Civil Code

Part 11 of 20 · provisions 2,001–2,200

This section names the act the Civil Code of the State of California and says it is divided into four parts.

Jurisdiction: United States — California
Instrument: Code
Citation: CIV
Version: Undated source snapshot
Language: en
Official source: View official record ↗
Complete work: View statute overview

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About this statute

Occupancy can create title, but that title is subject to listed superior claims and does not by itself let the occupant bring or keep a quiet title action unless prescription has matured the title. Occupancy for the time required by the Code of Civil Procedure can create title by prescription, except for property dedicated to public use or owned by the state or a public entity. A use of land does not become a prescriptive easement if the owner posts notice signs at each entrance or every 200 feet along the boundary. Public use of private property does not create a permanent vested right unless there is an express written irrevocable offer of dedication that is accepted as required; special rules apply to certain coastal property. A person who in good faith and by mistake affixes improvements to another’s land may remove them, but must pay damages as required.

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Provisions of Civil Code

Showing 200 of 3,922

2304.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent may be authorized to do acts that the principal could do, except acts requiring the principal’s personal attention.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2304. An agent may be authorized to do any acts which his principal might do, except those to which the latter is bound to give his personal attention. (Enacted 1872.)
2305.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An act that may be done by or to a person under the Code may also be done by or to that person's agent, unless a contrary intention clearly appears.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2305. Every act which, according to this Code, may be done by or to any person, may be done by or to the agent of such person for that purpose, unless a contrary intention clearly appears. (Enacted 1872.)
2306.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent cannot have authority to do an act that is known or suspected by the other party to be a fraud on the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2306. An agent can never have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom he deals, to be a fraud upon the principal. (Enacted 1872.)
2307.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agency or an authority may be created by prior authorization or later ratification.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2307. An agency may be created, and an authority may be conferred, by a precedent authorization or a subsequent ratification. (Enacted 1872.)
2308.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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A consideration is not required for an authority to bind the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2308. A consideration is not necessary to make an authority, whether precedent or subsequent, binding upon the principal. (Enacted 1872.)
2309.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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Oral authorization is enough unless the authority is to enter a contract that the law requires to be in writing; in that case, the authority must be given in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2309. An oral authorization is sufficient for any purpose, except that an authority to enter into a contract required by law to be in writing can only be given by an instrument in writing. (Enacted 1872.)
2310.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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A ratification is valid only in the form required to give original authority for the act, or—if oral authorization would have been enough—by accepting or keeping the benefit of the act with notice of it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2310. A ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified, or where an oral authorization would suffice, by accepting or retaining the benefit of the act, with notice thereof. (Enacted 1872.)
2311.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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If part of an indivisible transaction is ratified, the ratification covers the whole transaction.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2311. Ratification of part of an indivisible transaction is a ratification of the whole. (Enacted 1872.)
2312.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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A ratification is only valid if the principal had power to give authority for that act when ratifying it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2312. A ratification is not valid unless, at the time of ratifying the act done, the principal has power to confer authority for such an act. (Enacted 1872.)
2313.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An unauthorized act cannot be made valid retroactively if doing so would prejudice third persons unless they consent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2313. No unauthorized act can be made valid, retroactively, to the prejudice of third persons, without their consent. (Enacted 1872.)
2314.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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A ratification may be rescinded if it was made without the required contractual consent or with imperfect knowledge of the material facts, and not otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2314. A ratification may be rescinded when made without such consent as is required in a contract, or with an imperfect knowledge of the material facts of the transaction ratified, but not otherwise. (Enacted 1872.)
2315.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent has the authority the principal gives him, whether actually or apparently.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2315. An agent has such authority as the principal, actually or ostensibly, confers upon him. (Enacted 1872.)
2316.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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Actual authority means authority the principal intentionally gives the agent, or lets the agent think they have.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2316. Actual authority is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess. (Enacted 1872.)
2317.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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Ostensible authority means authority a principal causes or allows a third person to believe the agent has.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2317. Ostensible authority is such as a principal, intentionally or by want of ordinary care, causes or allows a third person to believe the agent to possess. (Enacted 1872.)
2318.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent has the authority set out in this Title, unless the principal specifically takes it away; even then, the agent may still have apparent authority except against people who know, or should know, about the restriction.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2318. Every agent has actually such authority as is defined by this Title, unless specially deprived thereof by his principal, and has even then such authority ostensibly, except as to persons who have actual or constructive notice of the restriction upon his authority. (Enacted 1872.)
2319.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent has authority to do things necessary and usual for the agency, and to make certain factual representations tied to that authority.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2319. An agent has authority: 1. To do everything necessary or proper and usual, in the ordinary course of business, for effecting the purpose of his agency; and, 2. To make a representation respecting any matter of fact, not including the terms of his authority, but upon which his right to use his authority depends, and the truth of which cannot be determined by the use of reasonable diligence on the part of the person to whom the representation is made. (Enacted 1872.)
2320.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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An agent may disobey instructions when doing so is clearly in the principal’s interest and there is no time to communicate with the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2320. An agent has power to disobey instructions in dealing with the subject of the agency, in cases where it is clearly for the interest of his principal that he should do so, and there is not time to communicate with the principal. (Enacted 1872.)
2321.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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If authority is granted partly in general and partly in specific terms, the general wording does not add powers beyond the specific ones named.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2321. When an authority is given partly in general and partly in specific terms, the general authority gives no higher powers than those specifically mentioned. (Enacted 1872.)
2322.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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General authority does not let an agent act in their own name, define the agency’s scope, or violate certain trustee duties.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2322. An authority expressed in general terms, however broad, does not authorize an agent to do any of the following: (a) Act in the agent’s own name, unless it is the usual course of business to do so. (b) Define the scope of the agency. (c) Violate a duty to which a trustee is subject under Section 16002, 16004, 16005, or 16009 of the Probate Code. (Amended by Stats. 1988, Ch. 113, Sec. 5. Effective May 25, 1988. Operative July 1, 1988, by Sec. 23 of Ch. 113.)
2323.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
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Authority to sell personal property includes authority to warrant the principal’s title and the property’s quality and quantity.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2323. An authority to sell personal property includes authority to warrant the title of the principal, and the quality and quantity of the property. (Enacted 1872.)
2324.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
Verify source ↗

A person authorized to sell and convey real property also has authority to give the usual covenants of warranty.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2324. An authority to sell and convey real property includes authority to give the usual convenants of warranty. (Enacted 1872.)
2325.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
Verify source ↗

A general agent to sell who has been given possession of the sold item has authority to receive the price.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2325. A general agent to sell, who is intrusted by the principal with the possession of the thing sold, has authority to receive the price. (Enacted 1872.)
2326.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. )
Verify source ↗

A special agent to sell may receive the price when the thing sold is delivered, but not after that.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Authority of Agents [2304 - 2326] ( Article 2 enacted 1872. ) ## 2326. A special agent to sell has authority to receive the price on delivery of the thing sold, but not afterwards. (Enacted 1872.)
2330.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

An agent acts for the principal within the scope of actual or ostensible authority.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2330. An agent represents his principal for all purposes within the scope of his actual or ostensible authority, and all the rights and liabilities which would accrue to the agent from transactions within such limit, if they had been entered into on his own account, accrue to the principal. (Enacted 1872.)
2331.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

A principal is bound by an incomplete execution of authority only when it matches the authority’s whole purpose and scope.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2331. A principal is bound by an incomplete execution of an authority, when it is consistent with the whole purpose and scope thereof, but not otherwise. (Enacted 1872.)
2332.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

As against a principal, both the principal and the agent are treated as knowing what either one knows and should communicate that information to the other.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2332. As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other. (Enacted 1872.)
2333.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

If an agent exceeds authority, the principal is bound only by the authorized acts that can be clearly separated from the unauthorized ones.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2333. When an agent exceeds his authority, his principal is bound by his authorized acts so far only as they can be plainly separated from those which are unauthorized. (Enacted 1872.)
2334.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

A principal is bound by an agent’s acts made under merely ostensible authority, but only for people who acted in good faith and without lack of ordinary care and relied on that authority.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2334. A principal is bound by acts of his agent, under a merely ostensible authority, to those persons only who have in good faith, and without want of ordinary care, incurred a liability or parted with value, upon the faith thereof. (Amended by Stats. 1905, Ch. 457.)
2335.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

A principal is exonerated if a person gives exclusive credit to the agent and then pays or otherwise settles with the agent in good faith before notice that the creditor chose to hold the principal responsible.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2335. If exclusive credit is given to an agent by the person dealing with him, his principal is exonerated by payment or other satisfaction made by him to his agent in good faith, before receiving notice of the creditor’s election to hold him responsible. (Enacted 1872.)
2336.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

A person who deals with an agent, without knowing or having reason to believe the agent is acting as an agent, may set off certain claims against the principal’s claim.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2336. One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction, may set off against any claim of the principal arising out of the same, all claims which he might have set off against the agent before notice of the agency. (Enacted 1872.)
2337.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

An agent’s instrument binds the principal if it is within the agent’s authority and the intent to bind the principal is plainly inferable from the instrument.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2337. An instrument within the scope of his authority by which an agent intends to bind his principal, does bind him if such intent is plainly inferable from the instrument itself. (Enacted 1872.)
2338.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
Verify source ↗

A principal is generally responsible to third persons for an agent’s negligence, wrongful acts, and willful omissions in agency business, unless the law requires the principal to employ that particular agent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2338. Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as a part of the transaction of such business, and for his willful omission to fulfill the obligations of the principal. (Enacted 1872.)
2339.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. )
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A principal is not responsible for other wrongs committed by an agent, except those covered by the previous section or if the principal authorized or ratified the wrongs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Mutual Obligations of Principals and Third Persons [2330 - 2339] ( Article 3 enacted 1872. ) ## 2339. A principal is responsible for no other wrongs committed by his agent than those mentioned in the last section, unless he has authorized or ratified them, even though they are committed while the agent is engaged in his service. (Enacted 1872.)
2342.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. )
Verify source ↗

A person who acts as an agent must warrant to people dealing with him that he has the authority he claims.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. ) ## 2342. One who assumes to act as an agent thereby warrants, to all who deal with him in that capacity, that he has the authority which he assumes. (Enacted 1872.)
2343.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. )
Verify source ↗

A person who acts as an agent can be personally responsible to third parties as if they were the principal in certain listed cases.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. ) ## 2343. One who assumes to act as an agent is responsible to third persons as a principal for his acts in the course of his agency, in any of the following cases, and in no others: 1. When, with his consent, credit is given to him personally in a transaction; 2. When he enters into a written contract in the name of his principal, without believing, in good faith, that he has authority to do so; or, 3. When his acts are wrongful in their nature. (Enacted 1872.)
2344.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. )
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An agent who receives property for the principal must surrender it on demand to the person entitled to it, unless indemnified issues are unresolved; the agent is also responsible if, after notice from the owner, the agent delivers it to the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. ) ## 2344. If an agent receives anything for the benefit of his principal, to the possession of which another person is entitled, he must, on demand, surrender it to such person, or so much of it as he has under his control at the time of demand, on being indemnified for any advance which he has made to his principal, in good faith, on account of the same; and is responsible therefor, if, after notice from the owner, he delivers it to his principal. (Enacted 1872.)
2345.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. )
Verify source ↗

This article is subordinate to the provisions of Part I, Division First, of the Code.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Obligations of Agents to Third Persons [2342 - 2345] ( Article 4 enacted 1872. ) ## 2345. The provisions of this Article are subject to the provisions of Part I, Division First, of this Code. (Enacted 1872.)
2349.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. )
Verify source ↗

An agent may delegate powers to another person only in listed cases, and not if the principal specially forbids it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. ) ## 2349. An agent, unless specially forbidden by his principal to do so, can delegate his powers to another person in any of the following cases, and in no others: 1. When the act to be done is purely mechanical; 2. When it is such as the agent cannot himself, and the sub-agent can lawfully perform; 3. When it is the usage of the place to delegate such powers; or, 4. When such delegation is specially authorized by the principal. (Enacted 1872.)
2350.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. )
Verify source ↗

If an agent hires a sub-agent without authority, the first agent is treated as a principal and the sub-agent as that agent’s agent; the principal of the first agent has no connection with the sub-agent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. ) ## 2350. If an agent employs a sub-agent without authority, the former is a principal and the latter his agent, and the principal of the former has no connection with the latter. (Enacted 1872.)
2351.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. )
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A lawfully appointed sub-agent represents the principal in the same way as the original agent, and the original agent is not responsible to third persons for the sub-agent’s acts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Delegation of Agency [2349 - 2351] ( Article 5 enacted 1872. ) ## 2351. A sub-agent, lawfully appointed, represents the principal in like manner with the original agent; and the original agent is not responsible to third persons for the acts of the sub-agent. (Enacted 1872.)
2355.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. )
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An agency ends, for people who have notice of it, when its term expires, its subject ends, the agent dies, the agent renounces it, or the agent becomes incapable of acting.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. ) ## 2355. An agency is terminated, as to every person having notice thereof, by any of the following: (a) The expiration of its term. (b) The extinction of its subject. (c) The death of the agent. (d) The agent’s renunciation of the agency. (e) The incapacity of the agent to act as such. (Amended by Stats. 1994, Ch. 307, Sec. 1. Effective January 1, 1995.)
2356.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. )
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An agent’s power ends on revocation by the principal, the principal’s death, or the principal’s incapacity, unless the power is coupled with an interest.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. ) ## 2356. (a) Unless the power of an agent is coupled with an interest in the subject of the agency, it is terminated by any of the following: (1) Its revocation by the principal. (2) The death of the principal. (3) The incapacity of the principal to contract. (b) Notwithstanding subdivision (a), any bona fide transaction entered into with an agent by any person acting without actual knowledge of the revocation, death, or incapacity shall be binding upon the principal, his or her heirs, devisees, legatees, and other successors in interest. (c) Nothing in this section shall affect the provisions of Section 1216. (d) With respect to a proxy given by a person to another person relating to the exercise of voting rights, to the extent the provisions of this section conflict with or contravene any other provisions of the statutes of California pertaining to the proxy, the latter provisions shall prevail. (Amended by Stats. 1994, Ch. 307, Sec. 2. Effective January 1, 1995.)
2357.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. )
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For this agency rule, a person is treated as lacking actual knowledge of an absentee principal’s death, incapacity, or later revocation in specified circumstances.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 1. Agency in General [2295 - 2357] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Termination of Agency [2355 - 2357] ( Article 6 enacted 1872. ) ## 2357. For the purposes of subdivision (b) of Section 2356, in the case of a principal who is an absentee as defined in Section 1403 of the Probate Code, a person shall be deemed to be without actual knowledge of: (a) The principal’s death or incapacity while the absentee continues in missing status and until the person receives notice of the determination of the death of the absentee by the secretary concerned or the head of the department or agency concerned or the delegate of the secretary or head. (b) Revocation by the principal during the period described in subdivision (a). (Amended by Stats. 1994, Ch. 307, Sec. 3. Effective January 1, 1995.)
2362.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Auctioneers [2362 - 2363] ( Article 1 enacted 1872. )
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An auctioneer generally has authority from the seller to conduct the sale in specified ways, unless special authorization or contrary usage applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Auctioneers [2362 - 2363] ( Article 1 enacted 1872. ) ## 2362. An auctioneer, in the absence of special authorization or usage to the contrary, has authority from the seller, only as follows: 1. To sell by public auction to the highest bidder; 2. To sell for cash only, except such articles as are usually sold on credit at auction; 3. To warrant, in like manner with other agents to sell, according to Section 2323; 4. To prescribe reasonable rules and terms of sale; 5. To deliver the thing sold, upon payment of the price; 6. To collect the price; and, 7. To do whatever else is necessary, or proper and usual, in the ordinary course of business, for effecting these purposes. (Enacted 1872.)
2363.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Auctioneers [2362 - 2363] ( Article 1 enacted 1872. )
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An auctioneer has authority to bind both the bidder and the seller by a memorandum of the contract, as allowed by the Title on Sale.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Auctioneers [2362 - 2363] ( Article 1 enacted 1872. ) ## 2363. An auctioneer has authority from a bidder at the auction, as well as from the seller, to bind both by a memorandum of the contract, as prescribed in the Title on Sale. (Enacted 1872.)
2367.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. )
Verify source ↗

A factor is defined as an agent under Section 2026.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. ) ## 2367. A factor is an agent, as defined by Section 2026. (Enacted 1872.)
2368.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. )
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A factor has actual authority from the principal, unless specially restricted, to insure uninsured consigned property, sell entrusted goods on credit in some cases, and delegate authority to a partner or servant.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. ) ## 2368. In addition to the authority of agents in general, a factor has actual authority from his principal, unless specially restricted: 1. To insure property consigned to him uninsured; 2. To sell, on credit, anything intrusted to him for sale, except such things as it is contrary to usage to sell on credit; but not to pledge, mortgage, or barter the same; and, 3. To delegate his authority to his partner or servant, but not to any person in an independent employment. (Enacted 1872.)
2369.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. )
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A factor has ostensible authority to deal with the principal’s property as if it were the factor’s own, when the other party does not know who actually owns it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Factors [2367 - 2369] ( Article 2 enacted 1872. ) ## 2369. A factor has ostensible authority to deal with the property of his principal as his own, in transactions with persons not having notice of the actual ownership. (Enacted 1872.)
2400.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Powers of Attorney Under Probate Code [2400- 2400.] ( Article 3 repealed and added by Stats. 1994, Ch. 307, Sec. 5. )
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Powers of attorney are governed by the Power of Attorney Law to the extent that law provides.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 9. AGENCY [2295 - 2400] ( Title 9 enacted 1872. ) ## CHAPTER 2. Particular Agencies [2362 - 2400] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Powers of Attorney Under Probate Code [2400- 2400.] ( Article 3 repealed and added by Stats. 1994, Ch. 307, Sec. 5. ) ## 2400. Powers of attorney are governed by the Power of Attorney Law (Division 4.5 (commencing with Section 4000) of the Probate Code) to the extent provided in that law. (Repealed and added by Stats. 1994, Ch. 307, Sec. 5. Effective January 1, 1995.)
2500.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10. RECORDING ARTIST CONTRACTS [2500 - 2501] ( Title 10 added by Stats. 2004, Ch. 150, Sec. 2. )
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This section defines “royalty recipient” and “royalty reporting party” for recording artist contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10. RECORDING ARTIST CONTRACTS [2500 - 2501] ( Title 10 added by Stats. 2004, Ch. 150, Sec. 2. ) ## 2500. As used in this title: (a) “Royalty recipient” means a party to a contract for the furnishing of services in the production of sound recordings, as defined in Section 101 of Title 17 of the United States Code, who has the right to receive royalties under that contract. (b) A “royalty reporting party” is the party obligated to pay royalties to the royalty recipient under the contract described in subdivision (a). (Added by Stats. 2004, Ch. 150, Sec. 2. Effective January 1, 2005.)
2501.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10. RECORDING ARTIST CONTRACTS [2500 - 2501] ( Title 10 added by Stats. 2004, Ch. 150, Sec. 2. )
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A royalty recipient may inspect royalty records, but only with limits on timing and frequency, and the auditor must keep confidential information private except in limited cases.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10. RECORDING ARTIST CONTRACTS [2500 - 2501] ( Title 10 added by Stats. 2004, Ch. 150, Sec. 2. ) ## 2501. Notwithstanding any provision of a contract described in Section 2500: (a) A royalty recipient may audit the books and records of the royalty reporting party to determine if the royalty recipient earned all of the royalties due the royalty recipient pursuant to the contract, subject to the following: (1) A royalty recipient may conduct an audit not more than once per year. (2) A royalty recipient shall request an audit within three years after the end of a royalty earnings period under the contract. (3) A royalty recipient may not audit a particular royalty earnings period more than once. (b) The royalty recipient shall retain a qualified royalty auditor of the royalty recipient’s choice to conduct an audit described in this section. (c) The royalty recipient may enter into a contingency fee agreement with the auditor described in subdivision (b). (d) A qualified royalty auditor may conduct individual audits of the books and records of a royalty reporting party on behalf of different royalty recipients simultaneously. (e) Except as required by law, a qualified royalty auditor shall not disclose any confidential information obtained solely during an audit without the express consent of the party or parties to whom that information is confidential. This subdivision shall not prohibit the auditor from disclosing to the royalty recipient, or an agent of the recipient, on behalf of whom the auditor is conducting the audit information directly pertaining to that royalty recipient’s contract, as described in Section 2500. (f) The provisions of subdivisions (a), (b), (c), (d), and (e) are in addition to any other rights provided by a contract, as described in Section 2500, between a royalty recipient and a royalty reporting party. (g) Nothing in subdivision (a), (b), (c), (d), or (e) shall be deemed to extend any limitations period applicable to royalty accounting or payments not specifically addressed in this section. (h) Nothing in subdivision (a), (b), (c), (d), or (e) shall be deemed to limit any rights provided by collective bargaining agreement or by applicable state or federal law. (Added by Stats. 2004, Ch. 150, Sec. 2. Effective January 1, 2005.)
2505.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. )
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Shared mobility service providers must get a city or county agreement or permit before distributing devices, carry specified insurance, and make required customer disclosures.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. ) ## 2505. (a) For purposes of this title: (1) “Assistive technology device” has the same meaning as in Section 7002 of Title 9 of the California Code of Regulations. (2) “Shared mobility device” means an electrically motorized board as defined in Section 313.5 of the Vehicle Code, motorized scooter as defined in Section 407.5 of the Vehicle Code, electric bicycle as defined in Section 312.5 of the Vehicle Code, bicycle as defined in Section 231 of the Vehicle Code, or other similar personal transportation device, except as provided in subdivision (b) of Section 415 of the Vehicle Code, that is made available to the public by a shared mobility service provider for shared use and transportation in exchange for financial compensation via a digital application or other electronic or digital platform. (3) “Shared mobility service provider” or “provider” means a person or entity that offers, makes available, or provides a shared mobility device in exchange for financial compensation or membership via a digital application or other electronic or digital platform. (b) (1) Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The agreement or permit shall, at a minimum, require that the shared mobility service provider maintain commercial general liability insurance coverage with an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user. (2) (A) (i) (I) Notwithstanding any other law, effective July 1, 2023, the agreement or permit required pursuant to paragraph (1) shall require, in addition to the coverage required by paragraph (1), a shared mobility service provider to offer or make available, or to confirm the user of a shared mobility device maintains, insurance coverage for bodily injury or death suffered by a pedestrian when the injury or death involves, in whole or in part, the negligent conduct of the shared mobility device user, of ten thousand dollars ($10,000) for each occurrence of bodily injury to, or death of, one pedestrian in any one accident, and for property damage to an assistive technology device, of one thousand dollars ($1,000), for each occurrence. This paragraph shall not be interpreted to require coverage as provided in Division 7 (commencing with Section 16000) of the Vehicle Code. (II) This clause shall not be interpreted to limit or supersede the requirement pursuant to paragraph (1) that the shared mobility service provider, in its agreement with or permit from the city or county with jurisdiction over the area of use, maintain commercial general liability insurance coverage with limits not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. (III) This clause shall not be interpreted to prohibit an aggregated cap on the insurance required by subclause (I). (IV) Insurance coverage offered, made available, or confirmed pursuant to this clause shall not be considered a group insurance policy. (ii) Notwithstanding clause (i) or any other law, a shared mobility service provider or user of a shared mobility device is not required to maintain insurance coverage, as described in clause (i), for injuries of, or death to, a pedestrian or property damage involving the following devices: (I) A bicycle propelled exclusively by human power, as described in Section 231 of the Vehicle Code. For purposes of this paragraph, “bicycle” shall not include an electric bicycle. (II) A class 1 electric bicycle as defined in paragraph (1) of subdivision (a) of Section 312.5 of the Vehicle Code. (III) A class 2 electric bicycle as defined in paragraph (2) of subdivision (a) of Section 312.5 of the Vehicle Code. (iii) The Legislature finds and declares that bicycles may be recognized as safer than motorized devices when in use, and recognizes there may remain a propensity for pedestrian injuries or death resulting from shared mobility bicycles and shared mobility electric bicycles being left negligently abandoned on pedestrian walkways. (B) A shared mobility service provider may partner with an insurer to provide an option to its users via its digital application or other electronic platform where the user may purchase insurance coverage that meets or exceeds the requirements of subparagraph (A). The shared mobility service provider shall disclose via its digital application or other electronic platform the name, contact information, and location to make a claim with the insurer they chose to partner with. The shared mobility service provider may fund the cost of providing this coverage itself and pass the cost on in its standard fee to users, or through a separate charge to users. If a user of a shared mobility device does not maintain their own insurance policy, then that coverage shall be offered or made available by the shared mobility service provider. A shared mobility service provider shall not allow a user or individual to operate or utilize a shared mobility device without the coverage identified in subparagraph (A). If a user or individual gains access to a shared mobility device without obtaining coverage through the options outlined in this subparagraph or subparagraph (C), and uses or operates it uninsured, the shared mobility service provider shall be required to provide the insurance coverage identified in subparagraph (A). (C) (i) A shared mobility service provider may enter into separate individual agreements with users maintaining their own liability insurance coverage that meets or exceeds the requirements of subparagraph (A), to exclude the user from the provider’s insurance coverage required in subparagraph (A) when, in consideration for such an agreement, the user shall not pay a separate charge for the coverage or shall be refunded the portion of the provider’s fee that pays for the provider’s coverage. The agreement shall be null and void upon lapse, cancellation, or expiration of the user’s policy. If a shared mobility device user entering into an agreement under this subparagraph misrepresents their maintenance of a policy or through an error or act of omission does not provide coverage, the shared mobility service provider shall be required to maintain the insurance to cover any claims resulting in injury, death, or property damage described in subparagraph (A). (ii) It is the intent of the Legislature that, in enacting this subparagraph, shared mobility service providers have the flexibility to offer or make available insurance options to their users, while also ensuring the shared mobility service providers’ insurance serves as the backstop to cover any pedestrian injuries or death, or property damage, should there be any unintended gaps in coverage as a result of users misrepresenting or not maintaining the insurance. (D) A shared mobility service provider shall keep an up-to-date list of its users that maintain their own liability insurance coverage that meets or exceeds the requirements of subparagraph (A). The provider shall annually transmit information on the percentage of its total users in the state that maintain their own insurance coverage, in the same manner as proscribed in subdivision (b) of Section 2505.5 of the Civil Code, to the Department of Insurance. (3) Effective July 1, 2023, nothing in this section shall prohibit a provider from requiring a user to enter into an indemnity contract whereby the user will indemnify the provider for the user’s proportionate share of liability. The indemnity contract shall not require the user to defend or indemnify the provider for the provider’s negligence or willful misconduct. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. (c) (1) A city or county that authorizes a provider to operate within its jurisdiction on or after January 1, 2021, shall adopt rules for the operation, parking, and maintenance of shared mobility devices before a provider may offer any shared mobility device for rent or use in the city or county by any of the following: (A) Ordinance. (B) Agreement. (C) Permit terms. (2) A city or county that authorized a provider to operate within its jurisdiction before January 1, 2021, and continues to provide that authorization shall adopt rules for the operation, parking, and maintenance of shared mobility devices by January 1, 2022, by any of the following: (A) Ordinance. (B) Agreement. (C) Permit terms. (3) A provider shall comply with all applicable rules, agreements, and permit terms established pursuant to this subdivision. (d) Nothing in this section shall prohibit a city or county from adopting any ordinance or regulation that is not inconsistent with this title. (e) On or before July 1, 2023, a shared mobility service provider shall disclose to its customers that the customer’s existing homeowner’s, renter’s, or automobile insurance policies might not provide coverage for liability resulting from the use of shared mobility devices and that the customer should contact their insurance company or insurance agent to determine if coverage is provided, prior to allowing a user to initiate their first use of a device. (1) The disclosure shall be made to, and acknowledged by, the customer via the provider’s digital application or electronic platform and posted on the provider’s internet website. (2) The disclosure shall include the following language in capital letters: “YOUR HOMEOWNER’S, RENTER’S, OR AUTOMOBILE INSURANCE POLICIES MIGHT NOT PROVIDE COVERAGE FOR ACCIDENTS INVOLVING THE USE OF THIS DEVICE. TO DETERMINE IF COVERAGE IS PROVIDED YOU SHOULD CONTACT YOUR INSURANCE COMPANY OR AGENT.” (Amended by Stats. 2023, Ch. 440, Sec. 1. (AB 458) Effective January 1, 2024.)
2505.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. )
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The Department of Insurance must study shared mobility device insurance issues and report findings to the Legislature and insurance committees by December 31, 2026.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. ) ## 2505.5. (a) The Department of Insurance shall conduct a study and report the findings to the Legislature and the insurance committees of both houses no later than December 31, 2026, that does all of the following: (1) In collaboration with a city or county with jurisdiction over areas of shared mobility device use and shared mobility device insurers and operators, assesses whether coverage requirements for shared mobility devices are appropriate to the risk of shared mobility device services and provide recommendations to update coverage requirements, if found to be necessary. The Department of Insurance may specify by bulletin the time periods and elements of data to be provided by admitted and nonadmitted insurers writing coverage pursuant to subdivision (b) of Section 2505. (2) With input from shared mobility device providers, analyzes the process by which providers give users an option to purchase their own insurance coverage, and make recommendations, if necessary, on how to strengthen the market for individual mobility device liability coverage, including on ensuring agreements between a provider and user to remove the user from the provider’s policy do not result in circumstances where there is a gap in coverage providing recovery for injured pedestrians. (3) (A) In collaboration with a city or county with jurisdiction over areas of shared mobility device use and shared mobility device insurers and operators, assesses whether there is a need for insurance coverage for injuries to, or death of, a pedestrian or property damage to assistive technology devices when the injury, death, or property damage involves, in whole or in part, the following devices: (i) A bicycle propelled exclusively by human power, as described in Section 231 of the Vehicle Code. For purposes of this paragraph, “bicycle” shall not include an electric bicycle. (ii) A class 1 electric bicycle as defined in paragraph (1) of subdivision (a) of Section 312.5 of the Vehicle Code. (iii) A class 2 electric bicycle as defined in paragraph (2) of subdivision (a) of Section 312.5 of the Vehicle Code. (B) It is the intent of the Legislature that the assessment in subparagraph (A) of this section will provide data on the prevalence of injuries, death, or property damage resulting from the devices described in clauses (i), (ii), and (iii) of subparagraph (A), including, but not limited to, resulting from such devices being negligently abandoned on pedestrian walkways, and determine whether additional insurance coverage is necessary to account for such pedestrian injuries or death and property damage. (b) Data collected by the Department of Insurance pursuant to this section shall not include information that identifies or describes an individual, including, but not limited to, an individual’s name, social security number, home address, home telephone number, education, financial matters, medical or employment history, geolocation, or statements made by, or attributed to, the individual, or that may otherwise compromise the privacy of the individual under existing law. (c) (1) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2027. (Added by Stats. 2022, Ch. 740, Sec. 2. (AB 371) Effective January 1, 2023. Repealed as of January 1, 2027, by its own provisions.)
2506.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. )
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Shared mobility service providers must put a compliant tactile sign on each shared mobility device.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 10.1. Shared Mobility Devices [2505 - 2506] ( Title 10.1 added by Stats. 2020, Ch. 91, Sec. 1. ) ## 2506. (a) A shared mobility service provider shall affix to each shared mobility device a readily accessible, single, and clearly displayed tactile sign containing raised characters and accompanying braille that complies with Section 11B-703 of the California Building Code, except that the raised characters shall be, at minimum, one-half inch high and in a color that contrasts with the signage background, in order to identify the device for the purpose of reporting illegal or negligent activity. The sign shall minimally consist of the company name and telephone number of the service provider that is visible from a minimum of five feet and not obfuscated by branding or other markings. (b) This section shall become operative on January 1, 2024. (Repealed and added by Stats. 2023, Ch. 36, Sec. 2. (AB 410) Effective July 6, 2023. Operative January 1, 2024, by its own provisions.)
2527.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 11. PHARMACEUTICAL SERVICES [2527 - 2528] ( Title 11 added by Stats. 1982, Ch. 296, Sec. 1. )
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Prescription drug claims processors must do periodic pharmacy fee studies and send the reports to clients, and they may not process pharmacy claims or contracts unless they comply with those study and reporting rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 11. PHARMACEUTICAL SERVICES [2527 - 2528] ( Title 11 added by Stats. 1982, Ch. 296, Sec. 1. ) ## 2527. (a) On or after January 1, 1984, no prescription drug claims processor, as defined in subdivision (b), shall enter into or perform any provision of any new contract, or perform any provision of any existing contract, with a licensed California pharmacy, or process or assist in the processing of any prescription drug claim submitted by or otherwise involving a service of a licensed California pharmacy unless the processor is in compliance with subdivisions (c) and (d). (b) A “prescription drug claims processor,” as used in this part, means any nongovernmental entity which has a contractual relationship with purchasers of prepaid or insured prescription drug benefits, and which processes, consults, advises on, or otherwise assists in the processing of prepaid or insured prescription drug benefit claims submitted by a licensed California pharmacy or patron thereof. A “prescription drug claims processor” shall not include insurers (as defined in Section 23 of the Insurance Code), health care service plans (as defined in subdivision (f) of Section 1345 of the Health and Safety Code), nonprofit hospital service plans (pursuant to Chapter 11A, (commencing with Section 11491) of Part 2 of Division 2 of the Insurance Code), pharmacy permitholders (pursuant to Section 4080 of the Business and Professions Code), employers, trusts, and other entities which assume the risks of pharmaceutical services for designated beneficiaries. Also, a “prescription drug claims processor” shall not include insurers, health care service plans, and nonprofit hospital service plans which process claims on a nonrisk basis for self-insured clients. (c) On or before January 1, 1984, every prescription drug claims processor shall have conducted or obtained the results of a study or studies which identifies the fees, separate from ingredient costs, of all, or of a statistically significant sample, of California pharmacies, for pharmaceutical dispensing services to private consumers. The study or studies shall meet reasonable professional standards of the statistical profession. The determination of the pharmacy’s fee made for purposes of the study or studies shall be computed by reviewing a sample of the pharmacy’s usual charges for a random or other representative sample of commonly prescribed drug products, subtracting the average wholesale price of drug ingredients, and averaging the resulting fees by dividing the aggregate of the fees by the number of prescriptions reviewed. A study report shall include a preface, an explanatory summary of the results and findings including a comparison of the fees of California pharmacies by setting forth the mean fee and standard deviation, the range of fees and fee percentiles (10th, 20th, 30th, 40th, 50th, 60th, 70th, 80th, 90th). This study or these studies shall be conducted or obtained no less often than every 24 months. (d) The study report or reports obtained pursuant to subdivision (c) shall be transmitted by certified mail by each prescription drug claims processor to the chief executive officer or designee, of each client for whom it performs claims processing services. Consistent with subdivision (c), the processor shall transmit the study or studies to clients no less often than every 24 months. Nothing in this section shall be construed to require a prescription drug claims processor to transmit to its clients more than two studies meeting the requirements of subdivision (c) during any such 24-month period. Effective January 1, 1986, a claims processor may comply with subdivision (c) and this subdivision, in the event that no new study or studies meeting the criteria of subdivision (c) have been conducted or obtained subsequent to January 1, 1984, by transmitting the same study or studies previously transmitted, with notice of cost-of-living changes as measured by the Consumer Price Index (CPI) of the United States Department of Labor. (Added by Stats. 1982, Ch. 296, Sec. 1.)
2528.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 11. PHARMACEUTICAL SERVICES [2527 - 2528] ( Title 11 added by Stats. 1982, Ch. 296, Sec. 1. )
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A violation of Section 2527 can lead only to civil remedies, and an owner of a licensed California pharmacy may sue if the notice and waiting-period conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 11. PHARMACEUTICAL SERVICES [2527 - 2528] ( Title 11 added by Stats. 1982, Ch. 296, Sec. 1. ) ## 2528. A violation of Section 2527 may result only in imposition of a civil remedy, which includes, but is not limited to, imposition of statutory damages of not less than one thousand dollars ($1,000) or more than ten thousand dollars ($10,000) depending on the severity or gravity of the violation, plus reasonable attorney’s fees and costs, declaratory and injunctive relief, and any other relief which the court deems proper. Any owner of a licensed California pharmacy shall have standing to bring an action seeking a civil remedy pursuant to this section so long as his or her pharmacy has a contractual relationship with, or renders pharmaceutical services to, a beneficiary of a client of the prescription drug claims processor, against whom the action is brought provided that no such action may be commenced by the owner unless he or she has notified the processor in writing as to the nature of the alleged violation and the processor fails to remedy the violation within 30 days from the receipt of the notice or fails to undertake steps to remedy the violation within that period and complete the steps promptly thereafter. (Added by Stats. 1982, Ch. 296, Sec. 1.)
2772.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
Verify source ↗

