Civil Code — Part 8 | CIV — United States — California law | Esheria

Civil Code

Part 8 of 20 · provisions 1,401–1,600

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

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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

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  1. 1812.80.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    This section says health studio contract rules are needed to protect the public and to promote fair competition and fair dealing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.80. (a) The Legislature finds that the health studio industry has a significant impact upon the economy and well-being of this state and its local communities; and that the provisions of this title relating to contracts for health studio services are necessary for the public welfare. (b) The Legislature declares that the purpose of this title is to safeguard the public against fraud, deceit, imposition and financial hardship, and to foster and encourage competition, fair dealing, and prosperity in the field of health studio services by prohibiting or restricting false or misleading advertising, onerous contract terms, harmful financial practices, and other unfair, dishonest, deceptive, destructive, unscrupulous, fraudulent, and discriminatory practices by which the public has been injured in connection with contracts for health studio services. (Amended by Stats. 2005, Ch. 439, Sec. 1. Effective January 1, 2006.)
  2. 1812.81.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    This section defines “contract for health studio services” and lists specific exclusions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.81. As used in this title, “contract for health studio services” means a contract for instruction, training or assistance in physical culture, body building, exercising, reducing, figure development, or any other such physical skill, or for the use by an individual patron of the facilities of a health studio, gymnasium or other facility used for any of the above purposes, or for membership in any group, club, association or organization formed for any of the above purposes; but does not include (a) contracts for professional services rendered or furnished by a person licensed under the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code, (b) contracts for instruction at schools operating pursuant to the provisions of the Education Code, or (c) contracts for instruction, training, or assistance relating to diet or control of eating habits not involving physical culture, body building, exercising, figure development, or any other such physical skill. (Amended by Stats. 1980, Ch. 690, Sec. 1.)
  3. 1812.82.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Health studio service contracts must be in writing, and the customer must receive a copy when signing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.82. Every contract for health studio services shall be in writing and shall be subject to the provisions of this title. A copy of the written contract shall be physically given to or delivered by email to the customer at the time he or she signs the contract. (Amended by Stats. 2016, Ch. 189, Sec. 1. (AB 2810) Effective January 1, 2017.)
  4. 1812.83.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Overlapping health studio service contracts between the same seller and buyer are treated as one contract for this title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.83. All contracts for health studio services, which may be in effect between the same seller and the same buyer, the terms of which overlap for any period, shall be considered as one contract for the purposes of this title. (Amended by Stats. 1969, Ch. 1571.)
  5. 1812.84.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Health studio service contracts cannot require the buyer to pay beyond the contract term or run longer than three years, and they must disclose the initial or minimum term in a specified statement format. The buyer may cancel when cancellation is authorized by this title using in person delivery, email from the address on file, or first-class mail.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.84. (a) A contract for health studio services may not require payments or financing by the buyer to exceed the term of the contract, nor may the term of the contract exceed three years. This subdivision does not apply to a member’s obligation to pay valid, outstanding moneys due under the contract, including moneys to be paid pursuant to a termination notice period in the contract in which the termination notice period does not exceed 30 days. (b) A contract for health studio services shall include a statement printed in a size at least 14-point type or presented in an equally legible electronic format that discloses the initial or minimum length of the term of the contract. This statement shall be placed above the space reserved for the signature of the buyer. (c) At any time a cancellation is authorized by this title, a contract for health studio services may be canceled by the buyer in person, via email from an email address on file with the health studio, or via first-class mail. (Amended by Stats. 2016, Ch. 189, Sec. 2. (AB 2810) Effective January 1, 2017.)
  6. 1812.85.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Health studio contracts must include required cancellation disclosures, and consumers get multiple cancellation rights and refunds tied to timing, missing facilities, and certain payment amounts.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.85. (a) Every contract for health studio services shall provide that performance of the agreed-upon services will begin within six months after the date the contract is entered into. The consumer may cancel the contract and receive a pro rata refund if the health studio fails to provide the specific facilities advertised or offered in writing by the time indicated. If no time is indicated in the contract, the consumer may cancel the contract within six months after the execution of the contract and shall receive a pro rata refund. If a health studio fails to meet a timeline set forth in this section, the consumer may cancel the contract at any time after the expiration of the timeline. However, if following the expiration of the timeline, the health studio provides the advertised or agreed-upon services, the consumer may cancel the contract up to 10 days after those services are provided. (b) (1) Every contract for health studio services shall, in addition, contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows: “You, the buyer, may choose to cancel this agreement at any time prior to midnight of the fifth business day of the health studio after the date of this agreement, excluding Sundays and holidays. To cancel this agreement, mail, email, or deliver a signed and dated notice that states that you, the buyer, are canceling this agreement, or words of similar effect. The notice shall be sent via first-class mail, via email from an email address on file with the health studio, or delivered in person to _____ (Name of health studio operator) _____ at _____ (Address and email address of health studio operator).” _____ (2) The contract for health studio services shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the following: (A) the name and mailing address of the health studio operator to which the notice of cancellation is to be mailed, (B) the email address of the health studio operator to which a notice of cancellation email is to be sent, and (C) the date the buyer signed the contract. (3) The contract shall provide a description of the services, facilities, and hours of access to which the consumer is entitled or state where that information is available on the health studio operator’s Internet Web site. Any services, facilities, and hours of access that are not described in the contract or on the health studio operator’s Internet Web site shall be considered optional services, and these optional services shall be considered as separate contracts for the purposes of this title and Section 1812.83. (4) Until the health studio operator has complied with this section, the buyer may cancel the contract for health studio services. (5) All moneys paid pursuant to a contract for health studio services shall be refunded within 10 days after receipt of the notice of cancellation, except that payment shall be made for any health studio services received prior to cancellation. (c) If at any time during the term of the contract, including a transfer of the contractual obligation, the health studio eliminates or substantially reduces the scope of the facilities, such as swimming pools or tennis courts, that were described in the contract, in an advertisement relating to the specific location, or in a written offer, and available to the consumer upon execution of the contract, the consumer may cancel the contract and receive a pro rata refund. The consumer may not cancel the contract pursuant to this subdivision if the health studio, after giving reasonable notice to its members, temporarily takes facilities out of operation for reasonable repairs, modifications, substitutions, or improvements. This subdivision shall not be interpreted to give the consumer the right to cancel a contract because of changes to the type or quantity of classes or equipment offered, provided the consumer is informed in the contract that the health studio reserves the right to make changes to the type or quantity of classes or equipment offered and the changes to the type or quantity of classes or equipment offered are reasonable under the circumstances. (d) (1) If a contract for health studio services requires payment of one thousand five hundred dollars ($1,500) to two thousand dollars ($2,000), inclusive, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 20 days after the contract is executed. (2) If a contract for health studio services requires payment of two thousand one dollars ($2,001) to two thousand five hundred dollars ($2,500), inclusive, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 30 days after the contract is executed. (3) If a contract for health studio services requires payment of two thousand five hundred one dollars ($2,501) or more, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 45 days after the contract is executed. (4) The right of cancellation provided in this subdivision shall be set out in the membership contract. (5) The rights and remedies under this paragraph are cumulative to any rights and remedies under other law. (6) A health studio entering into a contract for health studio services that requires a payment of less than one thousand five hundred dollars ($1,500), including initiation or initial membership fees and exclusive of interest or finance charges, by the person receiving the services or the use of the facilities, is not required to comply with paragraph (1), (2), or (3). (e) Upon cancellation, the consumer shall be liable only for that portion of the total contract payment, including initiation fees and other charges however denominated, that has been available for use by the consumer, based upon a pro rata calculation over the term of the contract. The remaining portion of the contract payment shall be returned to the consumer by the health studio. (Amended by Stats. 2016, Ch. 189, Sec. 3. (AB 2810) Effective January 1, 2017.)
  7. 1812.86.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Health studio services contracts may not require payment above the stated caps.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.86. (a) No contract for health studio services shall require payment by the person receiving the services or the use of the facilities of a total amount in excess of the amount specified in subdivision (b) or (c). (b) The limit specified in subdivision (a) shall, on and after January 1, 2006, be three thousand dollars ($3,000), inclusive of initiation or initial membership fees and exclusive of interest or finance charges. (c) The limit in subdivision (a) shall, on and after January 1, 2010, be four thousand four hundred dollars ($4,400), inclusive of initiation or initial membership fees and exclusive of interest or finance charges. (Amended by Stats. 2005, Ch. 439, Sec. 4. Effective January 1, 2006.)
  8. 1812.87.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    A health studio services contract may not require the buyer to sign notes that, if separately negotiated, would cut off the buyer’s claims or defenses against the seller.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.87. No contract for health studio services shall require or entail the execution of any note or series of notes by the buyer which when separately negotiated will cut off as to third parties any right of action or defense which the buyer may have against the seller. (Amended by Stats. 1969, Ch. 1571.)
  9. 1812.88.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    A buyer’s claim or defense under a health studio services contract generally cannot be cut off by assignment unless the assignee gives the required notice and the buyer does not send written notice back within 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.88. No right of action or defense arising out of a contract for health studio services which the buyer has against the seller, and which would be cut off by assignment, shall be cut off by assignment of the contract to any third party whether or not he acquires the contract in good faith and for value unless the assignee gives notice of the assignment to the buyer as provided in this section and within 30 days of the mailing of notice receives no written notice of the facts giving rise to the claim or defense of the buyer. A notice of assignment shall be in writing addressed to the buyer at the address shown on the contract and shall identify the contract and inform the buyer that he must, within 30 days of the date of mailing of the notice, notify the assignee in writing of any facts giving rise to a claim or defense which he may have. The notice of assignment shall state the name of the seller and buyer, a description of the services, the contract balance and the number and amount of the installments. (Amended by Stats. 1969, Ch. 1571.)
  10. 1812.89.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    Health studio service contracts must include refund protections if the buyer dies, becomes disabled, or moves more than 25 miles away and cannot transfer the contract.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.89. (a) (1) Every contract for health studio services shall contain a clause providing that if, by reason of death or disability, the person agreeing to receive services is unable to receive all services for which he has contracted, he and his estate shall be relieved from the obligation of making payment for services other than those received prior to death or the onset of disability, and that if he has prepaid any sum for services, so much of such sum as is allocable to services he has not taken shall be promptly refunded to him or his representative. (2) In every case in which a person has prepaid a sum for services under a contract for health studio services, and by reason of death or disability, is unable to receive all such services, the party agreeing to furnish such services shall, on request, immediately refund to such person or his personal representative such amount of the sum prepaid as is proportionate to the amount of services not received. (3) For the purposes of this section, “disability” means a condition which precludes the buyer from physically using the facilities and the condition is verified by a physician. (4) Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this section, the amount of the contract price allocable to services not received shall represent at least as great a proportion of the total contract price as the sum of the periodic monthly balances not yet due bears to the sum of all the periodic monthly balances under the schedule of installments in the contract. (b) (1) Except as provided in paragraph (2), every contract for health studio services shall contain a clause providing that if the person agreeing to receive health studio services moves further than 25 miles from the health studio and is unable to transfer the contract to a comparable facility, such person shall be relieved from the obligation of making payment for services other than those received prior to the move, and if such person has prepaid any sum for health studio services, so much of such sum as is allocable to services he or she has not taken shall be promptly refunded. (2) Notwithstanding paragraph (1), a contract for health studio services may contain a clause providing that if the person agreeing to receive health studio services moves further than 25 miles from the health studio and is unable to transfer the contract to a comparable facility, such person may be charged a predetermined fee not exceeding one hundred dollars ($100), or, if more than half the life of the contract has expired, such person may be charged a predetermined fee not exceeding fifty dollars ($50). (Amended by Stats. 1980, Ch. 651, Sec. 4.)
  11. 1812.9.

    ## 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 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. )

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    If someone willfully violates this chapter in connection with finance-charge disclosures or calculations for a consolidated total of two or more contracts, the buyer may recover triple the charges, and the seller cannot recover those charges.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. ) ## 1812.9. In any case in which a person willfully violates any provision of this chapter in connection with the imposition, computation or disclosures of or relating to a finance charge on a consolidated total of two or more contracts under the provisions of Article 8 (commencing with Section 1808.1) of this chapter, the buyer may recover from such person an amount equal to three times the total of the finance charges and any delinquency, collection, extension, deferral or refinance charges imposed, contracted for or received on all contracts included in the consolidated total and the seller shall be barred from the recovery of any such charges. (Amended by Stats. 1970, Ch. 546.)
  12. 1812.90.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    This title does not replace other laws, and parties or contracts under it still must follow all other applicable legal requirements.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.90. The provisions of this title are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with all other applicable provisions of law. (Added by Stats. 1961, Ch. 1675.)
  13. 1812.91.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    A health studio services contract that does not comply with this title is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.91. Any contract for health studio services which does not comply with the applicable provisions of this title shall be void and unenforceable as contrary to public policy. (Amended by Stats. 1969, Ch. 1571.)
  14. 1812.92.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

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    A health studio services contract made in reliance on the seller’s willful false, fraudulent, or misleading statements is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.92. Any contract for health studio services entered into in reliance upon any willful and false, fraudulent, or misleading information, representation, notice or advertisement of the seller shall be void and unenforceable. (Amended by Stats. 1969, Ch. 1571.)
  15. 1812.93.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

    Verify source ↗

    A buyer cannot waive the provisions of this title; any such waiver is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.93. Any waiver of the buyer of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. (Added by Stats. 1961, Ch. 1675.)
  16. 1812.94.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

    Verify source ↗

    An injured buyer may sue for damages, and the court may award triple actual damages plus reasonable attorney fees. Noncompliance can be corrected within 30 days after the contract is signed by the buyer, and if corrected, the seller or holder is not subject to penalties; payment-increasing corrections need the buyer’s written 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.94. (a) Any buyer injured by a violation of this title may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees. (b) Notwithstanding the provisions of this title, any failure to comply with any provision of this title may be corrected within 30 days after the execution of the contract by the buyer, and, if so corrected, neither the seller nor the holder shall be subject to any penalty under this title, provided that any correction which increases any monthly payment, the number of payments, or the total amount due, must be concurred in, in writing, by the buyer. “Holder” includes the seller who acquires the contract or, if the contract is purchased by a financing agency or other assignee, the financing agency or other assignee. (Amended by Stats. 1963, Ch. 299.)
  17. 1812.95.

    ## 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

    Verify source ↗

    If part of this title is held unconstitutional, the rest of the title still 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.95. If any provision of this title or the application thereof to any person or circumstances is held unconstitutional, the remainder of the title and the application of such provision to other persons and circumstances shall not be affected thereby. (Added by Stats. 1961, Ch. 1675.)
  18. 1812.96.

    ## 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

    Verify source ↗

    Money paid to a seller for an unopened health studio must be kept in trust, and the seller cannot use it early 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 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.96. (a)Except as provided in subdivision (c) or (d), all money received by the seller of health studio services from a consumer for a health studio facility that has not yet opened for business shall be held in trust and shall be deposited in a trust account established in a state or federally chartered bank or savings association. The seller shall not draw, transfer, or encumber any of the money held in trust until five business days after the health studio facility has opened and the seller has fully paid refunds to consumers who canceled their contracts as provided in subdivision (b) or in Section 1812.85. (b) In addition to any other cancellation rights, a consumer who pays any money under a contract for health studio services for a health studio facility that has not yet opened for business has the right to cancel the contract and receive a full refund at any time prior to midnight of the fifth business day after the date the health studio opens for business. The cancellation right shall be set forth in the contract. The refund shall be paid within 10 days of receipt of notice of cancellation. (c) Notwithstanding subdivision (a), a seller of health studio services may draw on money held in trust to pay refunds or may draw, transfer, or encumber funds to the extent that the amount is offset by a bond of equal or greater amount that satisfies this subdivision. The bond shall be issued by a surety insurer admitted to do business in this state and shall be filed with the Secretary of State. The bond shall be in favor of the State of California for the benefit of consumers harmed by a violation of this title. (d) Subdivision (a) does not apply to a seller of health studio services that is, at the time money is received from the consumer, operating at least five health studio facilities in this state that have been in operation for a period of at least five years, and that has an excess of current assets over current liabilities of at least one million dollars ($1,000,000). (Added by Stats. 2005, Ch. 439, Sec. 5. Effective January 1, 2006.)
  19. 1812.97.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.55. CONTRACTS FOR THE LEASE OR RENTAL OF ATHLETIC FACILITIES [1812.97- 1812.97.] ( Title 2.55 added by Stats. 1986, Ch. 565, Sec. 1. )

    Verify source ↗

    Contracts for leasing or renting athletic facilities must include a specified steroid warning in 10-point bold type, and the warning must be posted in athletic facilities with locker rooms starting June 1, 1990.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.55. CONTRACTS FOR THE LEASE OR RENTAL OF ATHLETIC FACILITIES [1812.97- 1812.97.] ( Title 2.55 added by Stats. 1986, Ch. 565, Sec. 1. ) ## 1812.97. (a) Every contract which has as its purpose the lease or rental of athletic facilities for instruction, training, or assistance in physical culture, body building, exercising, reducing, figure development, or any other related physical skill, or for baseball, football, tennis, basketball, gymnastics, track and field, hockey, ice skating, weightlifting, wrestling, or bicycling shall contain the following warning statement in 10-point bold type: Warning: Use of steroids to increase strength or growth can cause serious health problems. Steroids can keep teenagers from growing to their full height; they can also cause heart disease, stroke, and damaged liver function. Men and women using steriods may develop fertility problems, personality changes, and acne. Men can also experience premature balding and development of breast tissue. These health hazards are in addition to the civil and criminal penalties for unauthorized sale, use, or exchange of anabolic steroids. (b) Commencing June 1, 1990, the warning statement required pursuant to subdivision (a) shall be conspicuously posted in all athletic facilities in this state which have locker rooms. At least one warning statement shall be posted in every locker room of the athletic facility. (c) As used in this section, “athletic facilities” includes a health studio regulated pursuant to Title 2.5 (commencing with Section 1812.80), a professional boxers’ training gymnasium, as defined in Section 18685 of the Business and Professions Code, any privately owned sports facility or stadium in this state which is open to the general public, and any publicly owned sports facility or stadium in this state, including facilities in institutions of higher learning and schools that include any or all grades 7 to 12, inclusive. (d) As used in this section, “anabolic steroids” include, but are not limited to, the following: (1) Dianabol (methandrostenelone). (2) Winstrol (stabozalol). (3) Maxibolin (ethyl estrenol). (4) Durabolin (nandrolone phenpropionate). (5) Deca-Durabolin (nandrolone decanote). (6) Testosterone propionate. (7) Pregnyl (chorionic gonadotropin). (8) Anavar (toxandroprione). (e) When an athletic facility seeks to renew an operating license, if it can be demonstrated by a preponderance of the evidence that an athletic facility has not posted the sign required pursuant to this section, the licensing agency may impose a fine in the amount of fifty dollars ($50) per day for each day that the violation occurred, as a condition of obtaining the license renewal. (Amended by Stats. 1989, Ch. 807, Sec. 2. Operative June 1, 1990, by Sec. 8 of Ch. 807. Note: Section 1812.98 is in Title 2.5, preceding the heading of Title 2.55.)
  20. 1812.98.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. )

    Verify source ↗

    This section says month-to-month contracts are not prohibited by this title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.5. CONTRACTS FOR HEALTH STUDIO SERVICES [1812.80 - 1812.98] ( Heading of Title 2.5 amended by Stats. 1969, Ch. 1571. ) ## 1812.98. Nothing in this title is intended to prohibit month-to-month contracts. This section is declaratory of existing law. (Added by renumbering Section 1812.97 (as added by Stats. 2005, Ch. 439) by Stats. 2006, Ch. 538, Sec. 49. Effective January 1, 2007. Note: Section 1812.97 is in Title 2.55, which follows this section.)
  21. 1813.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    A deposit may be voluntary or involuntary, and it may be for safe keeping or for exchange.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1813. A deposit may be voluntary or involuntary; and for safe keeping or for exchange. (Enacted 1872.)
  22. 1814.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    A voluntary deposit happens when one person gives another person possession of personal property, with consent, to keep for the giver or a third party.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1814. A voluntary deposit is made by one giving to another, with his consent, the possession of personal property to keep for the benefit of the former, or of a third party. The person giving is called the depositor, and the person receiving the depositary. (Enacted 1872.)
  23. 1815.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    This section defines when an involuntary deposit exists, including accidental possession of property, emergencies, stray live animals, and certain abandoned animals.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1815. An involuntary deposit is made: (a) By the accidental leaving or placing of personal property in the possession of any person, without negligence on the part of its owner. (b) In cases of fire, shipwreck, inundation, insurrection, riot, or like extraordinary emergencies, by the owner of personal property committing it, out of necessity, to the care of any person. (c) By the delivery to, or picking up by, and the holding of, a stray live animal by any person or public or private entity. (d) By the abandonment or leaving of a live animal, as proscribed by Section 597.1 of the Penal Code, in or about any premises or real property that has been vacated upon, or immediately preceding, the termination of a lease or other rental agreement or foreclosure of the property. (Amended by Stats. 2008, Ch. 265, Sec. 1. Effective January 1, 2009.)
  24. 1816.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    People or private entities receiving deposited property must take charge of it if they can. If a live animal is deposited, they must immediately notify animal control; responding officers may claim a lien for rescue 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1816. (a) The person or private entity with whom a thing is deposited in the manner described in Section 1815 is bound to take charge of it, if able to do so. (b) Any person or private entity with whom a live animal is deposited in the manner described in subdivision (d) of Section 1815 shall immediately notify animal control officials for the purpose of retrieving the animal pursuant to Section 597.1 of the Penal Code. Animal control officers who respond shall be entitled to exercise the right afforded them pursuant to that section to secure a lien for the purpose of recovering the costs of attempting to rescue the animal. Nothing in this subdivision shall impose any new or additional civil or criminal liability upon a depositary who complies with this subdivision. (c) A public agency or shelter with whom an abandoned animal is deposited in the manner described in Section 1815 is bound to take charge of it, as provided in Section 597.1 of the Penal Code. (d) The person in possession of the abandoned animal is subject to all local ordinances and state laws that govern the proper care and treatment of those animals. (e) For purposes of this section, the person or private entity that notifies animal control officials to retrieve the animal or the successor property owner shall not be considered the keeper of the animal or the agent of the animal’s owner as those terms are used in Section 597.1 of the Penal Code. (Amended by Stats. 2008, Ch. 265, Sec. 2. Effective January 1, 2009.)
  25. 1817.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    A depositary in a deposit for keeping must return the same item that was deposited.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1817. A deposit for keeping is one in which the depositary is bound to return the identical thing deposited. (Enacted 1872.)
  26. 1818.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. )

    Verify source ↗

    In a deposit for exchange, the depositary must return a thing of the same kind as the thing deposited.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 1. Nature and Creation of Deposit [1813 - 1818] ( Article 1 enacted 1872. ) ## 1818. A deposit for exchange is one in which the depositary is only bound to return a thing corresponding in kind to that which is deposited. (Enacted 1872.)
  27. 1822.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

    Verify source ↗

    A depositary must return the deposited item to the person it was deposited for when demanded, even if the deposit was for a fixed time, 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1822. A depositary must deliver the thing to the person for whose benefit it was deposited, on demand, whether the deposit was made for a specified time or not, unless he has a lien upon the thing deposited, or has been forbidden or prevented from doing so by the real owner thereof, or by the act of the law, and has given the notice required by Section 1825. (Enacted 1872.)
  28. 1823.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

    Verify source ↗

    A depositary does not have to deliver deposited property unless a demand is made, even if the deposit was for a specified time.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1823. A depositary is not bound to deliver a thing deposited without demand, even where the deposit is made for a specified time. (Enacted 1872.)
  29. 1824.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

    Verify source ↗

    A depositary must deliver the deposited item at his residence or place of business if that is most convenient.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1824. A depositary must deliver the thing deposited at his residence or place of business, as may be most convenient for him. (Enacted 1872.)
  30. 1825.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

    Verify source ↗

    A depositary must promptly notify the beneficiary of any proceedings adverse to the beneficiary’s interest in the deposited thing that may excuse delivery.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1825. A depositary must give prompt notice to the person for whose benefit the deposit was made, of any proceedings taken adversely to his interest in the thing deposited, which may tend to excuse the depositary from delivering the thing to him. (Enacted 1872.)
  31. 1826.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

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    A depositary may notify the true owner if deposited property appears wrongfully detained, and can avoid liability if the owner does not act within a reasonable time and the depositary returns the property or takes a good-faith prejudicial new 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1826. A depositary, who believes that a thing deposited with him is wrongfully detained from its true owner, may give him notice of the deposit; and if within a reasonable time afterwards he does not claim it, and sufficiently establish his right thereto, and indemnify the depositary against the claim of the depositor, the depositary is exonerated from liability to the person to whom he gave the notice, upon returning the thing to the depositor, or assuming, in good faith, a new obligation changing his position in respect to the thing, to his prejudice. (Enacted 1872.)
  32. 1827.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

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    If deposited property is jointly owned and the owners cannot agree on delivery, the depositary may give each owner their proper share if doing so will not harm the thing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1827. If a thing deposited is owned jointly or in common by persons who cannot agree upon the manner of its delivery, the depositary may deliver to each his proper share thereof, if it can be done without injury to the thing. (Enacted 1872.)
  33. 1828.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. )

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    A depositary may deliver or pay a joint deposit, or any part of it or its increase, to either named person or to the survivor(s) when the deposit is made in the name of two or more persons and is payable to either or the survivor(s).

