reBuired b- this article shall be /ade as soon as .racticable, but before e0ecution of an- note or securit- docu/ents. If an- disclosure is /ade after the e0ecution of credit docu/ents b- the .urchaser, such docu/ents shall be contin1ent on the .urchaser5s a..roval of the disclosures .rior to e0ecution of the securit- docu/ents. The disclosure state/ent shall be recei.ted for b- the .urchaser and the vendor. The disclosure shall be si1ned b- the arran1er of credit and a co.- shall be delivered res.ectivel- to the .urchaser and the vendor and the arran1er shall retain a true co.- of the e0ecuted state/ents for three -ears. The .rovisions of this section do not a..l- to the disclosures reBuired bection 89==.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$0. If infor/ation disclosed in accordance with this article is subseBuentlrendered inaccurate as a result of an- act, occurrence, or a1ree/ent between the .arties to the transaction subseBuent to the deliver- of the reBuired disclosures, the inaccurac- resultin1 therefro/ shall not constitute a violation of this article. If, at the ti/e disclosure is to be /ade, an ite/ of infor/ation reBuired to be disclosed is unknown or not available to the vendor, .urchaser, or arran1er of credit, and the arran1er of credit has /ade a reasonable effort to ascertain it, the disclosure /a- e/.lo- an a..ro0i/ation of the infor/ation, .rovided the a..ro0i/ation is clearlidentified as such, is reasonable, is based on the best infor/ation available to

the arran1er, and is not used for the .ur.ose of circu/ventin1 or evadin1 the .rovisions of this article.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$1. Ever- disclosure reBuired b- this article and ever- act which is to be .erfor/ed in /akin1 that disclosure shall be /ade in 1ood faith. For the .ur.oses of this article, 21ood faith4 /eans honest- in fact in the conduct of the transaction.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$2. An- disclosure /ade .ursuant to this article /a- be a/ended in writin1 bthe .erson /akin1 the disclosure, .rovided that an- a/end/ent shall be subAect to the .rovisions of ection 89<9.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$#. The disclosures reBuired to both .urchaser and vendor b- this article are: +a, An identification of the note or other credit docu/ents or securitdocu/ents and of the .ro.ert- which is the securit- for the transaction. +b, A descri.tion of the ter/s of the .ro/issor- note or other credit docu/ents or a co.- of the note or other credit docu/ents. +c, Insofar as available, the .rinci.al ter/s and conditions of each recorded encu/brance which constitutes a lien u.on the .ro.ert- which is or will be senior to the financin1 bein1 arran1ed, includin1 the ori1inal balance, the current balance, the .eriodic .a-/ent, an- balloon .a-/ent, the interest rate +and an- .rovisions with res.ect to variations in the interest rate,, the /aturit- date, and whether or not there is an- current default in .a-/ent on that encu/brance. +d, A warnin1 that, if refinancin1 would be reBuired as a result of lack of full a/orti6ation under the ter/s of an- e0istin1 or .ro.osed loans, such refinancin1 /i1ht be difficult or i/.ossible in the conventional /ort1a1e /arket.lace. +e, If ne1ative a/orti6ation is .ossible as a result of an- variable or adAustable rate financin1 bein1 arran1ed, a clear disclosure of this fact and an e0.lanation of its .otential effect. +f, In the event that the financin1 involves an all inclusive trust deed, the disclosure shall indicate whether the credit or securit- docu/ents s.ecifwho is liable for .a-/ent or res.onsible for defense in the case of an atte/.ted acceleration b- a lender or other obli1ee under a .rior

encu/brance, and whether or not the credit or securit- docu/ents s.ecifthe res.onsibilities and ri1hts of the .arties in the event of a loan .re.a-/ent res.ectin1 a .rior encu/brance which /a- result in a reBuire/ent for refinancin1, a .re.a-/ent .enalt-, or a .re.a-/ent discount and, if such s.ecification occurs, a recital of the .rovisions which a..l-. +1, If the financin1 bein1 arran1ed or an- of the financin1 re.resented b- a .rior encu/brance could result in a balloon .a-/ent, or in a ri1ht in the lender or other obli1ee under such financin1 to reBuire a .re.a-/ent of the .rinci.al balance at or after a sti.ulated date, or u.on the occurrence of a sti.ulated event, a disclosure of the date and a/ount of an- balloon .a-/ent or the a/ount which would be due u.on the e0ercise of such ri1ht b- the lender or obli1ee, and a state/ent that there is no assurance that new financin1 or loan e0tension will be available at the ti/e of such occurrence. +h, If the financin1 bein1 arran1ed involves an all inclusive trust deed or real .ro.ert- sales contract, a disclosure of the .art- to who/ .a-/ents will be /ade and who will be res.onsible for re/ittin1 these funds to .a-ees under .rior encu/brances and vendors under this transaction and a warnin1 that, if that .erson is not a neutral third .art-, the .arties /a- wish to a1ree to have a neutral third .art- desi1nated for these .ur.oses. +i, A disclosure on the identit-, occu.ation, e/.lo-/ent, inco/e, and credit data about the .ros.ective .urchaser, as re.resented to the arran1er b- the .ros.ective .urchaserH or, s.ecificall-, that no re.resentation as to the creditJworthiness of the s.ecific .ros.ective .urchaser is /ade b- the arran1er. A warnin1 should also be e0.ressed that ection <@?b of the &ode of &ivil %rocedure /a- li/it an- recover- b- the vendor to the net .roceeds of the sale of the securit- .ro.ert- in the event of foreclosure. +A, A state/ent that loss .a-ee clauses have been added to .ro.ertinsurance .rotectin1 the vendor, or that instructions have been or will be directed to the escrowholder, if an-, in the transaction or the a..ro.riate insurance carriers for addition of such loss .a-ee clauses, or a state/ent that, if such .rovisions have not been /ade, that the vendor should consider .rotectin1 hi/self or herself b- securin1 such clauses. +k, A state/ent that a reBuest for notice of default under ection 898;b has been recorded, or that, if it has not been recorded, the vendor should consider recordin1 a reBuest for notice of default. +l, That a .olic- of title insurance has been obtained or will be obtained and be furnished to the vendor and .urchaser, insurin1 the res.ective interests of the vendor and .urchaser, or that the vendor and .urchaser individuallshould consider obtainin1 a .olic- of title insurance. +/, That a ta0 service has been arran1ed to re.ort to the vendor whether .ro.ert- ta0es have been .aid on the .ro.ert-, and who will be res.onsible for the continued retention and co/.ensation of ta0 serviceH or that the vendor should otherwise assure for hi/self or herself that the ta0es on the .ro.ert- have been .aid. +n, A disclosure whether the securit- docu/ents on the financin1 bein1 arran1ed have been or will be recorded .ursuant to ection 8>8@? of the #overn/ent &ode, or a state/ent that the securit- of the vendor /a- be

subAect to intervenin1 liens or Aud1/ents which /a- occur after the note is e0ecuted and before an- resort to securit- occurs if the securit- docu/ents are not recorded. +o, If the .urchaser is to receive an- cash fro/ the .roceeds of the transaction, a state/ent of that fact, the a/ount, the source of the funds, and the .ur.ose of the disburse/ent as re.resented b- the .urchaser. +., A state/ent that a reBuest for notice of delinBuenc- under ection 898;e has been /ade, or that, if it has not been /ade, the vendor should consider /akin1 a reBuest for a notice of delinBuenc-.
(Amended (as amended by Stats. 1984, Ch. 1##1) by Stats. 1990, Ch. 788, Sec. 2.)

29$4. The s.ecification of ite/s for disclosure in this article does not li/it or abrid1e an- obli1ation for disclosure created b- an- other .rovision of law or which /a- e0ist in order to avoid fraud, /isre.resentation, or deceit in the transaction.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$". The validit- of an- credit docu/ent or of an- securit- docu/ent subAect to the .rovisions of this article shall not be invalidated solel- because of the failure of an- .erson to co/.l- with this article. However, an- .erson who willfull- violates an- .rovision of this article shall be liable in the a/ount of actual da/a1es suffered b- the vendor or .urchaser as the .ro0i/ate result of the violation. "o .erson /a- be held liable in an- action under this article if it is shown ba .re.onderance of the evidence that the violation was not intentional and resulted fro/ a bona fide error notwithstandin1 the /aintenance of .rocedures reasonabl- ado.ted to avoid an- such error.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

29$$. +a, In a transaction re1ulated b- this article, which includes a balloon .a-/ent note when the ter/ for re.a-/ent is for a .eriod in e0cess of one -ear, the holder of the note shall, not less than 9? nor /ore than 7<? da-s before the balloon .a-/ent is due, deliver or /ail b- firstJclass /ail, with a certificate of /ailin1 obtained fro/ the *nited tates %ostal ervice, to the trustor, or his or her successor in interest, at the last known address of such .erson a written notice, to include: +7, A state/ent of the na/e and address of the .erson to who/ the balloon .a-/ent is reBuired to be .aid.

+8, The date on or before which the balloon .a-/ent was or is reBuired to be .aid. +:, The a/ount of the balloon .a-/ent, or if its e0act a/ount is unknown a 1ood faith esti/ate of the a/ount thereof, includin1 un.aid .rinci.al, interest, and an- other char1es +assu/in1 .a-/ent in full of all scheduled install/ents co/in1 due between the date of the notice and the date when the balloon .a-/ent is due,. +;, A descri.tion of the trustor5s ri1ht, if an-, to refinance the balloon .a-/ent, includin1 a su//ar- of the actual ter/s of the refinancin1 or an esti/ate or a..ro0i/ation thereof, to the e0tent known. If the due date of the balloon .a-/ent of a note subAect to this subdivision is e0tended .rior to the ti/e notice is otherwise reBuired under this subdivision, this notice reBuire/ent shall a..l- onl- to the due date as e0tended +or as subseBuentl- e0tended,. +b, Failure to .rovide notice as reBuired b- subdivision +a, does not e0tin1uish an- obli1ation of .a-/ent b- the trustor, e0ce.t that the due date for an- balloon .a-/ent shall be the date s.ecified in the note, or 9? da-s fro/ the date the deliver- or /ailin1 of the notice, or the date s.ecified in the notice, whichever date is later. If the o.eration of this section acts to e0tend the ter/ of an- such note, interest shall continue to accrue for the e0tended ter/ at the contract rate and .a-/ents shall continue to be due at an- .eriodic interval and on an- scheduled .a-/ent schedule s.ecified in the note and shall be credited to .rinci.al or interest under ter/s of the note. Default in an- e0tended .eriodic .a-/ent shall be considered a default under ter/s of the note or securit- instru/ent. +c, An- failure to co/.l- with the .rovisions of this section shall not affect the validit- of a sale in favor of a bona fide .urchaser or the ri1hts of an encu/brancer for value and without notice. +d, Ever- note subAect to the .rovisions of this section shall include the followin1 state/ent: 2This note is subAect to ection 89== of the &ivil &ode, which .rovides that the holder of this note shall 1ive written notice to the trustor, or his successor in interest, of .rescribed infor/ation at least 9? and not /ore than 7<? da-s before an- balloon .a-/ent is due.4 Failure to include this notice shall not invalidate the note. +e, The .rovisions of this section shall a..l- to an- note e0ecuted on or after Kul- 7, 79@:.
(Amended by Stats. 1986, Ch. 1#60, Sec. #.)

29$ . An- action arisin1 under this article /a- be brou1ht within two -ears fro/ the date on which the liabilit- arises, e0ce.t that where an- /aterial disclosure under this article has been /ateriall- and willfull- /isre.resented, the action /a- be brou1ht within two -ears of discover- of the /isre.resentation.
(Added by Stats. 1982, Ch. 968, Sec. 1. +(e"ative !$y 1, 198#, by Sec. 2 %f Ch. 968.)

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CIVIL CODE - CIV
DIVI2IO% *. O$LI/A'IO%2 7+420 5 *202.98 ( Heading of Division 3 amended by Stats. 1988, Ch. 1 !, Sec. 1". ) BA-' 4. O$LI/A'IO%2 A-I2I%/ 1-OA BA-'ICCLA- '-A%2AC'IO%2 7+0*D 5 *202.98 ( #a$t " enacted 1872. ) 'I'LE +4. LIE% 72D02 5 *)D+8 ( %it&e 1" enacted 1872. ) CHA.TER 2a. Ho2e E3-it0 Loan 1is'los-re A't [29 0 - 29 1! ( Cha'te$ 2a added by Stats. 1988, Ch. 131), Sec. 1. ) 29 0. For .ur.oses of this cha.ter 2ho/e eBuit- loan4 /eans an- o.en end consu/er credit .lan in which a consensual securit- interest is created or retained a1ainst the consu/er5s dwellin1.
(Added by Stats. 1988, Ch. 1#1&, Sec. 1.)

29 1. +a, At the ti/e that a custo/er /akes an initial a..lication to a creditor for a ho/e eBuit- loan in .erson, or within three business da-s if the custo/er a..lies b- /ail or tele.hone, the creditor shall .rovide the a..licant with a disclosure in either of the followin1 for/s: +7, The state/ent: 2This ho/e eBuit- loan that -ou are a..l-in1 for will be secured b- -our ho/e and -our failure to re.a- the loan for an- reason could cause -ou to lose -our ho/eP4 +8, A state/ent to the effect that a ho/e eBuit- loan is secured b- a lien a1ainst the ho/e of the consu/er and in the event of an- default the consu/er risks the loss of the ho/e. +b, The disclosure reBuired in subdivision +a, shall be /ade b- either of the followin1 /eans: +7, A se.arate and s.ecific docu/ent attached to or acco/.an-in1 the a..lication. +8, A clear and cons.icuous state/ent on the a..lication. +c, If a creditor is reBuired b- federal statute or re1ulation to /ake a substantiall- si/ilar disclosure to that reBuired b- subdivision +a,, and the creditor co/.lies with that federal statute or re1ulation, the creditor shall be dee/ed to have co/.lied with the reBuire/ents of this cha.ter.
(Added by Stats. 1988, Ch. 1#1&, Sec. 1.)