Indemnity is a contract where one person agrees to protect another from a legal consequence caused by a party’s conduct or by someone else.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2772. Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person. (Enacted 1872.)
2774.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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An agreement to indemnify someone for an act already done is valid, even if the act was known to be wrongful, unless it was a felony.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2774. An agreement to indemnify a person against an act already done, is valid, even though the act was known to be wrongful, unless it was a felony. (Enacted 1872.)
2775.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
Verify source ↗

An indemnity agreement covering a certain person’s acts also covers the consequences of those acts and the acts of that person’s agents.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2775. An agreement to indemnify against the acts of a certain person, applies not only to his acts and their consequences, but also to those of his agents. (Enacted 1872.)
2776.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
Verify source ↗

An agreement to indemnify several people applies to each of them unless the agreement shows a different intention.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2776. An agreement to indemnify several persons applies to each, unless a contrary intention appears. (Enacted 1872.)
2777.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
Verify source ↗

A person who indemnifies another for an act to be done by that person is liable to injured persons, jointly with the indemnified person and separately.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2777. One who indemnifies another against an act to be done by the latter, is liable jointly with the person indemnified, and separately, to every person injured by such act. (Enacted 1872.)
2778.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section gives default rules for interpreting indemnity contracts, unless a contrary intention appears.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2778. In the interpretation of a contract of indemnity, the following rules are to be applied, unless a contrary intention appears: 1. Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable; 2. Upon an indemnity against claims, or demands, or damages, or costs, expressly, or in other equivalent terms, the person indemnified is not entitled to recover without payment thereof; 3. An indemnity against claims, or demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith, and in the exercise of a reasonable discretion; 4. The person indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity, but the person indemnified has the right to conduct such defenses, if he chooses to do so; 5. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith, is conclusive in his favor against the former; 6. If the person indemnifying, whether he is a principal or a surety in the agreement, has not reasonable notice of the action or proceeding against the person indemnified, or is not allowed to control its defense, judgment against the latter is only presumptive evidence against the former; 7. A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable if he had a good defense upon the merits, which by want of ordinary care he failed to establish in the action. (Enacted 1872.)
2779.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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A person who promises, at another’s request, to cover damages for that other’s duty violation is entitled to reimbursement for any amount paid.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2779. Where one, at the request of another, engages to answer in damages, whether liquidated or unliquidated, for any violation of duty on the part of the latter, he is entitled to be reimbursed in the same manner as a surety, for whatever he may pay. (Enacted 1872.)
2782.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section makes certain indemnity clauses in construction contracts void and unenforceable, and it sets special defense and fee-allocation rules for construction defect claims.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782. (a) Except as provided in Sections 2782.1, 2782.2, 2782.5, and 2782.6, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract and that purport to indemnify the promisee against liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole negligence or willful misconduct of the promisee or the promisee’s agents, servants, or independent contractors who are directly responsible to the promisee, or for defects in design furnished by those persons, are against public policy and are void and unenforceable; provided, however, that this section shall not affect the validity of any insurance contract, workers’ compensation, or agreement issued by an admitted insurer as defined by the Insurance Code. (b) (1) Except as provided in Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract with a public agency entered into before January 1, 2013, that purport to impose on the contractor, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable. (2) Except as provided in Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract with a public agency entered into on or after January 1, 2013, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable. (c) (1) Except as provided in subdivision (d) and Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract entered into on or after January 1, 2013, with the owner of privately owned real property to be improved and as to which the owner is not acting as a contractor or supplier of materials or equipment to the work, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the owner from, liability are unenforceable to the extent of the active negligence of the owner, including that of its employees. (2) For purposes of this subdivision, an owner of privately owned real property to be improved includes the owner of any interest therein, other than a mortgage or other interest that is held solely as security for performance of an obligation. (3) This subdivision shall not apply to a homeowner performing a home improvement project on his or her own single family dwelling. (d) For all construction contracts, and amendments thereto, entered into after January 1, 2009, for residential construction, as used in Title 7 (commencing with Section 895) of Part 2 of Division 2, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any construction contract, and amendments thereto, that purport to insure or indemnify, including the cost to defend, the builder, as defined in Section 911, or the general contractor or contractor not affiliated with the builder, as described in subdivision (b) of Section 911, by a subcontractor against liability for claims of construction defects are unenforceable to the extent the claims arise out of, pertain to, or relate to the negligence of the builder or contractor or the builder’s or contractor’s other agents, other servants, or other independent contractors who are directly responsible to the builder, or for defects in design furnished by those persons, or to the extent the claims do not arise out of, pertain to, or relate to the scope of work in the written agreement between the parties. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties. Nothing in this subdivision shall prevent any party from exercising its rights under subdivision (a) of Section 910. This subdivision shall not affect the obligations of an insurance carrier under the holding of Presley Homes, Inc. v. American States Insurance Company (2001) 90 Cal.App.4th 571. Nor shall this subdivision affect the obligations of a builder or subcontractor pursuant to Title 7 (commencing with Section 895) of Part 2 of Division 2. (e) Subdivision (d) does not prohibit a subcontractor and builder or general contractor from mutually agreeing to the timing or immediacy of the defense and provisions for reimbursement of defense fees and costs, so long as that agreement does not waive or modify the provisions of subdivision (d) subject, however, to paragraphs (1) and (2). A subcontractor shall owe no defense or indemnity obligation to a builder or general contractor for a construction defect claim unless and until the builder or general contractor provides a written tender of the claim, or portion thereof, to the subcontractor which includes all of the information provided to the builder or general contractor by the claimant or claimants, including, but not limited to, information provided pursuant to subdivision (a) of Section 910, relating to claims caused by that subcontractor’s scope of work. This written tender shall have the same force and effect as a notice of commencement of a legal proceeding. If a builder or general contractor tenders a claim for construction defects, or a portion thereof, to a subcontractor in the manner specified by this provision, the subcontractor shall elect to perform either of the following, the performance of which shall be deemed to satisfy the subcontractor’s defense obligation to the builder or general contractor: (1) Defend the claim with counsel of its choice, and the subcontractor shall maintain control of the defense for any claim or portion of claim to which the defense obligation applies. If a subcontractor elects to defend under this paragraph, the subcontractor shall provide written notice of the election to the builder or general contractor within a reasonable time period following receipt of the written tender, and in no event later than 90 days following that receipt. Consistent with subdivision (d), the defense by the subcontractor shall be a complete defense of the builder or general contractor of all claims or portions thereof to the extent alleged to be caused by the subcontractor, including any vicarious liability claims against the builder or general contractor resulting from the subcontractor’s scope of work, but not including claims resulting from the scope of work, actions, or omissions of the builder, general contractor, or any other party. Any vicarious liability imposed upon a builder or general contractor for claims caused by the subcontractor electing to defend under this paragraph shall be directly enforceable against the subcontractor by the builder, general contractor, or claimant. (2) Pay, within 30 days of receipt of an invoice from the builder or general contractor, no more than a reasonable allocated share of the builder’s or general contractor’s defense fees and costs, on an ongoing basis during the pendency of the claim, subject to reallocation consistent with subdivision (d), and including any amounts reallocated upon final resolution of the claim, either by settlement or judgment. The builder or general contractor shall allocate a share to itself to the extent a claim or claims are alleged to be caused by its work, actions, or omissions, and a share to each subcontractor to the extent a claim or claims are alleged to be caused by the subcontractor’s work, actions, or omissions, regardless of whether the builder or general contractor actually tenders the claim to any particular subcontractor, and regardless of whether that subcontractor is participating in the defense. Any amounts not collected from any particular subcontractor may not be collected from any other subcontractor. (f) Notwithstanding any other provision of law, if a subcontractor fails to timely and adequately perform its obligations under paragraph (1) of subdivision (e), the builder or general contractor shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, consequential damages, and reasonable attorney’s fees. If a subcontractor fails to timely perform its obligations under paragraph (2) of subdivision (e), the builder or general contractor shall have the right to pursue a claim against the subcontractor for any resulting compensatory and consequential damages, as well as for interest on defense and indemnity costs, from the date incurred, at the rate set forth in subdivision (g) of Section 3260, and for the builder’s or general contractor’s reasonable attorney’s fees incurred to recover these amounts. The builder or general contractor shall bear the burden of proof to establish both the subcontractor’s failure to perform under either paragraph (1) or (2) of subdivision (e) and any resulting damages. If, upon request by a subcontractor, a builder or general contractor does not reallocate defense fees to subcontractors within 30 days following final resolution of the claim as described above, the subcontractor shall have the right to pursue a claim against the builder or general contractor for any resulting compensatory and consequential damages, as well as for interest on the fees, from the date of final resolution of the claim, at the rate set forth in subdivision (g) of Section 3260, and the subcontractor’s reasonable attorney’s fees incurred in connection therewith. The subcontractor shall bear the burden of proof to establish both the failure to reallocate the fees and any resulting damages. Nothing in this section shall prohibit the parties from mutually agreeing to reasonable contractual provisions for damages if any party fails to elect for or perform its obligations as stated in this section. (g) A builder, general contractor, or subcontractor shall have the right to seek equitable indemnity for any claim governed by this section. (h) Nothing in this section limits, restricts, or prohibits the right of a builder, general contractor, or subcontractor to seek equitable indemnity against any supplier, design professional, or product manufacturer. (i) As used in this section, “construction defect” means a violation of the standards set forth in Sections 896 and 897. (Amended by Stats. 2011, Ch. 707, Sec. 2. (SB 474) Effective January 1, 2012.)
2782.05.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section limits certain construction-contract indemnity clauses. It makes covered provisions void and unenforceable when they try to make a subcontractor insure or indemnify a general contractor, construction manager, or other subcontractor for claims tied to that other party’s active negligence, willful misconduct, design defects they furnished, or work outside the subcontractor’s scope.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.05. (a) Except as provided in subdivision (b), provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any construction contract and amendments thereto entered into on or after January 1, 2013, that purport to insure or indemnify, including the cost to defend, a general contractor, construction manager, or other subcontractor, by a subcontractor against liability for claims of death or bodily injury to persons, injury to property, or any other loss, damage, or expense are void and unenforceable to the extent the claims arise out of, pertain to, or relate to the active negligence or willful misconduct of that general contractor, construction manager, or other subcontractor, or their other agents, other servants, or other independent contractors who are responsible to the general contractor, construction manager, or other subcontractor, or for defects in design furnished by those persons, or to the extent the claims do not arise out of the scope of work of the subcontractor pursuant to the construction contract. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties. This section shall not affect the obligations of an insurance carrier under the holding of Presley Homes, Inc. v. American States Insurance Company (2001) 90 Cal.App.4th 571, nor the rights of an insurance carrier under the holding of Buss v. Superior Court (1997) 16 Cal.4th 35. (b) This section does not apply to: (1) Contracts for residential construction that are subject to any part of Title 7 (commencing with Section 895) of Part 2 of Division 2. (2) Direct contracts with a public agency that are governed by subdivision (b) of Section 2782. (3) Direct contracts with the owner of privately owned real property to be improved that are governed by subdivision (c) of Section 2782. (4) Any wrap-up insurance policy or program. (5) A cause of action for breach of contract or warranty that exists independently of an indemnity obligation. (6) A provision in a construction contract that requires the promisor to purchase or maintain insurance covering the acts or omissions of the promisor, including additional insurance endorsements covering the acts or omissions of the promisor during ongoing and completed operations. (7) Indemnity provisions contained in loan and financing documents, other than construction contracts to which the contractor and a contracting project owner’s lender are parties. (8) General agreements of indemnity required by sureties as a condition of execution of bonds for construction contracts. (9) The benefits and protections provided by the workers’ compensation laws. (10) The benefits or protections provided by the governmental immunity laws. (11) Provisions that require the purchase of any of the following: (A) Owners and contractors protective liability insurance. (B) Railroad protective liability insurance. (C) Contractors all-risk insurance. (D) Builders all-risk or named perils property insurance. (12) Contracts with design professionals. (13) Any agreement between a promisor and an admitted surety insurer regarding the promisor’s obligations as a principal or indemnitor on a bond. (c) Notwithstanding any choice-of-law rules that would apply the laws of another jurisdiction, the law of California shall apply to every contract to which this section applies. (d) Any waiver of the provisions of this section is contrary to public policy and is void and unenforceable. (e) Subdivision (a) does not prohibit a subcontractor and a general contractor or construction manager from mutually agreeing to the timing or immediacy of the defense and provisions for reimbursement of defense fees and costs, so long as that agreement does not waive or modify the provisions of subdivision (a) subject, however, to paragraphs (1) and (2). A subcontractor shall owe no defense or indemnity obligation to a general contractor or construction manager for a claim unless and until the general contractor or construction manager provides a written tender of the claim, or portion thereof, to the subcontractor that includes the information provided by the claimant or claimants relating to claims caused by that subcontractor’s scope of work. In addition, the general contractor or construction manager shall provide a written statement regarding how the reasonable allocated share of fees and costs was determined. The written tender shall have the same force and effect as a notice of commencement of a legal proceeding. If a general contractor or construction manager tenders a claim, or portion thereof, to a subcontractor in the manner specified by this subdivision, the subcontractor shall elect to perform either of the following, the performance of which shall be deemed to satisfy the subcontractor’s defense obligation to the general contractor or construction manager: (1) Defend the claim with counsel of its choice, and the subcontractor shall maintain control of the defense for any claim or portion of claim to which the defense obligation applies. If a subcontractor elects to defend under this paragraph, the subcontractor shall provide written notice of the election to the general contractor or construction manager within a reasonable time period following receipt of the written tender, and in no event later than 30 days following that receipt. Consistent with subdivision (a), the defense by the subcontractor shall be a complete defense of the general contractor or construction manager of all claims or portions thereof to the extent alleged to be caused by the subcontractor, including any vicarious liability claims against the general contractor or construction manager resulting from the subcontractor’s scope of work, but not including claims resulting from the scope of work, actions, or omissions of the general contractor or construction manager, or any other party. Any vicarious liability imposed upon a general contractor or construction manager for claims caused by the subcontractor electing to defend under this paragraph shall be directly enforceable against the subcontractor by the general contractor, construction manager, or claimant. All information, documentation, or evidence, if any, relating to a subcontractor’s assertion that another party is responsible for the claim shall be provided by that subcontractor to the general contractor or construction manager that tendered the claim. (2) Pay, within 30 days of receipt of an invoice from the general contractor or construction manager, no more than a reasonable allocated share of the general contractor’s or construction manager’s defense fees and costs, on an ongoing basis during the pendency of the claim, subject to reallocation consistent with subdivision (a), and including any amounts reallocated upon final resolution of the claim, either by settlement or judgment. The general contractor or construction manager shall allocate a share to itself to the extent a claim or claims are alleged to be caused by its work, actions, or omissions, and a share to each subcontractor to the extent a claim or claims are alleged to be caused by the subcontractor’s work, actions, or omissions, regardless of whether the general contractor or construction manager actually tenders the claim to any particular subcontractor, and regardless of whether that subcontractor is participating in the defense. Any amounts not collected from any particular subcontractor may not be collected from any other subcontractor. (f) Notwithstanding any other provision of law, if a subcontractor fails to timely and adequately perform its obligations under paragraph (1) of subdivision (e), the general contractor or construction manager shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, consequential damages, and reasonable attorney’s fees. If a subcontractor fails to timely perform its obligations under paragraph (2) of subdivision (e), the general contractor or construction manager shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, interest on defense and indemnity costs, from the date incurred, at the rate set forth in subdivision (g) of Section 3260, consequential damages, and reasonable attorney’s fees incurred to recover these amounts. The general contractor or construction manager shall bear the burden of proof to establish both the subcontractor’s failure to perform under either paragraph (1) or (2) of subdivision (e) and any resulting damages. If, upon request by a subcontractor, a general contractor or construction manager does not reallocate defense fees to subcontractors within 30 days following final resolution of the claim, the subcontractor shall have the right to pursue a claim against the general contractor or construction manager for any resulting compensatory damages with interest, from the date of final resolution of the claim, at the rate set forth in subdivision (g) of Section 3260. The subcontractor shall bear the burden of proof to establish both the failure to reallocate the fees and any resulting damages. Nothing in this section shall prohibit the parties from mutually agreeing to reasonable contractual provisions for damages if any party fails to elect for or perform its obligations as stated in this section. (g) For purposes of this section, “construction manager” means a person or entity, other than a public agency or owner of privately owned real property to be improved, who is contracted by a public agency or the owner of privately owned real property to be improved to direct, schedule, or coordinate the work of contractors for a work of improvement, but does not itself perform the work. (h) For purposes of this section, “general contractor,” in relation to a given subcontractor, means a person who has entered into a construction contract and who has entered into a subcontract with that subcontractor under which the subcontractor agrees to perform a portion of that scope of work. Where a subcontractor has itself subcontracted a portion of its work, that subcontractor, along with its general contractor, shall be considered a general contractor as to its subcontractors. (i) For purposes of this section, “subcontractor” means a person who has entered into a construction contract either with a contractor to perform a portion of that contractor’s work under a construction contract or with any person to perform a construction contract subject to the direction or control of a general contractor or construction manager. (j) A general contractor, construction manager, or subcontractor shall have the right to seek equitable indemnity for any claim governed by this section. (k) Nothing in this section limits, restricts, or prohibits the right of a general contractor, construction manager, or subcontractor to seek equitable indemnity against any supplier, design professional, product manufacturer, or other independent contractor or subcontractor. (l) This section shall not affect the validity of any existing insurance contract or agreement, including, but not limited to, a contract or agreement for workers’ compensation or an agreement issued on or before January 1, 2012, by an admitted insurer, as defined in the Insurance Code. (m) Nothing in this section shall be construed to affect the obligation, if any, of either a contractor or construction manager to indemnify, including defending or paying the costs to defend, a public agency against any claim arising from the alleged active negligence of the public agency under subdivision (b) of Section 2782 or to indemnify, including defending or paying the costs to defend, an owner of privately owned real property to be improved against any claim arising from the alleged active negligence of the owner under subdivision (c) of Section 2782. (n) Nothing in this section shall be construed to affect the obligation, if any, of either a contractor or construction manager to provide or maintain insurance covering the acts or omissions of the promisor, including additional insurance endorsements covering the acts or omissions of the promisor during ongoing and completed operations pursuant to a construction contract with a public agency under subdivision (b) of Section 2782 or an owner of privately owned real property to be improved under subdivision (c) of Section 2782. (Added by Stats. 2011, Ch. 707, Sec. 3. (SB 474) Effective January 1, 2012.)
2782.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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A contractor responsible for a construction contract may fully indemnify certain property holders who let the contractor enter their property to perform work for others.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.1. Nothing contained in Section 2782 shall prevent a contractor responsible for the performance of a construction contract, as defined in Section 2783, from indemnifying fully a person, firm, corporation, state or other agency for whose account the construction contract is not being performed but who, as an accommodation, enters into an agreement with the contractor permitting such contractor to enter upon or adjacent to its property for the purpose of performing such construction contract for others. (Added by Stats. 1968, Ch. 466.)
2782.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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A promisor may agree to indemnify a professional engineer for negligence in inspection services to plants or other facilities if specific ownership, audit, net-worth, self-insurance, and liability-limit conditions are met; indemnity for willful misconduct is not authorized.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.2. (a) Nothing contained in subdivision (a) of Section 2782 prevents an agreement to indemnify a professional engineer against liability for the negligence of the engineer, or the engineer’s agents or employees, in providing inspection services to plants or other facilities if all the following criteria are satisfied: (1) The promisor is the owner of the plants or facilities inspected. (2) The promisor is audited annually by an independent certified public accountant, public accountant, or accounting licentiate of another state authorized by the laws of that state to perform the audit. (3) The net worth of the promisor exceeds ten million dollars ($10,000,000), as determined by the promisor’s most recent annual independent audit. The requirement of this paragraph shall be satisfied at the time the contract for indemnification is entered, and a subsequent reduction of the promisor’s net worth shall not void the obligation to indemnify. (4) The promisor is self-insured with respect to liability arising from ownership of the plant or facility. (5) The indemnification shall not be applicable to the first two hundred fifty thousand dollars ($250,000) of liability. (b) Subdivision (a) does not authorize contracts for indemnification of liability arising from willful misconduct. (Added by Stats. 1985, Ch. 567, Sec. 2.)
2782.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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Section 2782.5 allows parties to a construction contract, and the owner or other party for whom the work is being done, to negotiate and expressly agree on how certain liabilities are allocated, released, liquidated, excluded, or limited.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.5. Nothing contained in Section 2782 shall prevent a party to a construction contract and the owner or other party for whose account the construction contract is being performed from negotiating and expressly agreeing with respect to the allocation, release, liquidation, exclusion, or limitation as between the parties of any liability (a) for design defects, or (b) of the promisee to the promisor arising out of or relating to the construction contract. (Amended by Stats. 1980, Ch. 211, Sec. 2.)
2782.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section allows certain indemnity agreements for professional engineers or geologists in hazardous-materials services when the contamination criteria are met, but it limits coverage and bars indemnifying gross negligence or willful misconduct.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.6. (a) Nothing in subdivision (a) of Section 2782 prevents an agreement to indemnify a professional engineer or geologist or the agents, servants, independent contractors, subsidiaries, or employees of that engineer or geologist from liability as described in Section 2782 in providing hazardous materials identification, evaluation, preliminary assessment, design, remediation services, or other services of the types described in Sections 78125 and 78135 of the Health and Safety Code or the federal National Oil and Hazardous Substances Pollution Contingency Plan (40 C.F.R. Sec. 300.1 et seq.), if all of the following criteria are satisfied: (1) The services in whole or in part address subterranean contamination or other concealed conditions caused by the hazardous materials. (2) The promisor is responsible, or potentially responsible, for all or part of the contamination. (b) The indemnification described in this section is valid only for damages arising from, or related to, subterranean contamination or concealed conditions, and is not applicable to the first two hundred fifty thousand dollars ($250,000) of liability or a greater amount as is agreed to by the parties. (c) This section does not authorize contracts for indemnification, by promisors specified in paragraph (2) of subdivision (a), of any liability of a promisee arising from the gross negligence or willful misconduct of the promisee. (d) “Hazardous materials,” as used in this section, means any hazardous or toxic substance, material, or waste that is or becomes subject to regulation by any agency of the state, any municipality or political subdivision of the state, or the United States. “Hazardous materials” includes, but is not limited to, any material or substance that is any of the following: (1) A hazardous substance, as defined in subdivision (a) of Section 78075 of the Health and Safety Code. (2) Hazardous material, as defined in subdivision (n) of Section 25501 of the Health and Safety Code. (3) A regulated substance, as defined in subdivision (i) of Section 25532 of the Health and Safety Code. (4) Hazardous waste, as defined in Section 25117 of the Health and Safety Code. (5) Extremely hazardous waste, as defined in Section 25115 of the Health and Safety Code. (6) Petroleum. (7) Asbestos. (8) Designated as a hazardous substance for purposes of Section 311 of the Federal Water Pollution Control Act, as amended (33 U.S.C. Sec. 1321). (9) Hazardous waste, as defined by subsection (5) of Section 1004 of the federal Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Sec. 6903). (10) A hazardous substance, as defined by subsection (14) of Section 101 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601). (11) A regulated substance, as defined by subsection (7) of Section 9001 of the federal Solid Waste Disposal Act, as amended (42 U.S.C. Sec. 6991). (e) Nothing in this section shall be construed to alter, modify, or otherwise affect the liability of the promisor or promisee, under an indemnity agreement meeting the criteria of this section, to third parties for damages for death or bodily injury to persons, injury to property, or any other loss, damage, or expense. (f) This section does not apply to public entities, as defined by Section 811.2 of the Government Code. (Amended by Stats. 2022, Ch. 258, Sec. 6. (AB 2327) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 130 of Stats. 2022, Ch. 258.)
2782.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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Design-professional contracts generally cannot require indemnity or defense obligations beyond the rule in this section, and those limits cannot be waived by the parties.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.8. (a) For all contracts, and amendments thereto, entered into on or after January 1, 2018, for design professional services, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any such contract, and amendments thereto, that purport to indemnify, including the duty and the cost to defend, the indemnitee by a design professional against liability for claims against the indemnitee, are unenforceable, except to the extent that the claims against the indemnitee arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. In no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the design professional shall meet and confer with other parties regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in this section. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties. (b) All contracts and all solicitation documents, including requests for proposal, invitations for bid, and other solicitation documents for design professional services are deemed to incorporate by reference the provisions of this section. (c) For purposes of this section, “design professional” includes all of the following: (1) An individual licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, and a business entity offering architectural services in accordance with that chapter. (2) An individual licensed as a landscape architect pursuant to Chapter 3.5 (commencing with Section 5615) of Division 3 of the Business and Professions Code, and a business entity offering landscape architectural services in accordance with that chapter. (3) An individual registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, and a business entity offering professional engineering services in accordance with that chapter. (4) An individual licensed as a professional land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code, and a business entity offering professional land surveying services in accordance with that chapter. (d) This section shall apply only to a professional service contract, or any amendment thereto, entered into on or after January 1, 2018. (e) The provisions of this section pertaining to the duty and cost to defend shall not apply to either of the following: (1) Any contract for design professional services, or amendments thereto, where a project-specific general liability policy insures all project participants for general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis. (2) A design professional who is a party to a written design-build joint venture agreement. (f) Nothing in this section shall abrogate the provisions of Section 1104 of the Public Contract Code. (g) Indemnitee, for purposes of this section, does not include any agency of the state. (Amended by Stats. 2017, Ch. 8, Sec. 1. (SB 496) Effective January 1, 2018.)