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 1. Deposit in General [1813 - 1828] ( Chapter 1 enacted 1872. ) ## ARTICLE 2. Obligations of the Depositary [1822 - 1828] ( Article 2 enacted 1872. ) ## 1828. When a deposit is made in the name of two or more persons, deliverable or payable to either or to their survivor or survivors, such deposit or any part thereof, or increase thereof, may be delivered or paid to either of said persons or to the survivor or survivors in due course of business. (Added by Stats. 1907, Ch. 75.)
  34. 1833.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A depositor must indemnify the depositary for damage caused by defects in the deposited item and for necessary expenses, except expenses that are part of the undertaking’s nature.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1833. A depositor must indemnify the depositary: 1. For all damage caused to him by the defects or vices of the thing deposited; and, 2. For all expenses necessarily incurred by him about the thing, other than such as are involved in the nature of the undertaking. (Enacted 1872.)
  35. 1834.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A depositary of living animals must give the animals prompt veterinary care, nutrition, shelter, and kind treatment.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834. A depositary of living animals shall provide the animals with necessary and prompt veterinary care, nutrition, and shelter, and treat them kindly. Any depositary that fails to perform these duties may be liable for civil damages as provided by law. (Amended by Stats. 1998, Ch. 752, Sec. 4. Effective January 1, 1999.)
  36. 1834.4.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    The state policy is that adoptable animals should not be euthanized if they can be placed in a suitable home, and treatable animals should not be euthanized.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.4. (a) It is the policy of the state that no adoptable animal should be euthanized if it can be adopted into a suitable home. Adoptable animals include only those animals eight weeks of age or older that, at or subsequent to the time the animal is impounded or otherwise taken into possession, have manifested no sign of a behavioral or temperamental defect that could pose a health or safety risk or otherwise make the animal unsuitable for placement as a pet, and have manifested no sign of disease, injury, or congenital or hereditary condition that adversely affects the health of the animal or that is likely to adversely affect the animal’s health in the future. (b) It is the policy of the state that no treatable animal should be euthanized. A treatable animal shall include any animal that is not adoptable but that could become adoptable with reasonable efforts. This subdivision, by itself, shall not be the basis of liability for damages regarding euthanasia. (Added by Stats. 1998, Ch. 752, Sec. 5. Effective January 1, 1999.)
  37. 1834.5.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    If an animal is not picked up within 14 calendar days, it is deemed abandoned, and the custodian must try for at least 10 days to find a new owner or transfer it to a listed shelter or rescue group before euthanasia may occur.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.5. (a) Notwithstanding any other provision of law, whenever an animal is delivered to a veterinarian, dog kennel, cat kennel, pet-grooming parlor, animal hospital, or any other animal care facility pursuant to a written or oral agreement entered into after the effective date of this section, and the owner of the animal does not pick up the animal within 14 calendar days after the day the animal was initially due to be picked up, the animal shall be deemed to be abandoned. The person into whose custody the animal was placed for care shall first try for a period of not less than 10 days to find a new owner for the animal or turn the animal over to a public animal control agency or shelter, society for the prevention of cruelty to animals shelter, humane society shelter, or nonprofit animal rescue group, provided that the shelter or rescue group has been contacted and has agreed to take the animal. If unable to place the animal with a new owner, shelter, or rescue group, the animal care facility may have the abandoned animal euthanized. (b) If an animal so abandoned was left with a veterinarian or with a facility that has a veterinarian, and a new owner cannot be found pursuant to this section, the veterinarian may euthanize the animal. (c) Nothing in this section shall be construed to require an animal care facility or a veterinarian to euthanize an abandoned animal upon the expiration of the 10-day period described in subdivision (a). (d) There shall be a notice posted in a conspicuous place, or in conspicuous type in a written receipt given, to warn a person depositing an animal at an animal care facility of the provisions of this section. (e) An abandoned animal shall not be used for scientific or any other type of experimentation. (Amended by Stats. 2014, Ch. 86, Sec. 1. (AB 1810) Effective January 1, 2015.)
  38. 1834.7.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    Animal shelters must post a notice and include it on surrender forms, and the section restricts certain transfers, euthanasia, and use of living animals for research-related purposes.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.7. (a) For purposes of this section: (1) “Animal dealer” means a person who, in commerce, for compensation or profit, delivers for transportation, or transports, except as a carrier, or who buys, sells, or negotiates the purchase or sale of any animal, whether alive or dead, for research, teaching, exhibition, or biological supply. (2) “Animal shelter entity” includes, but is not limited to, an animal regulation agency, humane society, society for the prevention of cruelty to animals, or other private or public animal shelter. (3) “Person” means an individual, partnership, firm, limited liability company, joint-stock company, corporation, association, trust, estate, governmental agency, or other legal entity. (4) “Research facility” means a research facility as defined by Section 2132 of Title 7 of the United States Code, effective February 7, 2014. (b) (1) An animal shelter entity where dead animals are turned over to a biological supply facility or a research facility for research purposes or to supply blood, tissue, or other biological products shall post a sign as described by this paragraph in a place where it will be clearly visible to a majority of persons when turning animals over to the shelter. The sign shall measure a minimum of 28 x 21 cm— 11 x 81/2 inches —with lettering of a minimum of 3.2 cm high and 1.2 cm wide— 11/4 x 1/2 inch —(91 point) and shall state: “Animals Euthanized at This Shelter May Be Used for Research Purposes or to Supply Blood, Tissue, or Other Biological Products” (2) The statement in paragraph (1) shall also be included on owner surrender forms. (3) An animal shelter or other person shall not euthanize an animal for the purpose of transferring the carcass to a research facility or animal dealer. (c) (1) An animal shelter entity or other person that accepts animals from the public or takes in stray or unwanted animals shall not sell, give, or otherwise transfer a living animal to a research facility, an animal dealer, or other person for the purpose of research, experimentation, or testing. (2) A research facility, animal dealer, or other person shall not procure, purchase, receive, accept, or use a living animal for the purpose of research, experimentation, or testing if that animal is transferred from, or received from, an animal shelter entity or other person that accepts animals from the public or takes in stray or unwanted animals. (d) Nothing in this section shall prohibit a research facility from working in collaboration with an animal shelter to investigate problems and provide services to shelter animals. (e) A violation of this section is subject to a civil penalty of one thousand dollars ($1,000) in an action to be brought by the district attorney or city attorney of the county or city where the violation occurred. When collected, the civil penalty shall be payable to the general fund of the governmental entity that brought the action to assess the penalty. (Repealed and added by Stats. 2016, Ch. 568, Sec. 2. (AB 2269) Effective January 1, 2017.)
  39. 1834.8.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    Auction or sale management must post a warning sign or include a warning notice in the consignment agreement when equines are sold.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.8. (a) At any public auction or sale where equines are sold, the management of the auction or sale shall post a sign (measuring a minimum of 15 x 9 inches with lettering of a minimum of 11/4 x 1/2 (91 point)) or shall insert into its consignment agreement with the seller in boldface type the notice stated in subdivision (b). If a sign is posted, it shall be posted in a conspicuous place so that it will be clearly visible to a majority of persons attending the sale. If the notice is inserted into the consignment agreement, space shall be provided adjacent to the notice for the seller to initial their acknowledgment of the notice. (b) The notice required by subdivision (a) shall read as follows: ## “WARNING ## The sale of horses in California for slaughter for human consumption is a felony.” (c) For the purposes of this section, the management of the auction or sale shall post current slaughter prices or make them available to sellers upon request. (Amended by Stats. 2019, Ch. 765, Sec. 2. (AB 128) Effective January 1, 2020.)
  40. 1834.9.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    Manufacturers and contract testing facilities generally may not use traditional animal test methods in this state when an appropriate alternative exists, and they must minimize animal use and suffering when no alternative is available.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.9. (a) Manufacturers and contract testing facilities shall not use traditional animal test methods within this state for which an appropriate alternative test method or strategy exists, or a waiver has been granted by the agency responsible for regulating the specific product or activity for which the test is being conducted. When there is no appropriate alternative test method or strategy available, manufacturers and contract testing facilities shall use a traditional animal test method using the fewest number of animals possible and reducing the level of pain, suffering, and stress of an animal used for testing. (b) This section does not prohibit the use of any nonanimal test method or strategy for the testing of any product, product formulation, chemical, drug, medical device, vaccine, or ingredient that is not described in paragraph (1) of subdivision (g). (c) (1) This section does not prohibit the use of traditional animal test methods to comply with requirements of state or federal agencies. (2) This section does not prohibit the use of traditional animal test methods to comply with requests from state or federal agencies when the agency has approved an alternative nonanimal test method or strategy pursuant to subdivision (a), but concludes that a traditional animal test method is needed to fully assess the impacts on the health or safety of consumers. (d) This section shall be enforced in a civil action for injunctive relief brought by the Attorney General, the district attorney of the county in which the violation is alleged to have occurred, or a city attorney of a city or a city and county having a population in excess of 750,000 and in which the violation is alleged to have occurred. If the court determines that the Attorney General or district attorney is the prevailing party in the enforcement action, the official may also recover costs, attorney’s fees, and a civil penalty not to exceed five thousand dollars ($5,000) in that action. (e) This section shall not apply to any traditional animal test methods performed for the purpose of medical research. (f) (1) Starting January 1, 2027, and annually thereafter, a manufacturer or contract testing facility in this state using traditional animal test methods, except for those traditional animal test methods exempt under subdivision (e), shall report to the department the number and species of animals used, the type and number of alternative test methods or strategies used, the number of waivers used, and the purpose of the use of the traditional animal tests, alternative test methods or strategies, and waivers. (2) The department shall develop and maintain a portal on its internet website to receive the information required by paragraph (1) and make the information collected publicly available on its internet website. The department shall ensure that information made available to the public does not include personally identifiable information or proprietary information. (g) For the purposes of this section, the following terms apply: (1) “Alternative test method or strategy” means a test method, including a new or revised method, that fulfills all of the following criteria: (A) Does not use animals. (B) Provides information of equivalent or better scientific quality and relevance compared to traditional animal test methods, and includes, but is not limited to, computational toxicology and bioinformatics, high-throughput screening methods, testing of categories of chemical substances, tiered testing methods, in vitro studies, and systems biology. (C) Has been identified and accepted for use by a federal agency or program within an agency responsible for regulating the specific product or activity for which the test is being conducted. (2) “Animal” means vertebrate nonhuman animal. (3) “Contract testing facility” means any partnership, corporation, association, or other legal relationship that tests chemicals, ingredients, product formulations, or products in this state. (4) “Department” means the State Department of Public Health. (5) “Manufacturer” means any partnership, corporation, association, or other legal relationship that produces chemicals, ingredients, product formulations, or products in this state. (6) “Medical research” means research related to the causes, diagnosis, treatment, control, or prevention of physical or mental diseases and impairments of humans and animals or related to the development of biomedical products, devices, or drugs as defined in Section 321(g)(1) of Title 21 of the United States Code. Medical research does not include the testing of an ingredient that was formerly used in a drug, tested for the drug use with traditional animal methods to characterize the ingredient and to substantiate its safety for human use, and is now proposed for use in a product other than a biomedical product, medical device, or drug. (7) “Person” means an individual with managerial control, or a partnership, corporation, association, or other legal relationship. (8) “Traditional animal test method” means a process or procedure using animals to obtain information on the characteristics of a chemical or agent and that generates information regarding the ability of a chemical or agent to produce a specific biological effect under specified conditions. (Amended by Stats. 2023, Ch. 430, Sec. 1. (AB 357) Effective January 1, 2024.)
  41. 1834.9.3.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A testing facility generally may not conduct canine or feline toxicological experiments in this state for pesticide or chemical-substance approval-related purposes, unless a stated EPA or FDA-based 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.9.3. (a) For purposes of this section, the following definitions apply: (1) “Alternative test method” means a test method that does not use animals, or in some cases reduces or refines the use of animals, for which the reliability and relevance for a specific purpose has been established by validation bodies, including, but not limited to, the Interagency Coordinating Committee for the Validation of Alternative Methods and the Organization for Economic Co-operation and Development. Alternative test methods include, but are not limited to, high-throughput screening methods, testing of categories of chemical substances, tiered testing methods, in vitro studies, and systems biology. (2) “Canine or feline toxicological experiment” means any test or study of any duration that seeks to determine the effect, if any, of the application or exposure, whether internal or external, of any amount of a chemical substance on a dog or cat. “Application or exposure” includes, but is not limited to, oral ingestion, skin or eye contact, or inhalation. (3) “Cat” means any member of the species Felis catus. (4) “Chemical substance” shall have the same meaning as that term is defined under subsection (2) of Section 2602 of Title 15 of the United States Code, except that for purposes of this section, such term shall include any pesticide, as defined under subsection (u) of Section 136 of Title 7 of the United States Code, and any food additive, as defined under subsection (s) of Section 321 of Title 21 of the United States Code. (5) “Dog” means any member of the species Canis familiaris. (6) “Food additive” shall have the same meaning as that term is defined in subsection (s) of Section 321 of Title 21 of the United States Code. (7) “Medical research” means research related to the causes, diagnosis, treatment, control, or prevention of physical or mental diseases and impairments of humans and animals or related to the development of biomedical drugs or devices as those terms are defined in subsections (g) and (h), inclusive, of Section 321 of Title 21 of the United States Code. Medical research does not include experimentation or testing of a chemical substance or ingredient proposed for use in a product other than a biomedical drug or device as those terms are defined in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 321). (8) “Pesticide” shall have the same meaning as that term is defined in subsection (u) of Section 136 of Title 7 of the United States Code. (9) “Testing facility” means any partnership, corporation, association, school, institution, organization, or other legal relationship, whether privately or government owned, leased, or operated, that tests chemicals, ingredients, product formulations, or products in this state. (b) Notwithstanding any other law, and in addition to the prohibitions set forth in Sections 1834.9 and 1834.9.5, a testing facility shall not conduct a canine or feline toxicological experiment in this state to achieve discovery, approval, maintenance of approval, notification, registration, or maintenance of a pesticide or chemical substance, unless the experiment is conducted pursuant to any of the following: (1) To satisfy an express requirement imposed by the United States Environmental Protection Agency (EPA) under the authority of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.) and the Toxic Substances Control Act (15 U.S.C. Sec. 2601 et seq.), including any EPA rule, regulation, or order. (2) To support an application to the EPA for a waiver from the requirements in paragraph (1), provided that testing is conducted solely to reduce the total number of animals needed for experiments to achieve discovery, approval, maintenance of approval, notification, registration, or maintenance of a pesticide or chemical substance. (3) To satisfy an express requirement imposed by the Food and Drug Administration (FDA) per the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.) or any binding agency regulation promulgated upon notice and comment thereunder. (c) (1) Notwithstanding any other law, the Attorney General, the district attorney of the county in which the violation is alleged to have occurred, or a city attorney of a city or city and county having a population in excess of 750,000 and in which the violation is alleged to have occurred, may bring a civil action for injunctive relief pursuant to this paragraph. If the court determines that the Attorney General, district attorney, or city attorney is the prevailing party in the enforcement action, the official may also recover costs, attorney fees, and a civil penalty not to exceed five thousand dollars ($5,000) for each day that each dog or each cat is used in a canine or feline toxicological experiment in violation of this section. (2) The procedure set forth in paragraph (1) is the exclusive remedy for enforcing this section. (d) The prohibition in subdivision (b) shall not apply to either of the following: (1) Medical research. (2) Testing or experimentation conducted for the purpose of developing, manufacturing, or marketing any product intended for beneficial use in dogs or cats. (Added by Stats. 2022, Ch. 551, Sec. 2. (SB 879) Effective January 1, 2023.)
  42. 1834.9.5.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    Manufacturers may not sell, offer for sale, or import for profit cosmetics in California if the cosmetic was developed or manufactured using prohibited animal testing, subject to listed exemptions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1834.9.5. (a) Notwithstanding any other law, it is unlawful for a manufacturer to import for profit, sell, or offer for sale in this state, any cosmetic, if the cosmetic was developed or manufactured using an animal test that was conducted or contracted by the manufacturer, or any supplier of the manufacturer, on or after January 1, 2020. (b) For purposes of this section, the following terms apply: (1) “Animal test” means the internal or external application of a cosmetic, either in its final form or any ingredient thereof, to the skin, eyes, or other body part of a live, nonhuman vertebrate. (2) “Cosmetic” means any article intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, including, but not limited to, personal hygiene products such as deodorant, shampoo, or conditioner. (3) “Ingredient” means any component of a cosmetic as defined by Section 700.3 of Title 21 of the Code of Federal Regulations. (4) “Manufacturer” means any person whose name appears on the label of a cosmetic product pursuant to the requirements of Section 701.12 of Title 21 of the Code of Federal Regulations. (5) “Supplier” means any entity that supplies, directly or through a third party, any ingredient used in the formulation of a manufacturer’s cosmetic. (c) The prohibitions in subdivision (a) do not apply to the following: (1) An animal test of any cosmetic that is required by a federal or state regulatory authority if all of the following apply: (A) The ingredient is in wide use and cannot be replaced by another ingredient capable of performing a similar function. (B) A specific human health problem is substantiated and the need to conduct animal tests is justified and is supported by a detailed research protocol proposed as the basis for the evaluation. (C) There is not a nonanimal alternative method accepted for the relevant endpoint by the relevant federal or state regulatory authority. (2) An animal test that was conducted to comply with a requirement of a foreign regulatory authority, if no evidence derived from the test was relied upon to substantiate the safety of the cosmetic sold in California by the manufacturer. (3) An animal test that was conducted on any product or ingredient subject to the requirements of Chapter V of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351 et seq.). (4) An animal test that was conducted for noncosmetic purposes in response to a requirement of a federal, state, or foreign regulatory authority, if no evidence derived from the test was relied upon to substantiate the safety of the cosmetic sold in California by the manufacturer. A manufacturer is not prohibited from reviewing, assessing, or retaining evidence from an animal test conducted pursuant to this paragraph. (d) A violation of this section shall be punishable by a fine of five thousand dollars ($5,000) and an additional one thousand dollars ($1,000) for each day the violation continues. (e) A violation of this section may be enforced by the district attorney of the county in which the violation occurred, or by the city attorney of the city in which the violation occurred. The civil fine shall be paid to the entity that is authorized to bring the action. (f) A district attorney or city attorney may, upon a determination that there is a reasonable likelihood of a violation of this section, review the testing data upon which a cosmetic manufacturer has relied in the development or manufacturing of the relevant cosmetic product sold in the state. Information provided under this section shall be protected as a trade secret as defined in subdivision (d) of Section 3426.1. Consistent with the procedures described in Section 3426.5, a district attorney or city attorney shall enter a protective order with a manufacturer before receipt of information from a manufacturer pursuant to this section, and shall take other appropriate measures necessary to preserve the confidentiality of information provided pursuant to this section. (g) This section shall not apply to either of the following: (1) A cosmetic, if the cosmetic, in its final form, was sold in California or tested on animals prior to January 1, 2020, even if the cosmetic is manufactured after that date. (2) An ingredient, if the ingredient was sold in California or tested on animals prior to January 1, 2020, even if the ingredient is manufactured after that date. (h) Notwithstanding any other provision of this section, cosmetic inventory found to be in violation of this section may be sold for a period of 180 days. (i) No county or political subdivision of the state may establish or continue any prohibition on or relating to animal tests, as defined in this section, that is not identical to the prohibitions set forth in this section and that does not include the exemptions contained in subdivision (c). (j) This section shall become operative on January 1, 2020. (Added by Stats. 2018, Ch. 899, Sec. 1. (SB 1249) Effective January 1, 2019.)
  43. 1835.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A depositary must not use or allow use of the deposited thing without the depositor’s consent, and must not open a purposely fastened deposit without consent except in necessity.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1835. A depositary may not use the thing deposited, or permit it to be used, for any purpose, without the consent of the depositor. He may not, if it is purposely fastened by the depositor, open it without the consent of the latter, except in case of necessity. (Enacted 1872.)
  44. 1836.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A depositary is liable for damage to deposited property caused by the depositary’s wrongful use, unless the damage would have happened anyway.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1836. A depositary is liable for any damage happening to the thing deposited, during his wrongful use thereof, unless such damage must inevitably have happened though the property had not been thus used. (Enacted 1872.)
  45. 1837.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    A depositary may sell a deposited item if it is in immediate danger of perishing and instructions from the depositor cannot be obtained in time, and must give immediate notice to the depositor.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1837. If a thing deposited is in actual danger of perishing before instructions can be obtained from the depositor, the depositary may sell it for the best price obtainable, and retain the proceeds as a deposit, giving immediate notice of his proceedings to the depositor. (Enacted 1872.)
  46. 1838.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    If deposited property is lost or injured, and the depositary refuses to explain or misrepresents how it happened, the depositary is presumed to have caused the loss or injury willfully or through gross negligence.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1838. If a thing is lost or injured during its deposit, and the depositary refuses to inform the depositor of the circumstances under which the loss or injury occurred, so far as he has information concerning them, or willfully misrepresents the circumstances to him, the depositary is presumed to have willfully, or by gross negligence, permitted the loss or injury to occur. (Enacted 1872.)
  47. 1839.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. )

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    If a depositary renders or is required to render service, the depositary’s duties and liabilities are governed by the Title on Employment and Service.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 1. General Provisions [1833 - [1840.]] ( Article 1 enacted 1872. ) ## 1839. So far as any service is rendered by a depositary, or required from him, his duties and liabilities are prescribed by the Title on Employment and Service. (Enacted 1872.)
  48. 1844.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. )

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    A gratuitous deposit is one where the depositary gets no consideration beyond holding the deposited thing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. ) ## 1844. Gratuitous deposit is a deposit for which the depositary receives no consideration beyond the mere possession of the thing deposited. (Enacted 1872.)
  49. 1845.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. )

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    An involuntary deposit is gratuitous, so the depositary gets no reward, except that a live-animal involuntary depositary may accept advertised or freely offered rewards from the 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. ) ## 1845. An involuntary deposit is gratuitous, the depositary being entitled to no reward. However, an involuntary depositary of any live animal may accept advertised rewards or rewards freely offered by the owner of the animal. (Amended by Stats. 1998, Ch. 752, Sec. 6. Effective January 1, 1999.)
  50. 1846.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. )

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    A gratuitous depositary must use slight care to preserve the deposited thing, and if the deposit is a living animal, must provide needed care and handle it humanely.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. ) ## 1846. (a) A gratuitous depositary must use, at least, slight care for the preservation of the thing deposited. (b) A gratuitous depositary of a living animal shall provide the animal with necessary and prompt veterinary care, adequate nutrition and water, and shelter, and shall treat it humanely and, if the animal has any identification, make reasonable attempts to notify the owner of the animal’s location. Any gratuitous depositary that does not have sufficient resources or desire to provide that care shall promptly turn the animal over to an appropriate care facility. (c) If the gratuitous depositary of a living animal is a public animal shelter, shelter operated by a society for the prevention of cruelty to animals, or humane shelter, the depositary shall comply with all other requirements of the Food and Agricultural Code regarding the impounding of live animals. (Amended by Stats. 2019, Ch. 7, Sec. 2. (AB 1553) Effective January 1, 2020.)
  51. 1847.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. )