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CIVIL CODE - CIV
DIVI2IO% *. O$LI/A'IO%2 7+420 5 *202.98 ( Heading of Division 3 amended by Stats. 1988, Ch. 1 !, Sec. 1". ) BA-' 4. O$LI/A'IO%2 A-I2I%/ 1-OA BA-'ICCLA- '-A%2AC'IO%2 7+0*D 5 *202.98 ( #a$t " enacted 1872. ) 'I'LE +4. LIE% 72D02 5 *)D+8 ( %it&e 1" enacted 1872. ) CHA.TER 2&. A-to2o&ile 4ales Finan'e A't [29%1 - 29%4.$! ( Cha'te$ 2b added by Stats. 19 1, Ch. 1 2 . ) 29%1. As used in this cha.ter, unless the conte0t otherwise reBuires: +a, 2&onditional sale contract4 /eans: +7, A contract for the sale of a /otor vehicle between a bu-er and a seller, with or without accessories, under which .ossession is delivered to the bu-er and either of the followin1: +A, The title vests in the bu-er thereafter onl- u.on the .a-/ent of all or a .art of the .rice, or the .erfor/ance of an- other condition. +(, A lien on the .ro.ert- is to vest in the seller as securit- for the .a-/ent of .art or all of the .rice, or for the .erfor/ance of an- other condition. +8, A contract for the bail/ent of a /otor vehicle between a bu-er and a seller, with or without accessories, b- which the bailee or lessee a1rees to .a- as co/.ensation for use a su/ substantiall- eBuivalent to or in e0cess of the a11re1ate value of the vehicle and its accessories, if an-, at the ti/e the contract is e0ecuted, and b- which it is a1reed that the bailee or lessee will beco/e, or for no other or for a no/inal consideration has the o.tion of beco/in1, the owner of the vehicle u.on full co/.liance with the ter/s of the contract. +b, 2 eller4 /eans a .erson en1a1ed in the business of sellin1 or leasin1 /otor vehicles under conditional sale contracts. +c, 2(u-er4 /eans the .erson who bu-s or hires a /otor vehicle under a conditional sale contract. +d, 2%erson4 includes an individual, co/.an-, fir/, association, .artnershi., trust, cor.oration, li/ited liabilit- co/.an-, or other le1al entit-. +e, 2&ash .rice4 /eans the a/ount for which the seller would sell and transfer to the bu-er unBualified title to the /otor vehicle described in the conditional sale contract, if the .ro.ert- were sold for cash at the seller5s .lace of business on the date the contract is e0ecuted, and shall include ta0es to the e0tent i/.osed on the cash sale and the cash .rice of accessories or services related to the sale, includin1, but not li/ited to, deliver-, installation, alterations, /odifications, i/.rove/ents, docu/ent .re.aration fees, a service contract, a vehicle contract cancellation o.tion

a1ree/ent, and .a-/ent of a .rior credit or lease balance re/ainin1 on .ro.ert- bein1 traded in. +f, 2Down.a-/ent4 /eans a .a-/ent that the bu-er .a-s or a1rees to .ato the seller in cash or .ro.ert- value or /one-5s worth at or .rior to deliverb- the seller to the bu-er of the /otor vehicle described in the conditional sale contract. The ter/ shall also include the a/ount of an- .ortion of the down.a-/ent the .a-/ent of which is deferred until not later than the due date of the second otherwise scheduled .a-/ent, if the a/ount of the deferred down.a-/ent is not subAect to a finance char1e. The ter/ does not include an- ad/inistrative finance char1e char1ed, received or collected bthe seller as .rovided in this cha.ter. +1, 2A/ount financed4 /eans the a/ount reBuired to be disclosed .ursuant to .ara1ra.h +@, of subdivision +a, of ection 89@8. +h, 2*n.aid balance4 /eans the difference between subdivision +e, and subdivision +f,, .lus all insurance .re/iu/s +e0ce.t for credit life or disabilitinsurance when the a/ount thereof is included in the finance char1e,, which are included in the contract balance, and the total a/ount .aid or to be .aid as follows: +7, To a .ublic officer in connection with the transaction. +8, For license, certificate of title, and re1istration fees i/.osed b- law, and the a/ount of the state fee for issuance of a certificate of co/.liance or certificate of waiver .ursuant to ection 9@@9.<= of the (usiness and %rofessions &ode. +i, 2Finance char1e4 has the /eanin1 set forth for that ter/ in ection 88=.; of Re1ulation M. The ter/ shall not include delinBuenc- char1es or collection costs and fees as .rovided b- subdivision +k, of ection 89@8, e0tension or deferral a1ree/ent char1es as .rovided b- ection 89@8.:, or a/ounts for insurance, re.airs to or .reservation of the /otor vehicle, or .reservation of the securit- interest therein advanced b- the holder under the ter/s of the contract. +A, 2Total of .a-/ents4 /eans the a/ount reBuired to be disclosed .ursuant to subdivision +h, of ection 88=.7@ of Re1ulation M. The ter/ includes an.ortion of the down.a-/ent that is deferred until not later than the second otherwise scheduled .a-/ent and that is not subAect to a finance char1e. The ter/ shall not include a/ounts for which the bu-er /a- later beco/e obli1ated under the ter/s of the contract in connection with insurance, re.airs to or .reservation of the /otor vehicle, .reservation of the securitinterest therein, or otherwise. +k, 23otor vehicle4 /eans a vehicle reBuired to be re1istered under the )ehicle &ode that is bou1ht for use .ri/aril- for .ersonal or fa/il- .ur.oses, and does not /ean an- vehicle that is bou1ht for use .ri/aril- for business or co//ercial .ur.oses or a /obileho/e, as defined in ection 7@??@ of the Health and afet- &ode that is sold on or after Kul- 7, 79@7. 23otor vehicle4 does not include an- trailer that is sold in conAunction with a vessel and that co/es within the definition of 21oods4 under ection 7@?8.7. +l, 2%urchase order4 /eans a sales order, car reservation, state/ent of transaction or an- other such instru/ent used in the conditional sale of a /otor vehicle .endin1 e0ecution of a conditional sale contract. The .urchase

order shall confor/ to the disclosure reBuire/ents of subdivision +a, of ection 89@8 and ection 89@;.7, and subdivision +/, of ection 89@8 shall a..l-. +/, 2Re1ulation M4 /eans a rule, re1ulation or inter.retation .ro/ul1ated bthe (oard of #overnors of the Federal Reserve -ste/ +2(oard4, under the federal Truth in !endin1 Act, as a/ended +7< *. .&. 7=?7, et seB.,, and an inter.retation or a..roval issued b- an official or e/.lo-ee of the Federal Reserve -ste/ dul- authori6ed b- the board under the Truth in !endin1 Act, as a/ended, to issue the inter.retations or a..rovals. +n, 2 i/.leJinterest basis4 /eans the deter/ination of a finance char1e, other than an ad/inistrative finance char1e, b- a..l-in1 a constant rate to the un.aid balance as it chan1es fro/ ti/e to ti/e either: +7, &alculated on the basis of a :=<Jda- -ear and actual da-s ela.sed +althou1h the seller /a-, but need not, adAust its calculations to account for lea. -ears,H reference in this cha.ter to the 2:=<Jda- basis4 shall /ean this /ethod of deter/inin1 the finance char1e, or +8, For contracts entered into .rior to Kanuar- 7, 79@@, calculated on the basis of a :=?Jda- -ear consistin1 of 78 /onths of :? da-s each and on the assu/.tion that all .a-/ents will be received b- the seller on their res.ective due datesH reference in this cha.ter to the 2:=?Jda- basis4 shall /ean this /ethod of deter/inin1 the finance char1e. +o, 2%reco/.uted basis4 /eans the deter/ination of a finance char1e b/ulti.l-in1 the ori1inal un.aid balance of the contract b- a rate and /ulti.l-in1 that .roduct b- the nu/ber of .a-/ent .eriods ela.sin1 between the date of the contract and the date of the last scheduled .a-/ent. +., 2 ervice contract4 /eans 2vehicle service contract4 as defined in subdivision +c, of ection 78@?? of the Insurance &ode. +B, 2 urface .rotection .roduct4 /eans the followin1 .roducts installed bthe seller after the /otor vehicle is sold: +7, *ndercoatin1. +8, Rust.roofin1. +:, &he/ical or fil/ .aint sealant or .rotectant. +;, &he/ical sealant or stain inhibitor for car.et and fabric. +r, 2Theft deterrent device4 /eans the followin1 devices installed b- the seller after the /otor vehicle is sold: +7, A vehicle alar/ s-ste/. +8, A window etch .roduct. +:, A bod- .art /arkin1 .roduct. +;, A steerin1 lock. +<, A .edal or i1nition lock. +=, A fuel or i1nition kill switch.
(Amended by Stats. 200&, Ch. 128, Sec. 2. Effective an!a"y 1, 2006. +(e"ative !$y 1, 2006, by Sec. 12 %f Ch. 128.)

29%1.". A contract for the bail/ent or leasin1 of a /otor vehicle, with or without accessories, which establishes the /a0i/u/ for which a bailee or lessee

could be held liable at the end of the lease or bail/ent .eriod, or u.on an earlier ter/ination, b- reference to the value of the vehicle at such ti/e, is not a contract b- which the bailee or lessee will beco/e or for no other or for a no/inal consideration has the o.tion of beco/in1 the owner of the vehicle, for the .ur.oses of .ara1ra.h +8, of subdivision +a, of ection 89@7 or another .rovision of this cha.ter.
(Added by Stats. 197#, Ch. 696.)

29%1. . All contracts entered into between a bu-er and a seller on or after Kanuar- 7, 79@:, shall .rovide for the calculation of the finance char1e conte/.lated bite/ +A, of .ara1ra.h +7, of subdivision +A, of ection 89@8 on the si/.leJ interest basis, if the date on which the final install/ent is due, accordin1 to the ori1inal ter/s of the contract, is /ore than =8 /onths after the date of the contract.
(Amended by Stats. 198#, Ch. 142, Sec. #.)

29%1.%. "o contract shall .rovide for a finance char1e which is deter/ined in .art bthe .reco/.uted basis and in .art b- the si/.leJinterest basis e0ce.t for anfinance char1e .er/itted b- subdivisions +a, and +c, of ection 89@8.@.
(Amended by Stats. 1980, Ch. 1#80, Sec. 20. Effective +ct%be" 1, 1980.)

29%1.9. Ever- conditional sale contract subAect to this cha.ter shall be in writin1 and, if .rinted, shall be .rinted in t-.e no s/aller than =J.oint, and shall contain in a sin1le docu/ent all of the a1ree/ents of the bu-er and seller with res.ect to the total cost and the ter/s of .a-/ent for the /otor vehicle, includin1 an- .ro/issor- notes or an- other evidences of indebtedness. The conditional sale contract or a .urchase order shall be si1ned b- the bu-er or his or her authori6ed re.resentative and b- the seller or its authori6ed re.resentative. An e0act co.- of the contract or .urchase order shall be furnished to the bu-er b- the seller at the ti/e the bu-er and the seller have si1ned it. "o /otor vehicle shall be delivered .ursuant to a contract subAect to this cha.ter until the seller delivers to the bu-er a full- e0ecuted co.- of the conditional sale contract or .urchase order and an- vehicle .urchase .ro.osal and an- credit state/ent which the seller has reBuired or reBuested the bu-er to si1n and which he or she has si1ned durin1 the contract ne1otiations. The seller shall not obtain the si1nature of the bu-er to a contract when it contains blank s.aces to be filled in after it has been si1ned.
(Added by Stats. 1981, Ch. 107&, Sec. 1#. +(e"ative +ct%be" 1, 1982, %" s%%ne", by Sec. 2& %f Ch. 107&, as amended by Stats. 1982, Ch. 129, Sec. 12.)

29%2. A conditional sale contract subAect to this cha.ter shall contain the disclosures reBuired b- Re1ulation M, whether or not Re1ulation M a..lies to the transaction. In addition, to the e0tent a..licable, the contract shall contain the other disclosures and notices reBuired b-, and shall satisf- the reBuire/ents and li/itations of, this section. The disclosures reBuired bsubdivision +a, /a- be ite/i6ed or subtotaled to a 1reater e0tent than as reBuired b- that subdivision and shall be /ade to1ether and in the seBuence set forth in that subdivision. All other disclosures and notices /a- a..ear in the contract in an- location or seBuence and /a- be co/bined or inters.ersed with other .rovisions of the contract. +a, The contract shall contain the followin1 disclosures, as a..licable, which shall be labeled 2ite/i6ation of the a/ount financed4: +7, +A, The cash .rice, e0clusive of docu/ent .rocessin1 char1es, char1es to electronicall- re1ister or transfer the vehicle, ta0es i/.osed on the sale, .ollution control certification fees, .rior credit or lease balance on .ro.ertbein1 traded in, the a/ount char1ed for a service contract, the a/ount char1ed for a theft deterrent s-ste/, the a/ount char1ed for a surface .rotection .roduct, the a/ount char1ed for an o.tional debt cancellation a1ree/ent, and the a/ount char1ed for a contract cancellation o.tion a1ree/ent. +(, The char1e to be retained b- the seller for docu/ent .rocessin1 authori6ed .ursuant to ection ;;<=.< of the )ehicle &ode. +&, The fee char1ed b- the seller for certif-in1 that the /otor vehicle co/.lies with a..licable .ollution control reBuire/ents. +D, A char1e for a theft deterrent device. +E, A char1e for a surface .rotection .roduct. +F, The total a/ount char1ed b- the seller for an electric vehicle char1in1 station, which /a- include onl- the char1es for the electric vehicle char1in1 station device, an- /aterials and wirin1, and an- installation services. The total a/ount shall be labeled 2E) &har1in1 tation.4 +#, Ta0es i/.osed on the sale. +H, The char1e to electronicall- re1ister or transfer the vehicle authori6ed .ursuant to ection ;;<=.< of the )ehicle &ode. +I, The a/ount char1ed for a service contract. +K, The .rior credit or lease balance re/ainin1 on .ro.ert- bein1 traded in, as reBuired b- .ara1ra.h +=,. The disclosure reBuired b- this sub.ara1ra.h shall be labeled 2.rior credit or lease balance +see down.a-/ent and tradeJin calculation,.4 +D, An- char1e for an o.tional debt cancellation a1ree/ent. +!, An- char1e for a used vehicle contract cancellation o.tion a1ree/ent. +3, The total cash .rice, which is the su/ of sub.ara1ra.hs +A, to +!,, inclusive. +", The disclosures described in sub.ara1ra.hs +D,, +E,, and +!, are not reBuired on contracts involvin1 the sale of a /otorc-cle, as defined in ection ;?? of the )ehicle &ode, or on contracts involvin1 the sale of an offJhi1hwa/otor vehicle that is subAect to identification under ection :@?7? of the