2782.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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Certain post-2009 residential construction contract terms tied to wrap-up or consolidated insurance are unenforceable, and the section also limits when builders or general contractors may require and collect participant contributions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.9. (a) All contracts, provisions, clauses, amendments, or agreements contained therein entered into after January 1, 2009, for a residential construction project on which a wrap-up insurance policy, as defined in subdivision (b) of Section 11751.82 of the Insurance Code, or other consolidated insurance program, is applicable, that require an enrolled and participating subcontractor or other participant to indemnify, hold harmless, or defend another for any claim or action covered by that program, arising out of that project are unenforceable. (b) To the extent any contractual provision is deemed unenforceable pursuant to this section, any party may pursue an equitable indemnity claim against another party for a claim or action unless there is coverage for the claim or action under the wrap-up policy or policies. Nothing in this section shall prohibit a builder or general contractor from requiring a reasonably allocated contribution from a subcontractor or other participant to the self-insured retention or deductible required under the wrap-up policy or other consolidated insurance program, if the maximum amount and method of collection of the participant’s contribution is disclosed in the contract with the participant and the contribution is reasonably limited so that each participant may have some financial obligation in the event of a claim alleged to be caused by that participant’s scope of work. The contribution shall only be collected when and as any such self-insured retention or deductible is incurred by the builder or general contractor and in an amount that bears a reasonable and proportionate relationship to the alleged liability arising from the claim or claims alleged to be caused by the participant’s scope of work, when viewed in the context of the entirety of the alleged claim or claims. Any contribution shall only be collected from a participant after written notice to the participant of the amount of and basis for the contribution. In no event shall the total amount of contributions collected from participants exceed the amount of any self-insured retention or deductible due and payable by the builder or general contractor for the claim or claims. However, this requirement does not prohibit any legally permissible recovery of costs and legal fees to collect a participant’s contribution if the contribution satisfies the requirements of this subdivision and is not paid by the participant when due. (c) This section shall not be waived or modified by contractual agreement, act, or omission of the parties. (Added by Stats. 2008, Ch. 467, Sec. 2. Effective January 1, 2009.)
2782.95.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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For certain wrap-up insurance programs on qualifying private residential improvements, the owner/builder/general contractor must disclose specified premium-credit information and contract-document insurance details, and recipients of policy documents are restricted from further disclosure.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.95. For any wrap-up insurance policy or other consolidated insurance program that insures a private residential (as that term is used in Title 7 (commencing with Section 895) of Part 2 of Division 2) work of improvement that first commences construction after January 1, 2009, the following shall apply: (a) The owner, builder, or general contractor obtaining the wrap-up insurance policy or other consolidated insurance program shall disclose the total amount or method of calculation of any credit or compensation for premium required from a subcontractor or other participant for that wrap-up policy in the contract documents. (b) The contract documents shall disclose, if and to the extent known: (1) The policy limits. (2) The scope of policy coverage. (3) The policy term. (4) The basis upon which the deductible or occurrence is triggered by the insurance carrier. (5) If the policy covers more than one work of improvement, the number of units, if any, indicated on the application for the insurance policy. (6) A good faith estimate of the amount of available limits remaining under the policy as of a date indicated in the disclosure obtained from the insurer. (7) Disclosures made pursuant to paragraphs (5) and (6) are recognized to be based upon information at a given moment in time and may not accurately reflect the actual number of units covered by the policy nor the amount of insurance available, if any, when a later claim is made. These disclosures are presumptively made in good faith if the disclosure pursuant to paragraph (5) is the same as that contained in the application to the wrap-up insurer and the disclosure pursuant to paragraph (6) was obtained from the wrap-up insurer or broker. The presumptions stated above shall be overcome only by a showing that the insurer, broker, builder, or general contractor intentionally misrepresented the facts identified in paragraphs (5) or (6). (c) Upon the written request of any participant, a copy of the insurance policy shall be provided, if available, that shows the coverage terms and items in paragraphs (1) to (4), inclusive, of subdivision (b) above. If the policy is not available at the time of the request, a copy of the insurance binder or declaration of coverage may be provided in lieu of the actual policy. Paragraphs (1) to (4), inclusive, of subdivision (b) may be satisfied by providing the participant with a copy of the binder or declaration. Any party receiving a copy of the policy, binder, or declaration shall not disclose it to third parties other than the participant’s insurance broker or attorney unless required to do so by law. The participant’s insurance broker or attorney may not disclose the policy, binder, or declaration to any third party unless required to do so by law. (d) If the owner, builder, or general contractor obtaining the wrap-up insurance policy or other consolidated insurance program does not disclose the total amount or method of calculation of the premium credit or compensation to be charged to the participant prior to the time the participant submits its bid, the participant shall not be legally bound by the bid unless that participant has the right to increase the bid up to the amount equal to the difference between the amount the participant included, if any, for insurance in the original bid and the amount of the actual bid credit required by the owner, builder, or general contractor obtaining the wrap-up insurance policy or other consolidated insurance program. This subdivision shall not apply if the owner, builder, or general contractor obtaining the wrap-up insurance policy or other consolidated insurance program did not require the subcontractor to offset the original bid amount with a deduction for the wrap-up insurance policy or program. (Added by Stats. 2008, Ch. 467, Sec. 3. Effective January 1, 2009.)
2782.96.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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For certain construction projects using wrap-up or consolidated insurance, the owner, builder, or general contractor must put key premium-credit details in the bid documents, and the named insured must disclose specified policy information.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2782.96. If an owner, builder, or general contractor obtains a wrap-up insurance policy or other consolidated insurance program for a public work as defined in Section 1720 of the Labor Code or any other project other than residential construction, as that term is used in Title 7 (commencing with Section 895) of Part 2 of Division 2, that is put out for bid after January 1, 2009, the following shall apply: (a) The total amount or method of calculation of any credit or compensation for premium required from a subcontractor or other participant for that policy shall be clearly delineated in the bid documents. (b) The named insured, to the extent known, shall disclose to the subcontractor or other participant in the contract documents the policy limits, known exclusions, and the length of time the policy is intended to remain in effect. In addition, upon written request, once available, the named insured shall provide copies of insurance policies to all those who are covered by the policy. Until such time as the policies are available, the named insured may also satisfy the disclosure requirements of this subdivision by providing the subcontractor or other participant with a copy of the insurance binder or declaration of coverage. Any party receiving a copy of the policy, binder, or declaration shall not disclose it to third parties other than the participant’s insurance broker or attorney unless required to do so by law. The participant’s insurance broker or attorney may not disclose the policy, binder, or declaration to any third party unless required to do so by law. (c) The disclosure requirements in subdivisions (a) and (b) do not apply to an insurance policy purchased by an owner, builder, or general contractor that provides additional coverage beyond what was contained in the original wrap-up policy or other consolidated insurance program if no credit or compensation for premium is required of the subcontractor for the additional insurance policy. (Amended by Stats. 2009, Ch. 140, Sec. 37. (AB 1164) Effective January 1, 2010.)
2783.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section defines “construction contract” for use in Sections 2782 and 2782.5.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2783. As used in Sections 2782 and 2782.5, “construction contract” is defined as any agreement or understanding, written or oral, respecting the construction, surveying, design, specifications, alteration, repair, improvement, renovation, maintenance, removal of or demolition of any building, highway, road, parking facility, bridge, water line, sewer line, oil line, gas line, electric utility transmission or distribution line, railroad, airport, pier or dock, excavation or other structure, appurtenance, development or other improvement to real or personal property, or an agreement to perform any portion thereof or any act collateral thereto, or to perform any service reasonably related thereto, including, but not limited to, the erection of all structures or performance of work in connection therewith, electrical power line clearing, tree trimming, vegetation maintenance, the rental of all equipment, all incidental transportation, moving, lifting, crane and rigging service and other goods and services furnished in connection therewith. (Amended by Stats. 2011, Ch. 707, Sec. 4. (SB 474) Effective January 1, 2012.)
2784.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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This section defines “design defect” for Sections 2782 and 2782.5.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2784. As used in Sections 2782 and 2782.5, a “design defect” is defined as a condition arising out of its design which renders a structure, item of equipment or machinery or any other similar object, movable or immovable, when constructed substantially in accordance with its design, inherently unfit, either wholly or in part, for its intended use or which impairs or renders the use of such structure, equipment, machinery or property dangerous. (Added by Stats. 1967, Ch. 1327.)
2784.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. )
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In hauling, trucking, or cartage contracts, indemnity clauses are void and unenforceable if they try to make the promisee harmless for damages caused by the promisee’s own sole negligence or willful misconduct, subject to a supervision-and-control exception.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 12. INDEMNITY [2772 - 2784.5] ( Title 12 enacted 1872. ) ## 2784.5. Any provision, promise, agreement, clause, or covenant contained in, collateral to, or affecting any hauling, trucking, or cartage contract or agreement is against public policy, void and unenforceable if it purports to indemnify the promisee against liability for any of the following damages which are caused by the sole negligence or willful misconduct of the promisee, agents, servants, or the independent contractors directly responsible to the promisee, except when such agents, servants, or independent contractors are under the direct supervision and control of the promisor: (a) Damages arising out of bodily injury or death to persons. (b) Damage to property. (c) Any other damage or expense arising under either (a) or (b). This section shall not affect the validity of any insurance contract, workmen’s compensation insurance contract, or agreement issued by an admitted insurer as defined by Sections 23 and 24 of the Insurance Code or insurance effected by surplus line brokers under Sections 1760 through 1780 of the Insurance Code. (Added by Stats. 1967, Ch. 1314.)
2787.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 1. Definition of Suretyship [2787 - 2788] ( Heading of Article 1 amended by Stats. 1939, Ch. 453. )
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This section abolishes the distinction between sureties and guarantors and gives those terms the same meaning. It defines a surety/guarantor, treats certain guaranties as suretyship obligations, and excludes letters of credit.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 1. Definition of Suretyship [2787 - 2788] ( Heading of Article 1 amended by Stats. 1939, Ch. 453. ) ## 2787. The distinction between sureties and guarantors is hereby abolished. The terms and their derivatives, wherever used in this code or in any other statute or law of this state now in force or hereafter enacted, shall have the same meaning as defined in this section. A surety or guarantor is one who promises to answer for the debt, default, or miscarriage of another, or hypothecates property as security therefor. Guaranties of collection and continuing guaranties are forms of suretyship obligations, and except in so far as necessary in order to give effect to provisions specially relating thereto, shall be subject to all provisions of law relating to suretyships in general. A letter of credit is not a form of suretyship obligation. For purposes of this section, the term “letter of credit” means a “letter of credit” as defined in paragraph (10) of subdivision (a) of Section 5102 of the Commercial Code whether or not the engagement is governed by Division 5 (commencing with Section 5101) of the Commercial Code. (Amended by Stats. 1996, Ch. 176, Sec. 1. Effective January 1, 1997.)
2788.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 1. Definition of Suretyship [2787 - 2788] ( Heading of Article 1 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A person may become a surety even if the principal does not know or consent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 1. Definition of Suretyship [2787 - 2788] ( Heading of Article 1 amended by Stats. 1939, Ch. 453. ) ## 2788. A person may become surety even without the knowledge or consent of the principal. (Amended by Stats. 1939, Ch. 453.)
2792.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. )
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A suretyship made at the same time as the original debt, or when the creditor accepts that debt, does not need separate consideration; in all other cases, separate consideration is required.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. ) ## 2792. Where a suretyship obligation is entered into at the same time with the original obligation, or with the acceptance of the latter by the creditor, and forms with that obligation a part of the consideration to him, no other consideration need exist. In all other cases there must be a consideration distinct from that of the original obligation. (Amended by Stats. 1939, Ch. 453.)
2793.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A suretyship obligation must be in writing and signed by the surety, unless the next section says otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. ) ## 2793. Except as prescribed by the next section, a suretyship obligation must be in writing, and signed by the surety; but the writing need not express a consideration. (Amended by Stats. 1939, Ch. 453.)
2794.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. )
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In listed cases, a promise to pay another person’s obligation is treated as the promisor’s original obligation and does not have to be in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. ) ## 2794. A promise to answer for the obligation of another, in any of the following cases, is deemed an original obligation of the promisor, and need not be in writing: (1) Where the promise is made by one who has received property of another upon an undertaking to apply it pursuant to such promise; or by one who has received a discharge from an obligation in whole or in part, in consideration of such promise; (2) Where the creditor parts with value, or enters into an obligation, in consideration of the obligation in respect to which the promise is made, in terms or under circumstances such as to render the party making the promise the principal debtor and the person in whose behalf it is made, his surety; (3) Where the promise, being for an antecedent obligation of another, is made upon the consideration that the party receiving it cancels the antecedent obligation, accepting the new promise as a substitute therefor; or upon the consideration that the party receiving it releases the property of another from a levy, or his person from imprisonment under an execution on a judgment obtained upon the antecedent obligation; (4) Where the promise is upon a consideration beneficial to the promisor, whether moving from either party to the antecedent obligation, or from another person; (5) Where a factor undertakes, for a commission, to sell merchandise and act as surety in connection with the sale; (6) Where the holder of an instrument for the payment of money, upon which a third person is or may become liable to him, transfers it in payment of a precedent debt of his own, or for a new consideration, and in connection with such transfer enters into a promise respecting such instrument. (Amended by Stats. 1939, Ch. 453.)
2795.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety offer can be accepted by acting on it or by other consideration unless the offer specifically requires notice of acceptance; an absolute suretyship obligation binds the surety without notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 2. Creation of Suretyship [2792 - 2795] ( Heading of Article 2 amended by Stats. 1939, Ch. 453. ) ## 2795. Unless notice of acceptance is expressly required, an offer to become a surety may be accepted by acting upon it, or by acceptance upon other consideration. An absolute suretyship obligation is binding upon the surety without notice of acceptance. (Amended by Stats. 1939, Ch. 453.)
2799.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. )
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If someone assumes surety liability before the contract terms are settled, the implied terms must not expose the surety to greater risk than common local terms in similar contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. ) ## 2799. In an assumption of liability as surety in connection with a contract, the terms of which are not then settled, it is implied that its terms shall be such as will not expose the surety to greater risks than he would incur under those terms which are most common in similar contracts at the place where the principal contract is to be performed. (Amended by Stats. 1939, Ch. 453.)
2800.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A guaranty that an obligation is good or collectible means the debtor is solvent and the demand can be collected through usual legal proceedings with reasonable diligence.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. ) ## 2800. A guaranty to the effect that an obligation is good, or is collectible, imports that the debtor is solvent, and that the demand is collectible by the usual legal proceedings, if taken with reasonable diligence. (Enacted 1872.)
2801.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. )
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A guaranty is not discharged just because no proceedings are taken on the principal debt or related collateral security, if those proceedings could not have collected any part of the debt.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. ) ## 2801. A guaranty, such as is mentioned in the last section, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. (Enacted 1872.)
2802.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. )
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For certain suretyship cases, if the principal leaves the state and has no property there to satisfy the obligation, that is treated the same as the principal’s insolvency for the guarantor’s rights and obligations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 3. Interpretation of Suretyship [2799 - 2802] ( Heading of Article 3 amended by Stats. 1939, Ch. 453. ) ## 2802. In the cases mentioned in Section 2800, the removal of the principal from the State, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor. (Enacted 1872.)
2806.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A suretyship obligation is treated as unconditional unless its terms make the surety’s liability depend on a condition precedent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2806. A suretyship obligation is to be deemed unconditional unless its terms import some condition precedent to the liability of the surety. (Amended by Stats. 1939, Ch. 453.)
2807.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety who has taken on liability for payment or performance becomes liable to the creditor when the principal defaults, without any demand or notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2807. A surety who has assumed liability for payment or performance is liable to the creditor immediately upon the default of the principal, and without demand or notice. (Amended by Stats. 1939, Ch. 453.)
2808.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety’s liability matches the principal’s, and the surety generally is not entitled to notice of the principal’s default unless the stated conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2808. Where one assumes liability as surety upon a conditional obligation, his liability is commensurate with that of the principal, and he is not entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of such default, and the creditor has actual notice thereof. (Amended by Stats. 1939, Ch. 453.)
2809.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety’s obligation cannot be greater or more burdensome than the principal’s; if it is, it is reduced to match the principal obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2809. The obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; and if in its terms it exceeds it, it is reducible in proportion to the principal obligation. (Amended by Stats. 1939, Ch. 453.)
2810.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety can still be liable even if the principal has a personal disability that would void the contract against the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2810. A surety is liable, notwithstanding any mere personal disability of the principal, though the disability be such as to make the contract void against the principal; but he is not liable if for any other reason there is no liability upon the part of the principal at the time of the execution of the contract, or the liability of the principal thereafter ceases, unless the surety has assumed liability with knowledge of the existence of the defense. Where the principal is not liable because of mere personal disability, recovery back by the creditor of any res which formed all or part of the consideration for the contract shall have the effect upon the liability of the surety which is attributed to the recovery back of such a res under the law of sales generally. (Amended by Stats. 1939, Ch. 453.)
2811.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. )
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A person who must provide a bond may agree with the surety to deposit money or assets with an approved depository, under safeguards that prevent withdrawal without the surety’s written consent or a court/judge order.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 4. Liability of Sureties [2806 - 2811] ( Heading of Article 4 amended by Stats. 1939, Ch. 453. ) ## 2811. Any party required to give a bond undertaking or other obligation may agree with his surety for the deposit of any money and assets for which the surety is responsible with a bank, savings bank, safe deposit, or trust company authorized by law to do business as such, or other depository approved by the court or a judge thereof, if such deposit is otherwise proper, for the safekeeping of such money and assets and in such manner as to prevent the withdrawal of any or all such money and assets without the written consent of the surety, or an order of court or a judge thereof, made on such notice to the surety as the court or judge may direct. Such agreement shall not in any manner release, or change the liability of, the principal or surety as established by the terms of the bond. (Added by Stats. 1953, Ch. 37.)
2814.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 5. Continuing Guaranty [2814 - 2815] ( Article 5 enacted 1872. )
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This section defines a continuing guaranty as a guaranty for the principal’s future liability in successive transactions, including when liability continues or is renewed after being satisfied.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 5. Continuing Guaranty [2814 - 2815] ( Article 5 enacted 1872. ) ## 2814. A guaranty relating to a future liability of the principal, under successive transactions, which either continue his liability or from time to time renew it after it has been satisfied, is called a continuing guaranty. (Enacted 1872.)
2815.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 5. Continuing Guaranty [2814 - 2815] ( Article 5 enacted 1872. )
Verify source ↗

A guarantor may revoke a continuing guaranty for future transactions, unless there is continuing consideration for those transactions that the guarantor does not renounce.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 5. Continuing Guaranty [2814 - 2815] ( Article 5 enacted 1872. ) ## 2815. A continuing guaranty may be revoked at any time by the guarantor, in respect to future transactions, unless there is a continuing consideration as to such transactions which he does not renounce. (Enacted 1872.)
2819.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety is exonerated if the creditor changes the principal obligation or impairs or suspends the creditor’s remedies against the principal without the surety’s consent, unless the surety is indemnified by the principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2819. A surety is exonerated, except so far as he or she may be indemnified by the principal, if by any act of the creditor, without the consent of the surety the original obligation of the principal is altered in any respect, or the remedies or rights of the creditor against the principal, in respect thereto, in any way impaired or suspended. However, nothing in this section shall be construed to supersede subdivision (b) of Section 2822. (Amended by Stats. 1993, Ch. 149, Sec. 1. Effective July 19, 1993.)
2820.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A creditor’s promise does not lose its effect on the obligation or remedy just because the promise is void or voidable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2820. That a promise by a creditor is for any cause void, or voidable by him at his option, shall not prevent it from altering the obligation or suspending or impairing the remedy within the meaning of the last section. (Amended by Stats. 1939, Ch. 453.)
2821.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

Rescinding an agreement that changed a debtor’s original obligation or a creditor’s remedy does not bring back a surety’s liability if that surety was already exonerated by the agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2821. The rescission of an agreement altering the original obligation of a debtor, or impairing the remedy of a creditor, does not restore the liability of a surety who has been exonerated by such agreement. (Amended by Stats. 1939, Ch. 453.)
2822.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
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A creditor’s partial satisfaction of a debt reduces a surety’s obligation in the same proportion as the principal’s. If the surety is liable for only part of the obligation, the principal may choose which part is satisfied. An agreement to take less than the balance owed does not exonerate the surety unless the surety consented or the underlying agreement changed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2822. (a) The acceptance, by a creditor, of anything in partial satisfaction of an obligation, reduces the obligation of a surety thereof, in the same measure as that of the principal, but does not otherwise affect it. However, if the surety is liable upon only a portion of an obligation and the principal provides partial satisfaction of the obligation, the principal may designate the portion of the obligation that is to be satisfied. (b) For purposes of this section and Section 2819, an agreement by a creditor to accept from the principal debtor a sum less than the balance owed on the original obligation, without the prior consent of the surety and without any other change to the underlying agreement between the creditor and principal debtor, shall not exonerate the surety for the lesser sum agreed upon by the creditor and principal debtor. (Amended by Stats. 1993, Ch. 149, Sec. 2. Effective July 19, 1993.)
2823.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A creditor’s mere delay in suing the principal or using another remedy does not discharge the surety.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2823. Mere delay on the part of a creditor to proceed against the principal, or to enforce any other remedy, does not exonerate a surety. (Amended by Stats. 1939, Ch. 453.)
2824.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety who has been indemnified by the principal remains liable to the creditor up to the amount of the indemnity, even if the creditor changed the contract or released the principal without the surety’s assent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2824. A surety, who has been indemnified by the principal, is liable to the creditor to the extent of the indemnity, notwithstanding that the creditor, without the assent of the surety, may have modified the contract or released the principal. (Amended by Stats. 1939, Ch. 453.)
2825.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. )
Verify source ↗

A surety is not released just because the principal is discharged by operation of law, unless the creditor intervened or omitted to act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 6. Exoneration of Sureties [2819 - 2825] ( Heading of Article 6 amended by Stats. 1939, Ch. 453. ) ## 2825. A surety is not exonerated by the discharge of his principal by operation of law, without the intervention or omission of the creditor. (Amended by Stats. 1939, Ch. 453.)
2832.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

A person who appears to be the principal may show that they are actually a surety, unless doing so would prejudice people who relied on their apparent status as principal.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2832. One who appears to be a principal, whether by the terms of a written instrument or otherwise, may show that he is in fact a surety, except as against persons who have acted on the faith of his apparent character of principal. It is not necessary for him to show that the creditor accepted him as surety. (Amended by Stats. 1939, Ch. 453.)
2837.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

This section says suretyship contracts are interpreted using the same rules as other contracts, except as section 2794 provides.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2837. In interpreting the terms of a contract of suretyship, the same rules are to be observed as in the case of other contracts. Except as provided in section 2794, the position of a surety to whom consideration moves is the same as that of one who is gratuitous. (Amended by Stats. 1939, Ch. 453.)
2838.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

If a creditor recovers a judgment against a surety, the person still remains in the legal position of a surety.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2838. Notwithstanding the recovery of judgment by a creditor against a surety, the latter still occupies the relation of surety. (Enacted 1872.)
2845.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

A surety may ask the creditor to proceed against the principal or use another available remedy that would reduce the surety’s burden.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2845. A surety may require the creditor, subject to Section 996.440 of the Code of Civil Procedure, to proceed against the principal, or to pursue any other remedy in the creditor’s power which the surety cannot pursue, and which would lighten the surety’s burden; and if the creditor neglects to do so, the surety is exonerated to the extent to which the surety is thereby prejudiced. (Amended by Stats. 1982, Ch. 517, Sec. 73.)
2846.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

A surety may compel the principal to perform the obligation when it is due.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2846. A surety may compel his principal to perform the obligation when due. (Enacted 1872.)
2847.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

If a surety pays the principal obligation, the principal must reimburse the surety for the amount paid, including necessary costs and expenses. The surety generally has no reimbursement claim against other people, except as the next section allows.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2847. If a surety satisfies the principal obligation, or any part thereof, whether with or without legal proceedings, the principal is bound to reimburse what he has disbursed, including necessary costs and expenses; but the surety has no claim for reimbursement against other persons, though they may have been benefited by his act, except as prescribed by the next section. (Enacted 1872.)
2848.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