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    A gratuitous depositary’s duties end when the thing is returned to its owner, or when the depositary gives reasonable notice to remove it and the owner does not do so within a reasonable time.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 2. Gratuitous Deposit [1844 - 1847] ( Article 2 enacted 1872. ) ## 1847. The duties of a gratuitous depositary cease: (a) Upon restoration by the depositary of the thing deposited to its owner. (b) Upon reasonable notice given by the depositary to the owner to remove it, and the owner failing to do so within a reasonable time. But an involuntary depositary, under subdivision (b) of Section 1815, may not give notice until the emergency that gave rise to the deposit is past. This subdivision shall not apply to a public animal shelter, a shelter operated by a society for the prevention of cruelty to animals, or a humane shelter. The duty to provide care, as required by Section 1846, continues until the public or private animal shelter is lawfully relieved of responsibility for the animal. (Amended by Stats. 2019, Ch. 7, Sec. 3. (AB 1553) Effective January 1, 2020.)
  52. 1851.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    A non-gratuitous deposit is called storage, and the depositary in that case is called a depositary for hire.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1851. A deposit not gratuitous is called storage. The depositary in such case is called a depositary for hire. (Enacted 1872.)
  53. 1852.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    A depositary for hire must use at least ordinary care to preserve the deposited item.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1852. A depositary for hire must use at least ordinary care for the preservation of the thing deposited. (Enacted 1872.)
  54. 1853.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    A depositary for hire is entitled to specified hire charges, unless a different agreement or 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1853. In the absence of a different agreement or usage, a depositary for hire is entitled to one week’s hire for the sustenance and shelter of living animals during any fraction of a week, and to half a month’s hire for the storage of any other property during any fraction of a half month. (Enacted 1872.)
  55. 1854.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    If there is no agreement on how long a deposit lasts, the depositor may end it at any time, and the depositary may end it with reasonable 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1854. In the absence of an agreement as to the length of time during which a deposit is to continue, it may be terminated by the depositor at any time, and by the depositary upon reasonable notice. (Enacted 1872.)
  56. 1855.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    The depositor may end the deposit even if the deposit period was agreed, but must pay whatever would be due if the deposit had continued.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1855. Notwithstanding an agreement respecting the length of time during which a deposit is to continue, it may be terminated by the depositor on paying all that would become due to the depositary in case of the deposit so continuing. (Enacted 1872.)
  57. 1856.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    A depositary for hire may claim a lien for specified storage-related charges and expenses.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1856. A depositary for hire has a lien for storage charges and for advances and insurance incurred at the request of the bailor, and for money necessarily expended in and about the care, preservation and keeping of the property stored, and he also has a lien for money advanced at the request of the bailor, to discharge a prior lien, and for the expenses of a sale where default has been made in satisfying a valid lien. The rights of the depositary for hire to such lien are regulated by the title on liens. (Amended by Stats. 1909, Ch. 664.)
  58. 1857.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. )

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    A depositary for hire may sell stored perishable property, baggage, or luggage in open market to satisfy a storage lien if delivery is impossible for reasons not caused by the depositary’s lack of ordinary care.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3. Storage [1851 - 1857] ( Article 3 enacted 1872. ) ## 1857. If from any cause other than want of ordinary care and diligence on his part, a depositary for hire is unable to deliver perishable property, baggage, or luggage received by him for storage, or to collect his charges for storage due thereon, he may cause such property to be sold, in open market, to satisfy his lien for storage; provided, that no property except perishable property shall be sold, under the provisions of this section, upon which storage charges shall not be due and unpaid for one year at the time of such sale. All Acts and parts of Acts in conflict with the provisions of this Act are hereby repealed. This Act shall take effect from and after its passage. (Added by Stats. 1891, Ch. 249.)
  59. 1858.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. )

    Verify source ↗

    This section defines “customer,” “depositary,” and “property” for the article.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. ) ## 1858. As used in this article: (a) “Customer” means a natural person who deals with a depositary. (b) “Depositary” means a person who in the ordinary course of business regularly receives property from customers for the purpose of repair or alteration. (c) “Property” means personal property used for or intended for personal, family, or household purposes, but does not include any motor vehicle within the meaning of Section 415 of the Vehicle Code. (Amended by Stats. 1971, Ch. 180.)
  60. 1858.1.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. )

    Verify source ↗

    A depositary must give the customer a written receipt when accepting property, and the receipt must include a statement if the property is not insured or protected against certain losses.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. ) ## 1858.1. Every depositary shall, upon accepting property from a customer, present the customer with written receipt which shall include a statement, if such is the case, that such deposited property is not insured or protected to the amount of the actual cash value thereof by the depositary against loss occasioned by theft, fire, and vandalism while such property remains with the depositary. (Added by Stats. 1970, Ch. 1185.)
  61. 1858.2.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. )

    Verify source ↗

    A depositary that fails to give the required receipt or statement, or that misrepresents in the receipt, is strictly liable to the customer for losses from theft, fire, or vandalism while the property remains with the depositary.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. ) ## 1858.2. Every depositary who fails to furnish the receipt, or a statement thereon as required by Section 1858.1, or who makes any misrepresentation in such receipt, shall be strictly liable to the customer for any loss occasioned by theft, fire, or vandalism while such property remains with the depositary and shall forfeit any lien or other right to hold the property arising from services rendered in holding, repairing, altering, or selling the property. When liability is imposed upon a depositary under this section it shall be deemed as having been imposed for the commission of a willful act for the purposes of Section 533 of the Insurance Code. (Added by Stats. 1970, Ch. 1185.)
  62. 1858.3.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. )

    Verify source ↗

    A depositary that protects customer-deposited property by insurance or self-insurance for theft, fire, or vandalism does not have to give the customer notice of that protection.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 3.5. Deposits for Repair, Alteration or Sale [1858 - 1858.3] ( Article 3.5 added by Stats. 1970, Ch. 1185. ) ## 1858.3. If the depositary by insurance or by self-insurance does protect property deposited by customers for loss or damage occasioned by theft, fire or vandalism while such property remains with the depositary, such depositary need not make or deliver to customer any notice thereof. (Added by Stats. 1970, Ch. 1185.)
  63. 1859.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Specified innkeepers and similar keepers are liable for guests’ personal property losses as depositaries for hire, but the liability is capped unless they agree in writing to a higher amount.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1859. The liability of an innkeeper, hotelkeeper, operator of a licensed hospital, rest home or sanitarium, furnished apartment house keeper, furnished bungalow court keeper, boardinghouse or lodginghouse keeper, for losses of or injuries to personal property, is that of a depositary for hire; provided, however, that in no case shall such liability exceed the sum of one thousand dollars ($1,000) in the aggregate. In no case shall liability exceed, for each item of described property, the respective sums of five hundred dollars ($500) for each trunk and its contents, two hundred fifty dollars ($250) for each valise or traveling bag and its contents, two hundred fifty dollars ($250) for each box, bundle or package and its contents, and two hundred fifty dollars ($250) for all other personal property of any kind, unless he shall have consented in writing with the owner thereof to assume a greater liability. (Amended by Stats. 1979, Ch. 705.)
  64. 1860.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Certain innkeepers and similar operators can limit liability for valuable guest property if they keep a fireproof safe and give 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1860. If an innkeeper, hotelkeeper, operator of a licensed hospital, rest home or sanitarium, boardinghouse or lodginghouse keeper, keeps a fireproof safe and gives notice to a guest, patient, boarder or lodger, either personally or by putting up a printed notice in a prominent place in the office or the room occupied by the guest, patient, boarder, or lodger, that he keeps such a safe and will not be liable for money, jewelry, documents, furs, fur coats and fur garments, or other articles of unusual value and small compass, unless placed therein, he is not liable, except so far as his own acts shall contribute thereto, for any loss of or injury to such articles, if not deposited with him to be placed therein, nor in any case for more than the sum of five hundred dollars ($500) for any or all such property of any individual guest, patient, boarder, or lodger, unless he shall have given a receipt in writing therefor to such guest, patient, boarder or lodger. (Amended by Stats. 1979, Ch. 705.)
  65. 1861.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Hotel, motel, inn, boardinghouse, and lodginghouse keepers have a lien on guest property for specified charges and advances, subject to stated exceptions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861. Hotel, motel, inn, boardinghouse, and lodginghouse keepers shall have a lien upon the baggage and other property belonging to or legally under the control of their guests, boarders, tenants, or lodgers which may be in such hotel, motel, inn, or boarding or lodging house for the proper charges due from such guests, boarders, tenants, or lodgers, for their accommodation, board and lodging and room rent, and such extras as are furnished at their request, and for all money paid for or advanced to such guests, boarders, tenants, or lodgers, and for the costs of enforcing such lien. The lien may be enforced only after final judgment in an action brought to recover such charges or moneys. During the pendency of the proceeding, the plaintiff may take possession of the baggage and property pursuant to a writ of possession as provided by Sections 1861.1 to 1861.27, inclusive. However, if any baggage or property becoming subject to the lien herein provided for does not belong to the guest, lodger, tenant, or boarder who incurred the charges or indebtedness secured thereby, at the time when such charges or indebtedness was incurred, and if the hotel, motel, inn, boarding or lodging house keeper entitled to such lien receives notice of such fact at any time before the sale of such baggage or property hereunder, then, and in that event, such baggage and property which is subject to said lien and did not belong to said guest, boarder, tenant, or lodger at the time when such charges or indebtedness was incurred shall not be subject to this lien. Any property which is exempt from enforcement of a money judgment is not subject to the lien provided for in this section. (Amended by Stats. 1982, Ch. 497, Sec. 9. Operative July 1, 1983, by Sec. 185 of Ch. 497.)
  66. 1861.1.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    This section defines several terms used in the innkeeper provisions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.1. Definitions for purposes of Sections 1861 through 1861.27 include the following: (a) “Hotel”, “motel”, “inn”, “boardinghouse”, and “lodginghouse keeper” means any person, corporation, partnership, unincorporated association, public entity, or agent of any of the aforementioned, who offers and accepts payment for rooms, sleeping accommodations, or board and lodging and retains the right of access to, and control of, the dwelling unit. (b) “Levying officer” means the sheriff or marshal who is directed to execute a writ of possession issued pursuant to this article. (c) “Plaintiff” means any party filing a complaint or cross complaint. (d) “Probable validity” means that the plaintiff, more likely than not, will obtain a judgment against the defendant on the plaintiff’s claim. (Amended by Stats. 1996, Ch. 872, Sec. 23. Effective January 1, 1997.)
  67. 1861.10.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A writ of possession may issue at the hearing only if the plaintiff shows the required probable validity, the property is on the listed premises, and the required undertaking has been provided.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.10. (a) At the hearing a writ of possession shall issue if all of the following are found: (1) The plaintiff has established the probable validity of his claim to possession of the property of the tenant, boarder, or lodger. (2) That the property which is described within the application for the writ is located on the premises of the motel, hotel, boardinghouse or lodginghouse. (3) The plaintiff has provided an undertaking as required by Section 1861.21. (b) No writ directing the levying officer to enter any premises to take possession of any property shall be issued unless the plaintiff has established that there is probable cause to believe that such property is located there. (Added by Stats. 1979, Ch. 964.)
  68. 1861.12.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A writ of possession must meet specific form and content requirements and must tell the defendant about objections and how to get the property delivered by filing an undertaking.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.12. The writ of possession shall meet all of the following requirements: (a) Be directed to the levying officer within whose jurisdiction the property is located. (b) Generally describe the property to be seized. (c) Specify the apartment, motel, or other boarding premises that may be entered to take possession of the property, or some part of it. (d) Direct the levying officer to levy on the property pursuant to Section 1861.18 if found on the described premises, and to retain custody of it until released or sold pursuant to Section 1861.19. (e) Inform the defendant of the right to object to the plaintiff’s undertaking, a copy of which shall be attached to the writ, or to obtain the delivery of the property by filing an undertaking as prescribed by Section 1861.22. (Amended by Stats. 1982, Ch. 517, Sec. 65.)
  69. 1861.13.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A defendant’s failure to oppose a writ of possession or rebut the plaintiff’s evidence does not waive defenses or affect the defendant’s right to present or exclude evidence at trial.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.13. Neither the failure of the defendant to oppose the issuance of a writ of possession under this article, nor his failure to rebut any evidence produced by the plaintiff in connection with proceedings under this article, shall constitute a waiver of any defense to the plaintiff’s claim in the action, or any other action, or have any effect on the right of the defendant to produce or exclude evidence at the trial of any such action. (Added by Stats. 1979, Ch. 964.)
  70. 1861.14.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Court determinations under this article cannot affect unrelated issues or rights in other actions from the same claim, and they cannot be used as evidence or mentioned at trial.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.14. The determinations of the court under this article shall have no effect on the determination of any issues in the action, other than the issues relevant to proceedings under this article, nor shall they affect the rights of any party in any other action arising out of the same claim. The determinations of the court under this article shall not be given in evidence, or referred to in the trial. (Added by Stats. 1979, Ch. 964.)
  71. 1861.15.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    If the plaintiff does not win the case, the plaintiff must return the property to the defendant and may be liable for damages caused by the temporary restraining order, preliminary injunction, writ of possession, and loss of 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.15. If the plaintiff fails to recover judgment in the action, he shall redeliver the property to the defendant, and be liable for all damages sustained by the defendant, which are proximately caused by operation of the temporary restraining order and preliminary injunction, if any, the levy of the writ of possession, and the loss of possession of the property pursuant to the levy of the writ of possession. (Added by Stats. 1979, Ch. 964.)
  72. 1861.16.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A plaintiff seeking a writ of possession may ask for a temporary restraining order, and the court must dissolve that order if the plaintiff is not entitled to the writ.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.16. (a) At or after the time he files an application for a writ of possession, the plaintiff may apply for a temporary restraining order by setting forth in the application a statement of grounds justifying the issuance of such order. (b) A temporary restraining order may issue ex parte if all the following are found: (1) The plaintiff has established the probable validity of his claim and entitlement to possession of the property, pursuant to an innkeepers’ lien. (2) The plaintiff has provided an undertaking as required by Section 1861.21. (3) The plaintiff has established the probable validity that there is an immediate danger that the property claimed may become unavailable to levy by reason of being transferred, concealed, or removed, or may become substantially impaired in value. (c) If at the hearing on the issuance of the writ of possession the court determines that the plaintiff is not entitled to a writ of possession, the court shall dissolve any temporary restraining order; otherwise, the court may issue a preliminary injunction to remain in effect until the property claimed is seized pursuant to the writ of possession. (Added by Stats. 1979, Ch. 964.)
  73. 1861.17.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A court may, in its discretion, include temporary restraining order terms barring a defendant from transferring, concealing, removing, or damaging 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.17. In the discretion of the court, the temporary restraining order may prohibit the defendant from doing any or all of the following: (a) Transferring any interest in the property by sale, pledge, or grant of security interest, or otherwise disposing of, or encumbering, the property. (b) Concealing or otherwise removing the property in such a manner as to make it less available to seizure by the levying officer. (c) Impairing the value of the property either by acts of destruction or by failure to care for the property in a reasonable manner. (Added by Stats. 1979, Ch. 964.)
  74. 1861.18.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    The levying officer must give the person in possession a copy of the writ of possession with the plaintiff’s undertaking attached, or if no one is in possession, later serve it on the defendant.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.18. (a) At the time of levy, the levying officer shall deliver to the person in possession of the property a copy of the writ of possession, with a copy of the plaintiff’s undertaking attached. (b) If no one is in possession of the property at the time of levy, the levying officer shall subsequently serve the writ and attached undertaking on the defendant. If the defendant has appeared in the action, service shall be accomplished in the manner provided by Chapter 5 (commencing with Section 1010) of Title 14 of Part 2. If the defendant has not appeared in the action, service shall be accomplished in the manner provided for the service of summons and complaint by Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2. (Added by Stats. 1979, Ch. 964.)
  75. 1861.19.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A levying officer must keep seized property safe and then deliver, redeliver, or hold it depending on notices filed within 10 days. In some cases, the court may order the property sold and the proceeds held by 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.19. (a) After the levying officer takes possession pursuant to the writ of possession, the levying officer shall keep the property in a secure place. Except as otherwise provided in Section 1861.6: (1) If notice of the filing of an undertaking for redelivery or notice of objection to the undertaking is not received by the levying officer within 10 days after levy of the writ of possession, the levying officer shall deliver the property to plaintiff, upon receiving the fees for taking, and necessary expenses for keeping, the property. (2) If notice of the filing of an undertaking for redelivery is received by the levying officer within 10 days after levy of the writ of possession, and no objection is made to the defendant’s undertaking, the levying officer shall redeliver the property to defendant upon expiration of the time to object, upon receiving the fees for taking and necessary expenses for keeping the property not already paid or advanced by the plaintiff. (3) If notice of objection to the plaintiff’s undertaking or notice of the filing of an undertaking for redelivery is received within 10 days after levy of the writ of possession, and objection is made to the defendant’s undertaking, the levying officer shall not deliver or redeliver the property until the time provided in Section 1861.23. (b) Notwithstanding subdivision (a), when not otherwise provided by contract, and where an undertaking for redelivery has not been filed, upon a showing that the property is perishable, or will greatly deteriorate or depreciate in value, or for some other reason that the interest of the parties will be best served thereby, the court may order that the property be sold and the proceeds deposited in the court to abide the judgment in the action. (Amended by Stats. 1982, Ch. 517, Sec. 66.)
  76. 1861.20.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    The levying officer must return the writ of possession, with proceedings, to the court within 30 days after a levy, and never later than 60 days after the writ is issued.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.20. The levying officer shall return the writ of possession, with his proceedings thereon, to the court in which the action is pending, within 30 days after a levy, but in no event more than 60 days after the writ is issued. (Added by Stats. 1979, Ch. 964.)
  77. 1861.21.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A court may not issue a temporary restraining order or writ of possession until the plaintiff files an undertaking 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.21. The court shall not issue a temporary restraining order or a writ of possession until the plaintiff has filed with the court an undertaking. The undertaking shall provide that the sureties are bound to the defendant in the amount of the undertaking for the return of the property to the defendant, if the return thereof be ordered, and for the payment to the defendant of any sum recovered against plaintiff. The undertaking shall be in an amount not less than twice the value of the property. (Amended by Stats. 1982, Ch. 517, Sec. 67.)
  78. 1861.22.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A defendant may file an undertaking to stop or undo transfer of possession of property, must mail a copy to the levying officer, and the undertaking must state the defendant will pay awarded costs and damages if the plaintiff wins.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.22. (a) The defendant may prevent the plaintiff from taking possession of property, pursuant to a writ of possession, or regain possession of property so taken, by filing with the court in which the action was brought an undertaking in an amount equal to the amount of the plaintiff’s undertaking required by Section 1861.21. The undertaking shall state that, if the plaintiff recovers judgment on the action, the defendant shall pay all costs awarded to the plaintiff and all damages that the plaintiff may sustain by reason of the loss of possession of the property, not exceeding the amount of the undertaking. (b) The defendant’s undertaking may be filed at any time before or after the levy of the writ of possession. The defendant shall mail a copy of the undertaking to the levying officer. (c) If an undertaking for redelivery is filed, and no objection is made to the undertaking, the levying officer shall deliver the property to the defendant, or, if the plaintiff has previously been given possession of the property, the plaintiff shall deliver the property to the defendant. If an undertaking for redelivery is filed and an objection to the undertaking is made, the provisions of Section 1861.23 apply. (Amended by Stats. 1982, Ch. 517, Sec. 68.)
  79. 1861.23.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    The defendant or plaintiff may object to the other side’s undertaking within 10 days, and must mail notice of the objection to the levying officer.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.23. (a) The defendant may object to the plaintiff’s undertaking not later than 10 days after levy of the writ of possession. The defendant shall mail notice of objection to the levying officer. (b) The plaintiff may object to the defendant’s undertaking not later than 10 days after the defendant’s undertaking is filed. The plaintiff shall mail notice of objection to the levying officer . (c) If the court determines that the plaintiff’s undertaking is not sufficient and a sufficient undertaking is not given within the time provided by statute, the court shall vacate the temporary restraining order or preliminary injunction, if any, and the writ of possession and, if levy has occurred, order the levying officer or the plaintiff to return the property to the defendant. If the court determines that the plaintiff’s undertaking is sufficient, the court shall order the levying officer to deliver the property to the plaintiff. (d) If the court determines that the defendant’s undertaking is not sufficient and a sufficient undertaking is not given within the time required by statute, the court shall order the levying officer to deliver the property to the plaintiff, or, if the plaintiff has previously been given possession of the property, the plaintiff shall retain possession. If the court determines the defendant’s undertaking is sufficient, the court shall order the levying officer or the plaintiff to deliver the property to the defendant. (Amended by Stats. 1982, Ch. 517, Sec. 69.)
  80. 1861.24.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    If the judgment is unpaid after 30 days, the plaintiff may sell the baggage or property at public auction, but notice and mailing requirements apply.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.24. Unless the judgment is paid within 30 days from the date it becomes final, the plaintiff may sell the baggage and property at public auction to the highest bidder, after giving notice of the sale by publication. The notice shall contain the name of the debtor, the amount due, a brief description of the property to be sold, and the time and place of sale, in the manner required by Section 6061 of the Government Code in the county in which the premises are situated. A copy of the notice shall be mailed, at least 15 days prior to the date of sale, to the tenant or guest at his or her residence or other known address, and if not known, to the tenant or guest at the place where the premises are situated. After satisfying the lien out of the proceeds of the sale, together with any reasonable costs that may have been incurred in enforcing the lien, the balance of the proceeds of the sale, if any, which have not been claimed by the tenant or guest shall, within 30 days from the date of the sale, be paid into the treasury of the county in which the sale took place. If that balance is not claimed by the owner thereof, or his legal representative, within one year thereafter, by making application to the treasurer or other official designated by the county, it shall be paid into the general fund of the county. Any sale conducted pursuant to this section shall be a bar to any action against the plaintiff for the recovery of the baggage or property, or of the value thereof, or for any damages arising out of the failure of the tenant or guest to receive the baggage or property. (Added by Stats. 1979, Ch. 964.)
  81. 1861.25.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    If the property taken is claimed by a third person, the third-party claim rules and proceedings in the Code of Civil Procedure apply.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.25. Where the property taken is claimed by a third person, the rules and proceedings applicable in cases of third-party claims under Division 4 (commencing with Section 720.010) of Title 9 of Part 2 of the Code of Civil Procedure apply. (Added by Stats. 1982, Ch. 497, Sec. 10.5. Operative July 1, 1983, by Sec. 185 of Ch. 497.)
  82. 1861.27.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Affidavits under this article must state facts with particularity and generally must affirm that the affiant can competently testify to them, unless the article allows information and belief.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.27. The facts stated in each affidavit filed pursuant to this article shall be set forth with particularity. Except where matters are specifically permitted by this article to be shown by information and belief, each affidavit shall show affirmatively that the affiant, if sworn as a witness, can testify competently to the facts stated therein. The affiant may be any person, whether or not a party to this action, who has knowledge of the facts. A verified complaint that satisfies the requirements of this section may be used in lieu of, or in addition to, an ordinary affidavit. (Added by Stats. 1979, Ch. 964.)
  83. 1861.28.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    This provision says the duties under this article are “subordinate judicial duties” and may be performed by appointed officers such as court commissioners.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.28. The judicial duties to be performed under this article are “subordinate judicial duties” within the meaning of Section 22 of Article VI of the California Constitution, and may be performed by appointed officers such as court commissioners. (Added by Stats. 1979, Ch. 964.)
  84. 1861.5.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A plaintiff may apply for a writ of possession by filing an application with the court, and the application must be under oath and include specified supporting 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.5. (a) Upon the filing of a complaint, or at any time thereafter, the plaintiff may apply, pursuant to this article, for a writ of possession by filing an application for the writ with the court in which the action was filed. (b) The application shall be executed under oath and shall include all of the following: (1) A showing of the basis of the plaintiff’s claim, including a showing that the plaintiff is entitled to possession of the property claimed pursuant to an innkeepers’ lien. (2) A general description of the property and a statement of its value. (3) A statement of the amount of money claimed to be owed by the guest, lodger, tenant, or boarder. (c) The requirements of subdivision (b) may be satisfied by one or more affidavits filed with the application. (Added by Stats. 1979, Ch. 964.)
  85. 1861.6.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    A writ of possession generally cannot issue without a noticed hearing, unless this section allows an ex parte writ 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.6. (a) Except as otherwise provided in this section, no writ shall be issued under this article except after a hearing on a noticed motion. (b) A writ of possession may be issued ex parte pursuant to this subdivision, if probable cause appears that the following conditions exist: (1) The property is not necessary for the support of the defendant or his family; (2) There is an immediate danger that the property will become unavailable to levy, by reason of being transferred, concealed, or removed from the state, or the premises of the motel, hotel, inn, boardinghouse, or lodginghouse, or will become substantially impaired in value by acts of destruction or by failure to take care of the property in a reasonable manner; and (3) The ex parte issuance of a writ of possession is necessary to protect the property. (4) The plaintiff establishes the probable validity of the plaintiff’s claim. The plaintiff’s application for the writ shall satisfy the requirements of Section 1861.5 and, in addition, shall include a showing that the conditions required by this subdivision exist. A writ of possession may issue if the court finds that the conditions required by this subdivision exist, and the requirements of Section 1861.5 are met. Where a writ of possession has been issued pursuant to this subdivision, a copy of the summons and complaint, a copy of the application and any affidavit in support thereof, and a notice which satisfies the requirements of subdivisions (b) and (c) of Section 1861.8 and informs the defendant of his rights under this subdivision shall be served upon the defendant, and any other person required by Section 1861.8 to be served with a writ of possession. Any defendant whose property has been taken pursuant to a writ of possession issued under this subdivision may apply for an order that the writ be quashed, and any property levied on pursuant to the writ be released. Such application shall be made by noticed motion, and the provisions of Section 1861.9 shall apply. Pending the hearing of the defendant’s application, the court may order that delivery pursuant to Section 1861.19 of any property previously levied upon be stayed. If the court determines that the plaintiff is not entitled to a writ of possession, the court shall quash the writ of possession and order the release and redelivery of any property previously levied upon, and shall award the defendant any damages sustained by the defendant which were proximately caused by the levy of the writ of possession and the loss of possession of the property pursuant to such levy. (Added by Stats. 1979, Ch. 964.)
  86. 1861.7.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    Before the hearing under Section 1861.6(a), the defendant must be served with specified 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.7. Prior to the hearing required by subdivision (a) of Section 1861.6, the defendant shall be served with all of the following: (a) A copy of the summons and complaint. (b) Notice of application and hearing. (c) A copy of the application and any affidavit filed in support thereof. (Added by Stats. 1979, Ch. 964.)
  87. 1861.8.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