)ehicle &ode, and the a/ounts of those char1es, if an-, are not reBuired to be reflected in the total .rice under sub.ara1ra.h +3,. +8, A/ounts .aid to .ublic officials for the followin1: +A, )ehicle license fees. +(, Re1istration, transfer, and titlin1 fees. +&, &alifornia tire fees i/.osed .ursuant to ection ;8@@< of the %ublic Resources &ode. +:, The a11re1ate a/ount of .re/iu/s a1reed, u.on e0ecution of the contract, to be .aid for .olicies of insurance included in the contract, e0cludin1 the a/ount of an- insurance .re/iu/ included in the finance char1e. +;, The a/ount of the state fee for issuance of a certificate of co/.liance, nonco/.liance, e0e/.tion, or waiver .ursuant to an- a..licable .ollution control statute. +<, A subtotal re.resentin1 the su/ of the a/ounts described in .ara1ra.hs +7, to +;,, inclusive. +=, The a/ount of the bu-er5s down.a-/ent ite/i6ed to show the followin1: +A, The a1reed value of the .ro.ert- bein1 traded in. +(, The .rior credit or lease balance, if an-, owin1 on the .ro.ert- bein1 traded in. +&, The net a1reed value of the .ro.ert- bein1 traded in, which is the difference between the a/ounts disclosed in sub.ara1ra.hs +A, and +(,. If the .rior credit or lease balance of the .ro.ert- bein1 traded in e0ceeds the a1reed value of the .ro.ert-, a ne1ative nu/ber shall be stated. +D, The a/ount of an- .ortion of the down.a-/ent to be deferred until not later than the due date of the second re1ularl- scheduled install/ent under the contract and that is not subAect to a finance char1e. +E, The a/ount of an- /anufacturer5s rebate a..lied or to be a..lied to the down.a-/ent. +F, The re/ainin1 a/ount .aid or to be .aid b- the bu-er as a down.a-/ent. +#, The total down.a-/ent. If the su/ of sub.ara1ra.hs +&, to +F,, inclusive, is 6ero or /ore, that su/ shall be stated as the total down.a-/ent, and no a/ount shall be stated as the .rior credit or lease balance under sub.ara1ra.h +I, of .ara1ra.h +7,. If the su/ of sub.ara1ra.hs +&, to +F,, inclusive, is less than 6ero, then that su/, e0.ressed as a .ositive nu/ber, shall be stated as the .rior credit or lease balance under sub.ara1ra.h +I, of .ara1ra.h +7,, and 6ero shall be stated as the total down.a-/ent. The disclosure reBuired b- this sub.ara1ra.h shall be labeled 2total down.a-/ent4 and shall contain a descri.tor indicatin1 that if the total down.a-/ent is a ne1ative nu/ber, a 6ero shall be disclosed as the total down.a-/ent and a reference /ade that the re/ainder shall be included in the disclosure reBuired .ursuant to sub.ara1ra.h +I, of .ara1ra.h +7,. +>, The a/ount of an- ad/inistrative finance char1e, labeled 2.re.aid finance char1e.4

+@, The difference between the a/ount described in .ara1ra.h +<, and the su/ of the a/ounts described in .ara1ra.hs +=, and +>,, labeled 2a/ount financed.4 +b, "o .articular ter/inolo1- is reBuired to disclose the ite/s set forth in subdivision +a, e0ce.t as e0.ressl- .rovided in that subdivision. +c, If .a-/ent of all or a .ortion of the down.a-/ent is to be deferred, the deferred .a-/ent shall be reflected in the .a-/ent schedule disclosed .ursuant to Re1ulation M. +d, If the down.a-/ent includes .ro.ert- bein1 traded in, the contract shall contain a brief descri.tion of that .ro.ert-. +e, The contract shall contain the na/es and addresses of all .ersons to who/ the notice reBuired .ursuant to ection 89@:.8 and .er/itted .ursuant to ections 89@:.< and 89@; is to be sent. +f, +7, If the contract includes a finance char1e deter/ined on the .reco/.uted basis, the contract shall identif- the /ethod of co/.utin1 the unearned .ortion of the finance char1e in the event of .re.a-/ent in full of the bu-er5s obli1ation and contain a state/ent of the a/ount or /ethod of co/.utation of an- char1e that /a- be deducted fro/ the a/ount of anunearned finance char1e in co/.utin1 the a/ount that will be credited to the obli1ation or refunded to the bu-er. The /ethod of co/.utin1 the unearned .ortion of the finance char1e shall be sufficientl- identified with a reference to the actuarial /ethod if the co/.utation will be under that /ethod. The /ethod of co/.utin1 the unearned .ortion of the finance char1e shall be sufficientl- identified with a reference to the Rule of >@5s, the su/ of the di1its, or the su/ of the .eriodic ti/e balances /ethod in all other cases, and those references shall be dee/ed to be eBuivalent for disclosure .ur.oses. +8, If the contract includes a finance char1e that is deter/ined on the si/.leJinterest basis but .rovides for a /ini/u/ finance char1e in the event of .re.a-/ent in full, the contract shall contain a state/ent of that fact and the a/ount of the /ini/u/ finance char1e or its /ethod of calculation. 2"otice to bu-er:   +7, Do not si1n this a1ree/ent before -ou read it or if it contains an- blank s.aces to be filled in.   +8, 'ou are entitled to a co/.letel- filledJin co.- of this a1ree/ent.   +:, +1, +7, If the contract includes a finance char1e that is deter/ined on the .reco/.uted basis and .rovides that the unearned .ortion of the finance char1e to be refunded u.on full .re.a-/ent of the contract is to be deter/ined b- a /ethod other than actuarial, the contract shall contain a notice, in at least 7?J.oint boldface t-.e if the contract is .rinted, readin1 as follows: 'ou can .re.a- the full a/ount due under this a1ree/ent at an- ti/e and obtain a .artial refund of the finance char1e if it is L7 or /ore. (ecause of the wa- the a/ount of this refund will be fi1ured, the ti/e when -ou .re.a- could increase the ulti/ate cost of credit under this a1ree/ent.   +;, If -ou default in the .erfor/ance of -our obli1ations under this a1ree/ent, the vehicle /a- be re.ossessed and -ou /a- be subAect to suit and liabilit- for the un.aid indebtedness evidenced b- this a1ree/ent.4 +8, If the contract includes a finance char1e that is deter/ined on the .reco/.uted basis and .rovides for the actuarial /ethod for co/.utin1 the

unearned .ortion of the finance char1e u.on .re.a-/ent in full, the contract shall contain a notice, in at least 7?J.oint 2"otice to bu-er:   +7, Do not si1n this a1ree/ent before -ou read it or if it contains an- blank s.aces to be filled in.   +8, 'ou are entitled to a co/.letel- filledJin co.- of this a1ree/ent.   +:, 'ou can .re.a- the full a/ount due under this a1ree/ent at an- ti/e and obtain a .artial refund of the finance char1e if it is L7 or /ore.   +;, If -ou default in the .erfor/ance of -our obli1ations under this a1ree/ent, the vehicle /a- be re.ossessed and -ou /a- be subAect to suit and liabilit- for the un.aid indebtedness evidenced b- this a1ree/ent.4   boldface t-.e if the contract is .rinted, readin1 as follows: +:, If the contract includes a finance char1e that is deter/ined on the si/.leJinterest basis, the contract shall contain a notice, in at least 7?J.oint 2"otice to bu-er:   +7, Do not si1n this a1ree/ent before -ou read it or if it contains an- blank s.aces to be filled in.   +8, 'ou are entitled to a co/.letel- filledJin co.- of this a1ree/ent.   +:, 'ou can .re.a- the full a/ount due under this a1ree/ent at an- ti/e.   +;, If -ou default in the .erfor/ance of -our obli1ations under this a1ree/ent, the vehicle /a- be re.ossessed and -ou /a- be subAect to suit and liabilit- for the un.aid indebtedness evidenced b- this a1ree/ent.4 boldface t-.e if the contract is .rinted, readin1 as follows: +h, The contract shall contain a notice in at least @J.oint boldface t-.e, acknowled1ed b- the bu-er, that reads as follows: 2If -ou have a co/.laint concernin1 this sale, -ou should tr- to resolve it with the seller. &o/.laints concernin1 unfair or dece.tive .ractices or /ethods b- the seller /a- be referred to the cit- attorne-, the district attorne-, or an investi1ator for the De.art/ent of 3otor )ehicles, or an- co/bination thereof. After this contract is si1ned, the seller /a- not chan1e the financin1 or .a-/ent ter/s unless -ou a1ree in writin1 to the chan1e. 'ou do not have to a1ree to an- chan1e, and it is an unfair or dece.tive .ractice for the seller to /ake a unilateral chan1e.
(u-er5s i1nature4

+i, +7, The contract shall contain an ite/i6ation of an- insurance included as .art of the a/ount financed disclosed .ursuant to .ara1ra.h +:, of subdivision +a, and of an- insurance included as .art of the finance char1e. The ite/i6ation shall identif- the t-.e of insurance covera1e and the .re/iu/ char1ed therefor, and, if the insurance e0.ires before the date of the last scheduled install/ent included in the re.a-/ent schedule, the ter/ of the insurance shall be stated. +8, If an- char1e for insurance, other than for credit life or disabilit-, is included in the contract balance and disburse/ent of an- .art thereof is to be /ade /ore than one -ear after the date of the conditional sale contract, an- finance char1e on the a/ount to be disbursed after one -ear shall be co/.uted fro/ the /onth the disburse/ent is to be /ade to the due date of the last install/ent under the conditional sale contract.

+A, +7, E0ce.t for contracts in which the finance char1e or a .ortion of the finance char1e is deter/ined b- the si/.leJinterest basis and the a/ount financed disclosed .ursuant to .ara1ra.h +@, of subdivision +a, is /ore than two thousand five hundred dollars +L8,<??,, the dollar a/ount of the disclosed finance char1e /a- not e0ceed the 1reater of: +A, +i, $ne and oneJhalf .ercent on so /uch of the un.aid balance as does not e0ceed two hundred twent-Jfive dollars +L88<,, 7 1Q< .ercent on so /uch of the un.aid balance in e0cess of two hundred twent-Jfive dollars +L88<, as does not e0ceed nine hundred dollars +L9??, and fiveJsi0ths of 7 .ercent on so /uch of the un.aid balance in e0cess of nine hundred dollars +L9??, as does not e0ceed two thousand five hundred dollars +L8,<??,. +ii, $ne .ercent of the entire un.aid balanceH /ulti.lied in either case b- the nu/ber of /onths +co/.uted on the basis of a full /onth for an- fractional /onth .eriod in e0cess of 7< da-s, ela.sin1 between the date of the contract and the due date of the last install/ent. +(, If the finance char1e is deter/ined b- the .reco/.uted basis, twent-J five dollars +L8<,. +&, If the finance char1e or a .ortion thereof is deter/ined b- the si/.leJ interest basis: +i, Twent-Jfive dollars +L8<, if the un.aid balance does not e0ceed one thousand dollars +L7,???,. +ii, Fift- dollars +L<?, if the un.aid balance e0ceeds one thousand dollars +L7,???, but does not e0ceed two thousand dollars +L8,???,. +iii, event-Jfive dollars +L><, if the un.aid balance e0ceeds two thousand dollars +L8,???,. +8, The holder of the contract shall not char1e, collect, or receive a finance char1e that e0ceeds the disclosed finance char1e, e0ce.t to the e0tent +A, caused b- the holder5s recei.t of one or /ore .a-/ents under a contract that .rovides for deter/ination of the finance char1e or a .ortion thereof on the :=<Jda- basis at a ti/e or ti/es other than as ori1inall- scheduled whether or not the .arties enter into an a1ree/ent .ursuant to ection 89@8.:, +(, .er/itted b- .ara1ra.h +8,, +:,, or +;, of subdivision +c, of ection 88=.7> of Re1ulation M, or +&, .er/itted b- subdivisions +a, and +c, of ection 89@8.@. +:, If the finance char1e or a .ortion thereof is deter/ined b- the si/.leJ interest basis and the a/ount of the un.aid balance e0ceeds five thousand dollars +L<,???,, the holder of the contract /a-, in lieu of its ri1ht to a /ini/u/ finance char1e under sub.ara1ra.h +&, of .ara1ra.h +7,, char1e, receive, or collect on the date of the contract an ad/inistrative finance char1e not to e0ceed sevent-Jfive dollars +L><,, .rovided that the su/ of the ad/inistrative finance char1e and the .ortion of the finance char1e deter/ined b- the si/.leJinterest basis shall not e0ceed the /a0i/u/ total finance char1e .er/itted b- sub.ara1ra.h +A, of .ara1ra.h +7,. Anad/inistrative finance char1e that is char1ed, received, or collected b- a holder shall be dee/ed a finance char1e earned on the date of the contract. +;, If a contract .rovides for uneBual or irre1ular .a-/ents, or .a-/ents on other than a /onthl- basis, the /a0i/u/ finance char1e shall be at the

effective rate .rovided for in .ara1ra.h +7,, havin1 due re1ard for the schedule of install/ents. +k, The contract /a- .rovide that for each install/ent in default for a .eriod of not less than 7? da-s the bu-er shall .a- a delinBuenc- char1e in an a/ount not to e0ceed in the a11re1ate < .ercent of the delinBuent install/ent, which a/ount /a- be collected onl- once on an- install/ent re1ardless of the .eriod durin1 which it re/ains in default. %a-/ents ti/elreceived b- the seller under an e0tension or deferral a1ree/ent /a- not be subAect to a delinBuenc- char1e unless the char1e is .er/itted b- ection 89@8.:. The contract /a- .rovide for reasonable collection costs and fees in the event of delinBuenc-. +l, "otwithstandin1 an- .rovision of a contract to the contrar-, the bu-er /a- .a- at an- ti/e before /aturit- the entire indebtedness evidenced bthe contract without .enalt-. In the event of .re.a-/ent in full: +7, If the finance char1e was deter/ined on the .reco/.uted basis, the a/ount reBuired to .re.a- the contract shall be the outstandin1 contract balance as of that date, .rovided, however, that the bu-er shall be entitled to a refund credit in the a/ount of the unearned .ortion of the finance char1e, e0ce.t as .rovided in .ara1ra.hs +:, and +;,. The a/ount of the unearned .ortion of the finance char1e shall be at least as 1reat a .ro.ortion of the finance char1e, includin1 an- additional finance char1e i/.osed .ursuant to ection 89@8.@ or other additional char1e i/.osed because the contract has been e0tended, deferred, or refinanced, as the su/ of the .eriodic /onthl- ti/e balances .a-able /ore than 7< da-s after the date of .re.a-/ent bears to the su/ of all the .eriodic /onthl- ti/e balances under the schedule of install/ents in the contract or, if the contract has been e0tended, deferred, or refinanced, as so e0tended, deferred, or refinanced. If the a/ount of the refund credit is less than one dollar +L7,, no refund credit need be /ade b- the holder. An- refund credit /a- be /ade in cash or credited to the outstandin1 obli1ations of the bu-er under the contract. +8, If the finance char1e or a .ortion of the finance char1e was deter/ined on the si/.leJinterest basis, the a/ount reBuired to .re.a- the contract shall be the outstandin1 contract balance as of that date, includin1 anearned finance char1es that are un.aid as of that date and, if a..licable, the a/ount .rovided in .ara1ra.h +:,, and .rovided further that in cases where a finance char1e is deter/ined on the :=?Jda- basis, the .a-/ents received under the contract shall be assu/ed to have been received on their res.ective due dates re1ardless of the actual dates on which the .a-/ents were received. +:, If the /ini/u/ finance char1e .rovided b- sub.ara1ra.h +(, or sub.ara1ra.h +&, of .ara1ra.h +7, of subdivision +A,, if either is a..licable, is 1reater than the earned finance char1e as of the date of .re.a-/ent, the holder shall be additionall- entitled to the difference. +;, This subdivision shall not i/.air the ri1ht of the seller or the seller5s assi1nee to receive delinBuenc- char1es on delinBuent install/ents and reasonable costs and fees as .rovided in subdivision +k, or e0tension or deferral a1ree/ent char1es as .rovided in ection 89@8.:.