A surety who pays the principal’s obligation may enforce the creditor’s remedies against the principal and seek contribution from co-sureties.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2848. A surety, upon satisfying the obligation of the principal, is entitled to enforce every remedy which the creditor then has against the principal to the extent of reimbursing what he has expended, and also to require all his co-sureties to contribute thereto, without regard to the order of time in which they became such. (Enacted 1872.)
2849.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

A surety has the right to benefit from securities for the principal obligation held by the creditor or a co-surety, including later-acquired securities, even if the surety did not know about them.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2849. A surety is entitled to the benefit of every security for the performance of the principal obligation held by the creditor, or by a co-surety at the time of entering into the contract of suretyship, or acquired by him afterwards, whether the surety was aware of the security or not. (Enacted 1872.)
2850.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
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A surety may insist that the principal’s property be applied first to pay the obligation when both properties are hypothecated together.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2850. Whenever property of a surety is hypothecated with property of the principal, the surety is entitled to have the property of the principal first applied to the discharge of the obligation. (Enacted 1872.)
2854.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
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A creditor is entitled to benefit from security a surety has received from the debtor, and may compel that security to be applied when the obligation matures.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2854. A creditor is entitled to the benefit of everything which a surety has received from the debtor by way of security for the performance of the obligation, and may, upon the maturity of the obligation, compel the application of such security to its satisfaction. (Enacted 1872.)
2855.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
Verify source ↗

An arbitration award against only the principal does not count as an award against the surety.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2855. An arbitration award rendered against a principal alone shall not be, be deemed to be, or be utilized as, an award against his surety. The intent of this legislation is to apply existing law to arbitration awards. (Added by Stats. 1979, Ch. 346.)
2856.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. )
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A guarantor or other surety may waive specified rights and defenses, including certain defenses tied to real property-secured obligations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13. SURETYSHIP [2787 - 2856] ( Heading of Title 13 amended by Stats. 1939, Ch. 453. ) ## ARTICLE 7. Position of Sureties [2832 - 2856] ( Heading of Article 7 renumbered from Article 1 (of former Chapter 2) by Stats. 1939, Ch. 453. ) ## 2856. (a) Any guarantor or other surety, including a guarantor of a note or other obligation secured by real property or an estate for years, may waive any or all of the following: (1) The guarantor or other surety’s rights of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become available to the guarantor or other surety by reason of Sections 2787 to 2855, inclusive. (2) Any rights or defenses the guarantor or other surety may have in respect of his or her obligations as a guarantor or other surety by reason of any election of remedies by the creditor. (3)Any rights or defenses the guarantor or other surety may have because the principal’s note or other obligation is secured by real property or an estate for years. These rights or defenses include, but are not limited to, any rights or defenses that are based upon, directly or indirectly, the application of Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure to the principal’s note or other obligation. (b) A contractual provision that expresses an intent to waive any or all of the rights and defenses described in subdivision (a) shall be effective to waive these rights and defenses without regard to the inclusion of any particular language or phrases in the contract to waive any rights and defenses or any references to statutory provisions or judicial decisions. (c) Without limiting any rights of the creditor or any guarantor or other surety to use any other language to express an intent to waive any or all of the rights and defenses described in paragraphs (2) and (3) of subdivision (a), the following provisions in a contract shall effectively waive all rights and defenses described in paragraphs (2) and (3) of subdivision (a): The guarantor waives all rights and defenses that the guarantor may have because the debtor’s debt is secured by real property. This means, among other things: (1) The creditor may collect from the guarantor without first foreclosing on any real or personal property collateral pledged by the debtor. (2) If the creditor forecloses on any real property collateral pledged by the debtor: (A) The amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price. (B) The creditor may collect from the guarantor even if the creditor, by foreclosing on the real property collateral, has destroyed any right the guarantor may have to collect from the debtor. This is an unconditional and irrevocable waiver of any rights and defenses the guarantor may have because the debtor’s debt is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure. (d) Without limiting any rights of the creditor or any guarantor or other surety to use any other language to express an intent to waive all rights and defenses of the surety by reason of any election of remedies by the creditor, the following provision shall be effective to waive all rights and defenses the guarantor or other surety may have in respect of his or her obligations as a surety by reason of an election of remedies by the creditor: The guarantor waives all rights and defenses arising out of an election of remedies by the creditor, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed the guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the Code of Civil Procedure or otherwise. (e) Subdivisions (b), (c), and (d) shall not apply to a guaranty or other type of suretyship obligation made in respect of a loan secured by a deed of trust or mortgage on a dwelling for not more than four families when the dwelling is occupied, entirely or in part, by the borrower and that loan was in fact used to pay all or part of the purchase price of that dwelling. (f) The validity of a waiver executed before January 1, 1997, shall be determined by the application of the law that existed on the date that the waiver was executed. (Repealed and added by Stats. 1996, Ch. 1013, Sec. 2. Effective January 1, 1997.)
2860.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13.5. OBLIGATION TO DEFEND ACTION [2860- 2860.] ( Title 13.5 added by Stats. 1987, Ch. 1498, Sec. 4. )
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If an insurer must defend and a conflict of interest creates a need for independent counsel, the insurer must provide that counsel unless the insured waives the right in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 13.5. OBLIGATION TO DEFEND ACTION [2860- 2860.] ( Title 13.5 added by Stats. 1987, Ch. 1498, Sec. 4. ) ## 2860. (a) If the provisions of a policy of insurance impose a duty to defend upon an insurer and a conflict of interest arises which creates a duty on the part of the insurer to provide independent counsel to the insured, the insurer shall provide independent counsel to represent the insured unless, at the time the insured is informed that a possible conflict may arise or does exist, the insured expressly waives, in writing, the right to independent counsel. An insurance contract may contain a provision which sets forth the method of selecting that counsel consistent with this section. (b) For purposes of this section, a conflict of interest does not exist as to allegations or facts in the litigation for which the insurer denies coverage; however, when an insurer reserves its rights on a given issue and the outcome of that coverage issue can be controlled by counsel first retained by the insurer for the defense of the claim, a conflict of interest may exist. No conflict of interest shall be deemed to exist as to allegations of punitive damages or be deemed to exist solely because an insured is sued for an amount in excess of the insurance policy limits. (c) When the insured has selected independent counsel to represent him or her, the insurer may exercise its right to require that the counsel selected by the insured possess certain minimum qualifications which may include that the selected counsel have (1) at least five years of civil litigation practice which includes substantial defense experience in the subject at issue in the litigation, and (2) errors and omissions coverage. The insurer’s obligation to pay fees to the independent counsel selected by the insured is limited to the rates which are actually paid by the insurer to attorneys retained by it in the ordinary course of business in the defense of similar actions in the community where the claim arose or is being defended. This subdivision does not invalidate other different or additional policy provisions pertaining to attorney’s fees or providing for methods of settlement of disputes concerning those fees. Any dispute concerning attorney’s fees not resolved by these methods shall be resolved by final and binding arbitration by a single neutral arbitrator selected by the parties to the dispute. (d) When independent counsel has been selected by the insured, it shall be the duty of that counsel and the insured to disclose to the insurer all information concerning the action except privileged materials relevant to coverage disputes, and timely to inform and consult with the insurer on all matters relating to the action. Any claim of privilege asserted is subject to in camera review in the appropriate law and motion department of the superior court. Any information disclosed by the insured or by independent counsel is not a waiver of the privilege as to any other party. (e) The insured may waive its right to select independent counsel by signing the following statement: “I have been advised and informed of my right to select independent counsel to represent me in this lawsuit. I have considered this matter fully and freely waive my right to select independent counsel at this time. I authorize my insurer to select a defense attorney to represent me in this lawsuit.” (f) Where the insured selects independent counsel pursuant to the provisions of this section, both the counsel provided by the insurer and independent counsel selected by the insured shall be allowed to participate in all aspects of the litigation. Counsel shall cooperate fully in the exchange of information that is consistent with each counsel’s ethical and legal obligation to the insured. Nothing in this section shall relieve the insured of his or her duty to cooperate with the insurer under the terms of the insurance contract. (Amended by Stats. 1988, Ch. 1114, Sec. 1.)
2872.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
Verify source ↗

This section defines a lien as a charge on specific property that secures performance of an act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2872. A lien is a charge imposed in some mode other than by a transfer in trust upon specific property by which it is made security for the performance of an act. (Amended by Code Amendments 1877-78, Ch. 74.)
2873.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
Verify source ↗

Liens are classified as either general or special.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2873. Liens are either general or special. (Enacted 1872.)
2874.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
Verify source ↗

The holder of a general lien is entitled to enforce it as security for certain obligations owed against the property owner.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2874. A general lien is one which the holder thereof is entitled to enforce as a security for the performance of all the obligations, or all of a particular class of obligations, which exist in his favor against the owner of the property. (Enacted 1872.)
2875.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
Verify source ↗

A special lien may be enforced only as security for a particular act or obligation, including incidental obligations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2875. A special lien is one which the holder thereof can enforce only as security for the performance of a particular act or obligation, and of such obligations as may be incidental thereto. (Enacted 1872.)
2876.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
Verify source ↗

A holder of a special lien may recover payment for money paid to satisfy a prior lien, when that payment was made to protect their own interests.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2876. Where the holder of a special lien is compelled to satisfy a prior lien for his own protection, he may enforce payment of the amount so paid by him, as a part of the claim for which his own lien exists. (Enacted 1872.)
2877.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. )
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Mortgage, pledge, bottomry, and respondentia contracts are governed by all provisions of this chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Definition of Liens [2872 - 2877] ( Article 1 enacted 1872. ) ## 2877. Contracts of mortgage, pledge, bottomry, or respondentia are subject to all of the provisions of this chapter. (Amended by Stats. 2013, Ch. 76, Sec. 13. (AB 383) Effective January 1, 2014.)
2881.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. )
Verify source ↗

A lien is created either by the parties’ contract or by operation of law.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. ) ## 2881. A lien is created: 1. By contract of the parties; or, 2. By operation of law. (Enacted 1872.)
2882.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. )
Verify source ↗

A lien does not arise just because of the law; it arises only when the act it secures should be performed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. ) ## 2882. No lien arises by mere operation of law until the time at which the act to be secured thereby ought to be performed. (Enacted 1872.)
2883.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. )
Verify source ↗

An agreement may create a lien on property that has not yet been acquired or even come into existence.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. ) ## 2883. (a) An agreement may be made to create a lien upon property not yet acquired by the party agreeing to give the lien, or not yet in existence. In that case the lien agreed for attaches from the time when the party agreeing to give it acquires an interest in the thing, to the extent of such interest. (b) For purposes of subdivision (a), an agreement by a beneficiary of an estate that is subject to administration, as provided in Division 7 (commencing with Section 7000) of the Probate Code, to create a lien upon real property in the estate that is undistributed at the time the agreement is entered into, shall create no lien upon the real property unless and until the real property is distributed to that beneficiary. Upon recordation of an order confirming the sale of the real property pursuant to Section 10313 of the Probate Code and the recording of a duly executed deed in accordance therewith, any expectancy of a lien in the real property under the agreement shall be extinguished. (Amended by Stats. 1993, Ch. 527, Sec. 1. Effective January 1, 1994.)
2884.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. )
Verify source ↗

A lien may be created by contract to take immediate effect as security for obligations that do not yet exist.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. ) ## 2884. A lien may be created by contract, to take immediate effect, as security for the performance of obligations not then in existence. (Enacted 1872.)
2885.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. )
Verify source ↗

A state agency must mail written notice to the tax debtor when it records a state tax lien against real property, unless prior mail to the recorded address was returned undelivered with no forwarding address.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Creation of Liens [2881 - 2885] ( Article 2 enacted 1872. ) ## 2885. Any state agency, upon recording a state tax lien against real property, shall mail written notice of the recordation to the tax debtor, unless previous correspondence mailed to the address of record was returned undelivered with no forwarding address. Failure to notify the tax debtor shall not affect the constructive notice otherwise imparted by recordation, nor shall it affect the force, effect, or priority otherwise accorded such tax lien. (Amended by Stats. 1983, Ch. 643, Sec. 1. Effective September 1, 1983.)
2888.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. )
Verify source ↗

A lien, or a contract for a lien, does not transfer title to the property subject to the lien, even if an agreement says otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. ) ## 2888. Notwithstanding an agreement to the contrary, a lien, or a contract for a lien, transfers no title to the property subject to the lien. (Enacted 1872.)
2889.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. )
Verify source ↗

Contracts that forfeit property subject to a lien in satisfaction of the secured obligation, and contracts that restrain the right to redeem from a lien, are void.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. ) ## 2889. All contracts for the forfeiture of property subject to a lien, in satisfaction of the obligation secured thereby, and all contracts in restraint of the right of redemption from a lien, are void. (Enacted 1872.)
2890.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. )
Verify source ↗

Creating a lien does not by itself make anyone legally bound to perform the secured act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. ) ## 2890. The creation of a lien does not of itself imply that any person is bound to perform the act for which the lien is a security. (Enacted 1872.)
2891.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. )
Verify source ↗

A lien on property does not by itself give the lienholder a lien on the same property for some other obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. ) ## 2891. The existence of a lien upon property does not of itself entitle the person in whose favor it exists to a lien upon the same property for the performance of any other obligation than that which the lien originally secured. (Enacted 1872.)
2892.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. )
Verify source ↗

A person holding property under a lien cannot get compensation from the owner for trouble or expense tied to the property, except to the same extent a borrower could under Sections 1892 and 1893.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 3. Effect of Liens [2888 - 2892] ( Article 3 enacted 1872. ) ## 2892. One who holds property by virtue of a lien thereon, is not entitled to compensation from the owner thereof for any trouble or expense which he incurs respecting it, except to the same extent as a borrower, under Sections 1892 and 1893. (Enacted 1872.)
2897.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. )
Verify source ↗

When multiple liens cover the same property, priority generally goes by the time each lien was created, except for bottomry and respondentia.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. ) ## 2897. Other things being equal, different liens upon the same property have priority according to the time of their creation, except in cases of bottomry and respondentia. (Enacted 1872.)
2898.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. )
Verify source ↗

Certain mortgages and deeds of trust get priority over other liens under specified conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. ) ## 2898. (a) A mortgage or deed of trust given for the price of real property, at the time of its conveyance, has priority over all other liens created against the purchaser, subject to the operation of the recording laws. (b) The priority of the lien of a mortgage or deed of trust on an estate for years in real property shall be determined in the same manner as for determining the priority of a lien of a mortgage or deed of trust on real property. (Amended by Stats. 1989, Ch. 698, Sec. 3.)
2899.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. )
Verify source ↗

A person with a prior lien must satisfy the property in a specified order when there are multiple items and other subordinate liens or interests, if doing so will not risk loss or injustice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 4. Priority of Liens [2897 - 2899] ( Article 4 enacted 1872. ) ## 2899. Where one has a lien upon several things, and other persons have subordinate liens upon, or interests in, some but not all of the same things, the person having the prior lien, if he can do so without risk of loss to himself, or of injustice to other persons, must resort to the property in the following order, on the demand of any party interested: 1. To the things upon which he has an exclusive lien; 2. To the things which are subject to the fewest subordinate liens; 3. In like manner inversely to the number of subordinate liens upon the same thing; and, 4. When several things are within one of the foregoing classes, and subject to the same number of liens, resort must be had— (1.) To the things which have not been transferred since the prior lien was created; (2.) To the things which have been so transferred without a valuable consideration; and, (3.) To the things which have been so transferred for a valuable consideration in the inverse order of the transfer. (Enacted 1872.)
2903.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. )
Verify source ↗

A person with an interest in property subject to a lien has a right to redeem the property from the lien after the claim is due and before redemption is foreclosed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. ) ## 2903. Every person, having an interest in property subject to a lien, has a right to redeem it from the lien, at any time after the claim is due, and before his right of redemption is foreclosed, and, by such redemption, becomes subrogated to all the benefits of the lien, as against all owners of other interests in the property, except in so far as he was bound to make such redemption for their benefit. (Amended by Stats. 1905, Ch. 459.)
2904.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. )
Verify source ↗

A person with a junior lien on the same property has a right to redeem it from a superior lien and, when needed to protect that person’s interests and after satisfying the secured claim, to step into the superior lien’s benefits.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. ) ## 2904. One who has a lien inferior to another, upon the same property, has a right: 1. To redeem the property in the same manner as its owner might, from the superior lien; and, 2. To be subrogated to all the benefits of the superior lien, when necessary for the protection of his interests, upon satisfying the claim secured thereby. (Enacted 1872.)
2905.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. )
Verify source ↗

A lien is redeemed by performing or offering to perform the secured act and by paying or offering to pay any damages owed for delay.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. ) ## 2905. Redemption from a lien is made by performing, or offering to perform, the act for the performance of which it is a security, and paying, or offering to pay, the damages, if any, to which the holder of the lien is entitled for delay. (Enacted 1872.)
2906.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. )
Verify source ↗

An option given to a secured party to buy an interest in real property collateral has priority when recorded and is effective under its terms if exercise does not depend on default.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 5. Redemption From Lien [2903 - 2906] ( Article 5 enacted 1872. ) ## 2906. An option granted to a secured party by a debtor to acquire an interest in real property collateral takes priority as of its recording and is effective according to its terms if the right to exercise the option is not dependent upon the occurrence of a default with respect to the security agreement and, where the real property which is the subject of the option is other than residential real property containing four or fewer units, shall not be deemed invalid or ineffective on the basis that the secured party has impaired the debtor’s equity of redemption in violation of common law or Section 2889. This section shall not be construed to make valid or effective an otherwise unlawful option nor shall any inference be drawn from this section as to the validity or application of common law with respect to residential real property containing four or fewer units. (Added by Stats. 1984, Ch. 565, Sec. 1.)
2909.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

A lien is treated as accessory to the secured act and ends the same way as another accessory obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2909. A lien is to be deemed accessory to the act for the performance of which it is a security, whether any person is bound for such performance or not, and is extinguishable in like manner with any other accessory obligation. (Enacted 1872.)
2910.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

A lien is extinguished when the property is sold to satisfy the secured claim, or when personal property is wrongfully converted by the lienholder.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2910. The sale of any property on which there is a lien, in satisfaction of the claim secured thereby, or in case of personal property, its wrongful conversion by the person holding the lien, extinguishes the lien thereon. (Enacted 1872.)
2911.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

A lien can end when the applicable time period runs out, including specified periods for actions on the principal obligation or for selling property for a public improvement assessment.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2911. A lien is extinguished by the lapse of time within which, under the provisions of the Code of Civil Procedure, either: 1. An action can be brought upon the principal obligation, or 2. A treasurer, street superintendent or other public official may sell any real property to satisfy a public improvement assessment or any bond issued to represent such assessment and which assessment is secured by a lien upon said real property; whichever is later. Anything to the contrary notwithstanding, any lien heretofore existing or which may hereafter exist upon real property to secure the payment of a public improvement assessment shall be presumed to have been extinguished at the expiration of four years after the due date of such assessment or the last installment thereof, or four years after the date the lien attaches, or on January 1, 1947, whichever is later, or in the event bonds were or shall be issued to represent such assessment, the lien shall then be presumed to have been extinguished at the expiration of four years after the due date of said bonds or of the last installment thereof or of the last principal coupon attached thereto, or on January 1, 1947, whichever is later. The presumptions mentioned in this paragraph shall be conclusive in favor of a bona fide purchaser for value of said property after such dates. (Amended by Stats. 1945, Ch. 361.)
2912.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

Partial performance of an act secured by a lien does not extinguish the lien on the property, even if the property is divisible.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2912. The partial performance of an act secured by a lien does not extinguish the lien upon any part of the property subject thereto, even if it is divisible. (Enacted 1872.)
2913.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

Returning possession of property to its owner generally ends a lien based on possession, unless the parties agree otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2913. The voluntary restoration of property to its owner by the holder of a lien thereon dependent upon possession extinguishes the lien as to such property, unless otherwise agreed by the parties, and extinguishes it, notwithstanding any such agreement, as to creditors of the owner and persons, subsequently acquiring a title to the property, or a lien thereon, in good faith, and for value. (Amended by Stats. 1905, Ch. 459.)
2914.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. )
Verify source ↗

This chapter does not apply to transactions or security interests governed by the Uniform Commercial Code.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 1. Liens in General [2872 - 2914] ( Chapter 1 enacted 1872. ) ## ARTICLE 6. Extinction of Liens [2909 - 2914] ( Article 6 enacted 1872. ) ## 2914. None of the provisions of this chapter apply to any transaction or security interest governed by the Uniform Commercial Code. (Added by Stats. 1963, Ch. 819.)
2920.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section defines “mortgage” and, for certain later sections, expands the term to include some security devices with a power of sale.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2920. (a) A mortgage is a contract by which specific property, including an estate for years in real property, is hypothecated for the performance of an act, without the necessity of a change of possession. (b) For purposes of Sections 2924 to 2924h, inclusive, “mortgage” also means any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation so secured, including a real property sales contract, as defined in Section 2985, which contains such a provision. (Amended by Stats. 1989, Ch. 698, Sec. 4.)
2920.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section defines key terms used in this article, including “mortgage servicer,” “foreclosure prevention alternative,” “borrower,” and “first lien.”