    Verify source ↗

    The notice must tell the defendant about the hearing, the writ process, the defendant’s way to oppose the writ, and an attorney-advice statement.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.8. The “Notice of Application and Hearing” shall inform the defendant of all of the following: (a) The hearing will be held at a place and at a time, to be specified in the notice, on plaintiff’s application for writ of possession. (b) The writ shall be issued if the court finds that the plaintiff’s claim has probable validity and the other requirements for issuing the writ are established. The hearing is not for the purpose of determining whether the claim is actually valid; such determination shall be made in subsequent proceedings in the action. (c) If the defendant desires to oppose the issuance of the writ, he shall file with the court either an affidavit providing evidence sufficient to defeat the plaintiff’s right to issuance of the writ, or an undertaking to stay the delivery of the property in accordance with Section 1861.22. (d) The notice shall contain the following statement in 10-point bold type: “If you believe the plaintiff may not be entitled to possession of the property claimed, you may wish to seek the advice of an attorney. Such attorney should be consulted promptly so that he may assist you before the time set for the hearing.” (Added by Stats. 1979, Ch. 964.)
  88. 1861.9.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    Each party must file and serve hearing affidavits and points and authorities within the time set by rule. The court decides the matter based on the record, but for good cause it may consider additional evidence or continue the hearing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861.9. Each party shall file with the court and serve upon the other party within the time prescribed by rule, any affidavits and points and authorities intended to be relied upon at the hearing. At the hearing, the court shall make its determination upon the basis of the pleadings and other papers in the record; but, upon good cause shown, the court may receive and consider additional evidence and authority produced at the hearing, or may continue the hearing for the production of additional evidence, oral or documentary, and the filing of other affidavits or points and authorities. (Added by Stats. 1979, Ch. 964.)
  89. 1861a

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    Apartment-house keepers get a lien on tenant or guest property for unpaid charges, but enforcement and sale are restricted by court order, notice, and waiting periods.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1861a. Keepers of furnished and unfurnished apartment houses, apartments, cottages, or bungalow courts shall have a lien upon the baggage and other property of value belonging to their tenants or guests, and upon all the right, title and interest of their tenants or guests in and to all property in the possession of such tenants or guests which may be in such apartment house, apartment, cottage, or bungalow court, for the proper charges due from such tenants or guests, for their accommodation, rent, services, meals, and such extras as are furnished at their request, and for all moneys expended for them, at their request, and for the costs of enforcing such lien. Such lien may be enforced only after final judgment in an action brought to recover such charges or moneys. During the pendency of the proceeding, the plaintiff may take possession of such baggage and property upon an order issued by the court, where it appears to the satisfaction of the court from an affidavit filed by or on behalf of the plaintiff that the baggage or property is about to be destroyed, substantially devalued, or removed from the premises. Ten days written notice of the hearing on the motion for such order shall be served on the defendant and shall inform the defendant that the defendant may file affidavits on the defendant’s behalf and present testimony in the defendant’s behalf and that if the defendant fails to appear the plaintiff will apply to the court for such order. The plaintiff shall file an undertaking with good and sufficient sureties, to be approved by the court, in such sum as may be fixed by the court. Upon such order, the plaintiff shall have the right to enter peaceably the unfurnished apartment house, apartment, cottage, or bungalow court used by the guest or tenant without liability to the guest or tenant, including any possible claim of liability for conversion, trespass, or forcible entry. The plaintiff shall have the same duties and liabilities as a depository for hire as to property which the plaintiff takes into possession. An entry shall be considered peaceable when accomplished with a key or passkey or through an unlocked door during the hours between sunrise and sunset. Unless the judgment shall be paid within 30 days from the date when it becomes final, the plaintiff may sell the baggage and property, at public auction to the highest bidder, after giving notice of such sale by publication of a notice containing the name of the debtor, the amount due, a brief description of the property to be sold, and the time and place of such sale, pursuant to Section 6064 of the Government Code in the county in which said apartment house, apartment, cottage, or bungalow court is situated, and after by mailing, at least 15 days prior to the date of sale, a copy of such notice addressed to such tenant or guest at the residence or other known address of the tenant or guest, and if not known, such notice shall be addressed to the tenant or guest at the place where such apartment house, apartment, cottage, or bungalow court is situated; and, after satisfying such lien out of the proceeds of such sale, together with any reasonable costs, that may have been incurred in enforcing said lien, the residue of said proceeds of sale, if any, shall, upon demand made within six months after such sale, be paid to such tenant or guest; and if not demanded within six months from the date of such sale, said residue, if any, shall be paid into the treasury of the county in which such sale took place; and if the same be not claimed by the owner thereof, or the owner’s legal representative within one year thereafter, it shall be paid into the general fund of the county; and such sale shall be a perpetual bar to any action against said keeper for the recovery of such baggage or property, or of the value thereof, or for any damages, growing out of the failure of such tenant or guest to receive such baggage or property. When the baggage and property are not in the possession of the keeper as provided herein, such lien shall be enforced only in the manner provided for enforcement of a money judgment. Any property which is exempt from enforcement of a money judgment is not subject to the lien provided for in this section. (Amended by Stats. 1982, Ch. 497, Sec. 10. Operative July 1, 1983, by Sec. 185 of Ch. 497.)
  90. 1862.5.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    A licensed hospital may sell unclaimed personal property at public auction after 180 days, but only after giving written notice and waiting four weeks.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1862.5. Whenever any personal property has heretofore been found in or deposited with, or is hereafter found in or deposited with any licensed hospital and has remained or shall remain unclaimed for a period of 180 days following the departure of the owner from the hospital, such hospital may proceed to sell the same at public auction, and out of the proceeds of such sale may retain the charges for storage, if any, the reasonable expenses of sale thereof and all sums due the hospital from the last known owner. No such sale shall be made until the expiration of four weeks from the time written notice of such sale is given to the last known owner. Said notice shall contain a description of each item of personal property to be sold, the name of the last owner, the name of the hospital and the time and place of sale and may be sent by regular mail, postage prepaid, to the last known owner at his last known address. In case there should be any balance from such sale after the deductions herein provided for, and such balance shall not be claimed by the rightful owner or his legal representative within one week of said sale, the same shall be paid into the treasury of the county wherein said hospital is located; and if the same be not claimed by the owner thereof, or his legal representative within one year thereafter, the same shall be paid into the general fund of said county. Proceedings in substantial compliance with this section shall exonerate the hospital from any liability for property so sold. This section shall not be construed as limiting or in any way amending any other provision of law limiting the liabilities of any licensed hospital. (Added by Stats. 1963, Ch. 810.)
  91. 1863.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    Hotel, inn, boardinghouse, and lodginghouse keepers must post the section and their daily lodging rates, and they may not collect more than the posted amount.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1863. (a) Every keeper of a hotel, inn, boardinghouse or lodginghouse, shall post in a conspicuous place in the office or public room, and in every bedroom of said hotel, boardinghouse, inn, or lodginghouse, a printed copy of this section, and a statement of rate or range of rates by the day for lodging. (b) No charge or sum shall be collected or received for any greater sum than is specified in subdivision (a). For any violation of this subdivision, the offender shall forfeit to the injured party one hundred dollars ($100) or three times the amount of the sum charged in excess of what he is entitled to, whichever is greater. There shall be no forfeiture under this subdivision unless notice be given of the overcharge to such keeper within 30 days after payment of such charges and such keeper shall fail or refuse to make proper adjustment of such overcharge. (Amended by Stats. 1969, Ch. 826.)
  92. 1864.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    People or entities handling certain transient occupancy reservations or money for others must keep proper records, use a trust account for received money, give owners regular accountings, allow inspection on notice, keep records for at least three years, and follow any applicable transient occupancy tax 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1864. Any person or entity, including a person employed by a real estate broker, who, on behalf of another or others, solicits or arranges, or accepts reservations or money, or both, for transient occupancies described in paragraphs (1) and (2) of subdivision (b) of Section 1940, in a dwelling unit in a common interest development, as defined in Section 4100, in a dwelling unit in an apartment building or complex, or in a single-family home, shall do each of the following: (a) Prepare and maintain, in accordance with a written agreement with the owner, complete and accurate records and books of account, kept in accordance with generally accepted accounting principles, of all reservations made and money received and spent with respect to each dwelling unit. All money received shall be kept in a trust account maintained for the benefit of owners of the dwelling units. (b) Render, monthly, to each owner of the dwelling unit, or to that owner’s designee, an accounting for each month in which there are any deposits or disbursements on behalf of that owner, however, in no event shall this accounting be rendered any less frequently than quarterly. (c) Make all records and books of account with respect to a dwelling unit available, upon reasonable advance notice, for inspection and copying by the dwelling unit’s owner. The records shall be maintained for a period of at least three years. (d) Comply fully with all collection, payment, and recordkeeping requirements of a transient occupancy tax ordinance, if any, applicable to the occupancy. (e) In no event shall any activities described in this section subject the person or entity performing those activities in any manner to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code. However, a real estate licensee subject to this section may satisfy the requirements of this section by compliance with the Real Estate Law. (Amended by Stats. 2012, Ch. 181, Sec. 37. (AB 806) Effective January 1, 2013. Operative January 1, 2014, by Sec. 86 of Ch. 181.)
  93. 1865.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    This section defines “hotel,” “innkeeper,” and “guest,” and gives innkeepers certain rights to evict guests and impose written liability or supervision requirements for minors.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1865. (a) For purposes of this section, “hotel” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment, but it shall not include any residential hotel as defined in Section 50519 of the Health and Safety Code. “Innkeeper” means the owner or operator of a hotel, or the duly authorized agent or employee of the owner or operator. (b) For purposes of this section, “guest” means, and is specifically limited to, an occupant of a hotel whose occupancy is exempt, pursuant to subdivision (b) of Section 1940, from Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3. (c) In addition to, and not in derogation of, any other provision of law, every innkeeper shall have the right to evict a guest in the manner specified in this subdivision if the guest refuses or otherwise fails to fully depart the guest room at or before the innkeeper’s posted checkout time on the date agreed to by the guest, but only if both of the following conditions are met: (1) If the guest is provided written notice, at the time that he or she was received and provided accommodations by the innkeeper, that the innkeeper needs that guest’s room to accommodate an arriving person with a contractual right thereto, and that if the guest fails to fully depart at the time agreed to the innkeeper may enter the guest’s guest room, take possession of the guest’s property, re-key the door to the guest room, and make the guest room available to a new guest. The written notice shall be signed by the guest. (2) At the time that the innkeeper actually undertakes to evict the guest as specified in this subdivision, the innkeeper in fact has a contractual obligation to provide the guest room to an arriving person. In the above cases, the innkeeper may enter the guest’s guest room, take possession of the guest’s property, re-key the door to the guest room, and make the guest room available to a new guest. The evicted guest shall be entitled to immediate possession of his or her property upon request therefor, subject to the rights of the innkeeper pursuant to Sections 1861 to 1861.28, inclusive. (d) As pertains to a minor, the rights of an innkeeper include, but are not limited to, the following: (1) Where a minor unaccompanied by an adult seeks accommodations, the innkeeper may require a parent or guardian of the minor, or another responsible adult, to assume, in writing, full liability for any and all proper charges and other obligations incurred by the minor for accommodations, food and beverages, and other services provided by or through the innkeeper, as well as for any and all injuries or damage caused by the minor to any person or property. (2) Where a minor is accompanied by an adult, the innkeeper may require the adult to agree, in writing, not to leave any minor 12 years of age or younger unattended on the innkeeper’s premises at any time during their stay, and to control the minor’s behavior during their stay so as to preserve the peace and quiet of the innkeeper’s other guests and to prevent any injury to any person and damage to any property. (Amended by Stats. 2004, Ch. 183, Sec. 38. Effective January 1, 2005.)
  94. 1866.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    This section lets park management evict a guest who overstays checkout in a special occupancy park if specific notice, availability, and communication requirements 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1866. (a) For purposes of this section, the following definitions apply: (1) “Camping cabin” has the same meaning as in Section 18862.5 of the Health and Safety Code. (2) “Campsite” has the same meaning as in Section 18862.9 of the Health and Safety Code. (3) “Guest” is interchangeable with “occupant” and has the same meaning as used in Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 1. (4) “Lot” has the same meaning as in Section 18862.23 of the Health and Safety Code. (5) “Motor vehicle” has the same meaning as in Section 415 of the Vehicle Code. (6) “Occupant” is interchangeable with “guest” and has the same meaning as used in Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 1. (7) “Park trailer” has the same meaning as in Section 18009.3 of the Health and Safety Code. (8) “Recreational vehicle” has the same meaning as in Section 18010 of the Health and Safety Code. (9) “Site” means the campsite, camping cabin, lot, or rental unit. (10) “Special occupancy park” has the same meaning as in Section 18862.43 of the Health and Safety Code. (11) “Tent” has the same meaning as in Section 18862.49 of the Health and Safety Code. (b) (1) Notwithstanding any other provision of law, the park management of a special occupancy park shall have the right to evict a guest if the guest refuses or otherwise fails to fully depart from the campsite, camping cabin, lot, or other rental unit at the park management’s posted checkout time on the date agreed to by the guest, but only if the following conditions are met: (A) The guest is provided with written notice, at the time that he or she was provided accommodations by the park management, that the park management needs that guest’s campsite, camping cabin, lot, or rental unit to accommodate an arriving person with a contractual right thereto, and that if the guest fails to fully depart at the time agreed to, the park management may take possession of the guest’s property left in the site, subject to the limits of paragraph (2), including any tent, park trailer, or recreational vehicle, and make the campsite, camping cabin, lot, or rental unit available to new guests. The written notice shall be signed by the guest. (B) (i) At the time that the park management actually undertakes to evict the guest as specified in this subdivision, the park management has a contractual obligation to provide the guest’s campsite, camping cabin, lot, or rental unit to an arriving person and there are no other substantially similar campsites, camping cabins, lots, or rental units available for the arriving person. (ii) Subject to the same requirements described in subparagraph (i), a guest may be provided with the notice described in subparagraph (A) subsequent to the time he or she was provided accommodations by park management, if the notice is provided at least 24 hours prior to the guest’s scheduled checkout time. If park management provides a notice under this subparagraph in bad faith or with the knowledge that the contractual obligation is not a bona fide obligation, it shall be liable to the evicted guest for actual damages, plus a civil penalty of two hundred fifty dollars ($250). (C) At the time that the park management actually undertakes to evict the guest as specified in this subdivision, the park management offers another campsite, camping cabin, lot, or rental unit to the guest, if one is available. (2) In addition to the requirements of paragraph (1), in order for management to remove a recreational vehicle or motor vehicle, the park management shall do all of the following: (A) Management shall have an oral, face-to-face communication with the registered guest after the guest has held over that does all of the following: (i) Alerts the guest that he or she is in violation of the terms of the reservation because he or she has failed to depart the site at the agreed-upon time. (ii) Reminds the guest that failure to remove a recreational vehicle, motor vehicle, or any other property from the space within two hours may result in the park management removing the recreational vehicle, motor vehicle, or any other property. (iii) Discloses that the cost of towing a recreational vehicle or motor vehicle is substantial and that these costs will be incurred by the guest. (iv) Identifies another location in the park to which the guest may temporarily move his or her recreational vehicle or motor vehicle. (B) The park management gives the guest two hours after the park management has communicated with the guest, pursuant to subparagraph (A), to remove the guest’s recreational vehicle, motor vehicle, or other property from the site. (c) Except as provided in subdivision (f), if the conditions specified in subdivision (b) are met, the park management may take possession of the guest’s property left at the site and have the guest’s recreational vehicle or motor vehicle towed from the special occupancy park and make the guest’s campsite, camping cabin, lot, or rental unit available to a new guest. Park management may enter a campsite, camping cabin, park trailer, lot, or rental unit owned by the park management to take possession of the guest’s possessions. The evicted guest shall be entitled to immediate possession of his or her property upon request, subject to the enforcement rights of the park management, which are the same as those accorded to a hotel, motel, inn, boarding house, or lodging housekeeper, pursuant to Sections 1861 to 1861.28, inclusive. If a guest’s recreational vehicle or motor vehicle has been towed from the premises, the guest shall be entitled to immediate possession of his or her vehicle upon request, subject to the conditions of the towing company. (d) When the park management moves or causes the removal of a guest’s recreational vehicle, motor vehicle, or other property, the management and the individual or entity that removes the recreational vehicle, motor vehicle, or other property shall exercise reasonable and ordinary care in removing the recreational vehicle, motor vehicle, or other property. (e) This section does not apply to a manufactured home, as defined in Section 18007 of the Health and Safety Code, or a mobilehome, as defined in Section 18008 of the Health and Safety Code. (f) In the event that a guest is incapable of removing his or her recreational vehicle or motor vehicle from the lot because of: (1) a physical incapacity, (2) the recreational vehicle or motor vehicle is not motorized and cannot be moved by the guest’s vehicle, or (3) the recreational vehicle or motor vehicle is inoperable due to mechanical difficulties, the guest shall be provided with 72 hours in which to remove the vehicle. If the guest has not removed the vehicle within 72 hours, park management may remove the vehicle without further notice. (g) As pertains to a minor, the rights of guests include, but are not limited to, the following: (1) If a minor who is unaccompanied by an adult seeks accommodations, the park management may require a parent or guardian of the minor, or another responsible adult, to assume, in writing, full liability for any and all proper charges and other obligations incurred by the minor for accommodations, food and beverages, and other services provided by or through the park management, as well as for any and all injuries or damage caused by the minor to any person or property. (2) If a minor is accompanied by an adult, the park management may require the adult to agree, in writing, not to leave any minor 12 years of age or younger unattended on the park management’s premises at any time during their stay, and to control the minor’s behavior during their stay so as to preserve the peace and quiet of the other guests and to prevent any injury to any person and damage to any property. (Added by Stats. 2004, Ch. 530, Sec. 4. Effective January 1, 2005.)
  95. 1867.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. )

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    Park management of a special occupancy park may move a guest to another space if there is imminent danger, and should offer the guest a return to the original space once the danger is removed or resolved, if possible.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 2. Deposit for Keeping [1833 - 1867] ( Chapter 2 enacted 1872. ) ## ARTICLE 4. Innkeepers [1859 - 1867] ( Article 4 enacted 1872. ) ## 1867. (a) The park management of a special occupancy park may require a guest to move from a space in the special occupancy park to a different space in the special occupancy park if an imminent danger is present, as determined by the park management. If possible, the park management shall offer to return the guest to his or her original space once the park management has determined that the imminent danger is removed or resolved. (b) For purposes of this section, the following definitions apply: (1) “Imminent danger” means a danger that poses an immediate and likely risk to the health or safety of a guest or guests in the special occupancy park. (2) “Space” means any of the following: (A) “Camping cabin,” as defined in Section 18862.5 of the Health and Safety Code. (B) “Campsite,” as defined in Section 18862.9 of the Health and Safety Code. (C) “Lot,” as defined in Section 18862.23 of the Health and Safety Code, or other rental unit. (3) “Special occupancy park” has the same meaning as in Section 18862.43 of the Health and Safety Code. (Added by Stats. 2004, Ch. 530, Sec. 5. Effective January 1, 2005.)
  96. 1878.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 3. Deposit for Exchange [1878- 1878.] ( Chapter 3 enacted 1872. )

    Verify source ↗

    A deposit for exchange passes title to the depositary and creates only a debtor-creditor relationship between the depositary and depositor.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 3. Deposit for Exchange [1878- 1878.] ( Chapter 3 enacted 1872. ) ## 1878. A deposit for exchange transfers to the depositary the title to the thing deposited, and creates between him and the depositor the relation of debtor and creditor merely. (Enacted 1872.)
  97. 1880.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    This chapter may be cited as the Private Bulk Grain Storage 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880. This chapter may be cited as the Private Bulk Grain Storage Law. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  98. 1880.1.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    This section defines key terms used in the chapter on private bulk storage of grain.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.1. As used in this chapter: (a) “Grain” includes barley, corn, flax, hay, grain sorghums, oats, rice, rye, and wheat. (b) “Seller” means a producer of grain who continues to store grain after sale thereof by him in storage facilities owned, operated, or controlled by him. (c) “Storage facilities” means any bin, building, elevator, protected enclosure, or other structure owned, operated, or controlled by the seller of the grain stored therein. (d) “Private bulk storage” means the storage of grain in storage facilities after sale of such grain by a seller. (e) “Buyer” means a purchaser of grain which is thereafter stored in private bulk storage, and includes the assigns and successors in interest of such buyer. (f) “Bill of sale” means a written instrument, conforming to the requirements of this chapter, which evidences a transfer of grain. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  99. 1880.2.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    The seller must clearly mark each storage facility with “private bulk storage only” and a designating number, and keep those markings in place while grain remains in private bulk storage.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.2. The seller shall conspicuously mark on all storage facilities “private bulk storage only” and with a designating number on each such facility and such markings shall be maintained at all times during which grain remains in private bulk storage therein. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  100. 1880.3.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    Grain in private bulk storage facilities may be sold by bill of sale without delivery.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.3. Grain in private bulk storage facilities may be sold in conformity with this chapter by bill of sale without delivery and no provision of Section 3440 of this code or of any other law requiring delivery or actual and continued change of possession shall be applicable to grain so sold. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  101. 1880.4.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    When grain sold for private bulk storage, the seller must give the buyer a bill 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.4. Upon sale of grain which is to remain in private bulk storage the seller shall execute and deliver to the buyer a bill of sale which shall contain all of the following: (a) The date and place where made. (b) The names of the seller and the buyer. (c) A statement of the estimated quantity and kind of grain. (d) A statement of the location and designating numbers of the storage facilities in which the grain is stored. (e) A statement of the price per unit and a statement of the amount received by the seller. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  102. 1880.5.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    A bill of sale for grain storage may include extra terms, such as price adjustment by estimated vs. outturn weight, temporary free use of storage, seller-endorsed extensions, delivery arrangements, and seller risk-shifting if possession is not taken on time.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.5. The bill of sale may contain other provisions, including reference to or provision for any one or more of the following: (a) Provision that the total price is based upon the estimated weight and that the total price may be adjusted in accordance with the outturn weight. (b) A statement that the buyer may have free use of the designated storage facilities until a specified date and that any extension beyond the specified date granted by seller must be endorsed under the signature of seller on the bill of sale. (c) A statement that seller has the legal right to extend to buyer the use of designated storage facilities. (d) A statement that actual possession of the grain by the buyer is to be taken on board trucks at the storage facility, or on railroad cars, or in the storage facility, or as may be agreed upon. (e) A statement that if actual possession be not taken within the time specified, due to any cause not chargeable to seller, the seller may consign the same at buyer’s risk and expense to a specified destination. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  103. 1880.6.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    A seller’s execution and delivery of a bill of sale transfers title to the grain to the buyer.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.6. Execution and delivery by a seller of a bill of sale shall pass seller’s title to the grain covered thereby to the buyer and such title passes to the assignees of the buyer upon further endorsement and delivery of the bill of sale. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  104. 1880.7.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    After a bill of sale is issued, the seller must post a sale notice on the grain storage facility and keep it displayed there while the grain remains stored.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.7. Upon the issuance of any such bill of sale, the seller shall immediately post upon the storage facilities containing the grain a notice in substantially the following form: “Notice of Sale On this ____ day of ____, 19__, grain in this storage facility numbered ____, estimated to be ____ bushels of ____ (designating the kind of grain) was transferred and sold as follows: Name of Seller ____ Name of original Buyer ____ Address of Seller ____ Address of Buyer ____ Grain to be removed by buyer on or before ____, 19__, (If date extended such fact and the date to which extended must appear on the notice).” Such notice shall be maintained by seller in a conspicuous place upon the storage facility at all times during which the grain involved continues to be stored therein. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  105. 1880.8.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    Delivery of privately stored grain is prohibited unless the bill of sale is presented and the delivered amount is endorsed on 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.8. No delivery shall be made of any portion of the grain so privately stored unless the bill of sale therefor is presented to the seller, or other person in charge of the storage facility, and the amount of grain so delivered plainly endorsed upon the bill of sale; but this provision shall not apply to any consignment of the grain by the seller to the buyer upon the expiration of the time for delivery specified in the bill of sale. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  106. 1880.9.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    If the holder presents the bill of sale to the seller, that presentation is presumptive evidence of entitlement to delivery of the grain, unless the seller knows facts or circumstances showing the possession is unlawful.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1880.9. The presentment of the bill of sale by the holder to seller shall be presumptive evidence that the person presenting it is entitled to delivery of the grain described therein unless the seller has knowledge of facts or circumstances sufficient to place him on notice that the possession of the instrument by such person is unlawful. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  107. 1881.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    If grain in private bulk storage is not removed or delivered by the delivery date in the bill of sale and notice of sale, the seller may keep storing it for the buyer.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1881. If any grain in private bulk storage is not removed or delivered on or before the original date of delivery specified in the bill of sale and in the notice of sale, it shall be lawful for the seller to continue to store such grain to the order of the buyer upon such terms as may be agreed upon. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  108. 1881.1.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    A seller who willfully fails to meet the notice and posting requirements for grain sales is guilty of a misdemeanor and can be fined or jailed.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1881.1. A seller who shall willfully fail to comply with the requirements of notice and posting as provided for in Section 1880.2 or in Section 1880.7 shall be guilty of a misdemeanor and punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding one thousand dollars ($1,000), or by both. No sale of grain shall be invalidated by reason of any lack or irregularity in connection with such notice or posting. (Amended by Stats. 1983, Ch. 1092, Sec. 66. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)
  109. 1881.2.