+<, "otwithstandin1 an- .rovision of a contract to the contrar-, if the indebtedness created b- an- contract is satisfied .rior to its /aturit- throu1h surrender of the /otor vehicle, re.ossession of the /otor vehicle, rede/.tion of the /otor vehicle after re.ossession, or an- Aud1/ent, the outstandin1 obli1ation of the bu-er shall be deter/ined as .rovided in .ara1ra.h +7, or +8,. "otwithstandin1, the bu-er5s outstandin1 obli1ation shall be co/.uted b- the holder as of the date the holder recovers the value of the /otor vehicle throu1h dis.osition thereof or Aud1/ent is entered or, if the holder elects to kee. the /otor vehicle in satisfaction of the bu-er5s indebtedness, as of the date the holder takes .ossession of the /otor vehicle. +/, "otwithstandin1 an- other .rovision of this cha.ter to the contrar-, aninfor/ation reBuired to be disclosed in a conditional sale contract under this cha.ter /a- be disclosed in an- /anner, /ethod, or ter/inolo1- reBuired or .er/itted under Re1ulation M, as in effect at the ti/e that disclosure is /ade, e0ce.t that .er/itted b- .ara1ra.h +8, of subdivision +c, of ection 88=.7@ of Re1ulation M, if all of the reBuire/ents and li/itations set forth in subdivision +a, are satisfied. This cha.ter does not .rohibit the disclosure in that contract of additional infor/ation reBuired or .er/itted under Re1ulation M, as in effect at the ti/e that disclosure is /ade. +n, If the seller i/.oses a char1e for docu/ent .rocessin1 or to electronicall- re1ister or transfer the vehicle, the contract shall contain a disclosure that the char1e is not a 1overn/ental fee. +o, A seller shall not i/.ose an a..lication fee for a transaction 1overned bthis cha.ter. +., The seller or holder /a- char1e and collect a fee not to e0ceed fifteen dollars +L7<, for the return b- a de.ositor- institution of a dishonored check, ne1otiated order of withdrawal, or share draft issued in connection with the contract if the contract so .rovides or if the contract contains a 1enerali6ed state/ent that the bu-er /a- be liable for collection costs incurred in connection with the contract. +B, The contract shall disclose on its face, b- .rintin1 the word 2new4 or 2used4 within a bo0 outlined in red, that is not s/aller than oneJhalf inch hi1h and oneJhalf inch wide, whether the vehicle is sold as a new vehicle, as defined in ection ;:? of the )ehicle &ode, or as a used vehicle, as defined in ection ==< of the )ehicle &ode. +r, The contract shall contain a notice with a headin1 in at least 78J.oint bold t-.e and the te0t in at least 7?J.oint bold t-.e, circu/scribed b- a line, i//ediatel- above the contract si1nature line, that reads as follows:
THERE $(TAI" I A "$ &$$!I"#J$FF &$"TRA&T %ERI$D *"!E &A"&E!!ATI$" '$* $%TI$"

&alifornia law does not .rovide for a 2coolin1Joff4 or other cancellation .eriod for vehicle sales. Therefore, -ou cannot later cancel this contract si/.l- because -ou chan1e -our /ind, decide the vehicle costs too /uch, or wish -ou had acBuired a different vehicle. After -ou si1n below, -ou /a- onl- cancel this contract with the a1ree/ent of the seller or for le1al cause, such as fraud. However, &alifornia law does reBuire a seller to offer a twoJda- contract

cancellation o.tion on used vehicles with a .urchase .rice of less than fortthousand dollars +L;?,???,, subAect to certain statutor- conditions. This contract cancellation o.tion reBuire/ent does not a..l- to the sale of a recreational vehicle, a /otorc-cle, or an offJhi1hwa- /otor vehicle subAect to identification under &alifornia law. ee the vehicle contract cancellation o.tion a1ree/ent for details.

+s, This section shall beco/e o.erative on Kul- 7, 8?7:.
('e(ea$ed (in Sec. 1) and added by Stats. 2012, Ch. 67&, Sec. 2. Effective Se(tembe" 27, 2012. Secti%n %(e"ative !$y 1, 201#, by its %)n ("%visi%ns.)

29%2.1. It shall be unlawful for an- seller to induce or atte/.t to induce an- .erson to enter into a contract subAect to this cha.ter b- offerin1 a rebate, discount, co//ission, or other consideration, contin1ent u.on the ha..enin1 of a future event, on the condition that the bu-er either sells, or 1ives infor/ation or assistance for the .ur.ose of leadin1 to a sale b- the seller of, the sa/e or related 1oods.
(Added by Stats. 1968, Ch. 4&2.)

29%2.2. +a, %rior to the e0ecution of a conditional sale contract, the seller shall .rovide to a bu-er, and obtain the bu-er5s si1nature on, a written disclosure that sets forth the followin1 infor/ation: +7, +A, A descri.tion and the .rice of each ite/ sold if the contract includes a char1e for the ite/. +(, ub.ara1ra.h +A, a..lies to each ite/ in the followin1 cate1ories: +i, A service contract. +ii, An insurance .roduct. +iii, A debt cancellation a1ree/ent. +iv, A theft deterrent device. +v, A surface .rotection .roduct. +vi, A vehicle contract cancellation o.tion a1ree/ent. +8, The su/ of all of the char1es disclosed under subdivision +a,, labeled 2total.4 +:, The a/ount that would be calculated under the contract as the re1ular install/ent .a-/ent if char1es for the ite/s disclosed .ursuant to subdivision +a, are not included in the contract. The a/ount disclosed .ursuant to this subdivision shall be labeled 2Install/ent %a-/ent EI&!*DI"# !isted Ite/s.4 +;, The a/ount that would be calculated under the contract as the re1ular install/ent .a-/ent if char1es for the ite/s disclosed under subdivision +a, are included in the contract. The a/ount disclosed .ursuant to this subdivision shall be labeled 2Install/ent %a-/ent I"&!*DI"# !isted Ite/s.4

+b, The disclosures reBuired under this section shall be in at least 7?J.oint t-.e and shall be contained in a docu/ent that is se.arate fro/ the conditional sale contract and a .urchase order. +c, This section does not a..l- to the sale of a /otorc-cle as defined in ection ;?? of the )ehicle &ode or an offJhi1hwa- vehicle subAect to identification under ection :@?7? of the )ehicle &ode.
(Amended by Stats. 2006, Ch. &67, Sec. #.&. Effective an!a"y 1, 2007.)

29%2.#. +a, The holder of a conditional sale contract /a-, u.on a1ree/ent with the bu-er, e0tend the scheduled due date or defer the scheduled .a-/ent of all or of an- .art of an- install/ent or install/ents .a-able thereunder. "o char1e shall be /ade for an- such e0tension or defer/ent unless the a1ree/ent for such e0tension or defer/ent is in writin1 and si1ned b- the .arties thereto. However, the seller or holder /a-, as an adAunct to or to assist in efforts to collect one or /ore delinBuent install/ents on the contract, advise one or /ore obli1ors on the contract, either in writin1 or orall-, that the due date for one or /ore install/ents under the contract shall be e0tended, with no char1e bein1 /ade for such e0tension other than an- a..licable late char1e .rovided for in the contract. +b, Chere the contract includes a finance char1e deter/ined on the .reco/.uted basis, the holder /a- char1e and contract for the .a-/ent of an e0tension or deferral a1ree/ent char1e b- the bu-er and collect and receive the sa/e, but such char1e /a- not e0ceed an a/ount eBual to 7 .ercent .er /onth si/.le interest on the a/ount of the install/ent or install/ents, or .art thereof, e0tended or deferred for the .eriod of e0tension or deferral. uch .eriod shall not e0ceed the .eriod fro/ the date when such e0tended or deferred install/ent or install/ents, or .art thereof, would have been .a-able in the absence of such e0tension or deferral to the date when such install/ent or install/ents, or .art thereof, are /ade .a-able under the a1ree/ent of e0tension or defer/entH e0ce.t that a /ini/u/ char1e of one dollar +L7, for the .eriod of e0tension or deferral /a- be /ade in an- case where the e0tension or deferral a1ree/ent char1e, when co/.uted at such rate, a/ounts to less than one dollar +L7,. +c, Chere the contract includes a finance char1e deter/ined on the si/.leJ interest basis, the holder /a- char1e and contract for the .a-/ent of an e0tension or deferral a1ree/ent char1e b- the bu-er and collect and receive the sa/e, but the char1e for the e0tension or deferral a1ree/ent /a- not e0ceed the lesser of twent-Jfive dollars +L8<, or 7? .ercent of the then outstandin1 .rinci.al balance of the contract. uch char1e shall be in addition to an- finance char1es which accrue because such e0tended or deferred .a-/ents are received at a ti/e other than as ori1inall- scheduled.
(Amended by Stats. 1987, Ch. 448, Sec. 2.)

29%2.".

+a, This cha.ter /a- not be dee/ed to affect a loan, or the securit- therefor, between a .urchaser of a /otor vehicle and a su.ervised financial or1ani6ation, other than the seller of the /otor vehicle, all or a .ortion of which loan is used in connection with the .urchase of a /otor vehicle. As used in this cha.ter, 2su.ervised financial or1ani6ation4 /eans a .erson or1ani6ed, chartered, or holdin1 a license or authori6ation certificate under a law of this state or the *nited tates to /ake loans and subAect to su.ervision b- an official or a1enc- of this state or the *nited tates. +b, This cha.ter /a- not be dee/ed to .rohibit the seller5s assistin1 the bu-er in obtainin1 a loan u.on an- securit- fro/ an- third .art- to be used as a .art or all of the down.a-/ent or an- other .a-/ent on a conditional sale contract or .urchase orderH .rovided that the conditional sale contract sets forth on its face the a/ount of the loan, the finance char1e, the total thereof, the nu/ber of install/ents scheduled to re.a- the loan and the a/ount of each install/ent, that the bu-er /a- be reBuired to .led1e securit- for the loan, which securit- shall be /utuall- a1reed to b- the bu-er and the lender and notice to the bu-er in at least @J.oint t-.e that he or she is obli1ated for the install/ent .a-/ents on both the conditional sale contract and the loan. The seller /a- not .rovide an- securit- or other 1uarantee of .a-/ent on the loan, nor shall the seller receive anco//ission or other re/uneration for assistin1 the bu-er to obtain the loan. If the bu-er obli1ates hi/self or herself to .urchase, or receives .ossession of, the /otor vehicle .rior to securin1 the loan, and if the bu-er u.on a..ro.riate a..lication for the loan is unable to secure the loan, on the conditions stated in the conditional sale contract, the conditional sale contract or .urchase order shall be dee/ed rescinded and all consideration thereu.on shall be returned b- the res.ective .arties without de/and. +c, The .roceeds of an- loan .a-able to the seller after the date of the contract but .rior to the due date of the second .a-/ent otherwise scheduled thereunder /a- not be subAect to a finance char1e and the a/ount thereof shall be disclosed .ursuant to sub.ara1ra.h +D, of .ara1ra.h +=, of subdivision +a, of ection 89@8. +d, This cha.ter /a- not be dee/ed to .rohibit the seller5s assistin1 the bu-er in obtainin1 a loan fro/ an- third .art- to be used to .a- for the full .urchase .rice, or an- .art thereof, of a /otor vehicle, if each of the followin1 .rovisions a..lies: +7, The loan /a- be u.on an- securit-, but e0ce.t as .rovided in .ara1ra.h +8,, the loan /a- not be secured in whole or in .art b- a lien on real .ro.ert-. An- lien on real .ro.ert- taken in violation of this section shall be void and unenforceable. +8, A lien on real .ro.ert- /a- be taken to secure a loan of seven thousand five hundred dollars +L>,<??, or /ore used to .a- the full .urchase .rice, or an- .art thereof, of a recreational vehicle, as defined in ection 7@?7? of the Health and afet- &ode, which is not less than 8? feet in len1th. +:, The .rovisions of ections 89@:.8, 89@:.:, and 89@;.; shall a..l- to the loan, but /a- not authori6e the lender or the lender5s successor in interest to char1e for an- costs, fees, or e0.enses or to obtain an- other benefit which the lender is .rohibited fro/ char1in1 or obtainin1 under an- re1ulator- law

a..licable to the lender. "otwithstandin1 this .ara1ra.h, the .rovisions of ections 89@:.8 and 89@:.: /a- not a..l- to a loan /ade b- a lender licensed under Division 9 +co//encin1 with ection 88???, or Division 7? +co//encin1 with ection 8;???, of the Financial &ode. +;, The lender or the lender5s successor in interest shall be subAect to all clai/s and defenses which the bu-er could assert a1ainst the seller, but liabilit- /a- not e0ceed the a/ount of the loan. +<, If the bu-er beco/es obli1ated to .urchase, or receives .ossession of, the /otor vehicle .rior to obtainin1 the loan, the a1ree/ent between the bu-er and the seller shall set forth on its face the a/ount of the loan, the finance char1e, the total thereof, the nu/ber of install/ents scheduled to re.a- the loan and the a/ount of each install/ent, that the bu-er /a- be reBuired to .led1e securit- for the loan, which securit- /ust be /utualla1reed to b- the bu-er and the lender, and notice to the bu-er in at least @J .oint t-.e that the bu-er is obli1ated for the install/ent .a-/ents on the loan and for an- .a-/ents which /a- be due on the a1ree/ent between the bu-er and the seller. The seller /a- not .rovide an- securit- or other 1uarantee of .a-/ent on the loan, and the seller /a- not receive anco//ission or other re/uneration for assistin1 the bu-er to obtain the loan. If the bu-er u.on .ro.er a..lication for the loan is unable to obtain the loan, on the condition stated in the a1ree/ent between the bu-er and the seller, the a1ree/ent shall be dee/ed rescinded and all consideration thereu.on shall be returned b- the res.ective .arties without de/and. +=, An- waiver b- the bu-er of the .rovisions of this section shall be void and unenforceable. This subdivision does not a..l- to state or federall- chartered banks and savin1s and loan associations and /a- not be construed to affect e0istin1 law re1ardin1 a seller5s assistin1 a bu-er to obtain a loan fro/ a bank or savin1s and loan association or an- loan obtained b- the bu-er fro/ those lenders.
(Amended by Stats. 200#, Ch. #7, Sec. 2. Effective an!a"y 1, 2004.)

29%2. . +a, An- .a-/ent /ade b- a bu-er to a seller .endin1 e0ecution of a conditional sale contract shall be refunded to the bu-er in the event the conditional sale contract is not e0ecuted. +b, In the event of breach b- the seller of a conditional sale contract or .urchase order where the bu-er leaves his /otor vehicle with the seller as down.a-/ent and such /otor vehicle is not returned b- the seller to the bu-er for whatever reason, the bu-er /a- recover fro/ the seller either the fair /arket value of the /otor vehicle left as a down.a-/ent or its value as stated in the contract or .urchase order, whichever is 1reater. The recovershall be tendered to the bu-er within five business da-s after the breach. +c, The re/edies of the bu-er .rovided for in subdivision +b, are none0clusive and cu/ulative and shall not .reclude the bu-er fro/ .ursuin1 an- other re/ed- which he /a- have under an- other .rovision of law.
(Amended by Stats. 1976, Ch. 128&.)