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2920.5. For purposes of this article, the following definitions apply: (a) “Mortgage servicer” means a person or entity who directly services a loan, or who is responsible for interacting with the borrower, managing the loan account on a daily basis including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owner’s authorized agent. “Mortgage servicer” also means a subservicing agent to a master servicer by contract. “Mortgage servicer” shall not include a trustee, or a trustee’s authorized agent, acting under a power of sale pursuant to a deed of trust. (b) “Foreclosure prevention alternative” means a first lien loan modification or another available loss mitigation option. (c) (1) Unless otherwise provided and for purposes of Sections 2923.4, 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, 2924.18, and 2924.19, “borrower” means any natural person who is a mortgagor or trustor and who is potentially eligible for any federal, state, or proprietary foreclosure prevention alternative program offered by, or through, his or her mortgage servicer. (2) For purposes of the sections listed in paragraph (1), “borrower” shall not include any of the following: (A) An individual who has surrendered the secured property as evidenced by either a letter confirming the surrender or delivery of the keys to the property to the mortgagee, trustee, beneficiary, or authorized agent. (B) An individual who has contracted with an organization, person, or entity whose primary business is advising people who have decided to leave their homes on how to extend the foreclosure process and avoid their contractual obligations to mortgagees or beneficiaries. (C) An individual who has filed a case under Chapter 7, 11, 12, or 13 of Title 11 of the United States Code and the bankruptcy court has not entered an order closing or dismissing the bankruptcy case, or granting relief from a stay of foreclosure. (d) “First lien” means the most senior mortgage or deed of trust on the property that is the subject of the notice of default or notice of sale. (Added by Stats. 2012, Ch. 87, Sec. 2. (SB 900) Effective January 1, 2013. See identical section added by Stats. 2012, Ch. 86.)
2921.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage may be created on property even if it is held adversely to the mortgagor.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2921. A mortgage may be created upon property held adversely to the mortgagor. (Enacted 1872.)
2922.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage may be created, renewed, or extended only in writing and with the formalities required for a grant of real property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2922. A mortgage can be created, renewed, or extended, only by writing, executed with the formalities required in the case of a grant of real property. (Enacted 1872.)
2923.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage lien is special unless the parties expressly agree otherwise, and it does not depend on possession.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923. The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession. (Enacted 1872.)
2923.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage broker who provides mortgage brokerage services to a borrower is the borrower’s fiduciary and must put the borrower’s economic interest ahead of the broker’s own.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.1. (a) A mortgage broker providing mortgage brokerage services to a borrower is the fiduciary of the borrower, and any violation of the broker’s fiduciary duties shall be a violation of the mortgage broker’s license law. This fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest. A mortgage broker who provides mortgage brokerage services to the borrower owes this fiduciary duty to the borrower regardless of whether the mortgage broker is acting as an agent for any other party in connection with the residential mortgage loan transaction.(b) For purposes of this section, the following definitions apply: (1) “Licensed person” means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Finance Lenders Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), a commercial or industrial bank organized under the Banking Law (Division 1 (commencing with Section 99) of the Financial Code), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000) of the Financial Code), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000) of the Financial Code). (2) “Mortgage broker” means a licensed person who provides mortgage brokerage services. For purposes of this section, a licensed person who makes a residential mortgage loan is a “mortgage broker,” and subject to the requirements of this section applicable to mortgage brokers, only with respect to transactions in which the licensed person provides mortgage brokerage services. (3) “Mortgage brokerage services” means arranging or attempting to arrange, as exclusive agent for the borrower or as dual agent for the borrower and lender, for compensation or in expectation of compensation, paid directly or indirectly, a residential mortgage loan made by an unaffiliated third party. (4) “Residential mortgage loan” means a consumer credit transaction that is secured by residential real property that is improved by four or fewer residential units. (c) The duties set forth in this section shall not be construed to limit or narrow any other fiduciary duty of a mortgage broker. (Added by Stats. 2009, Ch. 629, Sec. 2. (AB 260) Effective January 1, 2010.)
2923.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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For certain small residential properties, the mortgagee, trustee, beneficiary, or authorized agent must give the borrower foreclosure notices with attached summary documents, and the state department must provide standard translations online.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.3. (a) With respect to residential real property containing no more than four dwelling units, a mortgagee, trustee, beneficiary, or authorized agent shall provide to the mortgagor or trustor a copy of the recorded notice of default with an attached separate summary document of the notice of default in English and the languages described in Section 1632, as set forth in subdivision (c), and a copy of the recorded notice of sale with an attached separate summary document of the information required to be contained in the notice of sale in English and the languages described in Section 1632, as set forth in subdivision (d). These summaries are not required to be recorded or published. This subdivision shall become operative on April 1, 2013, or 90 days following the issuance of the translations by the Department of Financial Protection and Innovation pursuant to subdivision (b), whichever is later. (b) (1) The Department of Financial Protection and Innovation shall provide a standard translation of the statement in paragraph (1) of subdivision (c), and of the summary of the notice of default, as set forth in paragraph (2) of subdivision (c) in the languages described in Section 1632. (2) The Department of Financial Protection and Innovation shall provide a standard translation of the statement in paragraph (1) of subdivision (d), and of the summary of the notice of sale, as set forth in paragraph (2) of subdivision (d). (3) The department shall make the translations described in paragraphs (1) and (2) available without charge on its internet website. Any mortgagee, trustee, beneficiary, or authorized agent who provides the department’s translations in the manner prescribed by this section shall be in compliance with this section. (c) (1) The following statement shall appear in the languages described in Section 1632 at the beginning of the notice of default: NOTE: THERE IS A SUMMARY OF THE INFORMATION IN THIS DOCUMENT ATTACHED. (2) The following summary of key information shall be attached to the copy of the notice of default provided to the mortgagor or trustor: SUMMARY OF KEY INFORMATION The attached notice of default was sent to [name of the trustor], in relation to [description of the property that secures the mortgage or deed of trust in default]. This property may be sold to satisfy your obligation and any other obligation secured by the deed of trust or mortgage that is in default. [Trustor] has, as described in the notice of default, breached the mortgage or deed of trust on the property described above. IMPORTANT NOTICE: IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account, which is normally five business days prior to the date set for the sale of your property. No sale date may be set until approximately 90 days from the date the attached notice of default may be recorded (which date of recordation appears on the notice). This amount is ____________ as of ___(date)____________and will increase until your account becomes current. While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and deed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary or mortgagee may require as a condition to reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums. Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay all amounts in default at the time payment is made. However, you and your beneficiary or mortgagee may mutually agree in writing prior to the time the notice of sale is posted (which may not be earlier than three months after this notice of default is recorded) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1) and (2). Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, you have only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor. To find out the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact: ____________________________________ (Name of beneficiary or mortgagee) ____________________________________ (Mailing address) ____________________________________ (Telephone) If you have any questions, you should contact a lawyer or the governmental agency which may have insured your loan. Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale, provided the sale is concluded prior to the conclusion of the foreclosure. Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. If you would like additional copies of this summary, you may obtain them by calling [insert telephone number]. (d) (1) The following statement shall appear in the languages described in Section 1632 at the beginning of the notice of sale: NOTE: THERE IS A SUMMARY OF THE INFORMATION IN THIS DOCUMENT ATTACHED. (2) The following summary of key information shall be attached to the copy of the notice of sale provided to the mortgagor or trustor: SUMMARY OF KEY INFORMATION The attached notice of sale was sent to [trustor], in relation to [description of the property that secures the mortgage or deed of trust in default]. YOU ARE IN DEFAULT UNDER A (Deed of trust or mortgage) DATED ____. UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER. The total amount due in the notice of sale is ____. Your property is scheduled to be sold on [insert date and time of sale] at [insert location of sale]. However, the sale date shown on the attached notice of sale may be postponed one or more times by the mortgagee, beneficiary, trustee, or a court, pursuant to Section 2924g of the California Civil Code. The law requires that information about trustee sale postponements be made available to you and to the public, as a courtesy to those not present at the sale. If you wish to learn whether your sale date has been postponed, and, if applicable, the rescheduled time and date for the sale of this property, you may call [telephone number for information regarding the trustee’s sale] or visit this internet website [internet website address for information regarding the sale of this property], using the file number assigned to this case [case file number]. Information about postponements that are very short in duration or that occur close in time to the scheduled sale may not immediately be reflected in the telephone information or on the internet website. The best way to verify postponement information is to attend the scheduled sale. If you would like additional copies of this summary, you may obtain them by calling [insert telephone number]. (e) Failure to provide these summaries to the mortgagor or trustor shall have the same effect as if the notice of default or notice of sale were incomplete or not provided. (f) This section sets forth a requirement for translation in languages other than English, and a document complying with the provisions of this section may be recorded pursuant to subdivision (b) of Section 27293 of the Government Code. A document that complies with this section shall not be rejected for recordation on the ground that some part of the document is in a language other than English. (Amended by Stats. 2022, Ch. 452, Sec. 28. (SB 1498) Effective January 1, 2023.)
2923.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section says the nonjudicial foreclosure process should give borrowers a meaningful opportunity to be considered for available loss mitigation options offered by or through the mortgage servicer.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.4. The purpose of the act that added this section is to ensure that, as part of the nonjudicial foreclosure process, borrowers are considered for, and have a meaningful opportunity to obtain, available loss mitigation options, if any, offered by or through the borrower’s mortgage servicer, such as loan modifications or other alternatives to foreclosure. Nothing in the act that added this section, however, shall be interpreted to require a particular result of that process. (Amended (as added by Stats. 2012, Ch. 87, Sec. 3) by Stats. 2018, Ch. 404, Sec. 2. (SB 818) Effective January 1, 2019.)
2923.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Mortgage servicers and related parties must contact borrowers and complete specified outreach steps before recording a notice of default.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.5. (a) (1) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default pursuant to Section 2924 until both of the following: (A) Either 30 days after initial contact is made as required by paragraph (2) or 30 days after satisfying the due diligence requirements as described in subdivision (e). (B) The mortgage servicer complies with paragraph (1) of subdivision (a) of Section 2924.18, if the borrower has provided a complete application as defined in subdivision (d) of Section 2924.18. (2) (A) A mortgage servicer shall contact the borrower in person or by telephone in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. During the initial contact, the mortgage servicer shall advise the borrower that the borrower has the right to request a subsequent meeting and, if requested, the mortgage servicer shall schedule the meeting to occur within 14 days. The assessment of the borrower’s financial situation and discussion of options may occur during the first contact, or at the subsequent meeting scheduled for that purpose. In either case, the borrower shall be provided the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency. Any meeting may occur telephonically. (B) The mortgage servicer shall notify the borrower during the initial contact required pursuant to subparagraph (A) that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale pursuant to the process described in Section 2924b and that receiving a copy of these documents may allow the third party to assist the borrower in avoiding foreclosure. (b) A notice of default recorded pursuant to Section 2924 shall include a declaration that the mortgage servicer has contacted the borrower, has tried with due diligence to contact the borrower as required by this section, or that no contact was required because the individual did not meet the definition of “borrower” pursuant to subdivision (c) of Section 2920.5. (c) A mortgage servicer’s loss mitigation personnel may participate by telephone during any contact required by this section. (d) A borrower may designate, with consent given in writing, a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgage servicer, on the borrower’s behalf, the borrower’s financial situation and options for the borrower to avoid foreclosure. That contact made at the direction of the borrower shall satisfy the contact requirements of paragraph (2) of subdivision (a). Any loan modification or workout plan offered at the meeting by the mortgage servicer is subject to approval by the borrower. (e) A notice of default may be recorded pursuant to Section 2924 when a mortgage servicer has not contacted a borrower as required by paragraph (2) of subdivision (a) provided that the failure to contact the borrower occurred despite the due diligence of the mortgage servicer. For purposes of this section, “due diligence” shall require and mean all of the following: (1) (A) A mortgage servicer shall first attempt to contact a borrower by sending a first-class letter that includes the toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency. (B) The mortgage servicer shall notify the borrower in the first-class letter described in subparagraph (A) that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale pursuant to the process described in Section 2924b and that receiving a copy of these documents may allow the third party to assist the borrower in avoiding foreclosure. (2) (A) After the letter has been sent, the mortgage servicer shall attempt to contact the borrower by telephone at least three times at different hours and on different days. Telephone calls shall be made to the primary telephone number on file. (B) A mortgage servicer may attempt to contact a borrower using an automated system to dial borrowers, provided that, if the telephone call is answered, the call is connected to a live representative of the mortgage servicer. (C) A mortgage servicer satisfies the telephone contact requirements of this paragraph: (i) If it determines, after attempting contact pursuant to this paragraph, that the borrower’s primary telephone number and secondary telephone number or numbers on file, if any, have been disconnected. (ii) If the borrower or the borrower’s authorized agent notifies the mortgage servicer in writing to cease further communication with the borrower. The cease communication notification shall explicitly pertain to the mortgage loan account to be effective. The cease communication notification shall be effective until the borrower or the borrower’s authorized agent rescinds it in writing. (3) If the borrower does not respond within two weeks after the telephone call requirements of paragraph (2) have been satisfied, the mortgage servicer shall then send a certified letter, with return receipt requested. (4) The mortgage servicer shall provide a means for the borrower to contact it in a timely manner, including a toll-free telephone number that will provide access to a live representative during business hours. (5) The mortgage servicer has posted a prominent link on the home page of its internet website, if any, to the following information: (A) Options that may be available to borrowers who are unable to afford their mortgage payments and who wish to avoid foreclosure, and instructions to borrowers advising them on steps to take to explore those options. (B) A list of financial documents borrowers should collect and be prepared to present to the mortgage servicer when discussing options for avoiding foreclosure. (C) A toll-free telephone number for borrowers who wish to discuss options for avoiding foreclosure with their mortgage servicer. (D) The toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency. (f) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (g) This section shall apply only to entities described in subdivision (b) of Section 2924.18. (Amended by Stats. 2024, Ch. 311, Sec. 1. (AB 2424) Effective January 1, 2025.)
2923.55.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Mortgage servicers and related parties may not record a notice of default until specified borrower-contact and disclosure steps are completed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.55. (a) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default pursuant to Section 2924 until all of the following: (1) The mortgage servicer has satisfied the requirements of paragraph (1) of subdivision (b). (2) Either 30 days after initial contact is made as required by paragraph (2) of subdivision (b) or 30 days after satisfying the due diligence requirements as described in subdivision (f). (3) The mortgage servicer complies with subdivision (c) of Section 2923.6, if the borrower has provided a complete application as defined in subdivision (h) of Section 2923.6. (b) (1) As specified in subdivision (a), a mortgage servicer shall send the following information in writing to the borrower: (A) A statement that if the borrower is a servicemember or a dependent of a servicemember, the borrower may be entitled to certain protections under the federal Servicemembers Civil Relief Act (50 U.S.C. Sec. 3901 et seq.) regarding the servicemember’s interest rate and the risk of foreclosure, and counseling for covered servicemembers that is available at agencies such as Military OneSource and Armed Forces Legal Assistance. (B) A statement that the borrower may request the following: (i) A copy of the borrower’s promissory note or other evidence of indebtedness. (ii) A copy of the borrower’s deed of trust or mortgage. (iii) A copy of any assignment, if applicable, of the borrower’s mortgage or deed of trust required to demonstrate the right of the mortgage servicer to foreclose. (iv) A copy of the borrower’s payment history since the borrower was last less than 60 days past due. (2) (A) A mortgage servicer shall contact the borrower in person or by telephone in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. During the initial contact, the mortgage servicer shall advise the borrower that the borrower has the right to request a subsequent meeting and, if requested, the mortgage servicer shall schedule the meeting to occur within 14 days. The assessment of the borrower’s financial situation and discussion of options may occur during the first contact, or at the subsequent meeting scheduled for that purpose. In either case, the borrower shall be provided the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency. Any meeting may occur telephonically. (B) The mortgage servicer shall notify the borrower during the initial contact required pursuant to subparagraph (A) that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale pursuant to the process described in Section 2924b and that receiving a copy of these documents may allow the third party to assist the borrower in avoiding foreclosure. (c) A notice of default recorded pursuant to Section 2924 shall include a declaration that the mortgage servicer has contacted the borrower, has tried with due diligence to contact the borrower as required by this section, or that no contact was required because the individual did not meet the definition of “borrower” pursuant to subdivision (c) of Section 2920.5. (d) A mortgage servicer’s loss mitigation personnel may participate by telephone during any contact required by this section. (e) A borrower may designate, with consent given in writing, a HUD-certified housing counseling agency, attorney, or other adviser to discuss with the mortgage servicer, on the borrower’s behalf, the borrower’s financial situation and options for the borrower to avoid foreclosure. That contact made at the direction of the borrower shall satisfy the contact requirements of paragraph (2) of subdivision (b). Any foreclosure prevention alternative offered at the meeting by the mortgage servicer is subject to approval by the borrower. (f) A notice of default may be recorded pursuant to Section 2924 when a mortgage servicer has not contacted a borrower as required by paragraph (2) of subdivision (b), provided that the failure to contact the borrower occurred despite the due diligence of the mortgage servicer. For purposes of this section, “due diligence” shall require and mean all of the following: (1) (A) A mortgage servicer shall first attempt to contact a borrower by sending a first-class letter that includes the toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency. (B) The mortgage servicer shall notify the borrower in the first-class letter described in subparagraph (A) that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale pursuant to the process described in Section 2924b and that receiving a copy of these documents may allow the third party to assist the borrower in avoiding foreclosure. (2) (A) After the letter has been sent, the mortgage servicer shall attempt to contact the borrower by telephone at least three times at different hours and on different days. Telephone calls shall be made to the primary telephone number on file. (B) A mortgage servicer may attempt to contact a borrower using an automated system to dial borrowers, provided that, if the telephone call is answered, the call is connected to a live representative of the mortgage servicer. (C) A mortgage servicer satisfies the telephone contact requirements of this paragraph: (i) If it determines, after attempting contact pursuant to this paragraph, that the borrower’s primary telephone number and secondary telephone number or numbers on file, if any, have been disconnected. (ii) If the borrower or the borrower’s authorized agent notifies the mortgage servicer in writing to cease further communication with the borrower. The cease communication notification shall explicitly pertain to the mortgage loan account to be effective. The cease communication notification shall be effective until the borrower or the borrower’s authorized agent rescinds it in writing. (3) If the borrower does not respond within two weeks after the telephone call requirements of paragraph (2) have been satisfied, the mortgage servicer shall then send a certified letter, with return receipt requested, that includes the toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency. (4) The mortgage servicer shall provide a means for the borrower to contact it in a timely manner, including a toll-free telephone number that will provide access to a live representative during business hours. (5) The mortgage servicer has posted a prominent link on the home page of its internet website, if any, to the following information: (A) Options that may be available to borrowers who are unable to afford their mortgage payments and who wish to avoid foreclosure, and instructions to borrowers advising them on steps to take to explore those options. (B) A list of financial documents borrowers should collect and be prepared to present to the mortgage servicer when discussing options for avoiding foreclosure. (C) A toll-free telephone number for borrowers who wish to discuss options for avoiding foreclosure with their mortgage servicer. (D) The toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency. (g) This section shall not apply to entities described in subdivision (b) of Section 2924.18. (h) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (Amended by Stats. 2024, Ch. 311, Sec. 2. (AB 2424) Effective January 1, 2025.)
2923.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Mortgage servicers and related foreclosure actors must pause foreclosure steps while a qualifying first-lien loan modification application is pending, and they must give denial notices and appeal timeframes.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.6. (a) The Legislature finds and declares that any duty mortgage servicers may have to maximize net present value under their pooling and servicing agreements is owed to all parties in a loan pool, or to all investors under a pooling and servicing agreement, not to any particular party in the loan pool or investor under a pooling and servicing agreement, and that a mortgage servicer acts in the best interests of all parties to the loan pool or investors in the pooling and servicing agreement if it agrees to or implements a loan modification or workout plan for which both of the following apply: (1) The loan is in payment default, or payment default is reasonably foreseeable. (2) Anticipated recovery under the loan modification or workout plan exceeds the anticipated recovery through foreclosure on a net present value basis. (b) It is the intent of the Legislature that the mortgage servicer offer the borrower a loan modification or workout plan if such a modification or plan is consistent with its contractual or other authority. (c) If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower’s mortgage servicer at least five business days before a scheduled foreclosure sale, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default or notice of sale, or conduct a trustee’s sale, while the complete first lien loan modification application is pending. A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default or notice of sale or conduct a trustee’s sale until any of the following occurs: (1) The mortgage servicer makes a written determination that the borrower is not eligible for a first lien loan modification, and any appeal period pursuant to subdivision (d) has expired. (2) The borrower does not accept an offered first lien loan modification within 14 days of the offer. (3) The borrower accepts a written first lien loan modification, but defaults on, or otherwise breaches the borrower’s obligations under, the first lien loan modification. (d) If the borrower’s application for a first lien loan modification is denied, the borrower shall have at least 30 days from the date of the written denial to appeal the denial and to provide evidence that the mortgage servicer’s determination was in error. (e) If the borrower’s application for a first lien loan modification is denied, the mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default or, if a notice of default has already been recorded, record a notice of sale or conduct a trustee’s sale until the later of: (1) Thirty-one days after the borrower is notified in writing of the denial. (2) If the borrower appeals the denial pursuant to subdivision (d), the later of 15 days after the denial of the appeal or 14 days after a first lien loan modification is offered after appeal but declined by the borrower, or, if a first lien loan modification is offered and accepted after appeal, the date on which the borrower fails to timely submit the first payment or otherwise breaches the terms of the offer. (f) Following the denial of a first lien loan modification application, the mortgage servicer shall send a written notice to the borrower identifying the reasons for denial, including the following: (1) The amount of time from the date of the denial letter in which the borrower may request an appeal of the denial of the first lien loan modification and instructions regarding how to appeal the denial. (2) If the denial was based on investor disallowance, the specific reasons for the investor disallowance. (3) If the denial is the result of a net present value calculation, the monthly gross income and property value used to calculate the net present value and a statement that the borrower may obtain all of the inputs used in the net present value calculation upon written request to the mortgage servicer. (4) If applicable, a finding that the borrower was previously offered a first lien loan modification and failed to successfully make payments under the terms of the modified loan. (5) If applicable, a description of other foreclosure prevention alternatives for which the borrower may be eligible, and a list of the steps the borrower must take in order to be considered for those options. If the mortgage servicer has already approved the borrower for another foreclosure prevention alternative, information necessary to complete the foreclosure prevention alternative. (g) In order to minimize the risk of borrowers submitting multiple applications for first lien loan modifications for the purpose of delay, the mortgage servicer shall not be obligated to evaluate applications from borrowers who have been evaluated or afforded a fair opportunity to be evaluated consistent with the requirements of this section, unless there has been a material change in the borrower’s financial circumstances since the date of the borrower’s previous application and that change is documented by the borrower and submitted to the mortgage servicer. (h) For purposes of this section, an application shall be deemed “complete” when a borrower has supplied the mortgage servicer with all documents required by the mortgage servicer within the reasonable timeframes specified by the mortgage servicer. (i) Subdivisions (c) to (h), inclusive, shall not apply to entities described in subdivision (b) of Section 2924.18. (j) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (Amended (as added by Stats. 2012, Ch. 87, Sec. 8) by Stats. 2018, Ch. 404, Sec. 7. (SB 818) Effective January 1, 2019.)
2923.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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When a borrower asks for a foreclosure prevention alternative, the mortgage servicer must set up a single point of contact and use that contact to manage communication, documents, status updates, and referrals.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2923.7. (a) When a borrower requests a foreclosure prevention alternative, the mortgage servicer shall promptly establish a single point of contact and provide to the borrower one or more direct means of communication with the single point of contact. (b) The single point of contact shall be responsible for doing all of the following: (1) Communicating the process by which a borrower may apply for an available foreclosure prevention alternative and the deadline for any required submissions to be considered for these options. (2) Coordinating receipt of all documents associated with available foreclosure prevention alternatives and notifying the borrower of any missing documents necessary to complete the application. (3) Having access to current information and personnel sufficient to timely, accurately, and adequately inform the borrower of the current status of the foreclosure prevention alternative. (4) Ensuring that a borrower is considered for all foreclosure prevention alternatives offered by, or through, the mortgage servicer, if any. (5) Having access to individuals with the ability and authority to stop foreclosure proceedings when necessary. (c) The single point of contact shall remain assigned to the borrower’s account until the mortgage servicer determines that all loss mitigation options offered by, or through, the mortgage servicer have been exhausted or the borrower’s account becomes current. (d) The mortgage servicer shall ensure that a single point of contact refers and transfers a borrower to an appropriate supervisor upon request of the borrower, if the single point of contact has a supervisor. (e) For purposes of this section, “single point of contact” means an individual or team of personnel each of whom has the ability and authority to perform the responsibilities described in subdivisions (b) to (d), inclusive. The mortgage servicer shall ensure that each member of the team is knowledgeable about the borrower’s situation and current status in the alternatives to foreclosure process. (f) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (g) (1) This section shall not apply to either of the following: (A) A depository institution chartered under state or federal law, a person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code, or a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code, that, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than four dwelling units, that are located in California. (B) A person or entity that services seven or fewer loans encumbering residential real property located in California in a calendar year. (2) Within three months after the close of any calendar year or annual reporting period as established with its primary regulator during which an entity or person described in subparagraph (A) of paragraph (1) exceeds the threshold of 175 specified in subparagraph (A) of paragraph (1), that entity shall notify its primary regulator, in a manner acceptable to its primary regulator, and any mortgagor or trustor who is delinquent on a residential mortgage loan serviced by that entity of the date on which that entity will be subject to this section, which date shall be the first day of the first month that is six months after the close of the calendar year or annual reporting period during which that entity exceeded the threshold. (Amended by Stats. 2025, Ch. 200, Sec. 5. (AB 1521) Effective January 1, 2026.)
2924.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section says when a transfer counts as a mortgage, and it sets steps and waiting periods before a nonjudicial foreclosure sale can go forward.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924. (a) Every transfer of an interest in property, other than in trust, made only as a security for the performance of another act, is to be deemed a mortgage, except when in the case of personal property it is accompanied by actual change of possession, in which case it is to be deemed a pledge. If, by a mortgage created after July 27, 1917, of any estate in real property, other than an estate at will or for years, less than two, or in any transfer in trust made after July 27, 1917, of a like estate to secure the performance of an obligation, a power of sale is conferred upon the mortgagee, trustee, or any other person, to be exercised after a breach of the obligation for which that mortgage or transfer is a security, the power shall not be exercised except where the mortgage or transfer is made pursuant to an order, judgment, or decree of a court of record, or to secure the payment of bonds or other evidences of indebtedness authorized or permitted to be issued by the Commissioner of Financial Protection and Innovation, or is made by a public utility subject to the provisions of the Public Utilities Act, until all of the following apply: (1) The trustee, mortgagee, or beneficiary, or any of their authorized agents shall first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default. That notice of default shall include all of the following: (A) A statement identifying the mortgage or deed of trust by stating the name or names of the trustor or trustors and giving the book and page, or instrument number, if applicable, where the mortgage or deed of trust is recorded or a description of the mortgaged or trust property. (B) A statement that a breach of the obligation for which the mortgage or transfer in trust is security has occurred. (C) A statement setting forth the nature of each breach actually known to the beneficiary and of the beneficiary’s election to sell or cause to be sold the property to satisfy that obligation and any other obligation secured by the deed of trust or mortgage that is in default. (D) If the default is curable pursuant to Section 2924c, the statement specified in paragraph (1) of subdivision (b) of Section 2924c. (2) Not less than three months shall elapse from the filing of the notice of default. (3) Except as provided in paragraph (4), after the lapse of the three months described in paragraph (2), the mortgagee, trustee, or other person authorized to take the sale shall give notice of sale, stating the time and place thereof, in the manner and for a time not less than that set forth in Section 2924f. (4) Notwithstanding paragraph (3), the mortgagee, trustee, or other person authorized to take sale may record a notice of sale pursuant to Section 2924f up to 5 days before the lapse of the three-month period described in paragraph (2), provided that the date of sale is no earlier than three months and 20 days after the recording of the notice of default. (5) Whenever a sale is postponed for a period of at least 10 business days pursuant to Section 2924g, a mortgagee, beneficiary, or authorized agent shall provide written notice to a borrower regarding the new sale date and time, within 5 business days following the postponement. Information provided pursuant to this paragraph shall not constitute the public declaration required by subdivision (d) of Section 2924g. Failure to comply with this paragraph shall not invalidate any sale that would otherwise be valid under Section 2924f. (6) An entity shall not record or cause a notice of default to be recorded or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the mortgage or deed of trust, the original trustee or the substituted trustee under the deed of trust, or the designated agent of the holder of the beneficial interest. An agent of the holder of the beneficial interest under the mortgage or deed of trust, original trustee, or substituted trustee under the deed of trust shall not record a notice of default or otherwise commence the foreclosure process except when acting within the scope of authority designated by the holder of the beneficial interest. (b) In performing acts required by this article or responding to requests for payoff or reinstatement information, the trustee shall not incur liability for any good faith error resulting from reliance on information provided in good faith by the beneficiary regarding the nature and the amount of the default under the secured obligation, deed of trust, or mortgage. In performing the acts required by this article or responding to requests for payoff or reinstatement information, a trustee shall not be subject to Title 1.6c (commencing with Section 1788) of Part 4. (c) A recital in the deed executed pursuant to the power of sale of compliance with all requirements of law regarding the mailing of copies of notices or the publication of a copy of the notice of default or the personal delivery of the copy of the notice of default or the posting of copies of the notice of sale or the publication of a copy thereof shall constitute prima facie evidence of compliance with these requirements and conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value and without notice. (d) All of the following shall constitute privileged communications pursuant to Section 47: (1) The mailing, publication, and delivery of notices as required by this section. (2) Performance of the procedures set forth in this article. (3) Performance of the functions and procedures set forth in this article if those functions and procedures are necessary to carry out the duties described in Sections 729.040, 729.050, and 729.080 of the Code of Civil Procedure. (e) There is a rebuttable presumption that the beneficiary actually knew of all unpaid loan payments on the obligation owed to the beneficiary and secured by the deed of trust or mortgage subject to the notice of default. However, the failure to include an actually known default shall not invalidate the notice of sale and the beneficiary shall not be precluded from asserting a claim to this omitted default or defaults in a separate notice of default. (f) With respect to residential real property containing no more than four dwelling units, a separate document containing a summary of the notice of default information in English and the languages described in Section 1632 shall be attached to the notice of default provided to the mortgagor or trustor pursuant to Section 2923.3. (Amended by Stats. 2024, Ch. 142, Sec. 1. (AB 295) Effective July 18, 2024.)