    ## 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 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. )

    Verify source ↗

    Grain storage under this chapter does not make the depositary a warehouseman or a storer of goods for hire, and the storage facility is not deemed a warehouse or public place of storage.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3. DEPOSIT [1813 - 1881.2] ( Title 3 enacted 1872. ) ## CHAPTER 4. Private Bulk Storage of Grain [1880 - 1881.2] ( Chapter 4 added by Stats. 1944, 4th Ex. Sess., Ch. 54. ) ## 1881.2. The storage of grain pursuant to this chapter shall not constitute the depositary a warehouseman or storer of goods for hire and no storage facility shall be deemed to constitute a warehouse or public place of storage. (Added by Stats. 1944, 4th Ex. Sess., Ch. 54.)
  110. 1882.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    This section defines key terms used in the utility services title.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882. Unless the context requires otherwise, the following definitions govern the construction of this title: (a) “Customer” means the person in whose name a utility service is provided. (b) “Divert” means to change the intended course or path of electricity, gas, or water without the authorization or consent of the utility. (c) “Person” means any individual, a partnership, firm, association, limited liability company, or corporation. (d) “Reconnection” means the commencement of utility service to a customer or other person after service has been lawfully discontinued by the utility. (e) “Tamper” means to rearrange, injure, alter, interfere with, or otherwise to prevent from performing normal or customary function. (f) “Utility” means any electrical, gas, or water corporation as those terms are defined in the Public Utilities Code and includes any electrical, gas, or water system operated by any public agency. (g) “Utility service” means the provision of electricity, gas, water, or any other service or commodity furnished by the utility for compensation. (Amended by Stats. 1994, Ch. 1010, Sec. 47. Effective January 1, 1995.)
  111. 1882.1.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    A utility may sue for damages if a person diverts utility service, tampers with utility property or meters, makes unauthorized connections, or uses diverted or unauthorized service.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.1. A utility may bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts: (a) Diverts, or causes to be diverted, utility services by any means whatsoever. (b) Makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility. (c) Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means. (d) Tampers with any property owned or used by the utility to provide utility services. (e) Uses or receives the direct benefit of all, or a portion, of the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility. (f) (1) Tampers with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant. (2) A public agency having firefighting or emergency response responsibilities during a fire, or a qualified insurance resource, as defined in Section 1139 of the Labor Code, with approval from incident command or the authority having jurisdiction over the active fire incident, shall be considered to have authorization from the utility that owns the fire hydrant during an active fire incident. (Amended by Stats. 2025, Ch. 540, Sec. 2. (SB 394) Effective January 1, 2026.)
  112. 1882.2.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    If a utility brings a civil action under Section 1882.1, it may recover triple actual damages, plus court costs and reasonable attorney’s 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.2. In any civil action brought pursuant to Section 1882.1, the utility may recover as damages three times the amount of actual damages, if any, plus the cost of the suit and reasonable attorney’s fees. (Added by Stats. 1981, Ch. 981, Sec. 1.)
  113. 1882.3.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    This section creates a rebuttable presumption that Section 1882.1 was violated if certain utility-service tampering or unauthorized use occurs.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.3. There is a rebuttable presumption that there is a violation of Section 1882.1 if either of the following occurs: (a) On premises controlled by the customer or by the person using or receiving the direct benefit of utility service, including through the use of a vehicle, there is either, or both, of the following: (1) Any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility service. (2) A meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services. (b) A person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water. (Amended by Stats. 2025, Ch. 540, Sec. 3. (SB 394) Effective January 1, 2026.)
  114. 1882.4.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    A utility may sue to stop certain acts and may also seek damages in the same case.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.4. A utility may, in accordance with Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, bring an action to enjoin and restrain any of the acts specified in Section 1882.1. The utility may, in the same action, seek damages for any of the acts specified in Section 1882.1. (Added by Stats. 1981, Ch. 981, Sec. 1.)
  115. 1882.5.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    For an action under Section 1882.4, the utility does not have to have suffered, or be threatened with, monetary damages first.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.5. It is not a necessary prerequisite to an action pursuant to Section 1882.4 that the utility have suffered, or be threatened with, monetary damages. (Added by Stats. 1981, Ch. 981, Sec. 1.)
  116. 1882.6.

    ## 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 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. )

    Verify source ↗

    Ratemaking agencies may consider damages recovered under this title that exceed the utility’s actual damages when setting utility rates.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 3.5. UTILITY SERVICES [1882 - 1882.6] ( Title 3.5 added by Stats. 1981, Ch. 981, Sec. 1. ) ## 1882.6. Any damages recovered pursuant to this title in excess of the actual damages sustained by the utility may be taken into account by the Public Utilities Commission or other applicable ratemaking agency in establishing utility rates. (Added by Stats. 1981, Ch. 981, Sec. 1.)
  117. 1884.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A loan for use is a contract for temporary possession and use of personal property, with return of the same thing later and no reward for the use.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1884. A loan for use is a contract by which one gives to another the temporary possession and use of personal property, and the latter agrees to return the same thing to him at a future time, without reward for its use. (Enacted 1872.)
  118. 1885.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A loan for use does not transfer title to the thing, and any increase during the loan belongs to the lender.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1885. A loan for use does not transfer the title to the thing; and all its increase during the period of the loan belongs to the lender. (Enacted 1872.)
  119. 1886.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower for use must take great care to preserve the thing lent in safety and good 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1886. A borrower for use must use great care for the preservation in safety and in good condition of the thing lent. (Enacted 1872.)
  120. 1887.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A person who borrows a living animal for use must treat it kindly and provide everything necessary and suitable for 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1887. One who borrows a living animal for use, must treat it with great kindness, and provide everything necessary and suitable for it. (Enacted 1872.)
  121. 1888.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower for use must care for the borrowed thing with the skill the lender was led to believe the borrower had.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1888. A borrower for use is bound to have and to exercise such skill in the care of the thing lent as he causes the lender to believe him to possess. (Enacted 1872.)
  122. 1889.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower for use must repair damage or deterioration to the borrowed thing if it was caused by the borrower’s negligence, even slight negligence.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1889. A borrower for use must repair all deteriorations or injuries to the thing lent, which are occasioned by his negligence, however slight. (Enacted 1872.)
  123. 1890.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower may use a thing for use only for purposes the lender could reasonably expect at the time of lending.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1890. The borrower of a thing for use may use it for such purposes only as the lender might reasonably anticipate at the time of lending. (Enacted 1872.)
  124. 1891.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower of a thing for use must not give or hand it over to a third person without the lender’s 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1891. The borrower of a thing for use must not part with it to a third person, without the consent of the lender. (Enacted 1872.)
  125. 1892.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower must pay all expenses on a thing borrowed for use, except expenses needed to prevent unexpected and unusual injury. The borrower can claim compensation for those necessary expenses, and the lender can avoid that by giving the thing to the borrower.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1892. The borrower of a thing for use must bear all its expenses during the loan, except such as are necessarily incurred by him to preserve it from unexpected and unusual injury. For such expenses he is entitled to compensation from the lender, who may, however, exonerate himself by surrendering the thing to the borrower. (Enacted 1872.)
  126. 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A lender of a thing for use must indemnify the borrower for damage caused by defects or vices that the lender knew about when lending and concealed.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1893. The lender of a thing for use must indemnify the borrower for damage caused by defects or vices in it, which he knew at the time of lending, and concealed from the borrower. (Enacted 1872.)
  127. 1894.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A lender may demand the return of a thing for use at any time; if early return causes the borrower a qualifying loss and the borrower did not violate the duty, the lender must indemnify that loss.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1894. The lender of a thing for use may at any time require its return, even though he lent it for a specified time or purpose. But if, on the faith of such an agreement, the borrower has made such arrangements that a return of the thing before the period agreed upon would cause him loss, exceeding the benefit derived by him from the loan, the lender must indemnify him for such loss, if he compels such return, the borrower not having in any manner violated his duty. (Enacted 1872.)
  128. 1895.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A thing lent for use must be returned to the lender without demand when the agreed time ends or the purpose is completed; otherwise, it only has to be returned when demanded.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1895. If a thing is lent for use for a specified time or purpose, it must be returned to the lender without demand, as soon as the time has expired, or the purpose has been accomplished. In other cases it need not be returned until demanded. (Enacted 1872.)
  129. 1896.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. )

    Verify source ↗

    A borrower must return the borrowed thing to the lender.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1. Loan for Use [1884 - 1896] ( Chapter 1 enacted 1872. ) ## 1896. The borrower of a thing for use must return it to the lender, at the place contemplated by the parties at the time of lending; or if no particular place was so contemplated by them, then at the place where it was at that time. (Enacted 1872.)
  130. 1899.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    This section states legislative findings about loans of property to museums and the need for rules for long-term or indefinite 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899. The Legislature finds and declares as follows: (a) Many museums have benefited greatly from having property loaned to them for study or display. Problems have arisen, however, in connection with loans for indefinite or long terms, when museums and lenders have failed to maintain contact. Many of these problems could be avoided by a clarification and regularization of the rights and obligations of the parties to loans for indefinite or long terms. (b) An existing law, the Unclaimed Property Law (commencing with Section 1500 of the Code of Civil Procedure), is technically applicable to property on loan to a museum which has been left unclaimed by its owner for at least seven years. (c) While the Unclaimed Property Law addresses problems similar to those which arise in the museum context when the parties to loans fail to maintain contact, there is need for an alternative method of dealing with unclaimed property in the hands of museums, one tailored to the unique circumstances of unclaimed loans to museums. These circumstances include the likelihood that the unclaimed property has significant scientific, historical, aesthetic, or cultural value but does not have great monetary value; that the public’s interest in the intangible values of unclaimed property loaned to museums can best be realized if title is transferred to the museums holding the property; that often lenders intend eventually to donate property but place it on indefinite or long term loan initially for tax and other reasons; and that many museums have incurred unreimbursed expenses in caring for and storing unclaimed loaned property. (d) There is an inherent tendency for the condition of tangible property to change over time. Loaned property often requires conservation work and conservation measures may be expensive or potentially detrimental to the property. Organic materials and specimens may serve as breeding grounds for insects, fungi, or diseases which threaten other more valuable property. (e) Museums cannot reasonably be expected to make decisions regarding conservation or disposition of loaned property at their own risk and expense. Over time, however, lenders die or move, and museums and lenders lose contact. If a lender has failed to maintain contact with a museum, it is often impossible to locate the lender so that the lender can make decisions regarding conservation or disposition of loaned property. (f) Since museums rarely relocate, it is easier for lenders, and those who claim through them, to notify museums of address or ownership changes so that museums can readily contact lenders when decisions must be made regarding conservation or disposition of loaned property. (g) The best evidence of ownership of property on loan to a museum is generally the original loan receipt. The longer property remains on loan, the less likely it is that the original lender will claim it, and the more likely it is that any claim which is made will be made by someone who does not have the original loan receipt or other clear evidence of ownership. The state has a substantial interest in cutting off stale and uncertain claims to tangible personal property loaned to nonprofit and public museums. (h) Most of the tangible personal property which escheats to the state under the Unclaimed Property Law is found in safe deposit boxes. Although 40–50 percent of the intangible property which escheats to the state is subsequently claimed, less than 1 percent of escheated tangible personal property is claimed. Of the few claims which are presented to the Controller for tangible personal property, most are presented within two years of the date the Controller gives notice of the escheat. (i) The public interest is served by requiring lenders to notify museums of changes in address or ownership of loaned property, by establishing a uniform procedure for lenders to preserve their interests in property loaned to museums for indefinite or long terms, and by vesting title to unclaimed property on loan to museums in the museums which have custody of the property. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  131. 1899.1.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    This section defines key terms used in this chapter about museum 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.1. For the purposes of this chapter: (a) A “museum” is an institution located in California and operated by a nonprofit corporation or public agency, primarily educational, scientific, or aesthetic in purpose, which owns, borrows, or cares for, and studies, archives, or exhibits property. (b) A “lender’s address” is the most recent address as shown on the museum’s records pertaining to the property on loan from the lender. (c) The terms “loan,” “loaned,” and “on loan” include all deposits of property with a museum which are not accompanied by a transfer of title to the property. (d) “Property” includes all tangible objects, animate and inanimate, under a museum’s care which have intrinsic value to science, history, art, or culture, except that it does not include botanical or zoological specimens loaned to a museum for scientific research purposes. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  132. 1899.10.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    This section sets time limits for loaned property held by museums and creates an exception allowing some lenders to recover property or its value.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.10. (a) The three-year limitation on actions to recover personal property prescribed in Code of Civil Procedure Section 338.3 shall run from the date the museum gives the lender notice of its intent to terminate the loan pursuant to Section 1899.9. (b) Except as provided in subdivision (e), effective January 1, 1985, no action shall be brought against a museum to recover property on loan when more than 25 years have passed from the date of the last written contact between the lender and the museum, as evidenced in the museum’s records. (c) A lender shall be deemed to have donated loaned property to a museum if the lender fails to file an action to recover the property on loan to the museum within the periods specified in subdivisions (a) and (b). (d) One who purchases property from a museum acquires good title to the property if the museum represents that it has acquired title to the property pursuant to subdivision (c). (e) Notwithstanding subdivisions (b) and (c), a lender who was not given notice that the museum intended to terminate a loan and who proves that the museum received a notice of intent to preserve an interest in loaned property within the 25 years immediately preceding the date on which the lender’s right to recover the property otherwise expired under subdivision (b) may recover the property or, if the property has been disposed of, the reasonable value of the property at the time the property was disposed of with interest at the rate on judgments set by the Legislature pursuant to Section 1 of Article XV of the California Constitution. (Amended by Stats. 1984, Ch. 541, Sec. 1. Effective July 17, 1984.)
  133. 1899.11.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A museum may, at its option, report loaned property that has been unclaimed by its owner for more than seven years to the Controller, and it must mail advance notice to the lender before doing 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.11. (a) The provisions of this chapter supersede the provisions of the Unclaimed Property Law (commencing with Section 1500 of the Code of Civil Procedure) except that at its option, a museum may report property which has been on loan unclaimed by its owner for more than seven years to the Controller pursuant to Section 1530 of the Code of Civil Procedure for disposition in accordance with the provisions of the Unclaimed Property Law. (b) Not less than six months or more than 12 months before reporting any loaned property to the Controller, a museum shall mail to the lender at the lender’s address, if known, a notice of intent to report the property to the Controller. The notice shall include a statement containing substantially the following information: “The records of _____ (name of museum) _____ indicate that you have property on loan to the institution. The institution wishes to terminate the loan. You must contact the institution, establish your ownership of the property and make arrangements to collect the property before (fill in date) or the property will be disposed of in accordance with the provisions of the Unclaimed Property Law (commencing with Section 1500 of the Code of Civil Procedure).” (Added by Stats. 1983, Ch. 61, Sec. 1.)
  134. 1899.2.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A museum may be treated as having given lender notice if it mails the notice and receives proof of receipt within 30 days; otherwise it can use newspaper publication in specified counties. The notice must also include required loan and contact 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.2. (a) When a museum is required to give a lender notice pursuant to the provisions of this chapter, the museum shall be deemed to have given a lender notice if the museum mails the notice to the lender at the lender’s address and proof of receipt is received by the museum within 30 days from the date the notice was mailed. If the museum does not have an address for the lender, or if proof of receipt is not received by the museum, notice shall be deemed given if the museum publishes notice at least once a week for three successive weeks in a newspaper of general circulation in both the county in which the museum is located and the county of the lender’s address, if any. (b) In addition to any other information prescribed in this chapter, notices given pursuant to it shall contain the lender’s name, the lender’s address, if known, the date of the loan and, if the notice is being given by the museum, the name, address, and telephone number of the appropriate office or official to be contacted at the museum for information regarding the loan. (c) For the purposes of this section, a museum is “located” in the county of a branch of the museum to which a loan is made. In all other instances, a museum is located in the county in which it has its principal place of business. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  135. 1899.3.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    Museums that accept long-term loans must give written notice to the lender, keep claimant notices for at least 25 years unless the property is returned, provide proof of receipt within 30 days, and promptly notify the lender of known injury or loss.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.3. (a) If, on or after January 1, 1984, a museum accepts a loan of property for an indefinite term, or for a term in excess of seven years, the museum shall inform the lender in writing at the time of the loan of the provisions of this chapter. A copy of the form notice prescribed in Section 1899.5, or a citation to this chapter, is adequate for this purpose. (b) Unless the loaned property is returned to the claimant, the museum shall retain for a period of not less than 25 years the original or an accurate copy of each notice filed by a claimant pursuant to Section 1899.4. (c) The museum shall furnish anyone who files a notice of intent to preserve an interest in property on loan proof of receipt of the notice by mailing an original receipt or a copy of the receipt portion of the form notice prescribed in Section 1899.5 to the lender or other claimant at the address given on the notice within 30 days of receiving the notice. (d) A museum shall give a lender prompt notice of any known injury to or loss of property on loan. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  136. 1899.4.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    The owner of property on loan to a museum must promptly tell the museum in writing about any change of address or ownership, and may file a notice of intent to preserve 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.4. (a) It is the responsibility of the owner of property on loan to a museum to notify the museum promptly in writing of any change of address or change in ownership of the property. Failure to notify the museum of these changes may result in the owner’s loss of rights in the property. (b) The owner of property on loan to a museum may file with the museum a notice of intent to preserve an interest in the property as provided for in Section 1899.5. The filing of a notice of intent to preserve an interest in property on loan to a museum does not validate or make enforceable any claim which would be extinguished under the terms of a written loan agreement, or which would otherwise be invalid or unenforceable. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  137. 1899.5.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A claimant filing a museum-loan preservation notice must give a written, signed notice with identifying property details and ownership documentation; the museum may reject noncompliant notices and must promptly tell the claimant why.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.5. (a) A notice of intent to preserve an interest in property on loan to a museum filed pursuant to this chapter shall be in writing, shall contain a description of the property adequate to enable the museum to identify the property, shall be accompanied by documentation sufficient to establish the claimant as owner of the property, and shall be signed under penalty of perjury by the claimant or by a person authorized to act on behalf of the claimant. (b) The museum need not retain a notice that does not meet the requirements set forth in subdivision (a). If, however, the museum does not intend to retain a notice for this reason, the museum shall promptly notify the claimant at the address given on the notice that it believes the notice is ineffective to preserve an interest, and the reasons therefor. The fact that the museum retains a notice shall not be construed to mean that the museum accepts the sufficiency or accuracy of the notice or that the notice is effective to preserve an interest in property on loan to the museum. (c) A notice of intent to preserve an interest in property on loan to a museum which is in substantially the following form, and contains the information and attachments described, satisfies the requirements of subdivision (a): NOTICE OF INTENT TO PRESERVE AN INTEREST IN PROPERTY ON LOAN TO A MUSEUM TO THE LENDER: Section 1899.4 of the California Civil Code requires that you notify the museum promptly in writing of any change of address or ownership of the property. If the museum is unable to contact you regarding your loan, you may lose rights in the loaned property. If you choose to file this form with the museum to preserve your interest in the property, the museum is required to maintain it, or a copy of it, for 25 years. For full details, see Section 1899, et seq. of the California Civil Code. TO THE MUSEUM: You are hereby notified that the undersigned claims an interest in the property described herein. Claimant Name: Address: Telephone: Social Security Number (optional): Museum Name: Date Property Loaned: Interest in Property: If you are not the original lender, describe the origin of your interest in the property and attach a copy of any document creating your interest: Description of Property: Unless an accurate, legible copy of the original loan receipt is attached, give a detailed description of the claimed property, including its nature and general characteristics and the museum registration number assigned to the property, if known, and attach any documentary evidence you have establishing the loan: Registration # Description: (Attach additional sheets if necessary.) I understand that I must promptly notify the museum in writing of any change of address or change in ownership of the loaned property. I declare under penalty of perjury that to the best of my knowledge the information contained in this notice is true. Signed: ________________ Date: (claimant) _____ OR I declare under penalty of perjury that I am authorized to act on behalf of the claimant and am informed and believe that the information contained in this notice is true. Signed: ______________________ Date: (claimant’s representative) _____ RECEIPT FOR NOTICE OF INTENT TO PRESERVE AN INTEREST IN PROPERTY (For use by the museum.) Notice received by: Date of receipt: Copy of receipt returned to claimant: By Date: (d) Notices of intent to preserve an interest in property on loan to a museum filed pursuant to this chapter are exempt from the disclosure requirements of the California Public Records Act (Division 10 (commencing with Section 7920.000) of the Government Code). (Amended by Stats. 2021, Ch. 615, Sec. 50. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  138. 1899.6.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A museum may conserve or dispose of loaned property without the lender’s permission in limited emergency or uncontactable-lender situations, and may get a lien and liability protection if the statute’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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.6. (a) Unless there is a written loan agreement to the contrary, a museum may apply conservation measures to or dispose of property on loan to the museum without a lender’s permission if: (1) Immediate action is required to protect the property on loan or to protect other property in the custody of the museum, or because the property on loan has become a hazard to the health and safety of the public or of the museum’s staff, and: (A) The museum is unable to reach the lender at the lender’s last address of record so that the museum and the lender can promptly agree upon a solution; or (B) The lender will not agree to the protective measures the museum recommends, yet is unwilling or unable to terminate the loan and retrieve the property. (2) In the case of a lender who cannot be contacted in person, the museum publishes a notice containing the information described in subdivision (a) of Section 1899.7 and there is no response for 120 days. (b) If a museum applies conservation measures to or disposes of property pursuant to subdivision (a): (1) The museum shall have a lien on the property and on the proceeds from any disposition thereof for the costs incurred by the museum; and (2) The museum shall not be liable for injury to or loss of the property: (A) If the museum had a reasonable belief at the time the action was taken that the action was necessary to protect the property on loan or other property in the custody of the museum, or that the property on loan constituted a hazard to the health and safety of the public or the museum’s staff; and (B) If the museum applied conservation measures, the museum exercised reasonable care in the choice and application of the conservation measures. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  139. 1899.7.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A museum may be treated as having given notice of injury or loss to loaned property if it publishes a notice with the required warning statement. If the museum later receives a claimant notice within three years, it must promptly tell the claimant in writing the nature and approximate date of the injury or loss.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.7. (a) Except as provided in subdivision (b), if a museum is unable to give the lender the notice required by subdivision (d) of Section 1899.3 of injury to or loss of property on loan by mail, the museum shall be deemed to have given the lender notice of any injury or loss if in addition to the information required by subdivision (b) of Section 1899.2 the published notice includes a statement containing substantially the following information: “The records of _____ (name of museum) _____ indicate that you have property on loan to it. Your failure to notify it in writing of a change of address or ownership of property on loan or to contact it in writing regarding the loan may result in the loss of rights in the loaned property. See California Civil Code Sections 1899, et seq.” (b) If, within three years of giving notice of injury to or loss of loaned property by publishing the notice set forth in subdivision (a), the museum receives a notice from a claimant pursuant to Section 1899.4, the museum shall promptly advise the claimant in writing of the nature of the injury to or the fact of the loss of property on loan and the approximate date thereof. For the purposes of the limitation period in Section 1899.8, if the museum mails the information to the claimant within 30 days of the date the museum receives the notice from the claimant, the museum shall be deemed to have given the claimant notice of the injury to or loss of property on loan on the date notice by publication pursuant to subdivision (a) was completed. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  140. 1899.8.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    After January 1, 1985, lawsuits for damages over property loaned to a museum are time-barred after the earlier of 3 years from notice of the injury or loss, or 10 years from the injury or loss.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.8. Effective January 1, 1985, no action shall be brought against a museum for damages because of injury to or loss of property loaned to the museum more than (1) three years from the date the museum gives the lender notice of the injury or loss, or (2) ten years from the date of the injury or loss, whichever occurs earlier. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  141. 1899.9.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. )