29%2.%. +a, If a bu-er is obli1ated under the ter/s of the conditional sale contract to /aintain insurance on the vehicle and subseBuent to the e0ecution of the contract the bu-er either fails to /aintain or reBuests the holder to .rocure the insurance, an- a/ounts advanced b- the holder to .rocure the insurance /a- be the subAect of finance char1es fro/ the date of advance as .rovided in subdivision +e,. +b, These a/ounts shall be secured as .rovided in the contract and .er/itted b- ection 89@;.8 if the holder notifies the bu-er in writin1 of his or her o.tion to re.a- those a/ounts in an- one of the followin1 wa-s: +7, Full .a-/ent within 7? da-s fro/ the date of 1ivin1 or /ailin1 the notice. +8, Full a/orti6ation durin1 the ter/ of the insurance. +:, If offered b- the holder, full a/orti6ation after the ter/ of the conditional sale contract, to be .a-able in install/ents which do not e0ceed the avera1e .a-/ent allocable to a /onthl- .eriod under the contract. +;, If offered b- the holder, a co/bination of the /ethods described in .ara1ra.hs +8, and +:,, so that there is so/e a/orti6ation durin1 the ter/ of the insurance, with the re/ainder of the a/orti6ation bein1 acco/.lished after the ter/ of the conditional sale contract, to be .a-able in install/ents which do not e0ceed the avera1e .a-/ent allocable to a /onthl- .eriod under the ori1inal ter/s of the contract. +<, If offered b- the holder, an- other a/orti6ation .lan. If the bu-er neither .a-s in full the a/ounts advanced nor notifies the holder in writin1 of his or her choice re1ardin1 a/orti6ation o.tions before the e0.iration of 7? da-s fro/ the date of 1ivin1 or /ailin1 the notice b- the holder, the holder /a- a/orti6e the a/ounts advanced on a secured basis .ursuant to .ara1ra.h +8, or, if offered b- the holder as an o.tion to the bu-er, .ara1ra.h +:, or +;,. +c, The written notification described in subdivision +b, shall also set forth the a/ounts advanced b- the holder and, with res.ect to each a/orti6ation .lan the a/ount of the additional finance char1e, the su/ of the a/ounts advanced and the additional finance char1e, the nu/ber of install/ents reBuired, the a/ount of each install/ent and the date for .a-/ent of the install/ents. In addition, the notice shall contain a state/ent in contrastin1 red .rint in at least @J.oint bold t-.e, which reads as follows: 2CAR"I"#—IT I '$*R RE %$" I(I!IT' *"DER &A!IF$R"IA !AC T$ $(TAI" !IA(I!IT' I" *RA"&E $R (E *(KE&T T$ %E"A!TIE F$R )I$!ATI"# E&TI$" 7=?8? $F THE )EHI&!E &$DE, CHI&H 3A' I"&!*DE !$ $F !I&E" E $R A FI"E. THE I" *RA"&E A&N*IRED (' THE !IE"H$!DER D$E "$T %R$)IDE !IA(I!IT' &$)ERA#E A"D D$E "$T ATI F' '$*R RE %$" I(I!IT' *"DER &A!IF$R"IA !AC.4 +d, If subseBuent to the e0ecution of the contract the holder advances a/ounts for re.airs to or .reservation of the /otor vehicle or .reservation of the holder5s securit- interest therein and such advances are occasioned bthe bu-er5s default under the contract, such advances /a- be the subAect of finance char1es fro/ the date of advance as .rovided in subdivision +e, and

shall be secured as .rovided in the contract and .er/itted b- ection 89@;.8. +e, The /a0i/u/ rate of finance char1e which /a- be i/.osed on a/ounts advanced b- the holder subseBuent to the e0ecution of the contract for insurance, re.airs to or .reservation of the /otor vehicle, or .reservation of the holder5s securit- interest therein, shall not e0ceed the annual .ercenta1e rate disclosed .ursuant to ection 89@8.
(Amended by Stats. 1988, Ch. 1092, Sec. 2.)

29%2.9. In the event a bu-er obli1ates hi/self to .urchase, or receive .ossession of, a /otor vehicle .ursuant to a contract or .urchase order, and the seller knows that the bu-er intends to obtain financin1 fro/ a third .art- without the assistance of the seller, and the bu-er is unable to obtain such financin1, the contract or .urchase order shall be dee/ed rescinded and all consideration thereu.on shall be returned b- the res.ective .arties without de/and.
(Added by Stats. 1976, Ch. 128&.)

29%2.10. +a, In consideration of the assi1n/ent of a conditional sale contract, the seller shall not receive or acce.t fro/ the assi1nee an- .a-/ent or credit based u.on an- a/ount collected or received, or to be collected or received, under the contract as a finance char1e e0ce.t to the e0tent the .a-/ent or credit does not e0ceed the a/ount that would be calculated in accordance with Re1ulation M, whether or not Re1ulation M a..lies to the contract, as the contract5s finance char1e usin1, for the .ur.oses of the calculation, an annual .ercenta1e rate eBual to 8.< .ercent for a contract havin1 an ori1inal scheduled ter/ of =? /onthl- .a-/ents or less or 8 .ercent for a contract havin1 an ori1inal scheduled ter/ of /ore than =? /onthl- .a-/ents. +b, ubdivision +a, does not a..l- in the followin1 circu/stances: +7, An assi1n/ent that is with full recourse or under other ter/s reBuirin1 the seller to bear the entire risk of financial .erfor/ance of the bu-er. +8, An assi1n/ent that is /ore than si0 /onths followin1 the date of the conditional sale contract. +:, Isolated instances resultin1 fro/ bona fide errors that would otherwise constitute a violation of subdivision +a, if the seller /aintains reasonable .rocedures to 1uard a1ainst an- errors and .ro/.tl-, u.on notice of the error, re/its to the assi1nee an- consideration received in e0cess of that .er/itted b- subdivision +a,. +;, The assi1n/ent of a conditional sale contract involvin1 the sale of a /otorc-cle, as defined in ection ;?? of the )ehicle &ode. +<, The assi1n/ent of a conditional sale contract involvin1 the sale of an offJ hi1hwa- /otor vehicle that is subAect to identification under ection :@?7? of the )ehicle &ode.

(Added by Stats. 200&, Ch. 128, Sec. &. Effective an!a"y 1, 2006. +(e"ative !$y 1, 2006, by Sec. 12 %f Ch. 128.)

29%2.11. +a, %rior to the e0ecution of a conditional sale contract that includes a char1e for an electric vehicle char1in1 station, the seller shall .rovide the bu-er with, and obtain the bu-er5s si1nature on, a written disclosure that includes a descri.tion and .rice of each of the followin1: +7, The electric vehicle char1in1 station device. +8, An- /aterials and wirin1. +:, An- installation services included in the total char1e. +b, The disclosures reBuired under this section shall be in at least 78J.oint t-.e and shall be contained in a docu/ent that is se.arate fro/ the conditional sale contract or .urchase order. +c, This section shall beco/e o.erative Kul- 7, 8?7:.
(Added by Stats. 2012, Ch. 67&, Sec. #. Effective Se(tembe" 27, 2012. Secti%n %(e"ative !$y 1, 201#, by its %)n ("%visi%ns.)

29%#. +a, E0ce.t as .rovided in subdivision +b,, if the seller, e0ce.t as the result of an accidental or bona fide error in co/.utation, violates an- .rovision of ection [email protected], or of subdivision +a,, +A,, or +k, of ection 89@8, the conditional sale contract shall not be enforceable, e0ce.t b- a bona fide .urchaser, assi1nee, or .led1ee for value, or until after the violation is corrected as .rovided in ection 89@;, and, if the violation is not corrected, the bu-er /a- recover fro/ the seller the total a/ount .aid, .ursuant to the ter/s of the contract, b- the bu-er to the seller or his or her assi1nee. The a/ount recoverable for .ro.ert- traded in as all or .art of the down.a-/ent shall be eBual to the a1reed cash value of the .ro.ert- as the value a..ears on the conditional sale contract or the fair /arket value of the .ro.ert- as of the ti/e the contract is /ade, whichever is 1reater. +b, A conditional sale contract e0ecuted or entered into on or after Kanuar- 7, 8?78, shall not be /ade unenforceable solel- because of a violation b- the seller of .ara1ra.h +8, or +<, of subdivision +a, of ection 89@8. In addition to an- other re/edies that /a- be available, the bu-er is entitled to anactual da/a1es sustained as a result of a violation of those .rovisions. "othin1 in this subdivision affects an- le1al ri1hts, clai/s, or re/edies otherwise available under law.
(Amended by Stats. 2012, Ch. 162, Sec. 11. Effective an!a"y 1, 201#.)

29%#.1. +a, If the seller or holder of a conditional sale contract, e0ce.t as the result of an accidental or bona fide error of co/.utation, violates an- .rovision of

subdivision +l, of ection 89@8, the bu-er /a- recover fro/ the .erson three ti/es the a/ount of an- finance char1e .aid to that .erson. +b, E0ce.t as .rovided in subdivision +e,, if a holder acBuires a conditional sale contract without actual knowled1e of the violation b- the seller of ection [email protected], or of subdivision +a,, +A,, or +k, of ection 89@8, the contract shall be valid and enforceable b- the holder e0ce.t the bu-er is e0cused fro/ .a-/ent of the un.aid finance char1e, unless the violation is corrected as .rovided in ection 89@;. +c, E0ce.t as .rovided in subdivision +e,, if a holder acBuires a conditional sale contract with knowled1e of a violation of ection [email protected], or of subdivision +a,, +A,, or +k, of ection 89@8, the conditional sale contract shall not be enforceable e0ce.t b- a bona fide .urchaser, assi1nee, or .led1ee for value, or unless the violation is corrected as .rovided in ection 89@;, and, if the violation is not corrected, the bu-er /a- recover the a/ounts s.ecified in ection 89@: fro/ the .erson to who/ .a-/ent was /ade. +d, Chen a conditional sale contract is not enforceable under ection 89@: or this section, the bu-er /a- elect to retain the /otor vehicle and continue the contract in force, or /a-, with reasonable dili1ence, elect to rescind the contract and return the /otor vehicle. The value of the /otor vehicle returned shall be credited as restitution b- the bu-er without an- decrease that results fro/ the .assa1e of ti/e in the cash .rice of the /otor vehicle as the .rice a..ears on the conditional sale contract. +e, A conditional sale contract e0ecuted or entered into on or after Kanuar- 7, 8?78, shall not be /ade unenforceable, and the bu-er shall not be e0cused fro/ .a-/ent of an- finance char1e, solel- because of a violation b- the seller of .ara1ra.h +8, or +<, of subdivision +a, of ection 89@8. In addition to an- other re/edies that /a- be available, the bu-er is entitled to anactual da/a1es sustained as a result of a violation of those .rovisions. "othin1 in this subdivision affects an- le1al ri1hts, clai/s, or re/edies otherwise available under law.
(Amended by Stats. 2011, Ch. &26, Sec. #. Effective +ct%be" 7, 2011.)

29%#.2. +a, E0ce.t where the /otor vehicle has been sei6ed as described in .ara1ra.h +=, of subdivision +b, of ection 89@:.:, an- .rovision in anconditional sale contract for the sale of a /otor vehicle to the contrarnotwithstandin1, at least 7< da-s5 written notice of intent to dis.ose of a re.ossessed or surrendered /otor vehicle shall be 1iven to all .ersons liable on the contract. The notice shall be .ersonall- served or shall be sent bcertified /ail, return recei.t reBuested, or firstJclass /ail, .osta1e .re.aid, directed to the last known address of the .ersons liable on the contract. If those .ersons are /arried to each other, and, accordin1 to the /ost recent records of the seller or holder of the contract, reside at the sa/e address, one notice addressed to both .ersons at that address is sufficient. E0ce.t as otherwise .rovided in ection 89@:.@, those .ersons shall be liable for andeficienc- after dis.osition of the re.ossessed or surrendered /otor vehicle

onl- if the notice .rescribed b- this section is 1iven within =? da-s of re.ossession or surrender and does all of the followin1: +7, ets forth that those .ersons shall have a ri1ht to redee/ the /otor vehicle b- .a-in1 in full the indebtedness evidenced b- the contract until the e0.iration of 7< da-s fro/ the date of 1ivin1 or /ailin1 the notice and .rovides an ite/i6ation of the contract balance and of an- delinBuenc-, collection or re.ossession costs and fees and sets forth the co/.utation or esti/ate of the a/ount of an- credit for unearned finance char1es or canceled insurance as of the date of the notice. +8, tates either that there is a conditional ri1ht to reinstate the contract until the e0.iration of 7< da-s fro/ the date of 1ivin1 or /ailin1 the notice and all the conditions .recedent thereto or that there is no ri1ht of reinstate/ent and .rovides a state/ent of reasons therefor. +:, tates that, u.on written reBuest, the seller or holder shall e0tend for an additional 7? da-s the rede/.tion .eriod or, if entitled to the conditional ri1ht of reinstate/ent, both the rede/.tion and reinstate/ent .eriods. The seller or holder shall .rovide the .ro.er for/ for a..l-in1 for the e0tensions with the substance of the for/ bein1 li/ited to the e0tension reBuest, s.aces for the reBuestin1 .art- to si1n and date the for/, and instructions that it /ust be .ersonall- served or sent b- certified or re1istered /ail, return recei.t reBuested, to a .erson or office and address desi1nated b- the seller or holder and received before the e0.iration of the initial rede/.tion and reinstate/ent .eriods. +;, Discloses the .lace at which the /otor vehicle will be returned to those .ersons u.on rede/.tion or reinstate/ent. +<, Desi1nates the na/e and address of the .erson or office to who/ .a-/ent shall be /ade. +=, tates the seller5s or holder5s intent to dis.ose of the /otor vehicle u.on the e0.iration of 7< da-s fro/ the date of 1ivin1 or /ailin1 the notice, or if b- /ail and either the .lace of de.osit in the /ail or the .lace of address is outside of this state, the .eriod shall be 8? da-s instead of 7< da-s, and further, that u.on written reBuest to e0tend the rede/.tion .eriod and ana..licable reinstate/ent .eriod for 7? da-s, the seller or holder shall without further notice e0tend the .eriod accordin1l-. +>, Infor/s those .ersons that u.on written reBuest, the seller or holder will furnish a written accountin1 re1ardin1 the dis.osition of the /otor vehicle as .rovided for in subdivision +b,. The seller or holder shall advise the/ that this reBuest /ust be .ersonall- served or sent firstJclass /ail, .osta1e .re.aid, or certified /ail, return recei.t reBuested, to a .erson or office and address desi1nated b- the seller or holder. +@, Includes notice, in at least 7?J.oint bold t-.e if the notice is .rinted, readin1 as follows: 2"$TI&E. '$* 3A' (E *(KE&T T$ *IT A"D !IA(I!IT' IF THE A3$*"T $(TAI"ED *%$" DI %$ ITI$" $F THE )EHI&!E I I" *FFI&IE"T T$ %A' THE &$"TRA&T (A!A"&E A"D A"' $THER A3$*"T D*E.4 +9, Infor/s those .ersons that u.on the dis.osition of the /otor vehicle, the- will be liable for the deficienc- balance .lus interest at the contract rate, or at the le1al rate of interest .ursuant to ection :8@9 if there is no contract