2924.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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After a sale, the transfer of certain common interest development property must be recorded within 30 days in the county recorder’s office.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.1. (a) Notwithstanding any other law, the transfer, following the sale, of property in a common interest development, as defined by Section 1351, executed under the power of sale contained in any deed of trust or mortgage, shall be recorded within 30 days after the date of sale in the office of the county recorder where the property or a portion of the property is located. (b) Any failure to comply with the provisions of this section shall not affect the validity of a trustee’s sale or a sale in favor of a bona fide purchaser. (Added by Stats. 2012, Ch. 255, Sec. 1. (AB 2273) Effective January 1, 2013.)
2924.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage servicer must send written acknowledgment within 5 business days after receiving a complete first lien modification application or related documents.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.10. (a) When a borrower submits a complete first lien modification application or any document in connection with a first lien modification application, the mortgage servicer shall provide written acknowledgment of the receipt of the documentation within five business days of receipt. In its initial acknowledgment of receipt of the loan modification application, the mortgage servicer shall include the following information: (1) A description of the loan modification process, including an estimate of when a decision on the loan modification will be made after a complete application has been submitted by the borrower and the length of time the borrower will have to consider an offer of a loan modification or other foreclosure prevention alternative. (2) Any deadlines, including deadlines to submit missing documentation, that would affect the processing of a first lien loan modification application. (3) Any expiration dates for submitted documents. (4) Any deficiency in the borrower’s first lien loan modification application. (b) For purposes of this section, a borrower’s first lien loan modification application shall be deemed to be “complete” when a borrower has supplied the mortgage servicer with all documents required by the mortgage servicer within the reasonable timeframes specified by the mortgage servicer. (c) This section shall not apply to entities described in subdivision (b) of Section 2924.18. (d) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (Added by Stats. 2018, Ch. 404, Sec. 13. (SB 818) Effective January 1, 2019.)
2924.11.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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If a foreclosure prevention alternative is approved, the mortgage servicer and related foreclosure parties must stop certain foreclosure steps, provide the borrower a copy of the executed agreement, and avoid charging fees or late fees in specified situations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.11. (a) If a foreclosure prevention alternative is approved in writing prior to the recordation of a notice of default, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default under either of the following circumstances: (1) The borrower is in compliance with the terms of a written trial or permanent loan modification, forbearance, or repayment plan. (2) A foreclosure prevention alternative has been approved in writing by all parties, including, for example, the first lien investor, junior lienholder, and mortgage insurer, as applicable, and proof of funds or financing has been provided to the servicer. (b) If a foreclosure prevention alternative is approved in writing after the recordation of a notice of default, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of sale or conduct a trustee’s sale under either of the following circumstances: (1) The borrower is in compliance with the terms of a written trial or permanent loan modification, forbearance, or repayment plan. (2) A foreclosure prevention alternative has been approved in writing by all parties, including, for example, the first lien investor, junior lienholder, and mortgage insurer, as applicable, and proof of funds or financing has been provided to the servicer. (c) When a borrower accepts an offered first lien loan modification or other foreclosure prevention alternative, the mortgage servicer shall provide the borrower with a copy of the fully executed loan modification agreement or agreement evidencing the foreclosure prevention alternative following receipt of the executed copy from the borrower. (d) A mortgagee, beneficiary, or authorized agent shall record a rescission of a notice of default or cancel a pending trustee’s sale, if applicable, upon the borrower executing a permanent foreclosure prevention alternative. In the case of a short sale, the cancellation of the pending trustee’s sale shall occur when the short sale has been approved by all parties and proof of funds or financing has been provided to the mortgagee, beneficiary, or authorized agent. (e) The mortgage servicer shall not charge any application, processing, or other fee for a first lien loan modification or other foreclosure prevention alternative. (f) The mortgage servicer shall not collect any late fees for periods during which a complete first lien loan modification application is under consideration or a denial is being appealed, the borrower is making timely modification payments, or a foreclosure prevention alternative is being evaluated or exercised. (g) If a borrower has been approved in writing for a first lien loan modification or other foreclosure prevention alternative, and the servicing of that borrower’s loan is transferred or sold to another mortgage servicer, the subsequent mortgage servicer shall continue to honor any previously approved first lien loan modification or other foreclosure prevention alternative, in accordance with the provisions of the act that added this section. (h) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (i) This section shall not apply to entities described in subdivision (b) of Section 2924.18. (Repealed and added by Stats. 2018, Ch. 404, Sec. 16. (SB 818) Effective January 1, 2019.)
2924.12.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section lets a borrower seek an injunction before a trustee’s deed is recorded, and gives damages and fee remedies after recording if covered foreclosure-related violations were not corrected.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.12. (a) (1) If a trustee’s deed upon sale has not been recorded, a borrower may bring an action for injunctive relief to enjoin a material violation of Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17. (2) Any injunction shall remain in place and any trustee’s sale shall be enjoined until the court determines that the mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent has corrected and remedied the violation or violations giving rise to the action for injunctive relief. An enjoined entity may move to dissolve an injunction based on a showing that the material violation has been corrected and remedied. (b) After a trustee’s deed upon sale has been recorded, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall be liable to a borrower for actual economic damages pursuant to Section 3281, resulting from a material violation of Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17 by that mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent where the violation was not corrected and remedied prior to the recordation of the trustee’s deed upon sale. If the court finds that the material violation was intentional or reckless, or resulted from willful misconduct by a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent, the court may award the borrower the greater of treble actual damages or statutory damages of fifty thousand dollars ($50,000). (c) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not be liable for any violation that it has corrected and remedied prior to the recordation of the trustee’s deed upon sale, or that has been corrected and remedied by third parties working on its behalf prior to the recordation of the trustee’s deed upon sale. (d) A violation of Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17 by a person licensed by the Department of Financial Protection and Innovation or the Department of Real Estate shall be deemed to be a violation of that person’s licensing law. (e) No violation of this article shall affect the validity of a sale in favor of a bona fide purchaser and any of its encumbrancers for value without notice. (f) A third-party encumbrancer shall not be relieved of liability resulting from violations of Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17 committed by that third-party encumbrancer, that occurred prior to the sale of the subject property to the bona fide purchaser. (g) The rights, remedies, and procedures provided by this section are in addition to and independent of any other rights, remedies, or procedures under any other law. Nothing in this section shall be construed to alter, limit, or negate any other rights, remedies, or procedures provided by law. (h) A court may award a prevailing borrower reasonable attorney’s fees and costs in an action brought pursuant to this section. A borrower shall be deemed to have prevailed for purposes of this subdivision if the borrower obtained injunctive relief or was awarded damages pursuant to this section. (i) This section shall not apply to entities described in subdivision (b) of Section 2924.18. (Amended by Stats. 2022, Ch. 452, Sec. 31. (SB 1498) Effective January 1, 2023.)
2924.13.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section bars certain nonjudicial foreclosure actions on subordinate mortgages until the servicer records a perjury certification and sends the borrower required notices.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.13. (a) As used in this section: (1) “Borrower” has the same meaning as defined in Section 2929.5. (2) “Mortgage servicer” includes the current mortgage servicer and any prior mortgage servicers. (3) “Subordinate mortgage” means a security instrument in residential real property, including a deed of trust and any security instrument that functions in the form of a mortgage, that was, at the time it was recorded, subordinate to another security interest encumbering the same residential real property. (b) The following conduct constitutes an unlawful practice in connection with a subordinate mortgage: (1) The mortgage servicer did not provide the borrower with any written communication regarding the loan secured by the mortgage for at least three years. (2) The mortgage servicer failed to provide a transfer of loan servicing notice to the borrower when required to provide that notice by law, including, but not limited to, the federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.), and investor or guarantor requirements. (3) The mortgage servicer failed to provide a transfer of loan ownership notice to the borrower when required to provide that notice by law, including, but not limited to, the federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.), and investor or guarantor requirements. (4) The mortgage servicer conducted or threatened to conduct a foreclosure sale after providing a form to the borrower indicating that the debt had been written off or discharged, including, but not limited to, an Internal Revenue Service Form 1099. (5) The mortgage servicer conducted or threatened to conduct a foreclosure sale after the applicable statute of limitations expired. (6) The mortgage servicer failed to provide a periodic account statement to the borrower when required to provide that statement by law, including, but not limited to, the federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.), and investor or guarantor requirements. (c) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not conduct or threaten to conduct a nonjudicial foreclosure until the mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent does both of the following: (1) Simultaneously with the recording of a notice of default, records or causes to be recorded, in the office of the county recorder of the county that the encumbered property is located, a certification under penalty of perjury that either: (A) The mortgage servicer did not engage in an unlawful practice as described in subdivision (b). (B) The mortgage servicer lists all instances when it committed an unlawful practice as described in subdivision (b). (2) Simultaneously with the service of a recorded notice of default, sends both of the following documents to the borrower by United States certified mail with return receipt requested to the last known mailing address of the borrower: (A) A notice providing that if the borrower believes the mortgage servicer engaged in an unlawful practice described in subdivision (b) or misrepresented its compliance history, the borrower may petition the court for relief before the foreclosure sale. (B) A copy of the certification recorded pursuant to paragraph (1). (d) Upon a borrower’s petition to the court for relief before the foreclosure sale, the court shall enjoin a proposed foreclosure sale pursuant to a power of sale in a subordinate mortgage until a final determination on the petition has been made. (e) It shall be an affirmative defense in a judicial foreclosure proceeding if the court finds the mortgage servicer engaged in any of the unlawful practices specified in subdivision (b). (f) The court may provide equitable remedies that the court deems appropriate, depending on the extent and severity of the mortgage servicer’s violations. The equitable remedies may include, but are not limited to, striking all or a portion of the arrears claim, barring foreclosure, or permitting foreclosure subject to future compliance and corrected arrearage claim. (g) A borrower may also petition the court to set a nonjudicial foreclosure sale aside when a certification required by subdivision (c) was never recorded or when a certification recorded pursuant to subdivision (c) indicates that the mortgage servicer engaged in an unlawful practice described in subdivision (b) or misrepresented its compliance history. (h) Any failure to comply with the provisions of this section shall not affect the validity of a trustee’s sale or a sale in favor of a bona fide purchaser. (Added by Stats. 2025, Ch. 22, Sec. 2. (AB 130) Effective June 30, 2025.)
2924.15.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Several mortgage-related rules apply only to certain owner-occupied residential first-lien loans.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.15. (a) Unless otherwise provided, paragraph (5) of subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.18 shall apply only to a first lien mortgage or deed of trust that is secured by owner-occupied residential real property containing no more than four dwelling units. (b) For purposes of this section, “owner-occupied” means that the property is the principal residence of the borrower and is security for a loan made for personal, family, or household purposes. (Amended by Stats. 2024, Ch. 601, Sec. 3. (SB 1146) Effective January 1, 2025. Operative January 1, 2023, by its own provisions.)
2924.17.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Mortgage servicers must verify competent and reliable evidence before recording or filing certain foreclosure-related documents, and those documents must be accurate and complete.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.17. (a) A declaration recorded pursuant to Section 2923.5 or pursuant to Section 2923.55, a notice of default, notice of sale, assignment of a deed of trust, or substitution of trustee recorded by or on behalf of a mortgage servicer in connection with a foreclosure subject to the requirements of Section 2924, or a declaration or affidavit filed in any court relative to a foreclosure proceeding shall be accurate and complete and supported by competent and reliable evidence. (b) Before recording or filing any of the documents described in subdivision (a), a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower’s default and the right to foreclose, including the borrower’s loan status and loan information. (c) Any mortgage servicer that engages in multiple and repeated uncorrected violations of subdivision (b) in recording documents or filing documents in any court relative to a foreclosure proceeding shall be liable for a civil penalty of up to seven thousand five hundred dollars ($7,500) per mortgage or deed of trust in an action brought by a government entity identified in Section 17204 of the Business and Professions Code, or in an administrative proceeding brought by the Department of Financial Protection and Innovation or the Department of Real Estate against a respective licensee, in addition to any other remedies available to these entities. (Amended by Stats. 2022, Ch. 452, Sec. 32. (SB 1498) Effective January 1, 2023.)
2924.18.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Mortgage servicers and related parties may not proceed with foreclosure steps while a qualifying first-lien loan modification application is pending, and later approvals can also block certain default, sale, or trustee-sale actions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.18. (a) (1) If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower’s mortgage servicer at least five business days before a scheduled foreclosure sale, a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent shall not record a notice of default, notice of sale, or conduct a trustee’s sale while the complete first lien loan modification application is pending, and until the borrower has been provided with a written determination by the mortgage servicer regarding that borrower’s eligibility for the requested loan modification. (2) If a foreclosure prevention alternative has been approved in writing prior to the recordation of a notice of default, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default under either of the following circumstances: (A) The borrower is in compliance with the terms of a written trial or permanent loan modification, forbearance, or repayment plan. (B) A foreclosure prevention alternative has been approved in writing by all parties, including, for example, the first lien investor, junior lienholder, and mortgage insurer, as applicable, and proof of funds or financing has been provided to the servicer. (3) If a foreclosure prevention alternative is approved in writing after the recordation of a notice of default, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of sale or conduct a trustee’s sale under either of the following circumstances: (A) The borrower is in compliance with the terms of a written trial or permanent loan modification, forbearance, or repayment plan. (B) A foreclosure prevention alternative has been approved in writing by all parties, including, for example, the first lien investor, junior lienholder, and mortgage insurer, as applicable, and proof of funds or financing has been provided to the servicer. (b) This section shall apply to both of the following: (1) A depository institution chartered under state or federal law, a person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code, or a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code, that, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than four dwelling units, that are located in California. (2) A person or entity that services seven or fewer loans encumbering residential real property located in California in a calendar year. (c) Within three months after the close of any calendar year or annual reporting period as established with its primary regulator during which an entity or person described in paragraph (1) of subdivision (b) exceeds the threshold of 175 specified in paragraph (1) of subdivision (b), that entity shall notify its primary regulator, in a manner acceptable to its primary regulator, and any mortgagor or trustor who is delinquent on a residential mortgage loan serviced by that entity of the date on which that entity will be subject to Sections 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.12, which date shall be the first day of the first month that is six months after the close of the calendar year or annual reporting period during which that entity exceeded the threshold. (d) For purposes of this section, an application shall be deemed “complete” when a borrower has supplied the mortgage servicer with all documents required by the mortgage servicer within the reasonable timeframes specified by the mortgage servicer. (e) If a borrower has been approved in writing for a first lien loan modification or other foreclosure prevention alternative, and the servicing of the borrower’s loan is transferred or sold to another mortgage servicer, the subsequent mortgage servicer shall continue to honor any previously approved first lien loan modification or other foreclosure prevention alternative, in accordance with the provisions of the act that added this section. (f) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (Amended by Stats. 2025, Ch. 200, Sec. 6. (AB 1521) Effective January 1, 2026.)
2924.19.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A borrower may seek an injunction for certain mortgage-servicing violations before a trustee’s deed is recorded, and may recover damages or fees in some cases after recording.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.19. (a) (1) If a trustee’s deed upon sale has not been recorded, a borrower may bring an action for injunctive relief to enjoin a material violation of Section 2923.5, 2924.17, or 2924.18. (2) An injunction shall remain in place and any trustee’s sale shall be enjoined until the court determines that the mortgage servicer, mortgagee, beneficiary, or authorized agent has corrected and remedied the violation or violations giving rise to the action for injunctive relief. An enjoined entity may move to dissolve an injunction based on a showing that the material violation has been corrected and remedied. (b) After a trustee’s deed upon sale has been recorded, a mortgage servicer, mortgagee, beneficiary, or authorized agent shall be liable to a borrower for actual economic damages pursuant to Section 3281, resulting from a material violation of Section 2923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee, beneficiary, or authorized agent where the violation was not corrected and remedied prior to the recordation of the trustee’s deed upon sale. If the court finds that the material violation was intentional or reckless, or resulted from willful misconduct by a mortgage servicer, mortgagee, beneficiary, or authorized agent, the court may award the borrower the greater of treble actual damages or statutory damages of fifty thousand dollars ($50,000). (c) A mortgage servicer, mortgagee, beneficiary, or authorized agent shall not be liable for any violation that it has corrected and remedied prior to the recordation of the trustee’s deed upon sale, or that has been corrected and remedied by third parties working on its behalf prior to the recordation of the trustee’s deed upon sale. (d) A violation of Section 2923.5, 2924.17, or 2924.18 by a person licensed by the Department of Financial Protection and Innovation or the Department of Real Estate shall be deemed to be a violation of that person’s licensing law. (e) A violation of this article shall not affect the validity of a sale in favor of a bona fide purchaser and any of its encumbrancers for value without notice. (f) A third-party encumbrancer shall not be relieved of liability resulting from violations of Section 2923.5, 2924.17, or 2924.18, committed by that third-party encumbrancer, that occurred prior to the sale of the subject property to the bona fide purchaser. (g) The rights, remedies, and procedures provided by this section are in addition to and independent of any other rights, remedies, or procedures under any other law. Nothing in this section shall be construed to alter, limit, or negate any other rights, remedies, or procedures provided by law. (h) A court may award a prevailing borrower reasonable attorney’s fees and costs in an action brought pursuant to this section. A borrower shall be deemed to have prevailed for purposes of this subdivision if the borrower obtained injunctive relief or damages pursuant to this section. (i) This section shall apply only to entities described in subdivision (b) of Section 2924.18. (Amended by Stats. 2022, Ch. 452, Sec. 33. (SB 1498) Effective January 1, 2023.)
2924.20.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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The Department of Financial Protection and Innovation and the Bureau of Real Estate may adopt regulations for people or entities within their jurisdictions, and only the regulatory agency may enforce violations of those regulations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.20. Consistent with their general regulatory authority, and notwithstanding subdivisions (b) and (c) of Section 2924.18, the Department of Financial Protection and Innovation and the Bureau of Real Estate may adopt regulations applicable to any entity or person under their respective jurisdictions that are necessary to carry out the purposes of the act that added this section. A violation of the regulations adopted pursuant to this section shall only be enforceable by the regulatory agency. (Amended by Stats. 2022, Ch. 452, Sec. 34. (SB 1498) Effective January 1, 2023.)
2924.21.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A person may not contact, solicit, or initiate communication with an owner to claim surplus funds from a foreclosure sale of the owner’s residence until 90 days after the trustee’s deed is recorded.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.21. A person shall not contact, solicit, or initiate communication with an owner to claim the surplus funds from a foreclosure sale of the owner’s residence before 90 days after the trustee’s deed has been recorded. (Added by Stats. 2024, Ch. 142, Sec. 2. (AB 295) Effective July 18, 2024.)
2924.26.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A licensed title company or underwritten title company is not liable for violations of specified sections when it records or causes to record a notice of default or notice of sale at the request of certain parties, if it acts in good faith and in the normal course of business, and not as a trustee.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.26. (a) Unless acting in the capacity of a trustee, a licensed title company or underwritten title company shall not be liable for a violation of Section 2923.5 or 2924.11 if it records or causes to record a notice of default or notice of sale at the request of a trustee, substitute trustee, or beneficiary, in good faith and in the normal course of its business activities. (b) This section shall become operative on January 1, 2018. (Added by Stats. 2013, Ch. 251, Sec. 2. (SB 310) Effective January 1, 2014. Section operative January 1, 2018, by its own provisions.)
2924.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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An agent collecting payments for a mortgagee, beneficiary, or note owner must mail specified foreclosure-related notices to the mortgagee, beneficiary, or owner within the stated time limits, unless an exception applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.3. (a) Except as provided in subdivisions (b) and (c), a person who has undertaken as an agent of a mortgagee, beneficiary, or owner of a promissory note secured directly or collaterally by a mortgage or deed of trust on real property or an estate for years therein, to make collections of payments from an obligor under the note, shall mail the following notices, postage prepaid, to each mortgagee, beneficiary or owner for whom the agent has agreed to make collections from the obligor under the note: (1) A copy of the notice of default filed in the office of the county recorder pursuant to Section 2924 on account of a breach of obligation under the promissory note on which the agent has agreed to make collections of payments, within 15 days after recordation. (2) Notice that a notice of default has been recorded pursuant to Section 2924 on account of a breach of an obligation secured by a mortgage or deed of trust against the same property or estate for years therein having priority over the mortgage or deed of trust securing the obligation described in paragraph (1), within 15 days after recordation or within three business days after the agent receives the information, whichever is later. (3) Notice of the time and place scheduled for the sale of the real property or estate for years therein pursuant to Section 2924f under a power of sale in a mortgage or deed of trust securing an obligation described in paragraphs (1) or (2), not less than 15 days before the scheduled date of the sale or not later than the next business day after the agent receives the information, whichever is later. (b) An agent who has undertaken to make collections on behalf of mortgagees, beneficiaries or owners of promissory notes secured by mortgages or deeds of trust on real property or an estate for years therein shall not be required to comply with the provisions of subdivision (a) with respect to a mortgagee, beneficiary or owner who is entitled to receive notice pursuant to subdivision (c) of Section 2924b or for whom a request for notice has been recorded pursuant to subdivision (b) of Section 2924b if the agent reasonably believes that the address of the mortgagee, beneficiary, or owner described in Section 2924b is the current business or residence address of that person. (c) An agent who has undertaken to make collections on behalf of mortgagees, beneficiaries or owners of promissory notes secured by mortgages or deeds of trust on real property or an estate for years therein shall not be required to comply with the provisions of paragraph (1) or (2) of subdivision (a) if the agent knows or reasonably believes that the default has already been cured by or on behalf of the obligor. (d) Any failure to comply with the provisions of this section shall not affect the validity of a sale in favor of a bona fide purchaser or the rights of an encumbrancer for value and without notice. (Amended by Stats. 1998, Ch. 932, Sec. 10. Effective January 1, 1999.)
2924.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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An acceleration clause in a deed of trust, mortgage, or related secured obligation for certain small residential properties is only valid if it is written in full in both the deed of trust or mortgage and the promissory note or other evidence of the debt.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.5. No clause in any deed of trust or mortgage on property containing four or fewer residential units or on which four or fewer residential units are to be constructed or in any obligation secured by any deed of trust or mortgage on property containing four or fewer residential units or on which four or fewer residential units are to be constructed that provides for the acceleration of the due date of the obligation upon the sale, conveyance, alienation, lease, succession, assignment or other transfer of the property subject to the deed of trust or mortgage shall be valid unless the clause is set forth, in its entirety in both the body of the deed of trust or mortgage and the promissory note or other document evidencing the secured obligation. This section shall apply to all such deeds of trust, mortgages, and obligations secured thereby executed on or after July 1, 1972. (Amended by Stats. 1972, Ch. 216.)
2924.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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An obligee may not speed up repayment of a mortgage or deed-of-trust loan on residential real property just because of certain listed title transfers. An obligor also cannot waive this section.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.6. (a) An obligee may not accelerate the maturity date of the principal and accrued interest on any loan secured by a mortgage or deed of trust on residential real property solely by reason of any one or more of the following transfers in the title to the real property: (1) A transfer resulting from the death of an obligor where the transfer is to the spouse who is also an obligor. (2) A transfer by an obligor where the spouse becomes a coowner of the property. (3) A transfer resulting from a decree of dissolution of the marriage or legal separation or from a property settlement agreement incidental to such a decree which requires the obligor to continue to make the loan payments by which a spouse who is an obligor becomes the sole owner of the property. (4) A transfer by an obligor or obligors into an inter vivos trust in which the obligor or obligors are beneficiaries. (5) Such real property or any portion thereof is made subject to a junior encumbrance or lien. (b) Any waiver of the provisions of this section by an obligor is void and unenforceable and is contrary to public policy. (c) For the purposes of this section, “residential real property” means any real property which contains at least one but not more than four housing units. (d) This act applies only to loans executed or refinanced on or after January 1, 1976. (Added by Stats. 1975, Ch. 850.)
2924.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Certain deed of trust or mortgage provisions on real property are enforceable even if the security interest was not impaired by the borrower’s failure to pay taxes, rents, assessments, insurance premiums, or advances, and provisions about receiving insurance proceeds are also enforceable under the stated condition.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.7. (a) The provisions of any deed of trust or mortgage on real property which authorize any beneficiary, trustee, mortgagee, or his or her agent or successor in interest, to accelerate the maturity date of the principal and interest on any loan secured thereby or to exercise any power of sale or other remedy contained therein upon the failure of the trustor or mortgagor to pay, at the times provided for under the terms of the deed of trust or mortgage, any taxes, rents, assessments, or insurance premiums with respect to the property or the loan, or any advances made by the beneficiary, mortgagee, or his or her agent or successor in interest shall be enforceable whether or not impairment of the security interest in the property has resulted from the failure of the trustor or mortgagor to pay the taxes, rents, assessments, insurance premiums, or advances. (b) The provisions of any deed of trust or mortgage on real property which authorize any beneficiary, trustee, mortgagee, or his or her agent or successor in interest, to receive and control the disbursement of the proceeds of any policy of fire, flood, or other hazard insurance respecting the property shall be enforceable whether or not impairment of the security interest in the property has resulted from the event that caused the proceeds of the insurance policy to become payable. (Added by Stats. 1988, Ch. 179, Sec. 2.)
2924.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Certain foreclosure notices must be posted and mailed, and a separate notice cannot be torn down within 72 hours.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.8. (a) Upon posting a notice of sale pursuant to Section 2924f, a trustee or authorized agent shall also post the following notice, in the manner required for posting the notice of sale on the property to be sold, and a mortgagee, trustee, beneficiary, or authorized agent, concurrently with the mailing of the notice of sale pursuant to Section 2924b, shall send by first-class mail in an envelope addressed to the “Resident of property subject to foreclosure sale” the following notice in English and the languages described in Section 1632: Foreclosure process has begun on this property, which may affect your right to continue to live in this property. Twenty days or more after the date of this notice, this property may be sold at foreclosure. If you are renting this property, the new property owner may either give you a new lease or rental agreement or provide you with a 90-day eviction notice. You may have a right to stay in your home for longer than 90 days. If you have a fixed-term lease, the new owner must honor the lease unless the new owner will occupy the property as a primary residence or in other limited circumstances. Also, in some cases and in some cities with a “just cause for eviction” law, you may not have to move at all. All rights and obligations under your lease or tenancy, including your obligation to pay rent, will continue after the foreclosure sale. You may wish to contact a lawyer or your local legal aid office or housing counseling agency to discuss any rights you may have. (b) It is an infraction to tear down the notice described in subdivision (a) within 72 hours of posting. Violators shall be subject to a fine of one hundred dollars ($100). (c) The Department of Financial Protection and Innovation and the Department of Real Estate shall make available translations of the notice described in subdivision (a) which may be used by a mortgagee, trustee, beneficiary, or authorized agent to satisfy the requirements of this section. (d) This section shall only apply to loans secured by residential real property, and if the billing address for the mortgage note is different than the property address. (e) This section shall become operative on March 1, 2021. (Amended by Stats. 2022, Ch. 452, Sec. 30. (SB 1498) Effective January 1, 2023.)
2924.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage servicer offering foreclosure prevention alternatives must send the borrower a written notice within five business days after recording a notice of default, unless the borrower has already exhausted the first-lien loan modification process described in Section 2923.6.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924.9. (a) Unless a borrower has previously exhausted the first lien loan modification process offered by, or through, his or her mortgage servicer described in Section 2923.6, within five business days after recording a notice of default pursuant to Section 2924, a mortgage servicer that offers one or more foreclosure prevention alternatives shall send a written communication to the borrower that includes all of the following information: (1) That the borrower may be evaluated for a foreclosure prevention alternative or, if applicable, foreclosure prevention alternatives. (2) Whether an application is required to be submitted by the borrower in order to be considered for a foreclosure prevention alternative. (3) The means and process by which a borrower may obtain an application for a foreclosure prevention alternative. (b) This section shall not apply to entities described in subdivision (b) of Section 2924.18. (c) This section shall apply only to mortgages or deeds of trust described in Section 2924.15. (Added by Stats. 2018, Ch. 404, Sec. 12. (SB 818) Effective January 1, 2019.)
2924a
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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If a trust or deed of trust gives the trustee a power of sale, the trustee’s attorney or a duly authorized agent may conduct the sale and act as auctioneer for the trustee.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924a. If, by the terms of any trust or deed of trust a power of sale is conferred upon the trustee, the attorney for the trustee, or any duly authorized agent, may conduct the sale and act in the sale as the auctioneer for the trustee. (Amended by Stats. 2006, Ch. 575, Sec. 5. Effective January 1, 2007.)
2924b