    Verify source ↗

    A museum may notify a lender that it intends to end a museum loan, and the notice must include specified information telling the lender to contact the museum and arrange to collect 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 1.5. Loans to Museums for Indefinite or Long Terms [1899 - 1899.11] ( Chapter 1.5 added by Stats. 1983, Ch. 61, Sec. 1. ) ## 1899.9. (a) A museum may give the lender notice of the museum’s intent to terminate a loan which was made for an indefinite term, or which was made on or after January 1, 1984, for a term in excess of seven years. A notice of intent to terminate a loan given pursuant to this section shall include a statement containing substantially the following information: “The records of _____ (name of museum) _____ indicate that you have property on loan to it. The institution wishes to terminate the loan. You must contact the institution, establish your ownership of the property, and make arrangements to collect the property. If you fail to do so promptly, you will be deemed to have donated the property to the institution. See California Civil Code Sections 1899, et seq.” (b) For the purposes of this chapter, a loan for a specified term becomes a loan for an indefinite term if the property remains in the custody of the museum when the specified term expires. (Added by Stats. 1983, Ch. 61, Sec. 1.)
  142. 1902.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. )

    Verify source ↗

    A loan for exchange is a contract where one person gives personal property to another, and the other must later return a similar thing without paying for its use.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. ) ## 1902. A loan for exchange is a contract by which one delivers personal property to another, and the latter agrees to return to the lender a similar thing at a future time, without reward for its use. (Enacted 1872.)
  143. 1903.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. )

    Verify source ↗

    A loan may be treated by the borrower as a loan for use or a loan for exchange, if the lender allows 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. ) ## 1903. A loan, which the borrower is allowed by the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this Chapter. (Enacted 1872.)
  144. 1904.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. )

    Verify source ↗

    In a loan for exchange, title to the thing lent passes to the borrower, who must pay all related expenses and is entitled to any increase.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. ) ## 1904. By a loan for exchange the title to the thing lent is transferred to the borrower, and he must bear all its expenses, and is entitled to all its increase. (Enacted 1872.)
  145. 1905.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. )

    Verify source ↗

    A lender for exchange may not require the borrower to perform obligations at a different time or in a different manner than originally agreed.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. ) ## 1905. A lender for exchange cannot require the borrower to fulfill his obligations at a time, or in a manner, different from that which was originally agreed upon. (Enacted 1872.)
  146. 1906.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. )

    Verify source ↗

    Sections 1893, 1895, and 1896 apply to a loan for exchange.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 2. Loan for Exchange [1902 - 1906] ( Chapter 2 enacted 1872. ) ## 1906. Sections 1893, 1895, and 1896, apply to a loan for exchange. (Enacted 1872.)
  147. 1912.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    A loan of money is a contract where one person gives money to another, and the borrower must later return an equivalent amount.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1912. A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. A loan for mere use is governed by the Chapter on Loan for Use. (Enacted 1872.)
  148. 1913.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    A borrower must repay the loan in the money that is current when the loan falls due, unless the contract 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1913. A borrower of money, unless there is an express contract to the contrary, must pay the amount due in such money as is current at the time when the loan becomes due, whether such money is worth more or less than the actual money lent. (Enacted 1872.)
  149. 1916.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    If a law or contract sets an interest rate but does not say how long the rate period is, the rate is treated as an annual rate.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916. When a rate of interest is prescribed by a law or contract, without specifying the period of time by which such rate is to be calculated, it is to be deemed an annual rate. (Enacted 1872.)
  150. 1916.1.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    Interest-rate restrictions do not apply to certain loans and related loan changes made or arranged by a California-licensed real estate broker and secured by liens on 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.1. The restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any loan, or any forbearance, extension, or modification of a loan, made or arranged by any person licensed as a real estate broker by the State of California, and secured, directly or collaterally, in whole or in part by liens on real property. For purposes of this section, a loan, or forbearance, extension, or modification of a loan, is arranged by a person licensed as a real estate broker when a broker (1) acts for compensation or in expectation of compensation for soliciting, negotiating, or arranging the loan, or forbearance, extension, or modification of the loan, for another, (2) acts for compensation or in expectation of compensation for selling, buying, leasing, exchanging, or negotiating the sale, purchase, lease, or exchange of real property or a business for another and (A) arranges a loan to pay all or any portion of the purchase price of, or of an improvement to, that property or business or (B) arranges a forbearance, extension, modification, or refinancing of any loan in connection with that sale, purchase, lease, exchange of, or an improvement to, real property or a business, or (3) arranges or negotiates for another a forbearance, extension, modification, or refinancing of any loan secured by real property in connection with a past transaction in which a broker had acted for compensation or in expectation of compensation for selling, buying, leasing, exchanging, or negotiating the sale, purchase, lease, or exchange of real property or a business. The term “made or arranged” includes any loan, or any forbearance, extension, or modification of a loan, made by a person licensed as a real estate broker as a principal or as an agent for others, and whether or not the person is acting within the course and scope of such license. (Amended by Stats. 2024, Ch. 601, Sec. 1. (SB 1146) Effective January 1, 2025.)
  151. 1916.11.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    A mortgage or deed of trust lien remains valid even if a borrower claims a failure to comply with Sections 1916.5 through 1916.9.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.11. Notwithstanding any other remedy a borrower may have based on an alleged failure to comply with Sections 1916.5 through 1916.9, the lien of the mortgage or deed of trust shall be valid. (Added by Stats. 1981, Ch. 274, Sec. 2. Effective August 27, 1981.)
  152. 1916.12.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    The Secretary of Business and Consumer Services, or a designee, may issue mortgage-parity regulations for lenders on residential real property and must do so within 60 days after the comparable federal change. Those regulations expire on a set schedule, and certain loan-interest-change rules do not apply to loans made under 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.12. (a) The Legislature finds that the economic environment of financial institutions has become increasingly volatile as a result of regulatory revisions enacted by the United States Congress and federal agencies including, but not necessarily limited to, the Comptroller of the Currency, the Federal Home Loan Bank Board, Federal Reserve Board, and the Depository Institutions Deregulation Committee. The Legislature further finds that deposit rate ceilings are being phased out while the cost of and competition for funds have escalated. It is the purpose of this section to maintain the quality of competition between state-licensed and federally regulated financial institutions in the field of mortgage lending, as well as promote the convenience, advantage and best interests of California residents in their pursuit of adequate and available housing. In order to remain competitive and provide the optimum housing environment for the citizens of California, state institutions require the ability to respond in a timely manner to changes in mortgage lending parameters initiated at the federal level. Local regulatory guidelines must promote continued parity between the state and federal levels in order to avoid creation of discriminatory burdens upon state institutions and to protect interests held by California citizens. It is the intent of the Legislature to eliminate past and prevent future inequities between state and federal financial institutions doing business in the State of California by creating a sensitive and responsive mortgage parity procedure. (b) The Secretary of Business and Consumer Services or the secretary’s designee as defined by subdivision (c) of Section 1918.5, shall have the authority to prescribe rules and regulations extending to lenders who make loans upon the security of residential real property any right, power, privilege or duty relating to mortgage instruments that is equivalent to authority extended to federally regulated financial institutions by federal statute or regulation. (c) In order to grant equivalent mortgage lending authority to state financial institutions to that which has been extended to federal financial institutions, the secretary or the secretary’s designee shall adopt such regulations within 60 days of the effective date of the statute or regulation extending the comparable right, power, privilege, or duty to federally regulated financial institutions. (d) The provisions of Sections 1916.5, 1916.6, 1916.7, 1916.8, and 1916.9, and any other provisions of law relating to the requirements for changes in the rate of interest on loans, shall not be applicable to loans made pursuant to the provisions of this section and regulations promulgated thereunder. (e) Any regulations adopted pursuant to this section shall expire on January 1 of the second succeeding year following the end of the calendar year in which the regulation was promulgated. Subsequent amendments to these regulations cannot extend this expiration date. (f) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026. (Amended by Stats. 2026, Ch. 28, Sec. 12. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.)
  153. 1916.2.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    Interest-rate restrictions do not apply to loans made by, or forbearances of, certain out-of-California public retirement or pension systems.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.2. The restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution do not apply to any loans made by, or forbearances of, a public retirement or pension system that is created, authorized, and regulated by the laws of a state other than California, or the laws of a local agency of a state other than California. This section establishes as an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution, any public retirement or pension system that is created, authorized, and regulated by the laws of a state other than California, or the laws of a local agency of a state other than California. (Added by Stats. 1987, Ch. 764, Sec. 5.)
  154. 1916.5.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    Lenders other than supervised financial organizations may raise interest only if the variable-rate terms and required notices are included, and borrowers get a limited prepayment right after notice of an increase.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.5. (a) No increase in interest provided for in any provision for a variable interest rate contained in a security document, or evidence of debt issued in connection therewith, by a lender other than a supervised financial organization is valid unless that provision is set forth in the security document, and in any evidence of debt issued in connection therewith, and the document or documents contain the following provisions: (1) A requirement that when an increase in the interest rate is required or permitted by a movement in a particular direction of a prescribed standard an identical decrease is required in the interest rate by a movement in the opposite direction of the prescribed standard. (2) The rate of interest shall not change more often than once during any semiannual period, and at least six months shall elapse between any two changes. (3) The change in the interest rate shall not exceed one-fourth of 1 percent in any semiannual period, and shall not result in a rate more than 2.5 percentage points greater than the rate for the first loan payment due after the closing of the loan. (4) The rate of interest shall not change during the first semiannual period. (5) The borrower is permitted to prepay the loan in whole or in part without a prepayment charge within 90 days of notification of any increase in the rate of interest. (6) A statement attached to the security document and to any evidence of debt issued in connection therewith printed or written in a size equal to at least 10-point boldface type, consisting of the following language: NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS FOR A VARIABLE INTEREST RATE. (b) (1) This section shall be applicable only to a mortgage contract, deed of trust, real estate sales contract, or any note or negotiable instrument issued in connection therewith, when its purpose is to finance the purchase or construction of real property containing four or fewer residential units or on which four or fewer residential units are to be constructed. (2) This section does not apply to unamortized construction loans with an original term of two years or less or to loans made for the purpose of the purchase or construction of improvements to existing residential dwellings. (c) Regulations setting forth the prescribed standard upon which variations in the interest rate shall be based may be adopted by the Commissioner of Financial Protection and Innovation with respect to savings associations and by the Insurance Commissioner with respect to insurers. Regulations adopted by the Commissioner of Financial Protection and Innovation shall apply to all loans made by savings associations pursuant to this section before January 1, 1990. (d) As used in this section: (1) “Supervised financial organization” means a state or federally regulated bank, savings association, savings bank, or credit union, or state regulated industrial loan company, a licensed finance lender under the California Financing Law, a licensed residential mortgage lender under the California Residential Mortgage Lending Act, or holding company, affiliate, or subsidiary thereof, or institution of the Farm Credit System, as specified in Section 2002 of Title 12 of the United States Code. (2) “Insurer” includes, but is not limited to, a nonadmitted insurance company. (3) “Semiannual period” means each of the successive periods of six calendar months commencing with the first day of the calendar month in which the instrument creating the obligation is dated. (4) “Security document” means a mortgage contract, deed of trust, or real estate sales contract. (5) “Evidence of debt” means a note or negotiable instrument. (e) This section is applicable only to instruments executed on and after the effective date of this section. (f) This section does not apply to nonprofit public corporations. (g) This section is not intended to apply to a loan made where the rate of interest provided for is less than the then current market rate for a similar loan in order to accommodate the borrower because of a special relationship, including, but not limited to, an employment or business relationship, of the borrower with the lender or with a customer of the lender and the sole increase in interest provided for with respect to the loan will result only by reason of the termination of that relationship or upon the sale, deed, or transfer of the property securing the loan to a person not having that relationship. (Amended by Stats. 2022, Ch. 452, Sec. 27. (SB 1498) Effective January 1, 2023.)
  155. 1916.6.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    A qualifying security document or related evidence of debt may lock in the interest rate so it does not change for five years, and then no more often than every five years.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.6. A security document, or evidence of debt issued in connection therewith, executed pursuant to Section 1916.5 may provide that the rate of interest shall not change until five years after execution of such document or documents, and not more frequently than every five years thereafter. In every security document, or evidence of debt issued in connection therewith, executed pursuant to this section all the provisions of Section 1916.5 shall be applicable, except those provisions specifying the frequency of interest rate changes and limiting rate changes to one-fourth of 1 percent in any semiannual period. For the purposes of this section “five years” means each of the successive periods of five years commencing with the first day of the calendar month in which the instrument creating the obligation is dated. (Added by Stats. 1977, Ch. 575.)
  156. 1916.7.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

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    This section sets rules for adjustable-payment, adjustable-rate mortgage loans, including how interest and payments can change, borrower prepayment rights, and 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.7. (a) Sections 1916.5, 1916.6, 1916.8, and 1916.9 of the Civil Code, and any other provision of law restricting or setting forth requirements for changes in the rate of interest on loans, shall not be applicable to loans made pursuant to this section. (b) A mortgage loan made pursuant to the provisions of this section is an adjustable-payment, adjustable-rate loan, on the security of real property occupied or intended to be occupied by the borrower containing four or fewer residential units and incorporating terms substantially as follows: (1) The term of the loan shall be not less than 29 years, repayable in monthly installments amortized over a period of not less than 30 years. (2) Monthly payments may be adjusted to reflect changes in the variable interest rate of the loan. Changes in interest and monthly payment shall not occur more often than twice during any annual period and at least six months shall elapse between any two changes. The rate of interest and monthly payments shall not change during the first semiannual period. The amount of any increase in monthly payment shall not exceed 7.5 percent annually. (3) Monthly payments may also be established on a graduated basis within the parameters of a loan originated pursuant to the provisions of this section. A graduated payment adjustable mortgage loan shall meet all the requirements of this section and shall set forth in the note, at the time of origination, limitations on the rate of increase in the scheduled payments due both to graduation and to changes in the interest rate. (4) Whenever any monthly installment is less than the amount of interest accrued during the month with respect to which the installment is payable, the borrower shall have the option to select one, or any combination of, the following: (A) Notwithstanding paragraph (2) of subdivision (b), increase the monthly installment in an amount which at least covers the increase in interest. (B) Have the difference added to the principal of the loan as of the due date of the installment and thereafter shall bear interest as part of the principal. In no instance shall the difference which is added to the principal be an amount which causes the resulting loan-to-value ratio to exceed the loan-to-value ratio at the time of loan origination. (C) Extend the term of the loan up to, but not exceeding, 40 years. (5) Changes in the rate of interest on the loan shall reflect the movement, in reference to the date of the original loan, of a periodically published index selected by the lender which may be either of the following: (A) The contract interest rate on the purchase of previously occupied homes in the most recent monthly national average mortgage rate index for all major lenders published periodically by the Federal Home Loan Bank Board. (B) The weighted average cost of funds for California Associations of the Eleventh District Savings and Loan Associations as published periodically by the Federal Home Loan Bank of San Francisco. (6) Any change in the interest rate shall not exceed the limit, specified by the lender in the loan contract, for rate increases in any semiannual period and shall not exceed the limit, specified by the lender in the loan contract, for rate increases greater than the base index rate. (7) Notwithstanding any change in the interest rate indicated by a movement of the index, increases in the interest rate shall be optional with the lender, while decreases are mandatory. Such decreases, upon the option of the borrower, shall be used (1) to pay off any negative amortization accrued when the interest rate was increased, or (2) to decrease the monthly payment as reflected in the decrease in the interest rate. (8) The borrower is permitted to prepay the loan in whole or in part without a prepayment charge at any time, and no fee or other charge may be required by the lender of the borrower as a result of any change in the interest rate or the exercise of any option or election extended to the borrower pursuant to this section. (9) The borrower, after initiation of the loan, shall not be subsequently required to demonstrate his or her qualification for the loan, except that this paragraph shall not limit any remedy available to the lender by law for default or other breach of contract. (10) In the event the remaining principal due on a loan made pursuant to this section will not be paid off during the current term, within 90 days of expiration of the term a borrower may elect in writing to repay the remaining balance in full or in substantially equal installments of principal and interest over an additional period not to exceed 10 years, during which period the interest rate shall remain fixed. (c) An applicant for a loan originated pursuant to the provisions of this section must be given, at the time he or she requests an application, a disclosure notice in the following form: NOTICE TO BORROWER IMPORTANT INFORMATION ABOUT THE ADJUSTABLE-PAYMENT, ADJUSTABLE-RATE LOAN PLEASE READ CAREFULLY (at least 10-point bold type) You have received an application form for an adjustable-payment, adjustable-rate mortgage loan. This loan may differ from other mortgages with which you are familiar. I. GENERAL DESCRIPTION OF ADJUSTABLE-PAYMENT, ADJUSTABLE-RATE LOAN The adjustable-payment, adjustable-rate mortgage loan is a flexible loan instrument. This means that the interest, monthly payment and/or the length of the loan may be changed during the course of the loan contract. The first flexible feature of this loan is the interest rate. The interest rate on the loan may be changed by the lender every six months. Changes in the interest rate must reflect the movement of an index that is selected by the lender. Changes in the interest rate may result in increases or decreases in your monthly payment, in the outstanding principal loan balance, in the loan term, or in all three. The lender is required by law to limit the amount that the interest can change at any one time or over the life of the loan. The law does not specify what these limits are. That is a matter you should negotiate with the lender. You may also want to make inquiries concerning the lending terms offered by other lenders on adjustable-payment, adjustable-rate mortgage loans to compare the terms and conditions. Another flexible feature of the adjustable-payment, adjustable-rate mortgage loan is the monthly payment. The amount of the monthly payment may be increased or decreased by the lender every six months to reflect the changes in the interest rate. State law prohibits the lender from increasing your monthly payment by more than 7.5 percent per year. There may be circumstances, however, in which you, the borrower, may want to increase the amount of your monthly payment beyond the 7.5 percent limit. This option would be available to you whenever changes in the interest rate threaten to increase the outstanding principal loan balance on the loan. A third flexible feature of the adjustable-payment, adjustable-rate mortgage loan is that the outstanding principal loan balance (the total amount you owe) may be increased from time to time. This situation, called “negative amortization,” can occur when rising interest rates make the monthly payment too small to cover the interest due on the loan. The difference between the monthly payment and the actual amount due in interest is added to the outstanding loan balance. Under the terms of this mortgage, you as a borrower would always have the option of either incurring additions to the amount you owe on the loan or voluntarily increasing your monthly payments beyond the 7.5 percent annual limit to an amount needed to pay off the rising interest costs. Continual increases in the outstanding loan balance may cause a situation in which the loan balance is not entirely paid off at the end of the 30-year loan term. If this occurs, you may elect in writing to repay the outstanding principal all at once, or with a series of fixed payments at a fixed rate of interest for up to 10 years. The final flexible feature of the adjustable-payment, adjustable-rate mortgage loan is that you may lengthen the loan term from 30 to up to 40 years. Extending the loan term will lower your monthly payment slightly less than they would have been had the loan term not been extended. II. INDEX Adjustments to the interest rate of an adjustable-payment, adjustable-rate mortgage loan must correspond directly to the movement of an index which is selected, but not controlled, by the lender. Any adjustments to the interest rate are subject to limitations provided in the loan contract. If the index moves down, the lender must reduce the interest rate by at least the decrease in the index. If the index moves up, the lender has the right to increase the interest rate by that amount. Although making such an increase is optional by the lender, you should be aware that the lender has this right and may be contractually obligated to exercise it. The index used is [Name and description of index to be used for applicant’s loan, initial index value (if known) and date of initial index value, a source or sources where the index may be readily obtained by the borrower, and the high and low index rates during the previous calendar year]. III. KEY PROVISIONS OF [Name of Institution] ADJUSTABLE-PAYMENT, ADJUSTABLE-RATE MORTGAGE LOAN The following information is a summary of the basic terms on the mortgage loan being offered to you. This summary is intended for reference purposes only. Important information relating specifically to your loan will be contained in the loan agreement. [Provide a summary of basic terms of the loan, including the loan term, the frequency of rate changes, the frequency of payment changes, the maximum rate change at any one time, the maximum rate change over the life of the loan, the maximum annual payment change, and whether additions to the principal loan balance are possible, in the following format:] LOAN TERM FREQUENCY OF RATE CHANGES FREQUENCY OF PAYMENT CHANGES IV. HOW YOUR ADJUSTABLE-PAYMENT, ADJUSTABLE-RATE MORTGAGE LOAN WOULD WORK A. INITIAL INTEREST RATE The initial interest rate offered by [Name of Institution] on your adjustable-payment, adjustable-rate mortgage loan will be established and disclosed to you on [commitment date, etc.] based on market conditions at that time. [Insert a short description of each of the key provisions of the loan to be offered to the borrower, using headings where appropriate.] B. NOTICE OF PAYMENT ADJUSTMENTS [Name of Institution] will send you notice of an adjustment to the payment amount at least 60 days before it becomes effective. [Describe what information the notice will contain.] C. PREPAYMENT PENALTY You may prepay your adjustable-payment, adjustable-rate mortgage in whole or in part without penalty at any time during the term of the loan. D. FEES You will be charged fees by [Name of Institution] and by other persons in connection with the origination of your loan. The association will give you an estimate of these fees after receiving your loan application. However, you will not be charged any costs of fees in connection with any regularly scheduled adjustment to the interest rate, the payment, the outstanding principal loan balance, or the loan term. V. EXAMPLE OF OPERATION OF YOUR ADJUSTABLE-PAYMENT, ADJUSTABLE-RATE MORTGAGE LOAN [Set out an example of the operation of the mortgage loan, including the use of a table. In at least one of the examples, create a situation showing how negative amortization could occur.] (d) At least 60 days prior to the due date of a monthly installment to be revised due to a change in the interest rate, notice shall be mailed to the borrower of the following: (1) The base index. (2) The most recently published index at the date of the change in the rate. (3) The interest rate in effect as a result of the change. (4) The amount of the unpaid principal balance. (5) If the interest scheduled to be paid on the due date exceeds the amount of the installment, a statement to that effect, including the amount of excess and extent of borrower options as described in paragraph (4) of subdivision (b). (6) The amount of the revised monthly installment. (7) The borrower’s right to prepayment under paragraph (8) of subdivision (b). (8) The address and telephone number of the office of the lender to which inquiries may be made. (e) As used in this section: (1) “Base index” means the last published index at the date of the note. (2) “Base index rate” means the interest rate initially applicable to the loan as specified in the note. (3) “Graduated Payment Adjustable Mortgage Loan” means a loan on which the monthly payments begin at a level lower than that necessary to pay off the remaining principal balance over an amortization period of not less than 30 years. During a period the length of which is fixed at loan origination (the “graduation period”), the scheduled payments gradually rise to a level sufficient to pay off the remaining principal balance over the stipulated amortization period. Limitations on the rate of increase in the scheduled payments due both to graduation and to changes in the interest rate are also fixed at loan origination. (4) “Note” means the note or other loan contract evidencing an adjustable-payment, adjustable-rate mortgage loan. (Added by Stats. 1981, Ch. 1079, Sec. 1.)
  157. 1916.8.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