rate of interest, fro/ the date of dis.osition of the /otor vehicle to the date of entr- of Aud1/ent. The notice .rescribed b- this section shall not affect the discretion of the court to strike out an unconscionable interest rate in the contract for which the notice is reBuired, nor affect the court in its deter/ination of whether the rate is unconscionable. +b, *nless auto/aticall- .rovided to the bu-er within ;< da-s after the dis.osition of the /otor vehicle, the seller or holder shall .rovide to an.erson liable on the contract within ;< da-s after their written reBuest, if the reBuest is /ade within one -ear after the dis.osition, a written accountin1 re1ardin1 the dis.osition. The accountin1 shall ite/i6e: +7, The 1ross .roceeds of the dis.osition. +8, The reasonable and necessar- e0.enses incurred for retakin1, holdin1, .re.arin1 for and conductin1 the sale and to the e0tent .rovided for in the a1ree/ent and not .rohibited b- law, reasonable attorne- fees and le1al e0.enses incurred b- the seller or holder in retakin1 the /otor vehicle fro/ an- .erson not a .art- to the contract. +:, The satisfaction of indebtedness secured b- an- subordinate lien or encu/brance on the /otor vehicle if written notification of de/and therefor is received before distribution of the .roceeds is co/.leted. If reBuested bthe seller or holder, the holder of a subordinate lien or encu/brance /ust seasonabl- furnish reasonable .roof of its interest, and unless it does so, the seller or holder need not co/.l- with its de/and. +c, In all sales which result in a sur.lus, the seller or holder shall furnish an accountin1 as .rovided in subdivision +b, whether or not reBuested b- the bu-er. An- sur.lus shall be returned to the bu-er within ;< da-s after the sale is conducted. +d, This section shall not a..l- to a loan /ade b- a lender licensed under Division 9 +co//encin1 with ection 88???, or Division 7? +co//encin1 with ection 8;???, of the Financial &ode.
(Amended by Stats. 1996, Ch. #1#, Sec. 1. Effective an!a"y 1, 1997.)

29%#.#. +a, In the absence of default in the .erfor/ance of an- of the bu-er5s obli1ations under the contract, the seller or holder /a- not accelerate the /aturit- of an- .art or all of the a/ount due thereunder or re.ossess the /otor vehicle. +b, If after default b- the bu-er, the seller or holder re.ossesses or voluntaril- acce.ts surrender of the /otor vehicle, an- .erson liable on the contract shall have a ri1ht to reinstate the contract and the seller or holder shall not accelerate the /aturit- of an- .art or all of the contract .rior to e0.iration of the ri1ht to reinstate, unless the seller or holder reasonabl- and in 1ood faith deter/ines that an- of the followin1 has occurred: +7, The bu-er or an- other .erson liable on the contract b- o/ission or co//ission intentionall- .rovided false or /isleadin1 infor/ation of /aterial i/.ortance on his or her credit a..lication.

+8, The bu-er, an- other .erson liable on the contract, or an- .er/issive user in .ossession of the /otor vehicle, in order to avoid re.ossession has concealed the /otor vehicle or re/oved it fro/ the state. +:, The bu-er, an- other .erson liable on the contract, or an- .er/issive user in .ossession of the /otor vehicle, has co//itted or threatens to co//it acts of destruction, or has failed to take care of the /otor vehicle in a reasonable /anner, so that the /otor vehicle has beco/e substantialli/.aired in value, or the bu-er, an- other .erson liable on the contract, or an- nonoccasional .er/issive user in .ossession of the /otor vehicle has failed to take care of the /otor vehicle in a reasonable /anner, so that the /otor vehicle /a- beco/e substantiall- i/.aired in value. +;, The bu-er or an- other .erson liable on the contract has co//itted, atte/.ted to co//it, or threatened to co//it cri/inal acts of violence or bodil- har/ a1ainst an a1ent, e/.lo-ee, or officer of the seller or holder in connection with the seller5s or holder5s re.ossession of or atte/.t to re.ossess the /otor vehicle. +<, The bu-er has knowin1l- used the /otor vehicle, or has knowin1l.er/itted it to be used, in connection with the co//ission of a cri/inal offense, other than an infraction, as a conseBuence of which the /otor vehicle has been sei6ed b- a federal, state, or local a1enc- or authorit.ursuant to federal, state, or local law. +=, The /otor vehicle has been sei6ed b- a federal, state, or local .ublic a1enc- or authorit- .ursuant to +A, ection 7:8; of Title @ of the *nited tates &ode or %art 8>; of Title @ of the &ode of Federal Re1ulations, +(, ection @@7 of Title 87 of the *nited tates &ode or %art 9 of Title 8@ of the &ode of Federal Re1ulations, or +&, other federal, state, or local law, includin1 re1ulations, and, .ursuant to that other law, the sei6in1 authorit-, as a .recondition to the return of the /otor vehicle to the seller or holder, .rohibits the return of the /otor vehicle to the bu-er or other .erson liable on the contract or an- third .erson clai/in1 the /otor vehicle b- or throu1h the/ or otherwise effects or reBuires the ter/ination of the .ro.ert- ri1hts in the /otor vehicle of the bu-er or other .erson liable on the contract or clai/ants b- or throu1h the/. +c, E0ercise of the ri1ht to reinstate the contract shall be li/ited to once in an- 78J/onth .eriod and twice durin1 the ter/ of the contract. +d, The .rovisions of this subdivision cover the /ethod b- which a contract shall be reinstated with res.ect to curin1 events of default which were a 1round for re.ossession or occurred subseBuent to re.ossession: +7, Chere the default is the result of the bu-er5s failure to /ake an.a-/ent due under the contract, the bu-er or an- other .erson liable on the contract shall /ake the defaulted .a-/ents and .a- an- a..licable delinBuenc- char1es. +8, Chere the default is the result of the bu-er5s failure to kee. and /aintain the /otor vehicle free fro/ all encu/brances and liens of ever- kind, the bu-er or an- other .erson liable on the contract shall either satisf- all encu/brances and liens or, in the event the seller or holder satisfies the encu/brances and liens, the bu-er or an- other .erson liable on the contract

shall rei/burse the seller or holder for all reasonable costs and e0.enses incurred therefor. +:, Chere the default is the result of the bu-er5s failure to kee. and /aintain insurance on the /otor vehicle, the bu-er or an- other .erson liable on the contract shall either obtain the insurance or, in the event the seller or holder has obtained the insurance, the bu-er or an- other .erson liable on the contract shall rei/burse the seller or holder for .re/iu/s .aid and all reasonable costs and e0.enses, includin1, but not li/ited to, an- finance char1e in connection with the .re/iu/s .er/itted b- ection 89@8.@, incurred therefor. +;, Chere the default is the result of the bu-er5s failure to .erfor/ an- other obli1ation under the contract, unless the seller or holder has /ade a 1ood faith deter/ination that the default is so substantial as to be incurable, the bu-er or an- other .erson liable on the contract shall either cure the default or, if the seller or holder has .erfor/ed the obli1ation, rei/burse the seller or holder for all reasonable costs and e0.enses incurred in connection therewith. +<, Additionall-, the bu-er or an- other .erson liable on the contract shall, in all cases, rei/burse the seller or holder for all reasonable and necessarcollection and re.ossession costs and fees incurred, includin1 attorne-5s fees and le1al e0.enses e0.ended in retakin1 and holdin1 the vehicle. +e, If the seller or holder denies the ri1ht to reinstate/ent under subdivision +b, or .ara1ra.h +;, of subdivision +d,, the seller or holder shall have the burden of .roof that the denial was Austified in that it was reasonable and /ade in 1ood faith. If the seller or holder fails to sustain the burden of .roof, the seller or holder shall not be entitled to a deficienc-, but it shall not be .resu/ed that the bu-er is entitled to da/a1es b- reason of the failure of the seller or holder to sustain the burden of .roof. +f, This section shall not a..l- to a loan /ade b- a lender licensed under Division 9 +co//encin1 with ection 88???, or Division 7? +co//encin1 with ection 8;???, of the Financial &ode.
(Amended by Stats. 1987, Ch. 448, Sec. &.)

29%#.#". +a, If a creditor has reBuested a cosi1ner as a condition of 1rantin1 credit to an- .erson for the .ur.ose of acBuisition of a /otor vehicle, the creditor or holder shall 1ive the cosi1ner a written notice of delinBuenc- .rior to the re.ossession of the /otor vehicle if the /otor vehicle is to be re.ossessed .ursuant to the /otor vehicle credit a1ree/ent. The written notice of delinBuenc- shall be .ersonall- served or shall be sent b- certified /ail, return recei.t reBuested, or firstJclass /ail, .osta1e .re.aid, directed to the last known address of the cosi1ner. If the last known address of the bu-er and the cosi1ner are the sa/e, a sin1le written notice of delinBuenc- 1iven to both the borrower and cosi1ner .rior to re.ossession satisfies the cosi1ner notice reBuire/ent of this section.

+b, A creditor or holder who fails to co/.l- with this section /a- not recover an- costs associated with the re.ossession of the vehicle fro/ the cosi1ner. +c, This section a..lies to an- /otor vehicle credit a1ree/ent, notwithstandin1 ection 89@8.<. +d, The followin1 definitions 1overn the construction of this section. +7, 2&osi1ner4 /eans a bu-er who e0ecutes a /otor vehicle credit a1ree/ent but does not in fact receive .ossession of the /otor vehicle that is the subAect of the a1ree/ent. +8, 2&reditor4 /eans a seller or lender described in .ara1ra.h +;,. +:, 2Holder4 /eans an- other .erson who is entitled to enforce the /otor vehicle credit a1ree/ent. +;, 23otor vehicle credit a1ree/ent4 /eans an- conditional sales contract as defined in ection 89@7 and an- contract or a1ree/ent in which a lender 1ives value to enable a .urchaser to acBuire a /otor vehicle and in which the lender obtains a securit- interest in the /otor vehicle.
(Added by Stats. 1996, Ch. #1#, Sec. 2. Effective an!a"y 1, 1997.)

29%#.# . +a, After a sale of a vehicle under this cha.ter, a bu-JhereJ.a-Jhere dealer, as defined in ection 8;7 of the )ehicle &ode, shall not do an- of the followin1: +7, *tili6e electronic trackin1 technolo1- to obtain or record the location of the vehicle, unless the bu-er is e0.ressl- /ade aware of the e0istence and use of the trackin1 technolo1- b- the bu-JhereJ.a-Jhere dealer, the bu-er5s written consent is obtained, and either sub.ara1ra.h +A, or +(,, or both, a..l-: +A, The electronic trackin1 technolo1- is used solel- to verif- and /aintain the o.erational status of the trackin1 technolo1-, to re.ossess the vehicle, or to locate the vehicle to service the loan or kee. the loan current. +(, The electronic trackin1 technolo1- is used solel- for an- o.tional service to the bu-er and both of the followin1 conditions are /et: +i, The a1ree/ent to utili6e electronic trackin1 technolo1- for the o.tional service is se.arate fro/ the .urchase and sale a1ree/ent, is not a condition of the .urchase or sale a1ree/ent for the vehicle, and is e0ecuted after the co/.letion of the .urchase or sale a1ree/ent for the vehicle. +ii, The bu-er is .er/itted to cancel the o.tional service at an- .oint in the future without affectin1 the sale of the vehicle, and is infor/ed of his or her abilit- to do so. +8, Disable the vehicle b- usin1 starter interru.t technolo1-, unless the bu-J hereJ.a-Jhere dealer co/.lies with all of the followin1 .rovisions: +A, "otifies the bu-er in writin1 at the ti/e of the sale that the vehicle is eBui..ed with starter interru.t technolo1-, which the bu-JhereJ.a-Jhere dealer can use to shut down the vehicle re/otel-. +(, The written disclosure .rovided to the bu-er at the ti/e of sale infor/s the bu-er that a warnin1 will be .rovided no less than ;@ hours before the use of the starter interru.t technolo1- to shut down the vehicle re/otel- and

discloses the /anner and /ethod in which that warnin1 will occur. The dealer shall offer the bu-er a choice of warnin1 /ethods, includin1 warnin1 fro/ the device, tele.hone call, e/ail, or te0t /essa1e, if available, .rovided that the warnin1 /ethod does not violate a..licable state or federal law. +&, In the event of an e/er1enc-, the bu-er will be .rovided with the abilitto start a dealerJdisabled vehicle for no less than 8; hours after the vehicle5s initial disable/ent. +b, A bu-JhereJ.a-Jhere dealer shall not reBuire the bu-er to /ake .a-/ents to the seller in .erson. For .ur.oses of this subdivision, 2.a-/ents4 does not include the down.a-/ent. If the bu-er tenders ti/el.a-/ent of a deferred down.a-/ent, the dealer shall not re.ossess the vehicle or i/.ose an- other char1e or .enalt- on the 1rounds that the .a-/ent was not /ade in .erson. +c, A violation of this section is a /isde/eanor .unishable b- a fine not e0ceedin1 one thousand dollars +L7,???,.
(Added by Stats. 2012, Ch. 740, Sec. #. Effective an!a"y 1, 201#.)

29%#.4. Reasonable attorne-5s fees and costs shall be awarded to the .revailin1 .artin an- action on a contract or .urchase order subAect to the .rovisions of this cha.ter re1ardless of whether the action is instituted b- the seller, holder or bu-er. Chere the defendant alle1es in his answer that he tendered to the .laintiff the full a/ount to which he was entitled, and thereu.on de.osits in court, for the .laintiff, the a/ount so tendered, and the alle1ation is found to be true, then the defendant is dee/ed to be a .revailin1 .art- within the /eanin1 of this section.
(Amended by Stats. 1976, Ch. 128&.)

29%#.". +a, An assi1nee of the seller5s ri1ht is subAect to all eBuities and defenses of the bu-er a1ainst the seller, notwithstandin1 an a1ree/ent to the contrar-, but the assi1nee5s liabilit- /a- not e0ceed the a/ount of the debt owin1 to the assi1nee at the ti/e of the assi1n/ent. +b, The assi1nee shall have recourse a1ainst the seller to the e0tent of anliabilit- incurred b- the assi1nee .ursuant to this section re1ardless of whether the assi1n/ent was with or without recourse.
(Amended by Stats. 197&, Ch. 66.)

29%#.$. An- .erson who shall willfull- violate an- .rovision of this cha.ter shall be 1uilt- of a /isde/eanor.
(Added by Stats. 1968, Ch. 1##8.)