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section lets a person request mailed copies of foreclosure notices, and requires the mortgagee, trustee, or authorized agent to mail required notices to listed addresses within set time limits.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924b. (a) Any person desiring a copy of any notice of default and of any notice of sale under any deed of trust or mortgage with power of sale upon real property or an estate for years therein, as to which deed of trust or mortgage the power of sale cannot be exercised until these notices are given for the time and in the manner provided in Section 2924 may, at any time subsequent to recordation of the deed of trust or mortgage and prior to recordation of notice of default thereunder, cause to be filed for record in the office of the recorder of any county in which any part or parcel of the real property is situated, a duly acknowledged request for a copy of the notice of default and of sale. This request shall be signed and acknowledged by the person making the request, specifying the name and address of the person to whom the notice is to be mailed, shall identify the deed of trust or mortgage by stating the names of the parties thereto, the date of recordation thereof, and the book and page where the deed of trust or mortgage is recorded or the recorder’s number, and shall be in substantially the following form: “In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any notice of default and a copy of any notice of sale under the deed of trust (or mortgage) recorded ______, ____, in Book _____ page ____ records of ____ County, (or filed for record with recorder’s serial number ____, _______ County) California, executed by ____ as trustor (or mortgagor) in which ________ is named as beneficiary (or mortgagee) and ______________ as trustee be mailed to at . Name Address NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded. _____ Signature ” Upon the filing for record of the request, the recorder shall index in the general index of grantors the names of the trustors (or mortgagors) recited therein and the names of persons requesting copies. (b) The mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale shall do each of the following: (1) Within 10 business days following recordation of the notice of default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to each trustor or mortgagor at his or her last known address if different than the address specified in the deed of trust or mortgage with power of sale. (2) At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale, addressed to each person whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to each trustor or mortgagor at his or her last known address if different than the address specified in the deed of trust or mortgage with power of sale. (3) As used in paragraphs (1) and (2), the “last known address” of each trustor or mortgagor means the last business or residence physical address actually known by the mortgagee, beneficiary, trustee, or other person authorized to record the notice of default. For the purposes of this subdivision, an address is “actually known” if it is contained in the original deed of trust or mortgage, or in any subsequent written notification of a change of physical address from the trustor or mortgagor pursuant to the deed of trust or mortgage. For the purposes of this subdivision, “physical address” does not include an email or any form of electronic address for a trustor or mortgagor. The beneficiary shall inform the trustee of the trustor’s last address actually known by the beneficiary. However, the trustee shall incur no liability for failing to send any notice to the last address unless the trustee has actual knowledge of it. (4) A “person authorized to record the notice of default or the notice of sale” shall include an agent for the mortgagee or beneficiary, an agent of the named trustee, any person designated in an executed substitution of trustee, or an agent of that substituted trustee. (c) The mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale shall do the following: (1) Within one month following recordation of the notice of default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person set forth in paragraph (2), provided that the estate or interest of any person entitled to receive notice under this subdivision is acquired by an instrument sufficient to impart constructive notice of the estate or interest in the land or portion thereof that is subject to the deed of trust or mortgage being foreclosed, and provided the instrument is recorded in the office of the county recorder so as to impart that constructive notice prior to the recording date of the notice of default and provided the instrument as so recorded sets forth a mailing address that the county recorder shall use, as instructed within the instrument, for the return of the instrument after recording, and which address shall be the address used for the purposes of mailing notices herein. (2) The persons to whom notice shall be mailed under this subdivision are: (A) The successor in interest, as of the recording date of the notice of default, of the estate or interest or any portion thereof of the trustor or mortgagor of the deed of trust or mortgage being foreclosed. (B) The beneficiary or mortgagee of any deed of trust or mortgage recorded subsequent to the deed of trust or mortgage being foreclosed, or recorded prior to or concurrently with the deed of trust or mortgage being foreclosed but subject to a recorded agreement or a recorded statement of subordination to the deed of trust or mortgage being foreclosed. (C) The assignee of any interest of the beneficiary or mortgagee described in subparagraph (B), as of the recording date of the notice of default. (D) The vendee of any contract of sale, or the lessee of any lease, of the estate or interest being foreclosed that is recorded subsequent to the deed of trust or mortgage being foreclosed, or recorded prior to or concurrently with the deed of trust or mortgage being foreclosed but subject to a recorded agreement or statement of subordination to the deed of trust or mortgage being foreclosed. (E) The successor in interest to the vendee or lessee described in subparagraph (D), as of the recording date of the notice of default. (F) The office of the Controller, Sacramento, California, where, as of the recording date of the notice of default, a “Notice of Lien for Postponed Property Taxes” has been recorded against the real property to which the notice of default applies. (G) (i) The office of the Director of Housing and Community Development, Sacramento, California, and the office of the Executive Director of the California Tax Credit Allocation Committee, Sacramento, California, respectively, where, as of the recording date of the notice of default, a use restriction, as defined in subdivision (a) of Section 65863.11 of the Government Code, has been recorded against the real property to which the notice of default applies. (ii) Any failure to comply with the provisions of this subparagraph shall not affect the validity of a trustee’s sale or a sale in favor of a bona fide purchaser. (3) At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale addressed to each person to whom a copy of the notice of default is to be mailed as provided in paragraphs (1) and (2), and addressed to the office of any state taxing agency, Sacramento, California, that has recorded, subsequent to the deed of trust or mortgage being foreclosed, a notice of tax lien prior to the recording date of the notice of default against the real property to which the notice of default applies. (4) Provide a copy of the notice of sale to the Internal Revenue Service, in accordance with Section 7425 of the Internal Revenue Code and any applicable federal regulation, if a “Notice of Federal Tax Lien under Internal Revenue Laws” has been recorded, subsequent to the deed of trust or mortgage being foreclosed, against the real property to which the notice of sale applies. The failure to provide the Internal Revenue Service with a copy of the notice of sale pursuant to this paragraph shall be sufficient cause to rescind the trustee’s sale and invalidate the trustee’s deed, at the option of either the successful bidder at the trustee’s sale or the trustee, and in either case with the consent of the beneficiary. Any option to rescind the trustee’s sale pursuant to this paragraph shall be exercised prior to any transfer of the property by the successful bidder to a bona fide purchaser for value. A rescission of the trustee’s sale pursuant to this paragraph may be recorded in a notice of rescission pursuant to Section 1058.5. (5) The mailing of notices in the manner set forth in paragraph (1) shall not impose upon any licensed attorney, agent, or employee of any person entitled to receive notices as herein set forth any duty to communicate the notice to the entitled person from the fact that the mailing address used by the county recorder is the address of the attorney, agent, or employee. (d) Any deed of trust or mortgage with power of sale hereafter executed upon real property or an estate for years therein may contain a request that a copy of any notice of default and a copy of any notice of sale thereunder shall be mailed to any person or party thereto at the address of the person given therein, and a copy of any notice of default and of any notice of sale shall be mailed to each of these at the same time and in the same manner required as though a separate request therefor had been filed by each of these persons as herein authorized. If any deed of trust or mortgage with power of sale executed after September 19, 1939, except a deed of trust or mortgage of any of the classes excepted from the provisions of Section 2924, does not contain a mailing address of the trustor or mortgagor therein named, and if no request for special notice by the trustor or mortgagor in substantially the form set forth in this section has subsequently been recorded, a copy of the notice of default shall be published once a week for at least four weeks in a newspaper of general circulation in the county in which the property is situated, the publication to commence within 10 business days after the filing of the notice of default. In lieu of publication, a copy of the notice of default may be delivered personally to the trustor or mortgagor within the 10 business days or at any time before publication is completed, or by posting the notice of default in a conspicuous place on the property and mailing the notice to the last known address of the trustor or mortgagor. (e) Any person required to mail a copy of a notice of default or notice of sale to each trustor or mortgagor pursuant to subdivision (b) or (c) by registered or certified mail shall simultaneously cause to be deposited in the United States mail, with postage prepaid and mailed by first-class mail, an envelope containing an additional copy of the required notice addressed to each trustor or mortgagor at the same address to which the notice is sent by registered or certified mail pursuant to subdivision (b) or (c). The person shall execute and retain an affidavit identifying the notice mailed, showing the name and residence or business address of that person, that he or she is over 18 years of age, the date of deposit in the mail, the name and address of the trustor or mortgagor to whom sent, and that the envelope was sealed and deposited in the mail with postage fully prepaid. In the absence of fraud, the affidavit required by this subdivision shall establish a conclusive presumption of mailing. (f) (1) Notwithstanding subdivision (a), with respect to separate interests governed by an association, as defined in Section 4080 or 6528, the association may cause to be filed in the office of the recorder in the county in which the separate interests are situated a request that a mortgagee, trustee, or other person authorized to record a notice of default regarding any of those separate interests mail to the association a copy of any trustee’s deed upon sale concerning a separate interest. The request shall include a legal description or the assessor’s parcel number of all the separate interests. A request recorded pursuant to this subdivision shall include the name and address of the association and a statement that it is an association as defined in Section 4080 or 6528. Subsequent requests of an association shall supersede prior requests. A request pursuant to this subdivision shall be recorded before the filing of a notice of default. The mortgagee, trustee, or other authorized person shall mail the requested information to the association within 15 business days following the date of the trustee’s sale. Failure to mail the request, pursuant to this subdivision, shall not affect the title to real property. (2) A request filed pursuant to paragraph (1) does not, for purposes of Section 27288.1 of the Government Code, constitute a document that either effects or evidences a transfer or encumbrance of an interest in real property or that releases or terminates any interest, right, or encumbrance of an interest in real property. (g) No request for a copy of any notice filed for record pursuant to this section, no statement or allegation in the request, and no record thereof shall affect the title to real property or be deemed notice to any person that any person requesting copies of notice has or claims any right, title, or interest in, or lien or charge upon the property described in the deed of trust or mortgage referred to therein. (h) “Business day,” as used in this section, has the meaning specified in Section 9. (Amended by Stats. 2025, Ch. 203, Sec. 2. (AB 1529) Effective January 1, 2026.)
2924c
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A borrower in default may reinstate a deed of trust or mortgage by paying the amounts due within the reinstatement window, and the lender and trustee must complete rescission and recording steps after reinstatement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924c. (a) (1) Whenever all or a portion of the principal sum of any obligation secured by deed of trust or mortgage on real property or an estate for years therein hereafter executed has, prior to the maturity date fixed in that obligation, become due or been declared due by reason of default in payment of interest or of any installment of principal, or by reason of failure of trustor or mortgagor to pay, in accordance with the terms of that obligation or of the deed of trust or mortgage, taxes, assessments, premiums for insurance, or advances made by beneficiary or mortgagee in accordance with the terms of that obligation or of the deed of trust or mortgage, the trustor or mortgagor or their successor in interest in the mortgaged or trust property or any part thereof, or any beneficiary under a subordinate deed of trust or any other person having a subordinate lien or encumbrance of record thereon, at any time within the period specified in subdivision (e), if the power of sale therein is to be exercised, or, otherwise at any time prior to entry of the decree of foreclosure, may pay to the beneficiary or the mortgagee or their successors in interest, respectively, the entire amount due, at the time payment is tendered, with respect to (A) all amounts of principal, interest, taxes, assessments, insurance premiums, or advances actually known by the beneficiary to be, and that are, in default and shown in the notice of default, under the terms of the deed of trust or mortgage and the obligation secured thereby, (B) all amounts in default on recurring obligations not shown in the notice of default, and (C) all reasonable costs and expenses, subject to subdivision (c), that are actually incurred, or will be incurred as a direct result of the payment being tendered, in enforcing the terms of the obligation, deed of trust, or mortgage, and trustee’s or attorney’s fees, subject to subdivision (d), other than the portion of principal as would not then be due had no default occurred, and thereby cure the default theretofore existing, and thereupon, all proceedings theretofore had or instituted shall be dismissed or discontinued and the obligation and deed of trust or mortgage shall be reinstated and shall be and remain in force and effect, the same as if the acceleration had not occurred. This section does not apply to bonds or other evidences of indebtedness authorized or permitted to be issued by the Department of Financial Protection and Innovation or made by a public utility subject to the Public Utilities Code. For the purposes of this subdivision, the term “recurring obligation” means all amounts of principal and interest on the loan, or rents, subject to the deed of trust or mortgage in default due after the notice of default is recorded; all amounts of principal and interest or rents advanced on senior liens or leaseholds that are advanced after the recordation of the notice of default; and payments of taxes, assessments, and hazard insurance advanced after recordation of the notice of default. If the beneficiary or mortgagee has made no advances on defaults that would constitute recurring obligations, the beneficiary or mortgagee may require the trustor or mortgagor to provide reliable written evidence that the amounts have been paid prior to reinstatement. (2) If the trustor, mortgagor, or other person authorized to cure the default pursuant to this subdivision does cure the default, the beneficiary or mortgagee or the agent for the beneficiary or mortgagee shall, within 21 days following the reinstatement, execute and deliver to the trustee a notice of rescission that rescinds the declaration of default and demand for sale and advises the trustee of the date of reinstatement. The trustee shall cause the notice of rescission to be recorded within 30 days of receipt of the notice of rescission and of all allowable fees and costs, unless the mortgage or deed of trust is paid in full and a full reconveyance or certificate of discharge is properly recorded. No charge, except for the recording fee, shall be made against the trustor or mortgagor for the execution and recordation of the notice which rescinds the declaration of default and demand for sale. (b) (1) The notice, of any default described in this section, recorded pursuant to Section 2924, and mailed to any person pursuant to Section 2924b, shall begin with the following statement, printed or typed thereon: ## “IMPORTANT NOTICE [14-point boldface type if printed or in capital letters if typed] IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, [14-point boldface type if printed or in capital letters if typed] and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account, which is normally five business days prior to the date set for the sale of your property. No sale date may be set until approximately 90 days from the date this notice of default may be recorded (which date of recordation appears on this notice). This amount is as of _____ (Date) and will increase until your account becomes current. While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and deed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary or mortgagee may require as a condition to reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums. Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay all amounts in default at the time payment is made. However, you and your beneficiary or mortgagee may mutually agree in writing prior to the time the notice of sale is posted (which may not be earlier than three months after this notice of default is recorded) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1) and (2). Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, you have only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor. To find out the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact: _____ _____ (Name of beneficiary or mortgagee) _____ _____ (Mailing address) _____ _____ (Telephone) If you have any questions, you should contact a lawyer or the governmental agency that may have insured your loan. Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale, provided the sale is concluded prior to the conclusion of the foreclosure. Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. [14-point boldface type if printed or in capital letters if typed]” Unless otherwise specified, the notice, if printed, shall appear in at least 12-point boldface type. If the obligation secured by the deed of trust or mortgage is a contract or agreement described in paragraph (1) or (4) of subdivision (a) of Section 1632, the notice required herein shall be in Spanish if the trustor requested a Spanish language translation of the contract or agreement pursuant to Section 1632. If the obligation secured by the deed of trust or mortgage is contained in a home improvement contract, as defined in Sections 7151.2 and 7159 of the Business and Professions Code, which is subject to Title 2 (commencing with Section 1801), the seller shall specify on the contract whether or not the contract was principally negotiated in Spanish and if the contract was principally negotiated in Spanish, the notice required herein shall be in Spanish. No assignee of the contract or person authorized to record the notice of default shall incur any obligation or liability for failing to mail a notice in Spanish unless Spanish is specified in the contract or the assignee or person has actual knowledge that the secured obligation was principally negotiated in Spanish. Unless specified in writing to the contrary, a copy of the notice required by subdivision (c) of Section 2924b shall be in English. (2) Any failure to comply with the provisions of this subdivision shall not affect the validity of a sale in favor of a bona fide purchaser or the rights of an encumbrancer for value and without notice. (c) Costs and expenses that may be charged pursuant to Sections 2924 to 2924i, inclusive, shall be limited to the costs incurred for recording, mailing, including certified and express mail charges, publishing, and posting notices required by Sections 2924 to 2924i, inclusive, recording a notice of rescission under this section, postponement pursuant to Section 2924g not to exceed one hundred dollars ($100) per postponement and a fee for a trustee’s sale guarantee or, in the event of judicial foreclosure, a litigation guarantee. For purposes of this subdivision, a trustee or beneficiary may purchase a trustee’s sale guarantee at a rate meeting the standards contained in Sections 12401.1 and 12401.3 of the Insurance Code. (d) (1) Trustee’s or attorney’s fees that may be charged pursuant to subdivision (a), or until the notice of sale is deposited in the mail to the trustor as provided in Section 2924b, if the sale is by power of sale contained in the deed of trust or mortgage, or, otherwise at any time prior to the decree of foreclosure, are hereby authorized to be in an amount as follows: (A) If the unpaid principal sum secured is fifty thousand dollars ($50,000) or less, then in a base amount that does not exceed three hundred fifty dollars ($350). (B) If the unpaid principal sum secured is greater than fifty thousand dollars ($50,000) but does not exceed one hundred fifty thousand dollars ($150,000), then in a base amount that does not exceed three hundred fifty dollars ($350) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000). (C) If the unpaid principal sum secured is greater than one hundred fifty thousand dollars ($150,000) but does not exceed five hundred thousand dollars ($500,000), then in a base amount that does not exceed three hundred dollars ($300) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000) up to and including one hundred fifty thousand dollars ($150,000) plus one-quarter of 1 percent of any portion of the unpaid principal sum secured exceeding one hundred fifty thousand dollars ($150,000). (D) If the unpaid principal sum secured is greater than five hundred thousand dollars ($500,000), then in a base amount that does not exceed three hundred dollars ($300) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000) up to and including one hundred fifty thousand dollars ($150,000) plus one-quarter of 1 percent of any portion of the unpaid principal sum secured exceeding one hundred fifty thousand dollars ($150,000) up to and including five hundred thousand dollars ($500,000) plus one-eighth of 1 percent of any portion of the unpaid principal sum secured exceeding five hundred thousand dollars ($500,000). (2) Any charge for trustee’s or attorney’s fees authorized by this subdivision shall be conclusively presumed to be lawful and valid where the charge does not exceed the amounts authorized in this subdivision. For purposes of this subdivision, the unpaid principal sum secured shall be determined as of the date the notice of default is recorded. (e) Reinstatement of a monetary default under the terms of an obligation secured by a deed of trust, or mortgage may be made at any time within the period commencing with the date of recordation of the notice of default until five business days prior to the date of sale set forth in the initial recorded notice of sale. In the event the sale does not take place on the date set forth in the initial recorded notice of sale or a subsequent recorded notice of sale is required to be given, the right of reinstatement shall be revived as of the date of recordation of the subsequent notice of sale, and shall continue from that date until five business days prior to the date of sale set forth in the subsequently recorded notice of sale. In the event the date of sale is postponed on the date of sale set forth in either an initial or any subsequent notice of sale, or is postponed on the date declared for sale at an immediately preceding postponement of sale, and, the postponement is for a period that exceeds five business days from the date set forth in the notice of sale, or declared at the time of postponement, then the right of reinstatement is revived as of the date of postponement and shall continue from that date until five business days prior to the date of sale declared at the time of the postponement. Nothing contained herein shall give rise to a right of reinstatement during the period of five business days prior to the date of sale, whether the date of sale is noticed in a notice of sale or declared at a postponement of sale. Pursuant to the terms of this subdivision, no beneficiary, trustee, mortgagee, or their agents or successors shall be liable in any manner to a trustor, mortgagor, their agents or successors or any beneficiary under a subordinate deed of trust or mortgage or any other person having a subordinate lien or encumbrance of record thereon for the failure to allow a reinstatement of the obligation secured by a deed of trust or mortgage during the period of five business days prior to the sale of the security property, and no such right of reinstatement during this period is created by this section. Any right of reinstatement created by this section is terminated five business days prior to the date of sale set forth in the initial date of sale, and is revived only as prescribed herein and only as of the date set forth herein. As used in this subdivision, the term “business day” has the same meaning as specified in Section 9. (Amended by Stats. 2024, Ch. 601, Sec. 5. (SB 1146) Effective January 1, 2025.)
2924e
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section lets certain junior lienholders ask a senior lienholder for notice of qualifying delinquencies, and requires the senior lienholder to send notice when the section’s conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924e. (a) The beneficiary or mortgagee of any deed of trust or mortgage on real property either containing one to four residential units or given to secure an original obligation not to exceed three hundred thousand dollars ($300,000) may, with the written consent of the trustor or mortgagor that is either effected through a signed and dated agreement which shall be separate from other loan and security documents or disclosed to the trustor or mortgagor in at least 10-point type, submit a written request by certified mail to the beneficiary or mortgagee of any lien which is senior to the lien of the requester, for written notice of any or all delinquencies of four months or more, in payments of principal or interest on any obligation secured by that senior lien notwithstanding that the loan secured by the lien of the requester is not then in default as to payments of principal or interest. The request shall be sent to the beneficiary or mortgagee, or agent which it might designate for the purpose of receiving loan payments, at the address specified for the receipt of these payments, if known, or, if not known, at the address shown on the recorded deed of trust or mortgage. (b) The request for notice shall identify the ownership or security interest of the requester, the date on which the interest of the requester will terminate as evidenced by the maturity date of the note of the trustor or mortgagor in favor of the requester, the name of the trustor or mortgagor and the name of the current owner of the security property if different from the trustor or mortgagor, the street address or other description of the security property, the loan number (if available to the requester) of the loan secured by the senior lien, the name and address to which notice is to be sent, and shall include or be accompanied by the signed written consent of the trustor or mortgagor, and a fee of forty dollars ($40). For obligations secured by residential properties, the request shall remain valid until withdrawn in writing and shall be applicable to all delinquencies as provided in this section, which occur prior to the date on which the interest of the requester will terminate as specified in the request or the expiration date, as appropriate. For obligations secured by nonresidential properties, the request shall remain valid until withdrawn in writing and shall be applicable to all delinquencies as provided in this section, which occur prior to the date on which the interest of the requester will terminate as specified in the request or the expiration date, as appropriate. The beneficiary or mortgagee of obligations secured by nonresidential properties that have sent five or more notices prior to the expiration of the effective period of the request may charge a fee up to fifteen dollars ($15) for each subsequent notice. A request for notice shall be effective for five years from the mailing of the request or the recording of that request, whichever occurs later, and may be renewed within six months prior to its expiration date by sending the beneficiary or mortgagee, or agent, as the case may be, at the address to which original requests for notice are to be sent, a copy of the earlier request for notice together with a signed statement that the request is renewed and a renewal fee of fifteen dollars ($15). Upon timely submittal of a renewal request for notice, the effectiveness of the original request is continued for five years from the time when it would otherwise have lapsed. Succeeding renewal requests may be submitted in the same manner. The request for notice and renewals thereof shall be recorded in the office of the county recorder of the county in which the security real property is situated. The rights and obligations specified in this section shall inure to the benefit of, or pass to, as the case may be, successors in interest of parties specified in this section. Any successor in interest of a party entitled to notice under this section shall file a request for that notice with any beneficiary or mortgagee of the senior lien and shall pay a processing fee of fifteen dollars ($15). No new written consent shall be required from the trustor or mortgagor. (c) Unless the delinquency has been cured, within 15 days following the end of four months from any delinquency in payments of principal or interest on any obligation secured by the senior lien which delinquency exists or occurs on or after 10 days from the mailing of the request for notice or the recording of that request, whichever occurs later, the beneficiary or mortgagee shall give written notice to the requester of the fact of any delinquency and the amount thereof. The notice shall be given by personal service, or by deposit in the mail, first-class postage paid. Following the recording of any notice of default pursuant to Section 2924 with respect to the same delinquency, no notice or further notice shall be required pursuant to this section. (d) If the beneficiary or mortgagee of any such senior lien fails to give notice to the requester as required in subdivision (c), and a subsequent foreclosure or trustee’s sale of the security property occurs, the beneficiary or mortgagee shall be liable to the requester for any monetary damage due to the failure to provide notice within the time period specified in subdivision (c) which the requester has sustained from the date on which notice should have been given to the earlier of the date on which the notice is given or the date of the recording of the notice of default under Section 2924, and shall also forfeit to the requester the sum of three hundred dollars ($300). A showing by the beneficiary or mortgagee by a preponderance of the evidence that the failure to provide timely notice as required by subdivision (c) resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error shall be a defense to any liability for that failure. (e) If any beneficiary or mortgagee, or agent which it had designated for the purpose of receiving loan payments, has been succeeded in interest by any other person, any request for notice received pursuant to this section shall be transmitted promptly to that person. (f) Any failure to comply with the provisions of this section shall not affect the validity of a sale in favor of a bona fide purchaser or the rights of an encumbrancer for value and without notice. (g) Upon satisfaction of an obligation secured by a junior lien with respect to which a notice request was made pursuant to this section, the beneficiary or mortgagee that made the request shall communicate that fact in writing to the senior lienholder to whom the request was made. The communication shall specify that provision of notice pursuant to the prior request under this section is no longer required. (Amended by Stats. 1990, Ch. 788, Sec. 1.)
2924i
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section requires the holder of certain balloon-payment residential loans to send the borrower a written notice 90 to 150 days before the final payment is due.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924i. (a) This section applies to loans secured by a deed of trust or mortgage on real property containing one to four residential units at least one of which at the time the loan is made is or is to be occupied by the borrower if the loan is for a period in excess of one year and is a balloon payment loan. (b) This section shall not apply to (1) open end credit as defined in Regulation Z, whether or not the transaction is otherwise subject to Regulation Z, (2) transactions subject to Section 2956, or (3) loans made for the principal purpose of financing the construction of one or more residential units. (c) At least 90 days but not more than 150 days prior to the due date of the final payment on a loan that is subject to this section, the holder of the loan shall deliver or mail by first-class mail, with a certificate of mailing obtained from the United States Postal Service, to the trustor, or his or her successor in interest, at the last known address of that person, a written notice which shall include all of the following: (1) A statement of the name and address of the person to whom the final payment is required to be paid. (2) The date on or before which the final payment is required to be paid. (3) The amount of the final payment, or if the exact amount is unknown, a good faith estimate of the amount thereof, including unpaid principal, interest and any other charges, such amount to be determined assuming timely payment in full of all scheduled installments coming due between the date the notice is prepared and the date when the final payment is due. (4) If the borrower has a contractual right to refinance the final payment, a statement to that effect. If the due date of the final payment of a loan subject to this section is extended prior to the time notice is otherwise required under this subdivision, this notice requirement shall apply only to the due date as extended (or as subsequently extended). (d) For purposes of this section: (1) A “balloon payment loan” is a loan which provides for a final payment as originally scheduled which is more than twice the amount of any of the immediately preceding six regularly scheduled payments or which contains a call provision; provided, however, that if the call provision is not exercised by the holder of the loan, the existence of the unexercised call provision shall not cause the loan to be deemed to be a balloon payment loan. (2) “Call provision” means a loan contract term that provides the holder of the loan with the right to call the loan due and payable either after a specified period has elapsed following closing or after a specified date. (3) “Regulation Z” means any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System under the Federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.), and any interpretation or approval thereof issued by an official or employee of the Federal Reserve System duly authorized by the board under the Truth in Lending Act, as amended, to issue such interpretations or approvals. (e) Failure to provide notice as required by subdivision (a) does not extinguish any obligation of payment by the borrower, except that the due date for any balloon payment shall be the date specified in the balloon payment note, or 90 days from the date of delivery or mailing of the notice required by subdivision (a), or the due date specified in the notice required by subdivision (a), whichever date is later. If the operation of this section acts to extend the term of any note, interest shall continue to accrue for the extended term at the contract rate and payments shall continue to be due at any periodic interval and on any payment schedule specified in the note and shall be credited to principal or interest under the terms of the note. Default in any extended periodic payment shall be considered a default under terms of the note or security instrument. (f) (1) The validity of any credit document or of any security document subject to the provisions of this section shall not be invalidated solely because of the failure of any person to comply with this section. However, any person who willfully violates any provision of this section shall be liable in the amount of actual damages suffered by the debtor as the proximate result of the violation, and, if the debtor prevails in any suit to recover that amount, for reasonable attorney’s fees. (2) No person may be held liable in any action under this section if it is shown by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid any such error. (g) The provisions of this section shall apply to any note executed on or after January 1, 1984. (Amended by Stats. 1986, Ch. 1360, Sec. 1.)
2924j
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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After a trustee’s sale with surplus proceeds, the trustee must notify entitled interest holders, receive claims, and follow set timelines for deciding priority or depositing the funds with the court.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924j. (a) Unless an interpleader action has been filed, within 30 days of the execution of the trustee’s deed resulting from a sale in which there are proceeds remaining after payment of the amounts required by paragraphs (1) and (2) of subdivision (a) of Section 2924k, the trustee shall send written notice to all persons with recorded interests in the real property as of the date immediately prior to the trustee’s sale who would be entitled to notice pursuant to subdivisions (b) and (c) of Section 2924b. The notice shall be sent by first-class mail in the manner provided in paragraph (1) of subdivision (c) of Section 2924b and inform each entitled person of each of the following: (1) That there has been a trustee’s sale of the described real property. (2) That the noticed person may have a claim to all or a portion of the sale proceeds remaining after payment of the amounts required by paragraphs (1) and (2) of subdivision (a) of Section 2924k. (3) The noticed person may contact the trustee at the address provided in the notice to pursue any potential claim. (4) That before the trustee can act, the noticed person may be required to present proof that the person holds the beneficial interest in the obligation and the security interest therefor. In the case of a promissory note secured by a deed of trust, proof that the person holds the beneficial interest may include the original promissory note and assignment of beneficial interests related thereto. The noticed person shall also submit a written claim to the trustee, executed under penalty of perjury, stating the following: (A) The amount of the claim to the date of trustee’s sale. (B) An itemized statement of the principal, interest, and other charges. (C) That claims must be received by the trustee at the address stated in the notice no later than 30 days after the date the trustee sends notice to the potential claimant. (b) The trustee shall exercise due diligence to determine the priority of the written claims received by the trustee to the trustee’s sale surplus proceeds from those persons to whom notice was sent pursuant to subdivision (a). In the event there is no dispute as to the priority of the written claims submitted to the trustee, proceeds shall be paid within 30 days after the conclusion of the notice period. If the trustee has failed to determine the priority of written claims within 90 days following the 30-day notice period, then within 10 days thereafter the trustee shall deposit the funds with the clerk of the court pursuant to subdivision (c) or file an interpleader action pursuant to subdivision (e). Nothing in this section shall preclude any person from pursuing other remedies or claims as to surplus proceeds. (c) If, after due diligence, the trustee is unable to determine the priority of the written claims received by the trustee to the trustee’s sale surplus of multiple persons or if the trustee determines there is a conflict between potential claimants, the trustee may file a declaration of the unresolved claims and deposit with the clerk of the superior court of the county in which the sale occurred, that portion of the sales proceeds that cannot be distributed, less any fees charged by the clerk pursuant to this subdivision. The declaration shall specify the date of the trustee’s sale, a description of the property, the names and addresses of all persons sent notice pursuant to subdivision (a), a statement that the trustee exercised due diligence pursuant to subdivision (b), that the trustee provided written notice as required by subdivisions (a) and (d), and the amount of the sales proceeds deposited by the trustee with the court. Further, the trustee shall submit a copy of the trustee’s sales guarantee and any information relevant to the identity, location, and priority of the potential claimants with the court and shall file proof of service of the notice required by subdivision (d) on all persons described in subdivision (a). The clerk shall deposit the amount with the county treasurer or, if a bank account has been established for moneys held in trust under paragraph (2) of subdivision (a) of Section 77009 of the Government Code, in that account, subject to order of the court upon the application of any interested party. The clerk may charge a reasonable fee for the performance of activities pursuant to this subdivision equal to the fee for filing an interpleader action pursuant to Chapter 5.8 (commencing with Section 70600) of Title 8 of the Government Code. Upon deposit of that portion of the sale proceeds that cannot be distributed by due diligence, the trustee shall be discharged of further responsibility for the disbursement of sale proceeds. A deposit with the clerk of the court pursuant to this subdivision may be either for the total proceeds of the trustee’s sale, less any fees charged by the clerk, if a conflict or conflicts exist with respect to the total proceeds, or that portion that cannot be distributed after due diligence, less any fees charged by the clerk. (d) Before the trustee deposits the funds with the clerk of the court pursuant to subdivision (c), the trustee shall send written notice by first-class mail, postage prepaid, to all persons described in subdivision (a) informing them that the trustee intends to deposit the funds with the clerk of the court and that a claim for the funds must be filed with the court within 30 days from the date of the notice, providing the address of the court in which the funds were deposited, and a telephone number for obtaining further information. Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee’s declaration at the addresses specified therein. Where the amount of the deposit is thirty-five thousand dollars ($35,000) or less, a proceeding pursuant to this section is a limited civil case. The court shall distribute the deposited funds to any and all claimants entitled thereto. (e) Nothing in this section restricts the ability of a trustee to file an interpleader action in order to resolve a dispute about the proceeds of a trustee’s sale. Once an interpleader action has been filed, thereafter the provisions of this section do not apply. (f) “Due diligence,” for the purposes of this section means that the trustee researched the written claims submitted or other evidence of conflicts and determined that a conflict of priorities exists between two or more claimants which the trustee is unable to resolve. (g) To the extent required by the Unclaimed Property Law, a trustee in possession of surplus proceeds not required to be deposited with the court pursuant to subdivision (b) shall comply with the Unclaimed Property Law (Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure). (h) The trustee, beneficiary, or counsel to the trustee or beneficiary, is not liable for providing to any person who is entitled to notice pursuant to this section, information set forth in, or a copy of, subdivision (h) of Section 2945.3. (Amended by Stats. 2023, Ch. 861, Sec. 1. (SB 71) Effective January 1, 2024.)