    Verify source ↗

    This section lets lenders make renegotiable rate mortgage loans if the loan meets the section’s requirements, and it sets renewal, notice, disclosure, and fee 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.8. Any lender may make, purchase or participate in a renegotiable rate mortgage loan under this section if the loan complies with the provisions of this section pertaining to one- to four-family home loans. (a) For purposes of this section, a renegotiable rate mortgage loan is a loan issued for a term of three, four or five years, secured by a long-term mortgage or deed of trust of up to 30 years, and automatically renewable at equal intervals except as provided in paragraph (1) of subdivision (b). The loan must be repayable in equal monthly installments of principal and interest during the loan term, in an amount at least sufficient to amortize a loan with the same principal and at the same interest rate over the remaining term of the mortgage or deed of trust. Only one of the indices described in paragraph (1) of subdivision (b) shall be used and no other index shall be used during the term of the mortgage or deed of trust securing the loan. At renewal, no change other than in the interest rate may be made in the terms or conditions of the initial loan. Prepayment in full or in part of the loan balance secured by the mortgage or deed of trust may be made without penalty at any time after the beginning of the minimum notice period for the first renewal, or at any earlier time specified in the loan contract. (b) Interest rate changes at renewal shall be determined as follows: (1) Subject to the provisions of subdivision (a) the interest rate offered at renewal shall reflect the movement, in reference to the date of the original loan, of an index, which may be either (i) the contract interest rate on the purchase of previously occupied homes in the most recent monthly national average mortgage rate index for all major lenders published by the Federal Home Loan Bank Board, or (ii) the weighted average cost of funds for the 11th District Savings and Loan Associations as computed by the Federal Home Loan Bank of San Francisco; provided that a lender may extend the initial terms of loans for a period less than six months so that they may mature on the same date three, four or five years after the end of such period of extension, in which case the interest rate offered at renewal shall reflect the movement of the index from the end of such period so that loans may be grouped as though all loans of such group had originated at the end of the extension period. (2) The maximum rate increase or decrease shall be 1/2 of 1 percentage point per year multiplied by the number of years in the loan term, with a maximum increase or decrease of 5 percentage points over the life of the mortgage or deed of trust. The lender may offer a borrower a renegotiable rate mortgage loan with maximum annual and total interest rate decreases smaller than the maximum set out in this paragraph, except that in such a case the maximum annual and total interest rate increases offered shall not exceed the maximum annual and total decreases set out in the loan contract. (3) Interest rate decreases from the previous loan term shall be mandatory. Interest rate increases are optional with the lender, but the lender may obligate itself to a third party to take the maximum increase permitted by this paragraph. (c) The borrower may not be charged any costs or fees in connection with the renewal of such loan. (d) At least 90 days before the due date of the loan, the lender shall send written notification in the following form to the borrower: NOTICE Your loan with [name of lender], secured by a [mortgage/deed of trust] on property located at [address], is due and payable on [90 days from the date of notice]. If you do not pay by that date, your loan will be renewed automatically for ____ years, upon the same terms and conditions as the current loan, except that the interest rate will be ____%. (See accompanying Truth-In-Lending statement for further credit information.) Your monthly payment, based on that rate, will be $____, beginning with the payment due on ____, 19_. You may pay off the entire loan or a part of it without penalty at any time. If you have questions about this notice, please contact [title and telephone number of lender’s employee]. (e) An applicant for a renegotiable rate mortgage loan must be given, at the time he or she requests an application, a disclosure notice in the following form: INFORMATION ABOUT THE RENEGOTIABLE-RATE MORTGAGE You have received an application form for a renegotiable-rate mortgage (“RRM”). The RRM differs from the fixed-rate mortgage with which you may be familiar. In the fixed-rate mortgage the length of the loan and the length of the underlying mortgage are the same, but in the RRM the loan is short-term (3–5 years) and is automatically renewable for a period equal to the mortgage (up to 30 years). Therefore, instead of having an interest rate that is set at the beginning of the mortgage and remains the same, the RRM has an interest rate that may increase or decrease at each renewal of the short-term loan. This means that the amount of your monthly payment may also increase or decrease. The term of the RRM loan is ____ years, and the length of the underlying mortgage is ____ years. The initial loan term may be up to six months longer than later terms. The lender must offer to renew the loan, and the only loan provision that may be changed at renewal is the interest rate. The interest rate offered at renewal is based on changes in an index rate. The index used is (either of the following statements shall be given): [computed monthly by the Federal Home Loan Bank Board, an agency of the federal government. The index is based on the national average contract rate for all major lenders for the purchase of previously occupied, single-family homes.] [the weighted average cost of savings, borrowings and Federal Home Loan Bank advances to California members of the Federal Home Loan Bank Board of San Francisco as computed from statistics tabulated by the Federal Home Loan Bank of San Francisco. The index used is computed by the Federal Home Loan Bank of San Francisco.] At renewal, if the index has moved higher than it was at the beginning of the mortgage, the lender has the right to offer a renewal of the loan at an interest rate equaling the original interest rate plus the increase in the index rate. This is the maximum increase permitted to the lender. Although taking such an increase is optional with the lender, you should be aware that the lender has this right and may become contractually obligated to exercise it. If the index has moved down, the lender must at renewal reduce the original interest rate by the decrease in the index rate. No matter how much the index rate increases or decreases, THE LENDER, AT RENEWAL, MAY NOT INCREASE OR DECREASE THE INTEREST RATE ON YOUR RRM LOAN BY AN AMOUNT GREATER THAN ____ OF ONE PERCENTAGE POINT PER YEAR OF THE LOAN, AND THE TOTAL INCREASE OR DECREASE OVER THE LIFE OF THE MORTGAGE MAY NOT BE MORE THAN ____ PERCENTAGE POINTS. As the borrower, you have the right to decline the lender’s offer of renewal. If you decide not to renew, you will have to pay off the remaining balance of the mortgage. Even if you decide to renew, you have the right to prepay the loan in part or in full without penalty at any time after the beginning of the minimum notice period for the first renewal. To give you enough time to make this decision, the lender, 90 days before renewal, will send a notice stating the due date of the loan, the new interest rate and the monthly payment amount. If you do not respond to the notice, the loan will be automatically renewed at the new rate. You will not have to pay any fees or charges at renewal time. The maximum interest rate increase at the first renewal is ____ percentage points. On a $50,000 mortgage with a loan term of ____ years and an original interest rate of [lender’s current commitment rate] percent, this rate change would increase the monthly payment (principal and interest) from $____ to $____. Using the same example, the highest rate you might have to pay over the life of the mortgage would be ____ percent, and the lowest would be ____ percent. (Added by Stats. 1980, Ch. 1139, Sec. 2.)
  158. 1916.9.

    ## 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. )

    Verify source ↗

    A lender offering a renegotiable rate mortgage loan to an owner-occupant or intended owner-occupant must also offer a fixed-rate mortgage loan of the same amount with a term of at least 29 years.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3. Loan of Money [1912 - 1916.12] ( Chapter 3 enacted 1872. ) ## 1916.9. (a) Every lender who offers a renegotiable rate mortgage loan pursuant to Section 1916.8 to a borrower who occupies or intends to occupy the property which is security for the loan shall also offer to such borrower a fixed rate mortgage loan in the same amount with a term of at least 29 years. (b) Nothing in this section shall require that the terms of such alternative loans, including the rates of interest thereon, must be the same as those terms offered with regard to the fixed-payment adjustable-rate loan or the renegotiable rate mortgage loan also offered. (c) This section does not apply to any lender who makes less than 10 loans per year. (Added by Stats. 1980, Ch. 1139, Sec. 3.)
  159. 1917.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    This section defines “contingent deferred interest” and “shared appreciation loan,” including a housing-use 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917. For purposes of this chapter: (a) “Contingent deferred interest” means the sum a borrower is obligated to pay to a lender pursuant to the documentation of a shared appreciation loan as a share of (1) the appreciation in the value of the security property (2) rents and profits attributable to the subject property, or (3) both. (b) A “shared appreciation loan” means any loan made upon the security of an interest in real property which additionally obligates the borrower to pay to the lender contingent deferred interest pursuant to the loan documentation. “Shared appreciation loan” does not include any loan made upon the security of an interest in 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. (Added by Stats. 1987, Ch. 652, Sec. 1.)
  160. 1917.001.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    In a shared appreciation loan, the borrower-lender relationship is treated as debtor-creditor, not as a joint venture, equity venture, partnership, or similar relationship.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.001. The relationship of the borrower and the lender in a shared appreciation loan transaction is that of debtor and creditor and shall not be, or be construed to be, a joint venture, equity venture, partnership, or other relationship. (Added by Stats. 1987, Ch. 652, Sec. 1.)
  161. 1917.002.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    A shared appreciation loan is not subject to certain state rules that limit interest rates or require specific security-instrument language, except where Chapter 4 or Chapter 7 specifically 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.002. A shared appreciation loan shall not be subject to any provisions of this code or the Financial Code which limits the interest rate or change of interest rate of variable, adjustable, or renegotiable interest instruments, or which requires particular language or provisions in security instruments securing variable, adjustable, or renegotiable rate obligations or in evidences of such debts except for those specifically imposed by Chapter 4 (commencing with Section 1917.010) or Chapter 7 (commencing with Section 1917.320) for loans subject to those chapters. This section is declaratory of existing law. (Added by Stats. 1987, Ch. 652, Sec. 1.)
  162. 1917.003.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    A deed of trust securing a shared appreciation loan must cover the loan principal and all interest, including contingent deferred 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.003. The lien or liens of a deed or deeds of trust securing a shared appreciation loan shall include and secure the principal amount of the shared appreciation loan, and all interest, whether accrued or to be accrued, including all amounts of contingent deferred interest. (Amended by Stats. 1989, Ch. 1416, Sec. 5.)
  163. 1917.004.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    A deed of trust securing a shared appreciation loan must state that it secures that kind of loan.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.004. (a) The lien of a shared appreciation loan, including the principle amount and all interest, whether accrued or to be accrued, and all amounts of contingent deferred interest, shall attach from the time of the recordation of the deed of trust securing the loan, and the lien, including the lien of the interest accrued, or to be accrued, and of the contingent deferred interest, shall have priority over any other lien or encumbrance affecting the property encumbered by the shared appreciation deed of trust which is recorded after the time of recordation of the shared appreciation deed of trust. Nothing in this section shall preclude a junior or subordinate lien to the deed of trust securing the shared appreciation loan. (b) Any deed of trust that acts as security for a shared appreciation loan shall indicate on the document that the deed of trust secures a shared appreciation loan. (Added by Stats. 1987, Ch. 652, Sec. 1.)
  164. 1917.005.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    Lenders are exempt from the California constitutional usury provisions for shared appreciation loan transactions.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.005. Lenders shall be exempt from the usury provisions of Article XV of the California Constitution with respect to shared appreciation loan transactions. This section is declaratory of existing law. (Added by Stats. 1987, Ch. 652, Sec. 1.)
  165. 1917.006.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. )

    Verify source ↗

    This section defines “shared appreciation loan,” “local public entity,” and “owner-occupied residence,” and requires at least 30 days’ advance disclosure before loan documentation is signed.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 3.5. Shared Appreciation Loans [1917 - 1917.006] ( Chapter 3.5 added by Stats. 1987, Ch. 652, Sec. 1. ) ## 1917.006. For purposes of this chapter: (a) “Shared appreciation loan” means, in addition to the meaning defined in Section 1917, a loan that obligates the borrower to pay to the lender contingent deferred interest pursuant to the loan documentation and that is made upon the security of an interest in real property that is an owner-occupied residence in compliance with all of the following conditions: (1) The loan is made by, and all contingent deferred interest paid with respect to the loan is used by, a local public entity to provide financial assistance in the acquisition of housing that is affordable to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. (2) The loan is made or acquired with assets of the local public entity other than the proceeds of a bond meeting the requirements of Section 143 of the United States Internal Revenue Code of 1986. (3) The loan documentation assures that the obligation to pay contingent deferred interest is subject to a superior right of the borrower, upon termination of the loan, to receive repayment of money paid by the borrower for purchase of the security property (including downpayment, installment payments of mortgage principal, escrow fees, transfer taxes, recording fees, brokerage commissions and similar costs of acquisition actually paid by the borrower) and money paid by the borrower for capital improvements to the security property, plus not less than the legal rate of interest on those cash payments. (4) The loan documentation assures that the amount of contingent deferred interest shall not exceed that percentage of the appreciation in appraised fair market value of the security property that equals the local public entity’s proportionate share of the total initial equity in the security property. The amount of the total initial equity and of the local public entity’s share of the initial equity shall be agreed upon by the borrower and the local public entity at the time of executing the shared appreciation loan and shall include the local public entity’s cash investment, the difference between the price of land provided by the local public entity and the fair market value of the land, the amount of fees waived by the local public entity, and the value of in-kind contributions made by or on behalf of the local public entity. Funds borrowed by the borrower, the repayment of which are secured by the security property, shall not be included in the calculation of total initial equity of the borrower. (5) At least 30 days in advance of executing the loan documentation, the borrower receives full disclosure of the terms and conditions of the loan, including the economic consequences to the borrower of the obligation to pay contingent deferred interest. (b) “Local public entity” means a city and county, or a housing authority or redevelopment agency of a city and county. (c) “Owner-occupied residence” means 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. (Added by Stats. 1990, Ch. 1606, Sec. 1.)
  166. 1917.010.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 1. Legislative Findings and Declarations [1917.010- 1917.010.] ( Article 1 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    The Legislature states findings supporting shared appreciation loans for pension fund lenders as a way to help provide affordable housing and develop alternative mortgage financing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 1. Legislative Findings and Declarations [1917.010- 1917.010.] ( Article 1 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.010. The Legislature hereby finds and declares that: (a) It is necessary and essential that the state provide and promote alternative means of supplying affordable housing to the citizens of the state. (b) High interest rates have caused payment schedules for new long-term, fixed-rate and adjustable-rate mortgages to exceed affordable levels for the vast majority of the state’s households. (c) Because of current economic conditions, including high and volatile interest rates, alternative mortgage instruments must be developed to supplement the standard long-term, fixed-rate mortgage. (d) Because the interest to which the lender is entitled under a shared appreciation mortgage includes a share of the appreciated value of the property securing the loan, the periodic payments under a shared appreciation mortgage are lower and, therefore, more affordable to borrowers than under a mortgage in which the lender’s interest does not include a share of the appreciated value of the property. State authorization of the shared appreciation loan for pension fund lenders will serve the need to develop alternative and more affordable means of financing the construction of new housing and the subsequent marketing of new homes, and to create vitally needed jobs in the construction industry. (e) Pension funds may find shared appreciation loans suited to their investment needs since yields are keyed to appreciation in property values, which may serve as a hedge against inflation. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  167. 1917.020.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 2. Definitions [1917.020- 1917.020.] ( Article 2 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    This section defines key terms used in the shared appreciation loan 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 2. Definitions [1917.020- 1917.020.] ( Article 2 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.020. For purposes of this chapter: (a) “Adjusted fair market value” means all of the following: (1) The net sale price, in the case of a bona fide sale made in good faith prior to the maturity date of the shared appreciation loan, but excluding any sale upon a foreclosure or trustee’s sale pursuant to Section 726 of the Code of Civil Procedure or Section 2924. (2) In all other cases, the amount of value of the property specified in the most recent annual appraisal performed pursuant to Section 1917.040 or 1917.042. (b) “Borrower’s cost of the property” means the total cost to the borrower incident to the purchase of the property, including documentary transfer taxes, escrow and recording fees, and title insurance premiums. (c) “Contingent deferred interest” means the sum resulting upon multiplying the net appreciated value by one-third. (d) “Cost of capital improvements” means the amount of the credit, if any, determined pursuant to Article 5 (commencing with Section 1917.050). (e) “Lender” means any person who makes a shared appreciation loan on behalf of a pension fund specified in Section 1917.030. Subsequent to an assignment of a shared appreciation loan to a pension fund pursuant to Section 1917.030, “lender” shall mean the pension fund assignee (or any subsequent assignee) and its agents designated to service the shared appreciation loan. (f) “Net appreciated value” means the adjusted fair market value less the sum of the borrower’s cost of the property and the cost of capital improvements. (g) “Net sale price” means the gross sale price less expenses of sale actually paid by the borrower, including real estate commissions, advertising, documentary transfer taxes, legal, escrow and recording fees, and title insurance premiums. (h) “Prevailing rate” means the weighted average yield accepted by the Federal National Mortgage Association in its most recent free market system auction for four-month conventional mortgage commitments or, if the Federal National Mortgage Association alters its free market system auction, then the system which is adopted by the Federal National Mortgage Association which substantially replaces or supersedes the present free market system auction for four-month commitments, or if no auction or equivalent thereof has been conducted within the six months immediately preceding the date the application for a shared appreciation mortgage loan is executed, the weighted average cost of funds for the 11th District Savings and Loan Associations as computed by the Federal Home Loan Bank of San Francisco. (i) “Shared appreciation loan” means any loan made pursuant to this chapter upon the security of owner-occupied real property of a type specified in Section 1917.030, and in connection with which the lender has a right to receive a share of the appreciation in the value of the security property. “Shared appreciation loan” includes a deed of trust and any evidence of debt issued in connection with the loan. (Amended by Stats. 1984, Ch. 1267, Sec. 1. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  168. 1917.030.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    Lenders may make shared appreciation loans for certain real property purchases, but the loans must finance only owner-occupied dwelling units, with a limited exception for two- to four-unit dwellings. The borrower must certify in writing that the property will be the principal residence, and the lender may accelerate the loan if that does not happen.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.030. Lenders may make shared appreciation loans pursuant to this chapter for the purchase of real property improved with one- to four-family dwelling units, including structures ancillary to such dwelling units and including attached single-family dwelling units, single-family mobilehome units placed upon permanent foundations, residential condominium units and dwelling units within a planned unit development. Shared appreciation loans shall be made to finance only owner-occupied dwelling units, but in the case of two- to four-unit dwellings financed under this chapter only one of the units need be owner-occupied. The original recipient of a shared appreciation loan shall certify in writing to the lender that he or she will occupy the security property as his or her principal residence, provided that failure to so occupy the security property shall not void a shared appreciation loan, but at the option of the lender the loan may be accelerated in accordance with the terms and conditions provided in the shared appreciation loan. All shared appreciation loans shall be originated by the lender on behalf of a pension fund which is subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829), pursuant to a prior written commitment to purchase the loan. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  169. 1917.031.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A shared appreciation loan must meet specified term, repayment, security, interest, and deferred-interest terms.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.031. A shared appreciation loan shall include the following terms and conditions: (a) The term of the loan, excluding refinancing under Section 1917.033, shall be at least seven years, but not more than 30 years. (b) The repayment schedule for the loan, excluding refinancing under Section 1917.033, shall be cast so that full amortization of the principal amount of the loan would occur in 30 years, regardless of the actual term of the loan. Any principal balance remaining at maturity shall be due and payable at that time, unless refinanced as provided in Section 1917.033. Monthly installment payments shall be equal in amount and in addition to amortization of principal, shall include fixed interest pursuant to subdivision (d). (c) The loan shall be secured by a deed of trust or mortgage on the real property financed. (d) The loan shall bear interest at a fixed rate, which shall be one-third below the prevailing rate in effect 90 days prior to the loan closing, or at another date between that date and the loan closing if mutually agreed by the lender and borrower. (e) The borrower shall additionally be obligated to pay contingent deferred interest in the amount of one-third of the net appreciated value of the real property which secures the loan, at the time the property is sold (including a sale pursuant to a land sale contract), when title is transferred, other than a transfer specified in Section 2924.6, when a lease with an option to purchase is entered into, when a partnership is formed which in effect transfers the beneficial ownership to another person, when a trust is created which affects title to the property, upon a judicial or nonjudicial foreclosure sale, at the time the loan is prepaid in full, or upon the maturity of the loan, whichever first occurs. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  170. 1917.032.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A borrower may prepay a shared appreciation loan at any time, in whole or in part, and may agree in writing to a prepayment charge within five years of execution. A charge cannot exceed the amount authorized by Section 2954.9(b), and no charge may be imposed on contingent deferred 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.032. (a) The borrower shall have the right to prepay, at any time, in full or in part, the principal loan balance of the shared appreciation loan, together with accrued interest, including deferred contingent interest. (b) Nothing in this chapter shall prevent a borrower from obligating himself or herself, by an agreement in writing, to pay a prepayment charge, as authorized by this section, upon prepayment of the loan, in full or in part, within five years of the date of execution of the shared appreciation loan. (c) Any prepayment charge imposed upon the prepayment of a shared appreciation loan shall not exceed the amount authorized and specified in subdivision (b) of Section 2954.9. (d) No prepayment charge shall be imposed as to any portion of the contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  171. 1917.033.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    If a shared appreciation loan is not prepaid or the property is not sold or transferred before maturity, the lender must offer the original borrower refinancing.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.033. (a) If the shared appreciation loan is not prepaid in full or the real property securing the loan is not sold or transferred prior to maturity of the loan, the lender shall offer to the original borrower refinancing of the unpaid balance of the loan and all contingent deferred interest. (b) The term of the refinancing loan shall be at least 30 years from the date of the refinancing, provided that if the interest rate of the refinancing loan is not adjustable or variable during the term of such loan, the loan may contain a call provision giving the lender an option to accelerate the principal loan balance making it, together with accrued interest, payable in full at a date specified in the shared appreciation loan, which shall be no earlier than seven years following the date of refinancing under this section. If such a call provision is included in the refinancing loan, a concise description thereof shall be included in upper case print in the disclosures on refinancing required by Section 1917.071. (c) The interest rate for the refinancing loan shall not exceed the prevailing rate existing at maturity of the shared appreciation loan. (d) The lender may require as a condition of the refinancing loan that it be secured by a deed of trust or mortgage of first priority on the property financed. (e) The terms and conditions of refinancing pursuant to this section shall be specified in the shared appreciation loan, shall be a part of the shared appreciation loan contract, and shall be subject to the applicable laws in effect on the date of execution of the shared appreciation loan. The refinancing shall be fully amortizing and the interest rate may be either fixed or adjustable as permitted by law for home financing offered by banks or savings and loan associations doing business in this state to the public for financing housing similar to the borrower’s property, provided that nothing in this section shall preclude such other lawful refinancing terms as may be mutually acceptable to the borrower and lender. If the lender offers more than one form of refinancing, the borrower may select from among the types of refinancing offered by the lender. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  172. 1917.034.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    The borrower may obtain other financing instead of the refinancing described in Section 1917.033, including refinancing on mutually agreeable terms with the lender.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 3. Terms and Conditions [1917.030 - 1917.034] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.034. Nothing in this chapter shall preclude the borrower from obtaining any other financing, in lieu of the refinancing provided for in Section 1917.033, including refinancing on other terms that are mutually agreeable to the borrower and lender. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  173. 1917.040.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    For shared appreciation loans, the lender must arrange an annual appraisal and send the appraisal copy and notice to the borrower on time.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.040. The fair market value of the real property securing a shared appreciation loan shall be determined annually as provided in this article. The lender shall select an independent appraiser annually to perform an appraisal of the property subject to a shared appreciation loan. The appraisal shall be performed within 30 days preceding the anniversary date of the loan and a copy of the current appraisal shall be sent by first-class mail to the borrower no later than five days following the anniversary date of the loan, together with a notice informing the borrower that the appraisal will constitute a final and conclusive determination of the value of the property for certain purposes and that if the borrower disputes the amount of the appraisal, the borrower may procure an independent appraisal as provided in Section 1917.041. The lender may require the borrower to pay for the cost of the appraisal. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  174. 1917.041.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    If the borrower disputes the appraisal amount, the borrower may get a new appraisal within 30 days of the loan’s anniversary date and must send a copy to the lender by first-class mail within that period.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.041. If the borrower disputes the amount of the appraisal, the borrower, within 30 days of the anniversary date of the loan, may procure an appraisal of the property at the borrower’s expense by a qualified independent appraiser, and a copy of the appraisal shall be sent by first-class mail to the lender within the 30-day period. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  175. 1917.042.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    If the borrower’s appraiser gives a lower appraisal than the lender’s appraiser, the annual adjustment amount is based on half of the two appraisals added 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.042. If the appraisal by the appraiser selected by the borrower is lower in amount than the appraisal by the appraiser selected by the lender, the amount to be used to calculate the annual adjustment shall be one-half of the sum of the two appraisals. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  176. 1917.043.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    The appraisal amount is treated as the property’s value for determining adjusted fair market value under Section 1917.020.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.043. The appraisal amount, as determined pursuant to Section 1917.040 if the borrower does not dispute the appraisal amount, or 1917.042 if the borrower disputes the appraisal amount, shall constitute the value of the property from and after the anniversary date of the loan for the purpose of determining the property’s adjusted fair market value under Section 1917.020. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  177. 1917.044.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    The loan terms may specify the qualifications of the appraisers for this article and Article 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 4. Annual Appraisals [1917.040 - 1917.044] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.044. The qualifications of the appraisers may be specified by the terms of the shared appreciation loan for purposes of this article and Article 5 (commencing with Section 1917.050). (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  178. 1917.050.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 5. Improvements [1917.050- 1917.050.] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    This section lets a borrower add certain capital-improvement costs to the property cost if article procedures are followed.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 5. Improvements [1917.050- 1917.050.] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.050. The borrower may have the cost of capital improvements to the security property completed within any 12-month period, and with an appraised value in excess of two thousand five hundred dollars ($2,500), added to the borrower’s cost of the property, for purposes of determining the contingent deferred interest, but only if the procedures set forth in this article are followed. (a) Within 60 days following the completion of the improvements, the borrower shall send by first-class mail a notice of the completion of the improvements to the lender and shall submit proof of cost of the improvements. (b) Within 90 days following the completion of the improvements, the lender shall select an appraiser to perform an appraisal to determine the increase in value of the property, if any, by reason of the improvements. A copy of the appraisal shall be sent by first-class mail to the borrower, together with a notice informing the borrower that the appraisal will constitute a final and conclusive determination of the increase in the value of the property by reason of the improvement for purposes of computing the net appreciated value of the property, and that if the borrower disputes the amount of the appraisal, the borrower may procure an independent appraisal as provided in subdivision (c). The lender may require the borrower to pay for the cost of the appraisal. (c) If the borrower disputes the amount of the appraisal, the borrower, within 120 days of the completion of the improvements, may secure at borrower’s expense, a qualified, independent appraiser to perform an appraisal to determine the increase in value of the property, if any, by reason of the improvements, and a copy of the appraisal shall be sent by first-class mail to the lender within that period of time. (d) If the appraisal of the appraiser selected by the borrower is greater in amount than the appraisal by the appraiser selected by the lender, the amount of the appraisal, for the purposes of this section, shall be one-half of the sum of the two appraisals. (e) The lesser of the borrower’s actual cost or the appraised increase in the value of the property by reason of the improvements shall be available as a credit to the buyer for purposes of determining net appreciated value, except as provided in subdivision (f). (f) If 50 percent or more of the value of the labor or other work on the improvements was performed by the borrower, then the appraised increase in the value of the property by reason of the improvements shall be the cost of capital improvements for purposes of establishing the credit under this section. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  179. 1917.060.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A shared appreciation loan relationship between borrower and lender is treated as debtor and creditor, not as a joint venture, equity venture, partnership, or similar relationship.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.060. The relationship of the borrower and the lender, as to a shared appreciation loan, is that of debtor and creditor and shall not be, or be construed to be, a joint venture, equity venture, partnership, or other relationship. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  180. 1917.061.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A waiver of a borrower’s rights under this chapter is void and unenforceable.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.061. Any waiver of any right of a borrower under the provisions of this chapter shall be void and unenforceable. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  181. 1917.062.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A shared appreciation loan may include a clause allowing the lender to accelerate the loan when the property is sold or transferred, unless Section 2924.6 blocks 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.062. (a) Notwithstanding Section 711, a provision in a shared appreciation loan (not including the refinancing obligation) permitting the lender to accelerate the maturity date of the principal and accrued interest on the loan upon a sale or other transfer of the property, as specified in subdivision (e) of Section 1917.031, shall be valid and enforceable against the borrower, except as may be precluded by Section 2924.6. (b) The Legislature finds and declares that potential exposure to liability for enforcement of a “due-on-sale” clause consistent with Section 711, as interpreted by the courts, makes use of such a provision impractical. Moreover, the additional risks to the lender inherent in shared appreciation financing are greater with longer loan terms (which are more desirable from the standpoint of housing affordability), but this risk is reduced with an enforceable “due-on-sale” clause. Therefore, in order to facilitate shared appreciation financing, it is necessary to establish the exception specified in subdivision (a). (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  182. 1917.063.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    This chapter is meant to facilitate shared appreciation financing in California, and loan terms must be consistent with the 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.063. This chapter facilitates the making of shared appreciation financing in this state which conforms to the provisions of this chapter. The terms and conditions of any shared appreciation loan made pursuant to this chapter shall be consistent with this chapter. This chapter does not, however, apply to or limit shared appreciation financing of real property of a type specified in Section 1917.030 that is made pursuant to other provisions of law, or which is not otherwise unlawful. Nothing in this chapter shall be construed to in any way affect shared appreciation financing of commercial property or residential property not meeting the criteria specified in Section 1917.030. Nothing in this chapter precludes a pension fund specified in Section 1917.030 from providing shared appreciation financing pursuant to Chapter 5 (commencing with Section 1917.110) or any other provision of law, or which is not otherwise unlawful. (Repealed and added by Stats. 1982, Ch. 1346, Sec. 5. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  183. 1917.064.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A shared appreciation loan is exempt from provisions that cap or change interest rates for certain variable-rate instruments and from provisions requiring specific language in related security 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.064. A shared appreciation loan shall not be subject to any provision of this code or the Financial Code which limits the interest rate or change of interest rate of variable, adjustable, or renegotiable interest instruments, or which requires particular language or provisions in security instruments securing variable, adjustable, or renegotiable rate obligations or in evidences of such debts. This section is declaratory of existing law. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  184. 1917.065.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A deed of trust securing a shared appreciation loan must secure the loan principal and all interest, including contingent deferred 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.065. The lien of a deed of trust securing a shared appreciation loan shall include and secure the principal amount of the shared appreciation loan, and all interest, whether accrued or to be accrued, including all amounts of contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  185. 1917.066.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    A shared appreciation loan lien attaches when the deed of trust is recorded and has priority over later-recorded liens or encumbrances on the secured 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.066. The lien of a shared appreciation loan, including the principal amount and all interest, whether accrued or to be accrued, and all amounts of contingent deferred interest, shall attach from the time of the recordation of the deed of trust securing the loan, and the lien, including the lien of the interest accrued or to be accrued and of the contingent deferred interest, shall have priority over any other lien or encumbrance affecting the property secured by the shared appreciation instrument which is recorded after the time of recordation of the shared appreciation instrument. However, nothing in this section or Section 1917.165 shall preclude a junior lien or encumbrance subordinate to the obligation of the shared appreciation loan. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  186. 1917.067.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    Lenders are exempt from California constitutional usury limits for shared appreciation loans made under 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.067. Lenders shall be exempt from the usury provisions of Article XV of the California Constitution with respect to shared appreciation loans made pursuant to this chapter. This section is declaratory of existing law. (Amended by Stats. 1983, Ch. 557, Sec. 1. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  187. 1917.068.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    This section says certain Corporations Code qualification requirements do not apply to a shared appreciation loan if the listed note, deed of trust, and ownership-structure 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.068. The qualification requirements of Sections 25110, 25120, and 25130 of the Corporations Code shall not apply to a shared appreciation loan, provided (1) the loan obligation is evidenced by one promissory note secured by a deed of trust which is not one of a series of notes secured by interests in the same real property and (2) the loan obligation is not evidenced by fractional undivided interests in one promissory note secured by interests in the same real property. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  188. 1917.069.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    Fees charged to a borrower for processing and loan documents must not exceed the reasonable cost of providing the service, and no prepaid interest may be charged to the borrower.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 6. General Provisions [1917.060 - 1917.069] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.069. The aggregate amount of any fee charged to the borrower for processing an application and preparing any necessary documents in connection with originating a shared appreciation loan shall not exceed the reasonable cost of providing the service. No prepaid interest shall be charged to the borrower, but nothing in this chapter shall preclude a lender from requiring a fee for providing commitments for shared appreciation loans to builders or others who will not be the ultimate borrower. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  189. 1917.070.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    For shared appreciation loans, the chapter’s required disclosures are the only state-law disclosures required, and a lender may add extra disclosures if they are not inconsistent.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.070. (a) The disclosures made pursuant to this chapter, as required, shall be the only disclosures required to be made pursuant to state law for shared appreciation loans, notwithstanding any contrary provisions applicable to loans not made under this chapter, except those, if any, that may be required by reason of the application of Division 1 (commencing with Section 25000) of the Corporations Code, or Chapter 1 (commencing with Section 11000) of Part 2 of Division 4 of the Business and Professions Code. A lender may, but shall not be required to, supplement the disclosures required by this article with additional disclosures that are not inconsistent with the disclosures required by this article. (b) When very specific language is prescribed by this chapter, substantially the same language shall be utilized if possible, but reasonably equivalent language may be used to the extent necessary or appropriate to achieve a clearer or more accurate disclosure. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  190. 1917.071.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