29%#. . "o conditional sale contract shall contain an- .rovision b- which: +a, The bu-er a1rees not to assert a1ainst the seller a clai/ or defense arisin1 out of the sale or a1rees not to assert a1ainst an assi1nee such a clai/ or defense. +b, A .ower of attorne- is 1iven to confess Aud1/ent in this state, or an assi1n/ent of wa1es is 1ivenH .rovided, that nothin1 herein contained shall .rohibit the 1ivin1 of an assi1n/ent of wa1es contained in a se.arate instru/ent .ursuant to ection :?? of the !abor &ode. +c, The bu-er waives an- ri1ht of action a1ainst the seller or holder of the contract or other .erson actin1 on his behalf, for an- ille1al act co//itted in the collection of .a-/ents under the contract or in the re.ossession of the /otor vehicle. +d, The bu-er e0ecutes a .ower of attorne- a..ointin1 the seller or holder of the contract, or other .erson actin1 on his behalf, as the bu-er5s a1ent in the collection of .a-/ents under the contract or in the re.ossession of the /otor vehicle. +e, The bu-er relieves the seller fro/ liabilit- for an- le1al re/edies which the bu-er /a- have a1ainst the seller under the contract or an- se.arate instru/ent e0ecuted in connection therewith. +f, The seller or holder of the contract is 1iven the ri1ht to co//ence action on a contract under the .rovisions of this cha.ter in a count- other than the count- in which the contract was in fact si1ned b- the bu-er, the count- in which the bu-er resides at the co//ence/ent of the action, the count- in which the bu-er resided at the ti/e the contract was entered into, or in the count- in which the /otor vehicle .urchased .ursuant to such contract is .er/anentl- 1ara1ed.
(Added by Stats. 1968, Ch. 1288.)

29%#.%. "otwithstandin1 ection 89@:.8 or an- other .rovision of law, no deficiencAud1/ent shall lie in an- event in an- of the followin1 instances: +a, After an- sale of an- /obileho/e for which a .er/it is reBuired .ursuant to ection :<>@? or :<>9? of the )ehicle &ode for failure of the .urchaser to co/.lete his or her conditional sale contract 1iven to the seller to secure .a-/ent of the balance of the .urchase .rice of such /obileho/e. The .rovisions of this subdivision shall not a..l- in the event there is substantial da/a1e to the /obileho/e other than wear and tear fro/ nor/al usa1e. This subdivision shall a..l- onl- to contracts entered into on or after the effective date of the act that enacted this subdivision and before Kul- 7, 79@7. +b, After an- sale or other dis.osition of a /otor vehicle unless the court has deter/ined that the sale or other dis.osition was in confor/it- with the .rovisions of this cha.ter and the relevant .rovisions of Division 9 +co//encin1 with ection 97?7, of the &o//ercial &ode, includin1 ections 9=7?, 9=77, 9=78, 9=7:, 9=7;, 9=7<, and 9=8=. The deter/ination /a- be

/ade u.on an affidavit unless the court reBuires a hearin1 in the .articular case.
(Amended by Stats. 1999, Ch. 991, Sec. 8. Effective an!a"y 1, 2000. +(e"ative !$y 1, 2001, by Sec. 7& %f Ch. 991.)

29%4. An- failure to co/.l- with an- .rovision of this cha.ter +co//encin1 with ection 89@7, /a- be corrected b- the holder, .rovided, however, that a willful violation /a- not be corrected unless it is a violation a..earin1 on the face of the contract and is corrected within :? da-s of the e0ecution of the contract or within 8? da-s of its sale, assi1n/ent or .led1e, whichever is later, .rovided that the 8?Jda- .eriod shall co//ence with the initial sale, assi1n/ent or .led1e of the contract, and .rovided that an- other violation a..earin1 on the face of the contract /a- be corrected onl- within such ti/e .eriods. A correction which will increase the a/ount of the contract balance or the a/ount of an- install/ent as such a/ounts a..ear on the conditional sale contract shall not be effective unless the bu-er concurs in writin1 to the correction. If notified in writin1 b- the bu-er of such a failure to co/.l- with an- .rovision of this cha.ter, the correction shall be /ade within 7? da-s of notice. Chere an- .rovision of a conditional sale contract fails to co/.l- with an- .rovision of this cha.ter, the correction shall be /ade b- /ailin1 or deliverin1 a corrected co.- of the contract to the bu-er. An- a/ount i/.ro.erl- collected b- the holder fro/ the bu-er shall be credited a1ainst the indebtedness evidenced b- the contract or returned to the bu-er. A violation corrected as .rovided in this section shall not be the basis of anrecover- b- the bu-er or affect the enforceabilit- of the contract b- the holder and shall not be dee/ed to be a substantive chan1e in the a1ree/ent of the .arties.
(Amended by Stats. 196#, Ch. 8#8.)

29%4.1. Ever- conditional sale contract shall contain a state/ent in contrastin1 red .rint in at least @J.oint bold t-.e which shall satisf- the reBuire/ents of ection <=?; of the )ehicle &ode and be si1ned or initialed b- the bu-er, as follows: THE 3I"I3*3 %*(!I& !IA(I!IT' I" *RA"&E !I3IT %R$)IDED I" !AC 3* T (E 3ET (' E)ER' %ER $" CH$ %*R&HA E A )EHI&!E. IF '$* ARE *" *RE CHETHER $R "$T '$*R &*RRE"T I" *RA"&E %$!I&' CI!! &$)ER '$*R "EC!' A&N*IRED )EHI&!E I" THE E)E"T $F A" A&&IDE"T, '$* H$*!D &$"TA&T '$*R I" *RA"&E A#E"T. CAR"I"#: '$*R %RE E"T %$!I&' 3A' "$T &$)ER &$!!I I$" DA3A#E $R 3A' "$T %R$)IDE F$R F*!! RE%!A&E3E"T &$ T F$R THE )EHI&!E (EI"#

%*R&HA ED. IF '$* D$ "$T HA)E F*!! &$)ERA#E, *%%!E3E"TA! &$)ERA#E F$R &$!!I I$" DA3A#E 3A' (E A)AI!A(!E T$ '$* THR$*#H '$*R I" *RA"&E A#E"T $R THR$*#H THE E!!I"# DEA!ER. H$CE)ER, *"!E $THERCI E %E&IFIED, THE &$)ERA#E '$* $(TAI" THR$*#H THE DEA!ER %R$TE&T $"!' THE DEA!ER, * *A!!' *% T$ THE A3$*"T $F THE *"%AID (A!A"&E RE3AI"I"# AFTER THE )EHI&!E HA (EE" RE%$ E ED A"D $!D. F$R AD)I&E $" F*!! &$)ERA#E THAT CI!! %R$TE&T '$* I" THE E)E"T $F !$ $R DA3A#E T$ '$*R )EHI&!E, '$* H$*!D &$"TA&T '$*R I" *RA"&E A#E"T. THE (*'ER HA!! I#" T$ A&D"$C!ED#E THAT HEQ HE *"DER TA"D THE E %*(!I& !IA(I!IT' TER3 A"D &$"DITI$" . sQs GGGGGGGGGGGG. "o .erson shall .rint for use as a sales contract for/, an- for/ which does not co/.l- with this section.
(Amended by Stats. 1988, Ch. 177, Sec. 1.)

29%4.2. +a, "o conditional sale contract, and no a1ree/ent between a seller and a bu-er /ade in connection with a conditional sale contract, /a- .rovide for the inclusion of title to or a lien u.on an- .ro.ert- other than the followin1: +7, The /otor vehicle which is the subAect /atter of the sale, includin1 anre.lace/ent of that /otor vehicle, or accessories, accessions, or re.lace/ent of those accessories or accessions, or .roceeds thereof. +8, The .roceeds of an- insurance .olicies coverin1 the /otor vehicle which are reBuired b- the seller or the returned .re/iu/s of an- such .olicies if the .re/iu/s for such .olicies are included in the a/ount financed. +:, The .roceeds of an- credit insurance .olicies which the bu-er .urchases in connection with the /otor vehicle conditional sale contract or the returned .re/iu/s of an- such .olicies if the .re/iu/s for such .olicies are included in the a/ount financed. +;, The .roceeds and returned .rice of an- service contract if the cost of such contract is included in the a/ount financed. +b, ubdivision +a, shall not a..l- to an- a1ree/ent which /eets the reBuire/ents of subdivision +b, of ection 89@8.< and otherwise co/.lies with this cha.ter, nor, with res.ect to a /obileho/e sold .rior to Kul- 7, 79@7, to an- a1ree/ent whereb- a securit- interest is taken in real .ro.erton which the /obileho/e is installed on a foundation s-ste/ .ursuant to ection 7@<<7 of the Health and afet- &ode. +c, A .rovision in violation of this section shall be void.
(Amended by Stats. 1987, Ch. 104#, Sec. 1.)

29%4.#.

An- acknowled1/ent b- the bu-er of deliver- of a co.- of a conditional sale contract or .urchase order and an- vehicle .urchase .ro.osal and an- credit state/ent that the seller has reBuired or reBuested the bu-er to si1n, and that he or she has si1ned, durin1 the contract ne1otiations, shall be .rinted or written in si6e eBual to at least 7?J.oint boldface t-.e and, if contained in the contract, shall a..ear directl- above the s.ace reserved for the bu-er5s si1nature or adAacent to an- other notices reBuired b- law to be .laced i//ediatel- above the si1nature s.ace. The bu-er5s written acknowled1/ent, confor/in1 to the reBuire/ents of this section, of deliverof a co/.letel- filledJin co.- of the contract, and a co.- of the other docu/ents shall be a rebuttable .resu/.tion of deliver- in an- action or .roceedin1 b- or a1ainst a third .art- without knowled1e to the contrarwhen he or she acBuired his or her interest in the contract. If the third .artfurnishes the bu-er a co.- of the docu/ents, or a notice containin1 the disclosures identified in subdivision +a, of ection 89@8, and statin1 that the bu-er shall notif- the third .art- in writin1 within :? da-s if a co.- of the docu/ents was not furnished, and that notification is not 1iven, it shall be conclusivel- .resu/ed in favor of the third .art- that co.ies of the docu/ents were furnished as reBuired b- this cha.ter.
(Amended by Stats. 1994, Ch. 146, Sec. 1&. Effective an!a"y 1, 199&.)

29%4.4. +a, An action on a contract or .urchase order under this cha.ter shall be tried in the su.erior court in the count- where the contract or .urchase order was in fact si1ned b- the bu-er, where the bu-er resided at the ti/e the contract or .urchase order was entered into, where the bu-er resides at the co//ence/ent of the action, or where the /otor vehicle .urchased .ursuant to the contract or .urchase order is .er/anentl- 1ara1ed. In an- action involvin1 /ulti.le clai/s, or causes of action, venue shall lie in those courts if there is at least one clai/ or cause of action arisin1 fro/ a contract subAect to this cha.ter. +b, In the su.erior court desi1nated as the .ro.er court in subdivision +a,, the .ro.er court location for trial of an action under this cha.ter is the location where the court tries that t-.e of action that is nearest or /ost accessible to where the contract, conditional sale contract, or .urchase order was in fact si1ned b- the bu-er, where the bu-er resided at the ti/e the contract, conditional sale contract, or .urchase order was entered into, where the bu-er resides at the co//ence/ent of the action, or where the /otor vehicle .urchased .ursuant to the contract is .er/anentl- 1ara1ed. $therwise, an- location of the su.erior court desi1nated as the .ro.er su.erior court in subdivision +a, is the .ro.er court location for the trial of the action. The court /a- s.ecif- b- local rule the nearest or /ost accessible court location where the court tries that t-.e of case. +c, In an- action subAect to this section, concurrentl- with the filin1 of the co/.laint, the .laintiff shall file an affidavit statin1 facts showin1 that the action has been co//enced in a su.erior court and court location described

in this section as a .ro.er .lace for the trial of the action. Those facts /a- be stated in a verified co/.laint and shall not be stated on infor/ation or belief. Chen that affidavit is filed with the co/.laint, a co.- shall be served with the su//ons. If a .laintiff fails to file the affidavit or state facts in a verified co/.laint reBuired b- this section, no further .roceedin1s /a- occur, but the court shall, u.on its own /otion or u.on /otion of an- .art-, dis/iss the action without .reAudice. The court /a-, on ter/s that are Aust, .er/it the affidavit to be filed subseBuent to the filin1 of the co/.laint and a co.- of the affidavit shall be served on the defendant. The ti/e to answer or otherwise .lead shall date fro/ that service.
(Amended by Stats. 2002, Ch. 806, Sec. 2. Effective an!a"y 1, 200#.)

29%4.". +a, A seller shall /aintain the followin1 docu/ents for at least seven -ears or the len1th of the conditional sales contract, whichever is lon1er: +7, A co.- of each bu-er5s conditional sales contract. +8, An- docu/ents relied u.on b- the seller to deter/ine a bu-er5s creditworthiness, includin1, but not li/ited to, an- consu/er credit re.ort, as defined in ection 7>@<.:, or an- other docu/ent containin1 a bu-er5s credit score, as defined in ection 7>@<.7<.7. +:, If the conditional sales contract is sold, assi1ned, or otherwise transferred, a co.- of the ter/s of that sale, assi1n/ent, or transfer. +b, A seller that unlawfull- fails to co/.l- with a court order to .roduce the docu/ents described in subdivision +a, shall be liable in an action brou1ht bthe Attorne- #eneral for a civil .enalt- of five thousand dollars +L<,???, .er violation. The .enalties .rovided b- this section are in addition to all ri1hts and re/edies that are otherwise available under law.
(Added by Stats. 200#, Ch. &9, Sec. 1. Effective an!a"y 1, 2004.)

29%4.$. A holder of a conditional sales contract, .urchase order, or securit- interest, or the a1ent of a holder, who has received a notice .ursuant to ection ><?>.= of the (usiness and %rofessions &ode, shall not /ake a subseBuent assi1n/ent to ski. trace, locate, or re.ossess the vehicle without si/ultaneousl-, and in the sa/e /anner b- which the assi1n/ent is 1iven, advisin1 the assi1nee of the assi1n/ent of the infor/ation contained in the notice. As used in this section, 2assi1n/ent4 has the sa/e /eanin1 set forth in ection ><??.7 of the (usiness and %rofessions &ode.
(Added by Stats. 2007, Ch. 192, Sec. 4. Effective Se(tembe" 7, 2007.)

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CIVIL CODE - CIV

DIVI2IO% *. O$LI/A'IO%2 7+420 5 *202.98 ( Heading of Division 3 amended by Stats. 1988, Ch. 1 !, Sec. 1". ) BA-' 4. O$LI/A'IO%2 A-I2I%/ 1-OA BA-'ICCLA- '-A%2AC'IO%2 7+0*D 5 *202.98 ( #a$t " enacted 1872. ) 'I'LE +4. LIE% 72D02 5 *)D+8 ( %it&e 1" enacted 1872. ) CHA.TER 2'. Real .ro/ert0 4ales Contra'ts [29%" - 29%".$! ( Cha'te$ 2c added by Stats. 19 1, Ch. 88 . ) 29%". +a, A real .ro.ert- sales contract is an a1ree/ent in which one .art- a1rees to conve- title to real .ro.ert- to another .art- u.on the satisfaction of s.ecified conditions set forth in the contract and that does not reBuire conve-ance of title within one -ear fro/ the date of for/ation of the contract. +b, For .ur.oses of this cha.ter onl-, a real .ro.ert- sales contract does not include a contract for .urchase of an attached residential condo/iniu/ unit entered into .ursuant to a conditional .ublic re.ort issued b- the (ureau of Real Estate .ursuant to ection [email protected] of the (usiness and %rofessions &ode.
(Amended by Stats. 201#, Ch. #&2, Sec. &#. Effective Se(tembe" 26, 201#. +(e"ative !$y 1, 201#, by Sec. &4# %f Ch. #&2.)