2924k
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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The trustee, or the court clerk if ordered, must distribute trustee’s sale proceeds in a set priority order, and a trustee may charge certain distribution-related costs and fees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924k. (a) The trustee, or the clerk of the court upon order to the clerk pursuant to subdivision (d) of Section 2924j, shall distribute the proceeds, or a portion of the proceeds, as the case may be, of the trustee’s sale conducted pursuant to Section 2924h in the following order of priority: (1) To the costs and expenses of exercising the power of sale and of sale, including the payment of the trustee’s fees and attorney’s fees permitted pursuant to subdivision (b) of Section 2924d and subdivision (b) of this section. (2) To the payment of the obligations secured by the deed of trust or mortgage which is the subject of the trustee’s sale. (3) To satisfy the outstanding balance of obligations secured by any junior liens or encumbrances in the order of their priority. (4) To the trustor or the trustor’s successor in interest. In the event the property is sold or transferred to another, to the vested owner of record at the time of the trustee’s sale. (b) A trustee may charge costs and expenses incurred for such items as mailing and a reasonable fee for services rendered in connection with the distribution of the proceeds from a trustee’s sale, including, but not limited to, the investigation of priority and validity of claims and the disbursement of funds. If the fee charged for services rendered pursuant to this subdivision does not exceed one hundred dollars ($100), or one hundred twenty-five dollars ($125) where there are obligations specified in paragraph (3) of subdivision (a), the fee is conclusively presumed to be reasonable. (Amended by Stats. 1999, Ch. 974, Sec. 12. Effective January 1, 2000.)
2924l
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A trustee named in a deed-of-trust case may file a declaration of nonmonetary status, and the declaration must be served on the parties.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924l. (a) In the event that a trustee under a deed of trust is named in an action or proceeding in which that deed of trust is the subject, and in the event that the trustee maintains a reasonable belief that it has been named in the action or proceeding solely in its capacity as trustee, and not arising out of any wrongful acts or omissions on its part in the performance of its duties as trustee, then, at any time, the trustee may file a declaration of nonmonetary status. The declaration shall be served on the parties in the manner set forth in Chapter 5 (commencing with Section 1010) of Title 14 of the Code of Civil Procedure. (b) The declaration of nonmonetary status shall set forth the status of the trustee as trustee under the deed of trust that is the subject of the action or proceeding, that the trustee knows or maintains a reasonable belief that it has been named as a defendant in the proceeding solely in its capacity as a trustee under the deed of trust, its reasonable belief that it has not been named as a defendant due to any acts or omissions on its part in the performance of its duties as trustee, the basis for that knowledge or reasonable belief, and that it agrees to be bound by whatever order or judgment is issued by the court regarding the subject deed of trust. (c) The parties who have appeared in the action or proceeding shall have 15 days from the service of the declaration by the trustee in which to object to the nonmonetary judgment status of the trustee. Any objection shall set forth the factual basis on which the objection is based and shall be served on the trustee. (d) In the event that no objection is served within the 15-day objection period, the trustee shall not be required to participate any further in the action or proceeding, shall not be subject to any monetary awards as and for damages, attorneys’ fees or costs, shall be required to respond to any discovery requests as a nonparty, and shall be bound by any court order relating to the subject deed of trust that is the subject of the action or proceeding. (e) In the event of a timely objection to the declaration of nonmonetary status, the trustee shall thereafter be required to participate in the action or proceeding. Additionally, in the event that the parties elect not to, or fail to, timely object to the declaration of nonmonetary status, but later through discovery, or otherwise, determine that the trustee should participate in the action because of the performance of its duties as a trustee, the parties may file and serve on all parties and the trustee a motion pursuant to Section 473 of the Code of Civil Procedure that specifies the factual basis for the demand. Upon the court’s granting of the motion, the trustee shall thereafter be required to participate in the action or proceeding, and the court shall provide sufficient time prior to trial for the trustee to be able to respond to the complaint, to conduct discovery, and to bring other pretrial motions in accordance with the Code of Civil Procedure. (f) Upon the filing of the declaration of nonmonetary status, the time within which the trustee is required to file an answer or other responsive pleading shall be tolled for the period of time within which the opposing parties may respond to the declaration. Upon the timely service of an objection to the declaration on nonmonetary status, the trustee shall have 30 days from the date of service within which to file an answer or other responsive pleading to the complaint or cross-complaint. (g) For purposes of this section, “trustee” includes any agent or employee of the trustee who performs some or all of the duties of a trustee under this article, and includes substituted trustees and agents of the beneficiary or trustee. (h) A fee shall not be charged for the filing of a declaration of nonmonetary status pursuant to this section. (Amended by Stats. 2020, Ch. 203, Sec. 2. (SB 1148) Effective January 1, 2021.)
2924m
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section sets who may bid after a trustee’s sale, when the sale becomes final, what notices and affidavits must be submitted, and what information the trustee must post or report.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924m. (a) For purposes of this section: (1) “Prospective owner-occupant” means a natural person who presents to the trustee an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that: (A) They will occupy the property as their primary residence within 60 days of the trustee’s deed being recorded. (B) They will maintain their occupancy for at least one year. (C) They are not any of the following: (i) The mortgagor or trustor. (ii) The child, spouse, or parent of the mortgagor or trustor. (iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded. (iv) An employee, officer, or member of the mortgagor or trustor. (v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company. (D) They are not acting as the agent of any other person or entity in purchasing the real property. (2) “Eligible tenant buyer” means a natural person who at the time of the trustee’s sale: (A) Is occupying the real property as their primary residence. (B) Is occupying the real property under a rental or lease agreement entered into as the result of an arm’s-length transaction with the mortgagor or trustor, or with the mortgagor or trustor’s predecessor in interest, on a date prior to the recording of the notice of default against the property, and who attaches evidence demonstrating the existence of the tenancy to the affidavit or declaration required pursuant to subparagraph (B) of paragraph (2) of subdivision (c). (C) Is not the mortgagor or trustor, or the child, spouse, or parent of the mortgagor or trustor. (D) Is not acting as the agent of any other person or entity in purchasing the real property. Submission of a bid pursuant to paragraph (3) of subdivision (c) does not violate this subparagraph. (E) Has not filed a petition under Chapter 7, 11, 12, or 13 of Title 11 of the United States Code at any time during the period from the date of the trustee’s sale of the property to the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday. (3) “Eligible bidder” means any of the following: (A) An eligible tenant buyer. (B) A prospective owner-occupant. (C) A nonprofit association, nonprofit corporation, or cooperative corporation in which an eligible tenant buyer is a voting member or director. (D) An eligible nonprofit corporation with all of the following attributes: (i) It has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code. (ii) It has its principal place of business in California. (iii) The primary residences of all board members are located in California. (iv) One of its primary activities is the development and preservation of affordable rental or home ownership housing in California. (v) It is registered and in good standing with the Attorney General’s Registry of Charities and Fundraisers, pursuant to the Supervision of Trustees and Fundraisers for Charitable Purposes Act (Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code). (E) A limited liability company wholly owned by one or more eligible nonprofit corporations as described in subparagraph (C) or (D). (F) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. (G) A limited-equity housing cooperative as defined in Section 817. (H) The state, the Regents of the University of California, a county, city, district, public authority, or public agency, and any other political subdivision or public corporation in the state. (4) “Evidence demonstrating the existence of the tenancy” means a copy of the dated and signed rental or lease agreement or, if a copy of the dated and signed rental or lease agreement is not available, then one of the following: (A) Evidence of rent payments made for the property by the person asserting that they are an eligible tenant buyer for the six months prior to the recording of the notice of default. (B) Copies of utility bills for the property payable by the person asserting that they are an eligible tenant buyer for the six months prior to the recording of the notice of default. (b) This section does not prevent an eligible tenant buyer who meets the conditions set forth in paragraph (1) of subdivision (a) from being deemed a prospective owner-occupant. (c) A trustee’s sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to four residential units pursuant to Section 2924g shall not be deemed final until the earliest of the following: (1) If a prospective owner-occupant is the last and highest bidder at the trustee’s sale, the date upon which the conditions set forth in Section 2924h for the sale to become final are met. The prospective owner-occupant shall submit to the trustee the affidavit or declaration described in paragraph (1) of subdivision (a) at the trustee’s sale or to the trustee by 5 p.m. on the next business day following the trustee’s sale. (2) Fifteen days after the trustee’s sale unless at least one eligible tenant buyer or eligible bidder submits to the trustee either a bid pursuant to paragraph (3) or (4) or a nonbinding written notice of intent to place such a bid. The bid or written notice of intent to place a bid shall: (A) Be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date. (B) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, identifying the category set forth in paragraph (3) of subdivision (a) to which the person or entity submitting the bid or nonbinding written notice of intent belongs and stating that the person meets the criteria for that category. If the winning bid is placed by an eligible bidder described in subparagraphs (C) to (G), inclusive, of paragraph (3) of subdivision (a), the affidavit or declaration shall affirm the bidder’s duty to comply with subdivision (a) of Section 2924o for the benefit of tenants occupying the property. (C) Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale, or the next business day following the 15th day if the 15th day is a weekend or holiday. (D) Contain a current telephone number and return mailing address for the person submitting the bid or nonbinding written notice of intent. (3) (A) The date upon which a representative of all of the eligible tenant buyers submits to the trustee a bid in an amount equal to the full amount of the last and highest bid at the trustee’s sale, in the form of cash, a cashier’s check drawn on a state or national bank, a cashier’s check drawn by a state or federal credit union, or a cashier’s check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code and authorized to do business in this state. This bid shall: (i) Be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date. (ii) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, stating that the persons represented meet the criteria set forth in paragraph (2) of subdivision (a), and that the persons represented are all of the eligible tenant buyers. (iii) Meet either of the following criteria: (I) Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale, or the next business day following the 15th day if the 15th day is a weekend or holiday. (II) Be received by the trustee no later than 5 p.m. on the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday, if at least one of the eligible tenant buyers submitted a nonbinding written notice of intent to place a bid pursuant to paragraph (2). (iv) Contain a current telephone number and return mailing address for the person submitting the bid. (B) If the conditions in this paragraph are satisfied, the eligible tenant buyers shall be deemed the last and highest bidder pursuant to the power of sale. (4) (A) Forty-five days after the trustee’s sale, except that during the 45-day period, an eligible bidder may submit to the trustee a bid in an amount that exceeds the last and highest bid at the trustee’s sale, in the form of cash, a cashier’s check drawn on a state or national bank, a cashier’s check drawn by a state or federal credit union, or a cashier’s check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code and authorized to do business in this state. The bid shall: (i) Be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date. (ii) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, identifying the category set forth in paragraph (3) of subdivision (a) to which the eligible bidder belongs and stating that the eligible bidder meets the criteria for that category. (iii) Be received by the trustee no later than 5 p.m. on the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday, if the eligible bidder submitted a nonbinding written notice of intent to bid pursuant to paragraph (2). Notwithstanding clause (i), on the last day that bids are eligible to be received by the trustee under this clause, the trustee shall not receive any bid that is not sent by certified mail with the United States Postal Service or by another overnight mail courier service with tracking information that confirms the recipient’s signature and the date and time of receipt and delivery. (iv) Contain a current telephone number and return mailing address for the person submitting the bid. (v) Be limited to a single bid amount and not contain instructions for successive bid amounts. (B) As of 5 p.m. on the 45th day after the trustee’s sale, if one or more eligible bidders has submitted a bid that meets the conditions in this paragraph, the eligible bidder that submitted the highest bid shall be deemed the last and highest bidder pursuant to the power of sale. The trustee shall return any losing bid to the eligible bidder that submitted it. (d) The trustee may reasonably rely on affidavits and declarations regarding bidder eligibility received under this section. The affidavit or declaration of the winning bidder shall be attached as an exhibit to the trustee’s deed and recorded. If the winning bidder is not required to submit an affidavit or declaration pursuant to this section, the trustee shall attach as an exhibit to the trustee’s deed a statement that no affidavit or declaration is required by this section, and the lack of an affidavit or declaration shall not prevent the deed from being recorded and shall not invalidate the transfer of title pursuant to the trustee’s deed. (e) If the conditions set forth in paragraph (1) of subdivision (c) for a sale to be deemed final are not met, then: (1) Not later than 48 hours after the trustee’s sale of property under Section 2924g, the trustee or an authorized agent shall post on the internet website set forth on the notice of sale, as required under paragraph (8) of subdivision (b) of Section 2924f, the following information: (A) The date on which the trustee’s sale took place. (B) The amount of the last and highest bid at the trustee’s sale. (C) An address at which the trustee can receive documents sent by United States mail and by a method of delivery providing for overnight delivery. (2) The information required to be posted on the internet website under paragraph (1) shall also be made available not later than 48 hours after the trustee’s sale of property under Section 2924g by calling the telephone number set forth on the notice of sale as required under paragraph (8) of subdivision (b) of Section 2924f. (3) The information required to be provided under paragraphs (1) and (2) shall be made available using the file number assigned to the case that is set forth on the notice of sale as required under paragraph (8) of subdivision (b) of Section 2924f. (4) The information required to be provided under paragraphs (1) and (2) shall be made available for a period of not less than 45 days after the sale of property under Section 2924g. (5) A disruption of any of these methods of providing the information required under paragraphs (1) and (2) to allow for reasonable maintenance or due to a service outage shall not be deemed to be a violation of this subdivision. (6) The information to be provided by the trustee to eligible bidders or to persons considering whether to submit a bid or notice of intent to bid pursuant to this section is limited to the information set forth in paragraph (1). (f) Title to the property shall remain with the mortgagor or trustor or successor in interest until the property sale is deemed final as provided in this section. (g) A prospective owner-occupant shall not be in violation of this section if a legal owner’s compliance with the requirements of Section 2924n renders them unable to occupy the property as their primary residence within 60 days of the trustee’s deed being recorded. (h) This section shall prevail over any conflicting provision of Section 2924h. (i) For trustee’s sales where the winning bidder is an eligible bidder under this section, the trustee or an authorized agent shall electronically send the following information to the office of the Attorney General within 15 days of the sale being deemed final: (1) The dates when the trustee’s sale took place and when it was deemed final. (2) The name of the winning bidder. (3) The street address and assessor’s parcel number of the subject property. (4) A copy of the trustee’s deed, as executed, including the attached affidavit or declaration of the winning bidder. (5) The category set forth in paragraph (3) of subdivision (a) to which the eligible bidder belongs. (j) The Attorney General, a county counsel, a city attorney, or a district attorney may bring an action for specific performance or any other remedy at equity or at law to enforce this section. (k) The Department of Justice shall include a summary of information contained in the reports received pursuant to subdivision (i) in a searchable repository on its official internet website. (l) The pendency of a determination of finality under subdivision (c) shall not cause termination of any hazard insurance coverage in effect at the time of the trustee’s sale. (m) This section shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2031, deletes or extends that date. (Amended by Stats. 2024, Ch. 601, Sec. 10. (SB 1146) Effective January 1, 2025. Repealed as of January 1, 2031, by its own provisions.)
2924n
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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The recorded legal owner must still follow tenant eviction and displacement laws.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924n. Nothing in this article shall relieve a person deemed the legal owner of real property when the trustee’s deed is recorded from complying with applicable law regarding the eviction or displacement of tenants, including, but not limited to, notice requirements, requirements for the provision of temporary or permanent relocation assistance, the right to return, and just cause eviction requirements. (Added by Stats. 2020, Ch. 202, Sec. 8. (SB 1079) Effective January 1, 2021.)
2924o
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Certain properties bought through Section 2924m must be tied to a recorded affordability covenant for at least 30 years, and tenants may use legal rights to defend or enforce the section.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924o. (a) On and after January 1, 2023, in the case of any real property purchased pursuant to Section 2924m by an eligible bidder described in subparagraphs (C) to (G), inclusive, of paragraph (3) of subdivision (a) of that section, the property shall be subject to a recorded covenant that ensures the property shall be sold at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or rented at an affordable rent, as defined in Section 50053 of the Health and Safety Code, for lower income households for 30 years from the date the trustee’s deed is issued, or a greater period of time if any of the following apply: (1) The terms of a federal, state, or local grant, tax credit, or other source of project financing funding the purchase or maintenance of the property by an eligible bidder require a longer term. (2) The property becomes subject to a contract as described in paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. (b) Tenants, if any, of a property purchased pursuant to Section 2924m by an eligible bidder described in subparagraphs (C) to (G), inclusive, of paragraph (3) of subdivision (a) of that section may exercise any rights available at equity or in law, including, without limitation, to defend an unlawful detainer or institute an action to enforce this section. (c) For purposes of this section, “lower income households” has the same meaning as described in Section 50079.5 of the Health and Safety Code. (d) This section shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2031, deletes or extends that date. (Added by Stats. 2022, Ch. 642, Sec. 10. (AB 1837) Effective January 1, 2023. Repealed as of January 1, 2031, by its own provisions.)
2924p
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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This section gives eligible bidders and prospective owner-occupants the first chance to buy certain foreclosed homes, and limits institutions’ sales practices during the first 30 days.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following: (1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties that have been acquired through the foreclosure process by an entity that annually forecloses on 175 or more residential real properties in California. (2) Promote owner occupancy by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers. (3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single-family homes. (b) For purpose of this section: (1) “Bundled sale” means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust. (2) “Eligible bidder” means any of the following: (A) A prospective owner-occupant. (B) A nonprofit corporation that meets all of the following requirements: (i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code. (ii) The nonprofit corporation is based in California. (iii) All of the board members of the nonprofit corporation have their primary residence in California. (iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or home ownership housing in California. (C) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, as amended by the act amending this subparagraph. (D) A limited-equity housing cooperative, as defined in Section 817, that is based in California. (E) The state, the Regents of the University of California, a county, city, district, public authority, or public agency, and any other political subdivision or public corporation in the state. (3) “Institution” means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or more residential real properties, containing no more than 4 dwelling units: (A) A depository institution chartered under state or federal law. (B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code. (C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code. (4) “Prospective owner-occupant” means a natural person whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following: (A) They will occupy the property as their primary residence within 60 days of the trustee’s deed being recorded. (B) They will maintain their occupancy for at least one year. (C) They are not any of the following: (i) The mortgagor or trustor. (ii) The child, spouse, or parent of the mortgagor or trustor. (iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded. (iv) An employee, officer, or member of the mortgagor or trustor. (v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company. (D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired through foreclosure under a mortgage or deed of trust by an institution or that is acquired at a foreclosure sale by an institution: (1) During the first 30 days after the property is listed for sale, the institution shall only accept offers from eligible bidders. (2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following: (A) An eligible bidder pursuant to subparagraphs (B) through (E) of paragraph (2) of subdivision (b). (B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision. (3) Any fraudulent statements may be subject to criminal or civil liability. (4) The institution shall respond, in writing, to all offers received from eligible bidders during the first 30 days after the property is listed for sale before considering any other offers. (5) Notwithstanding any other law, an institution shall not conduct a bundled sale. (d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Amended by Stats. 2024, Ch. 580, Sec. 1. (AB 2897) Effective January 1, 2025.)
2925.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A transfer made subject to defeasance on a condition may be proved to be a mortgage, except against a subsequent purchaser or incumbrancer for value without notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2925. The fact that a transfer was made subject to defeasance on a condition, may, for the purpose of showing such transfer to be a mortgage, be proved (except as against a subsequent purchaser or incumbrancer for value and without notice), though the fact does not appear by the terms of the instrument. (Enacted 1872.)
2926.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage is a lien on everything that would pass by a grant of the property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2926. A mortgage is a lien upon everything that would pass by a grant of the property. (Enacted 1872.)
2927.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgagee is not entitled to possession of the property unless the mortgage expressly allows it. After the mortgage is executed, the mortgagor may agree to a change of possession without new consideration.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2927. A mortgage does not entitle the mortgagee to the possession of the property, unless authorized by the express terms of the mortgage; but after the execution of the mortgage the mortgagor may agree to such change of possession without a new consideration. (Enacted 1872.)
2928.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage does not make the mortgagor personally liable to perform the secured act unless the mortgage expressly says so.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2928. A mortgage does not bind the mortgagor personally to perform the act for the performance of which it is a security, unless there is an express covenant therein to that effect. (Enacted 1872.)
2929.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A person whose interest is subject to a mortgage lien must not do anything that would substantially impair the mortgagee’s security.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2929. No person whose interest is subject to the lien of a mortgage may do any act which will substantially impair the mortgagee’s security. (Enacted 1872.)
2929.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A legal owner must maintain vacant residential property acquired through foreclosure, and a governmental entity may fine violations after giving notice and time to remedy.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2929.3. (a) (1) A legal owner shall maintain vacant residential property purchased by that owner at a foreclosure sale once that sale is deemed final, or acquired by that owner through foreclosure under a mortgage or deed of trust. A governmental entity may impose a civil fine upon the legal owner of the property for a violation as set forth in this section. The governmental entity is not required to impose a civil fine if the violation is not remedied. (2) If the governmental entity chooses to impose a fine pursuant to this section, it shall give the legal owner, prior to the imposition of the fine, a notice containing the following information: (A) Notice of the alleged violation, including a detailed description of the conditions that gave rise to the allegation. (B) Notice of the entity’s intent to assess a civil fine if the legal owner does not do both of the following: (i) Within a period determined by the entity, consisting of not less than 14 business days following the date of the notice, commence action to remedy the violation and notify the entity of that action. This time period shall be extended by an additional 10 business days if requested by the legal owner in order to clarify with the entity the actions necessary to remedy the violation. (ii) Complete the action described in clause (i) within a period of no less than 16 business days following the end of the period set forth in clause (i). (C) The notice required under this paragraph shall be mailed to the address provided in the deed or other instrument as specified in subdivision (a) of Section 27321.5 of the Government Code, or, if none, to the return address provided on the deed or other instrument. (3) The governmental entity shall provide a period of not less than the time set forth in clauses (i) and (ii) of subparagraph (B) of paragraph (2) to remedy the violation prior to imposing a civil fine and shall allow for a hearing and opportunity to contest any fine imposed. In determining the amount of the fine, the governmental entity shall take into consideration any timely and good faith efforts by the legal owner to remedy the violation. The maximum civil fine authorized by this section for each day that the owner fails to maintain the property, commencing on the day following the expiration of the period to remedy the violation established by the governmental entity, is as follows: (A) Up to a maximum of two thousand dollars ($2,000) per day for the first 30 days. (B) Up to a maximum of five thousand dollars ($5,000) per day thereafter. (4) Subject to the provisions of this section, a governmental entity may establish different compliance periods for different conditions on the same property in the notice of alleged violation mailed to the legal owner. (b) For purposes of this section, “failure to maintain” means failure to care for the exterior of the property, including, but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance. (c) Notwithstanding subdivisions (a) and (b), a governmental entity may provide less than 30 days’ notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given. (d) Fines and penalties collected pursuant to this section shall be directed to local nuisance abatement programs, including, but not limited to, legal abatement proceedings. (e) A governmental entity may not impose fines on a legal owner under both this section and a local ordinance. (f) These provisions shall not preempt any local ordinance. (g) This section shall only apply to residential real property. (h) The rights and remedies provided in this section are cumulative and in addition to any other rights and remedies provided by law. (Amended by Stats. 2020, Ch. 202, Sec. 9. (SB 1079) Effective January 1, 2021.)
2929.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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Before a governmental entity imposes a fine or penalty for certain vacant-property violations, it must give the owner notice and a chance to fix the violation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2929.4. (a) Prior to imposing a fine or penalty for failure to maintain a vacant property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure under a mortgage or deed of trust, a governmental entity shall provide the owner of that property with a notice of the violation and an opportunity to correct that violation. (b) This section shall not apply if the governmental entity determines that a specific condition of the property threatens public health or safety. (Added by Stats. 2010, Ch. 527, Sec. 1. (SB 1427) Effective January 1, 2011.)
2929.45.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A governmental entity may not impose certain nuisance-abatement assessments or liens unless the costs were adopted at a public hearing, and the charge cannot exceed actual and reasonable nuisance-abatement costs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2929.45. (a) An assessment or lien to recover the costs of nuisance abatement measures taken by a governmental entity with regard to property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure under a mortgage or deed of trust, shall not exceed the actual and reasonable costs of nuisance abatement. (b) A governmental entity shall not impose an assessment or lien unless the costs that constitute the assessment or lien have been adopted by the elected officials of that governmental entity at a public hearing. (Added by Stats. 2010, Ch. 527, Sec. 2. (SB 1427) Effective January 1, 2011.)
2929.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A secured lender may inspect mortgaged real property to check for hazardous substance releases, but must give reasonable notice in most cases, avoid harassment, and reimburse repair costs caused by the inspection.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2929.5. (a) A secured lender may enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security on either of the following: (1) Upon reasonable belief of the existence of a past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security not previously disclosed in writing to the secured lender in conjunction with the making, renewal, or modification of a loan, extension of credit, guaranty, or other obligation involving the borrower. (2) After the commencement of nonjudicial or judicial foreclosure proceedings against the real property security. (b) The secured lender shall not abuse the right of entry and inspection or use it to harass the borrower or tenant of the property. Except in case of an emergency, when the borrower or tenant of the property has abandoned the premises, or if it is impracticable to do so, the secured lender shall give the borrower or tenant of the property reasonable notice of the secured lender’s intent to enter, and enter only during the borrower’s or tenant’s normal business hours. Twenty-four hours’ notice shall be presumed to be reasonable notice in the absence of evidence to the contrary. (c) The secured lender shall reimburse the borrower for the cost of repair of any physical injury to the real property security caused by the entry and inspection. (d) If a secured lender is refused the right of entry and inspection by the borrower or tenant of the property, or is otherwise unable to enter and inspect the property without a breach of the peace, the secured lender may, upon petition, obtain an order from a court of competent jurisdiction to exercise the secured lender’s rights under subdivision (a), and that action shall not constitute an action within the meaning of subdivision (a) of Section 726 of the Code of Civil Procedure. (e) For purposes of this section: (1) “Borrower” means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any successor-in-interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon. (2) “Hazardous substance” includes all of the following: (A) Any “hazardous substance” as defined in subdivision (h) of Section 25281 of the Health and Safety Code. (B) Any “waste” as defined in subdivision (d) of Section 13050 of the Water Code. (C) Petroleum, including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel, or any mixture thereof. (3) “Real property security” means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms “separate interest,” “common area,” and “common interest development” are defined in Sections 4095, 4100, and 4185, or real property consisting of one acre or less which contains 1 to 15 dwelling units. (4) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater. (5) “Secured lender” means the beneficiary under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor-in-interest of the beneficiary or mortgagee to the deed of trust or mortgage. (Amended by Stats. 2012, Ch. 181, Sec. 40. (AB 806) Effective January 1, 2013. Operative January 1, 2014, by Sec. 86 of Ch. 181.)
2931.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgagee may foreclose the mortgagor’s right of redemption, following the procedure set by the Code of Civil Procedure.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2931. A mortgagee may foreclose the right of redemption of the mortgagor in the manner prescribed by the Code of Civil Procedure. (Enacted 1872.)
2931a
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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In certain real-property actions involving a tax-related lien, the state agency may be joined, the court may decide lien priority and effect, the complaint must identify the lien and related details, service must be made on the collecting body, and the Attorney General must represent the state agency.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2931a. In any action brought to determine conflicting claims to real property, or for partition of real property or an estate for years therein, or to foreclose a deed of trust, mortgage, or other lien upon real property, or in all eminent domain proceedings under Section 1250.110 et seq., of the Code of Civil Procedure against real property upon which exists a lien to secure the payment of taxes or other obligations to an agency of the State of California, other than ad valorem taxes upon the real property, the state agency charged with the collection of the tax obligation may be made a party. In such an action, the court shall have jurisdiction to determine the priority and effect of the liens described in the complaint in or upon the real property or estate for years therein, but the jurisdiction of the court in the action shall not include a determination of the validity of the tax giving rise to the lien or claim of lien. The complaint or petition in the action shall contain a description of the lien sufficient to enable the tax or other obligation, payment of which it secures, to be identified with certainty, and shall include the name and address of the person owing the tax or other obligation, the name of the state agency that recorded the lien, and the date and place where the lien was recorded. Services of process in the action shall be made upon the agency, officer, board, commission, department, division, or other body charged with the collection of the tax or obligation. It shall be the duty of the Attorney General to represent the state agency in the action. (Amended by Stats. 1989, Ch. 698, Sec. 8.)
2931b
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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In certain actions involving State of California property sales, the Attorney General may bid on and buy the property if the Department of Finance consents.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2931b. In all actions in which the State of California is named a party pursuant to the provisions of Section 2931a and in which real property or an estate for years therein is sought to be sold, the Attorney General may, with the consent of the Department of Finance, bid upon and purchase that real property or estate for years. (Amended by Stats. 1989, Ch. 698, Sec. 9.)
2931c
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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The Attorney General may sue to enforce certain California tax-related liens, and the court may decide the lien’s priority and effect.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2931c. The Attorney General may bring an action in the courts of this or any other state or of the United States to enforce any lien to secure the payment of taxes or other obligations to the State of California under the Unemployment Insurance Code, the Revenue and Taxation Code, or Chapter 6 (commencing with Section 16180) of Part 1 of Division 4 of Title 2 of the Government Code or to subject to payment of the liability giving rise to the lien any property in which the debtor has any right, title, or interest. In any action brought under this section the court shall have jurisdiction to determine the priority and effect of the lien in or upon the property, but the jurisdiction of the court in such action shall not extend to a determination of the validity of the liability giving rise to the lien. (Amended by Stats. 1977, Ch. 1242.)
2932.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. )
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A mortgage may give the mortgagee or another person a power of sale, which can be used after a breach of the secured obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 14. LIEN [2872 - 3081] ( Title 14 enacted 1872. ) ## CHAPTER 2. Mortgage [2920 - 2968] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. Mortgages in General [2920 - 2944.10] ( Article 1 enacted 1872. ) ## 2932. A power of sale may be conferred by a mortgage upon the mortgagee or any other person, to be exercised after a breach of the obligation for which the mortgage is a security. (Enacted 1872.)

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