29%".1. A real .ro.ert- sales contract /a- not be transferred b- the fee owner of the real .ro.ert- unless acco/.anied b- a transfer of the real .ro.ert- which is the subAect of the contract, and real .ro.ert- /a- not be transferred b- the fee owner thereof unless acco/.anied b- an assi1n/ent of the contract. "othin1 herein shall be dee/ed to .rohibit the assi1n/ent or .led1e of a real .ro.ert- sales contract, as securit- or for the .ur.ose of effectin1 collection thereon, to the holder of a first lien on the real .ro.ert- which is the subAect of the contract without a transfer of the real .ro.ert- or the transfer of a fee title in trust without the concurrent assi1n/ent of the sales contract.
(Amended by Stats. 196#, Ch. 71.)

29%".2. An- .erson, or the assi1nee of such .erson, who sells a .arcel of land under a sales contract which is not recorded and who thereafter causes an encu/brance or encu/brances not consented to in writin1 b- the .arties u.on such .ro.ert- in an a/ount which, to1ether with e0istin1 encu/brances thereon e0ceeds the a/ount then due under the contract, or under which the a11re1ate a/ount of an- .eriodic .a-/ents e0ceeds the .eriodic .a-/ents due on the contract, e0cludin1 an- .ro rata a/ount for

insurance and ta0es, shall be 1uilt- of a .ublic offense .unishable b- a fine not e0ceedin1 ten thousand dollars +L7?,???,, or b- i/.rison/ent .ursuant to subdivision +h, of ection 77>? of the %enal &ode, or in a count- Aail not e0ceedin1 one -ear, or b- both that fine and i/.rison/ent.
(Amended by Stats. 2011, Ch. 1&, Sec. #6. Effective A("i$ 4, 2011. +(e"ative +ct%be" 1, 2011, by Sec. 6#6 %f Ch. 1&, as amended by Stats. 2011, Ch. #9, Sec. 68.)

29%".#. Ever- seller of i/.roved or uni/.roved real .ro.ert- under a real .ro.ertsales contract, or his assi1nee, who knowin1l- receives an install/ent .a-/ent fro/ the bu-er under a real .ro.ert- sales contract at a ti/e when there is then due an- .a-/ent b- the seller, or his assi1nee, on an obli1ation secured b- an encu/brance on the .ro.ert- subAect to the real .ro.ertsales contract, and who a..ro.riates such .a-/ent received fro/ the bu-er to a use other than .a-/ent of the a/ount then due on the seller5s or assi1nee5s obli1ation, e0ce.t to the e0tent the .a-/ent received fro/ the bu-er e0ceeds the a/ount due fro/ the seller or assi1nee, is 1uilt- of a .ublic offense .unishable b- a fine not e0ceedin1 ten thousand dollars +L7?,???,, or b- i/.rison/ent .ursuant to subdivision +h, of ection 77>? of the %enal &ode, or in a count- Aail not e0ceedin1 one -ear, or b- both that fine and i/.rison/ent.
(Amended by Stats. 2011, Ch. 1&, Sec. #7. Effective A("i$ 4, 2011. +(e"ative +ct%be" 1, 2011, by Sec. 6#6 %f Ch. 1&, as amended by Stats. 2011, Ch. #9, Sec. 68.)

29%".4. Ever- seller of i/.roved or uni/.roved real .ro.ert- under a real .ro.ertsales contract who receives .ro rata .a-/ents for insurance and ta0es shall hold these a/ounts in trust for the .ur.ose desi1nated. These a/ounts shall not be disbursed for an- other .ur.ose without the consent of the .a-or and an- .erson or cor.oration holdin1 an encu/brance on the .ro.ert-. This section shall not a..l- to a stateJ or federalJsu.ervised assi1nee of a seller who as a1ent for the seller receives and disburses .a-/ents.
(Added by Stats. 196#, Ch. &60.)

29%".". Ever- real .ro.ert- sales contract entered into after Kanuar- 7, 79==, shall contain a state/ent of: +a, The nu/ber of -ears reBuired to co/.lete .a-/ent in accordance with the ter/s of the contract. +b, The basis u.on which the ta0 esti/ate is /ade.
(Added by Stats. 196&, Ch. 1214.)

29%"."1. +a, Ever- real .ro.ert- sales contract entered into on and after Kanuar- 7, 79>@, where the real .ro.ert- that is the subAect of such contract resulted fro/ a division of real .ro.ert- occurrin1 on or after Kanuar- 7, 79>@, shall contain or have attached thereto a state/ent indicatin1 the fact that the division creatin1 the .arcel or .arcels to be conve-ed: +7, Cas /ade in co/.liance with the .rovisions of the ubdivision 3a. Act, Division 8 +co//encin1 with ection ==;7?, of Title > of the #overn/ent &ode and local ordinances ado.ted .ursuant thereto, and in such event the state/ent shall e0.ressl- refer to the location, in the records of the countrecorder for the count- in which the real .ro.ert- is located, of a .reviouslrecorded certificate of co/.liance or conditional certificate of co/.liance issued .ursuant to ection ==;99.:< of the #overn/ent &ode with res.ect to the real .ro.ert- bein1 sold, or the state/ent shall describe the real .ro.ertto be conve-ed as an entire lot or .arcel b- referencin1 the recorded final or .arcel /a. creatin1 the .arcel or .arcels to be conve-ed and such descri.tion shall constitute a certificate of co/.liance as set forth in subdivision +d, of ection ==;99.:< of the #overn/ent &ode. %rovided, however, where reference is /ade to a recorded .arcel /a. and the a..roval of such /a. was conditioned u.on the construction of s.ecified offsite and onsite i/.rove/ents as a .recondition to the issuance of a .er/it or 1rant of a..roval for the develo./ent of such .arcel and the construction of the i/.rove/ents has not been co/.leted as of the date of e0ecution of the real .ro.ert- sales contract, then the state/ent shall e0.ressl- set forth all such reBuired offsite and onsite i/.rove/entsH or +8, Cas e0e/.t fro/ the .rovisions of the ubdivision 3a. Act and local ordinances ado.ted .ursuant thereto, and in such event the state/ent shall e0.ressl- set forth the basis for such e0e/.tionH or +:, Cas the subAect of a waiver of the .rovisions of the ubdivision 3a. Act and local ordinances ado.ted .ursuant thereto, and in such event the contract shall have attached thereto a co.- of the docu/ent issued b- the local a1enc- 1rantin1 the waiver. %rovided, however, where the 1rantin1 of the waiver was conditioned u.on the construction of s.ecified offsite and onsite i/.rove/ents as a .recondition to the issuance of a .er/it or 1rant of a..roval for the develo./ent of the .arcel and the construction of the i/.rove/ents has not been co/.leted as of the date of e0ecution of the real .ro.ert- sales contract, then such state/ent shall e0.ressl- set forth all such reBuired offsite and onsite i/.rove/entsH or +;, Cas not subAect to the .rovisions of the ubdivision 3a. Act and local ordinances ado.ted .ursuant thereto, and in such event the state/ent shall e0.ressl- set forth the basis for the nona..licabilit- of the ubdivision 3a. Act to the division. +b, Ever- real .ro.ert- sales contract entered into after Kanuar- 7, 79>@, where the real .ro.ert- that is the subAect of such contract resulted fro/ a division of real .ro.ert- occurrin1 .rior to Kanuar- 7, 79>@, shall: +7, &ontain or have attached thereto a si1ned state/ent b- the vendor that the .arcel or .arcels which are the subAect of the contract have been created

in co/.liance with, or a waiver has been 1ranted with res.ect to, the .rovisions of the ubdivision 3a. Act, Division 8 +co//encin1 with ection ==;7?, of Title > of the #overn/ent &ode and local ordinances ado.ted .ursuant thereto, or an- .rior law re1ulatin1 the division of land, or, were e0e/.t fro/ or not otherwise subAect to an- such law at the ti/e of their creation. %rovided, however, where the division creatin1 the .arcel or .arcels bein1 conve-ed was b- /eans of a .arcel /a., or in the event that a waiver of the .rovisions of the ubdivision 3a. Act has been 1ranted, and the a..roval of the .arcel /a. or the 1rantin1 of the waiver was conditioned u.on the construction of s.ecified offsite and onsite i/.rove/ents as a .recondition to the issuance of a .er/it or 1rant of a..roval for the develo./ent of such .arcel and the construction of the i/.rove/ents has not been co/.leted as of the date of e0ecution of the real .ro.ert- sales contract, then such contract shall e0.ressl- set forth all such reBuired offsite and onsite i/.rove/ents. +8, In lieu of the above, the vendor /a- include in the real .ro.ert- sales contract a descri.tion of the real .ro.ert- bein1 conve-ed as an entire lot or .arcel b- referencin1 the recorded final or .arcel /a. creatin1 the .arcel or .arcels bein1 conve-ed and such descri.tion shall constitute a certificate of co/.liance as set forth in subdivision +d, of ection ==;99.:< of the #overn/ent &ode. %rovided, however, where reference is /ade to a recorded .arcel /a., or in the event that a waiver of the .rovisions of the ubdivision 3a. Act has been 1ranted, and the a..roval of the .arcel /a. or the 1rantin1 of the waiver was conditioned u.on the construction of s.ecified offsite and onsite i/.rove/ents as a .recondition to the issuance of a .er/it or 1rant of a..roval for the develo./ent of such .arcel and the construction of the i/.rove/ents has not been co/.leted as of the date of e0ecution of the real .ro.ert- sales contract, then such contract shall e0.ressl- set forth all such reBuired offsite and onsite i/.rove/ents. +:, "otwithstandin1 .ara1ra.hs +7, and +8,, in the event that the .arcel or .arcels which are the subAect of the real .ro.ert- sales contract were not created in co/.liance with the .rovisions of the ubdivision 3a. Act, Division 8 +co//encin1 with ection ==;7?, of Title > of the #overn/ent &ode and local ordinances ado.ted .ursuant thereto, or an- other .rior law re1ulatin1 the division of land, and were not e0e/.t fro/, or were otherwise subAect to an- such law at the ti/e of their creation, the real .ro.ert- sales contract shall contain a state/ent si1ned b- the vendor and vendee acknowled1in1 such fact. In addition, the vendor shall attach to the real .ro.ert- sales contract a conditional certificate of co/.liance issued .ursuant to ection ==;99.:< of the #overn/ent &ode. +c, In the event that the .arcel or .arcels which are the subAect of the real .ro.ert- sales contract are found not to have been created in co/.liance with, or a waiver has not been 1ranted with res.ect to, the .rovisions of the ubdivision 3a. Act, Division 8 +co//encin1 with ection ==;7?, of Title > of the #overn/ent &ode, or an- other .rior law re1ulatin1 the division of land nor to be e0e/.t fro/, or otherwise subAect to such laws and the vendee has reasonabl- relied u.on the state/ent of such co/.liance or e0e/.tion /ade b- the vendor, or in the event that the vendor has failed to

.rovide the conditional certificate of co/.liance as reBuired b- .ara1ra.h +:, of subdivision +b,, and the vendor knew or should have known of the fact of such nonco/.liance, or lack of e0e/.tion, or the failure to .rovide the conditional certificate of co/.liance, the vendee, or his successor in interest, shall be entitled to: +7, recover fro/ the vendor or his assi1ns the a/ount of all costs incurred b- the vendee or his successor in interest in co/.l-in1 with all conditions i/.osed .ursuant to ection ==;99.:< of the #overn/ent &odeH or, +8, the real .ro.ert- sales contract, at the sole o.tion of the vendee, or his successor in interest, shall be voidable and in such event the vendee or his successor in interest shall be entitled to da/a1es fro/ the vendor or his assi1ns. For .ur.oses of this section, da/a1es shall /ean all a/ounts .aid under the real estate sales contract with interest thereon at the rate of 9 .ercent .er annu/, and in addition thereto a civil .enalt- in the a/ount of five hundred dollars +L<??, .lus attorne-5s fees and costs. Anaction to enforce the ri1hts of a vendee or his successor in interest shall be co//enced within one -ear of the date of discover- of the failure to co/.lwith the .rovisions of this section. +d, An- vendor who willfull- violates the .rovisions of subdivision +a, of this section b- knowin1l- .rovidin1 a vendee with a false state/ent of co/.liance with, e0e/.tion fro/, waiver of, or nona..licabilit- of, the .rovisions of the ubdivision 3a. Act, with res.ect to the real .ro.ert- that is the subAect of the real .ro.ert- sales contract, shall be 1uilt- of a /isde/eanor .unishable b- a fine of not to e0ceed one thousand dollars +L7,???,, or i/.rison/ent for not to e0ceed si0 /onths, or both such fine and i/.rison/ent. +e, For .ur.oses of this section a real .ro.ert- sales contract is an a1ree/ent wherein one .art- a1rees to conve- title to uni/.roved real .ro.ert- to another .art- u.on the satisfaction of s.ecified conditions set forth in the contract and which does not reBuire conve-ance of title within one -ear fro/ the date of for/ation of the contract. *ni/.roved real .ro.ert- /eans real .ro.ert- u.on which no .er/anent structure intended for hu/an occu.anc- or co//ercial use is located. +f, The .rovisions of this section shall not a..l- to a real .ro.ert- sales contract which, b- its ter/s, reBuires either a 1ood faith down.a-/ent and a sin1le .a-/ent of the balance of the .urchase .rice or a sin1le .a-/ent of the .urchase .rice u.on co/.letion of the contract, and the .rovisions of such contract do not reBuire .eriodic .a-/ent of .rinci.al or interest.
(Added by Stats. 1977, Ch. 1228.)

29%".$. +a, A bu-er shall be entitled to .re.a- all or an- .art of the balance due on an- real .ro.ert- sales contract with res.ect to the sale of land which has been subdivided into a residential lot or lots which contain a dwellin1 for not /ore than four fa/ilies entered into on or after Kanuar- 7, 79=9H .rovided, however, that the seller, b- an a1ree/ent in writin1 with the bu-er, /a.rohibit .re.a-/ent for u. to a 78J/onth .eriod followin1 the sale.

+b, An- waiver b- the bu-er of the .rovisions of this section shall be dee/ed contrar- to .ublic .olic- and shall be unenforceable and voidH .rovided, however, that an- such waiver shall in no wa- affect the validit- of the re/ainder of the contract.
(Amended by Stats. 1978, Ch. &6&.)