    Verify source ↗

    Lenders offering shared appreciation loans must give a written disclosure to a prospective borrower by the earlier of first written information or a loan application form.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.071. (a) Each lender offering shared appreciation loans shall furnish to a prospective borrower, on the earlier of the date on which the lender first provides written information concerning shared appreciation loans from such lender or provides a loan application form to the prospective borrower, a written disclosure as provided in this section. (b) The disclosure shall be entitled “INFORMATION ABOUT THE (Name of Lender) SHARED APPRECIATION LOAN,” and shall describe the operation and effect of the shared appreciation loan including a brief summary of its terms and conditions, together with a statement consisting of substantially the following language, to the extent applicable to such loan: INFORMATION ABOUT THE [Name of Lender] SHARED APPRECIATION LOAN (Name of Lender) is pleased to offer you the opportunity to finance your home through a shared appreciation loan. Because the shared appreciation loan differs from the usual mortgage loan, the law requires that you should read and understand before you sign the loan documents. The loan will bear a stated rate of interest which will be one-third below the prevailing market interest rate. In exchange for a stated interest rate which is below the prevailing rate, you will be obligated to pay us additional interest later. This additional interest is called “contingent deferred interest.” Contingent Deferred Interest This loan provides that you, as borrower, must pay to us, as lender, as contingent deferred interest, one-third of the net appreciated value of the real property which secures the loan. This contingent interest is due and payable when the property is sold or transferred, when the loan is paid in full, upon any acceleration of the loan upon default, or at the end of the term of the loan, whichever first occurs. The dollar amount of contingent interest which you will be required to pay cannot be determined at this time. If the property does not appreciate, you will owe us nothing. Your obligation to pay contingent interest will reduce the amount of the appreciation, if any, that you will realize on the property. This appreciation will not produce a real gain in your equity in the property, unless the appreciation rate exceeds the general inflation rate, but you will be required to pay a portion of the appreciation as contingent interest without regard to whether the appreciation has resulted in a real gain. When you sell or refinance your home, you normally will receive enough cash to pay the shared appreciation loan balance, accrued interest, prepayment penalty (if applicable), the contingent interest, and expenses of sale. However, if you sell with only a small downpayment, you may possibly not receive enough cash to pay the contingent interest, and, in that event, it will be necessary for you to provide cash from other funds. If you do not sell the property before the end of the term of this loan, you will need to refinance this loan at that time. The term of this loan is (duration) years. We will offer to refinance the outstanding obligation, including any contingent interest, at that time. If you refinance this loan, your monthly payments may increase substantially if the property appreciates significantly or if the interest rate on the refinancing loan is much higher than today’s prevailing rates. In general, the more your property appreciated, the larger will be the amount of the contingent interest that you will have an obligation to pay or refinance. The contingent interest will not become due if title to the property is transferred on your death to a spouse, or where a transfer results from a decree of dissolution of a marriage and a spouse becomes the sole owner. Calculating the Contingent Interest Contingent interest will be calculated as follows: FAIR MARKET VALUE OF THE PROPERTY (Sale price or amount of value determined by appraisal.) –(less) BORROWER’S COST OF THE PROPERTY (This amount includes certain costs paid by you incident to the purchase.) –(less) COST OF CAPITAL IMPROVEMENTS MADE BY YOU IN ANY 12-MONTH PERIOD (Must exceed $2,500 in value. The actual amount may be the lesser of actual cost or appraised value.) _(equals) NET APPRECIATED VALUE ×(times) ONE-THIRD PERCENTAGE OWED TO LENDER _(equals) TOTAL CONTINGENT INTEREST Determining Net Appreciated Value We are entitled to receive one-third of the net appreciated value of the property as contingent interest. As explained above, net appreciated value equals (1) the fair market value of the property at the time of the sale or appraisal, less (2) your cost of the property, less (3) the value of any capital improvements for which you are entitled to credit. Determining Fair Market Value Fair market value is the sale price of the property in the case of a bona fide sale of the property made before the maturity of the shared appreciation loan, excluding certain foreclosure related sales. In all other cases, fair market value is determined by our most recent annual appraisal of the property. If you desire to contest the amount of our annual appraisal, you may obtain another appraisal by a qualified independent appraiser within 30 days after the anniversary date of the loan and send a copy of the appraisal to us by first-class mail within that 30-day period. If your appraiser’s appraisal is lower than our appraisal, the annual appraisal shall equal one-half the sum of the two appraisals. Determining Value of Capital Improvements The cost or value of certain capital improvements (but no maintenance or repair costs) may be added to your cost of the property for the purpose of determining the net appreciated value, but only if the procedures set forth in the shared appreciation loan documents are followed. It is important to note that capital improvements completed and for which a credit is claimed in any 12-month period must cost or be appraised at more than two thousand five hundred dollars ($2,500). The lesser of the cost or appraised value will control. However, if you have performed at least half the value of the labor or other work involved, then the appraised value of the improvements will control. The appraised value of the improvements shall be considered to be the increase in the value of the property resulting from the improvements. You will receive no credit for improvements that are not appraised at more than two thousand five hundred dollars ($2,500). Cost of Appraisals The terms of this loan call for annual appraisals of the property, and for additional appraisals to value improvements or in the event of a dispute regarding the value of the property or improvements. The cost of the appraisals will be paid as follows: Your Right to Refinance This Loan If the property is not sold or transferred prior to the maturity of the loan, we will offer to refinance the outstanding obligation on the loan, including any contingent interest. We will offer refinancing at the then prevailing interest rate either directly or through another mortgage lender. The terms of the refinancing loan will be like home loans offered at that time by banks or savings and loan associations, but you are assured that at least one of the options will be a fully amortizing 30-year loan. The interest rate on the refinancing loan may be either fixed or adjustable, as provided in your shared appreciation loan. We will not be permitted to look to the forecast of your income in offering to refinance. The interest rate and monthly payment upon refinancing cannot be determined at this time. They may be either more or less burdensome to you than the currently prevailing rates and terms. Tax Consequences Use of the shared appreciation loan will have income tax or estate planning consequences which will depend upon your own financial and tax situation. FOR FURTHER INFORMATION, YOU ARE URGED TO CONSULT YOUR OWN ACCOUNTANT, ATTORNEY OR OTHER FINANCIAL ADVISER. THE QUESTIONS YOU SHOULD DISCUSS INCLUDE THE TAX DEDUCTIBILITY OF THE CONTINGENT INTEREST PAYMENT, YOUR RIGHT TO UTILIZE THAT DEDUCTION IN YEARS OTHER THAN THE YEAR IT IS PAID, AND THE EFFECT OF THE LOSS OF TAX BENEFITS BEFORE THAT TIME. Other Important Information (Here insert additional description, if necessary, of the operation and effect of the shared appreciation loan. The foregoing describes our shared appreciation loan, includes a summary of all of its important provisions, and informs you of some of the risks of a shared appreciation loan. If your loan application is accepted by us, we will provide you with more information about your particular shared appreciation loan, which will include a comparison with conventional mortgages, an illustration of the possible increase in your monthly payments upon refinancing, and other important information. Before you enter into a shared appreciation loan with us, we recommend that you and your attorney or tax accountant review the loan documents for the full text of all of the terms and conditions which will govern the loan. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  191. 1917.072.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

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    A lender making a shared appreciation loan must give the borrower specified Regulation Z disclosures before the loan is 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.072. (a) Each lender making a shared appreciation loan shall also furnish to the prospective borrower, prior to the consummation of the loan, the disclosures required by Subpart C of Federal Reserve Board Regulation Z (12 CFR Part 226), including 12 CFR Section 226.18(f), to the extent applicable to the transaction. (b) The disclosure made pursuant to paragraph (a) and Regulation Z shall be based on the fixed interest rate of the shared appreciation loan, and shall include a description of the shared appreciation feature, including (1) the conditions for its imposition, the time at which it would be collected, and the limitations on the lender’s share, as required by the Federal Reserve Board in the information published by the Board at 46 Federal Register 20877 and 20878 (April 7, 1981), and (2) the lender’s share of the net appreciated value and the prevailing interest rate as defined in Section 1917.120(h). (c) The disclosure made pursuant to paragraph (a) and Regulation Z shall be accompanied by (1) one or more transaction-specific examples of the operation and effect the shared appreciation loan, and (2) the following charts, comparing the shared appreciation loan and a conventional loan made at the prevailing interest rate, and illustrating the possible increase in the monthly payments, and the possible annual percentage rate of finance charge, on the assumptions therein stated: Chart 1 CONVENTIONAL MORTGAGE AT ____% If the same loan balance were financed under a conventional, 30-year, fixed-rate, level-payment mortgage, your monthly payments would be: Years 1–30 $_______/mo. Chart 2 IF YOU REFINANCE THIS TRANSACTION AT ___% If your property appreciates at 10% per year, and if your loan balance (including contingent deferred interest due) at the end of __ years is refinanced at __% (the prevailing market interest rate now), your monthly payments will be: Years 1–__ _____ Refinancing loan $_______/mo. _____ $_______/mo.* * Refinancing loan, assuming a conventional, 30-year, fixed-rate, level-payment mortgage. Other mortgage instruments, e.g., graduated-payment or shared appreciation, if available, may result in lower payments. Chart 3 APR IF PROPERTY APPRECIATES AT 10% If your property appreciates at 10% per year, the total finance charge on your shared appreciation loan (including contingent interest) will equal $____, and the annual percentage rate of the total finance charge (including contingent interest) will equal ____%. (d) The disclosures required by paragraph (c) shall be separated from the disclosures required by Regulation Z, and may be presented in the document containing the disclosures required by Regulation Z or in one or more separate documents. (e) Except to the extent that this section requires disclosure of additional information not required by Regulation Z, compliance with the applicable credit disclosure requirements of Regulation Z shall constitute compliance with the requirements of this section. (f) The disclosures prescribed in Section 1917.171 shall be physically attached to the disclosures required by this section and Regulation Z at the time such disclosures are furnished to the borrower. (g) In the event federal law is amended so that this section is inconsistent therewith, the federal law shall prevail as to the disclosures required by this section. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  192. 1917.073.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

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    A lender making a shared appreciation loan must give the prospective borrower a statement with the listed loan information before the loan is 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.073. Each lender making a shared appreciation loan shall additionally furnish to the prospective borrower, prior to the consummation of the loan, a statement containing the following information: IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN You are being offered a shared appreciation loan. Before you decide to accept this loan read this statement, which is designed to provide important information that you should consider. 1. Prevailing interest rate: __%. 2. Fixed interest rate on this loan: __%. 3. Lender’s share of net appreciated value: one-third. 4. Amount of this loan: $__. 5. Amount of the monthly payments: $__. 6. Term of this loan: __ years. 7. Amortization period on which payments are calculated: 30 years. 8. Prepayment penalty (if any) __. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  193. 1917.074.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

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    Documents connected to a shared appreciation loan must include a bold disclosure statement, and the notice must be filled in to state the loan term.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.074. Each deed of trust and evidence of debt executed in connection with a shared appreciation loan shall contain a statement, printed or written in a size equal to at least 12-point bold type, consisting of substantially the following language: “THIS IS A [DURATION] SHARED APPRECIATION LOAN. THE LENDER'S INTEREST INCLUDES ONE-THIRD OF THE NET APPRECIATED VALUE OF THE PROPERTY. FOR FURTHER INFORMATION, READ THE FLYER "INFORMATION ABOUT THE [NAME OF LENDER] SHARED APPRECIATION LOAN.' " The notice required by this section shall be completed to state the term of the shared appreciation loan. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  194. 1917.075.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. )

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    If the lender must disclose interest due under a shared appreciation loan and the contingent deferred interest amount is unknown, the lender may disclose that fact and explain how the contingent deferred interest is calculated.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 4. Shared Appreciation Loans of E.R.I.S.A. Pension Funds [1917.010 - 1917.075] ( Chapter 4 repealed and added by Stats. 1982, Ch. 466, Sec. 11. ) ## ARTICLE 7. Notices and Disclosures [1917.070 - 1917.075] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 11. ) ## 1917.075. Where, pursuant to any provision of law, the lender is required to disclose the amount of interest due or to be due under a shared appreciation loan and the amount of contingent deferred interest due or to be due is not known, the lender may disclose that fact and specify in the disclosure the method for calculating contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 11. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)
  195. 1917.110.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 1. Legislative Findings and Declarations [1917.110- 1917.110.] ( Article 1 added by Stats. 1982, Ch. 466, Sec. 12. )

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    This section states legislative findings about promoting affordable housing through shared appreciation loans and alternative mortgage instruments.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 1. Legislative Findings and Declarations [1917.110- 1917.110.] ( Article 1 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.110. The Legislature hereby finds and declares that: (a) It is necessary and essential that the state provide and promote alternative means of supplying affordable housing to the citizens of the state. (b) Because of current economic conditions, including the unprecedented fluctuation in interest rates, alternative mortgage instruments must be developed to supplement the standard long-term, fixed-rate mortgage. (c) State facilitation of the shared appreciation loan will serve the need to develop alternative means of financing housing, particularly new homes, and will help to create vitally needed jobs in the construction industry. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
  196. 1917.120.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 2. Definitions [1917.120- 1917.120.] ( Article 2 added by Stats. 1982, Ch. 466, Sec. 12. )

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    This section defines key terms used in the shared appreciation loan 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 2. Definitions [1917.120- 1917.120.] ( Article 2 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.120. For purposes of this chapter: (a) “Borrower” means the recipient or recipients of a shared appreciation loan and includes any successor in interest to the borrower under a shared appreciation loan, to the extent such succession is permitted by law or by the terms of the shared appreciation loan. (b) “Borrower’s cost of the property” means the price paid by the borrower for the purchase of the property to be financed with a shared appreciation loan and also includes documentary transfer taxes, escrow and recording fees, title insurance premiums, and any other fees directly paid by the borrower as a necessary or customary cost of consummating acquisition of the property. However, if the purchase price to be paid for the property does not reasonably reflect the true value of the property, the borrower may request that, in lieu of the actual price paid, the “borrower’s cost of the property” be established at an amount mutually agreed by the lender and borrower or be established by averaging two appraisals in the same manner as specified in Section 1917.142 for determination of fair market value. Nothing in this subdivision shall be construed to require a lender to make shared appreciation loans with the borrower’s cost of the property established on the basis of appraisals. (c) “Contingent deferred interest” means the lender’s share of net appreciated value, calculated as the sum resulting upon multiplying the net appreciated value by a percentage agreed by the lender and borrower, not to exceed 50 percent. (d) “Fair market value” means the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. Fair market value shall be determined pursuant to Article 4 (commencing with Section 1917.140). (e) “Lender” means any person who makes a shared appreciation loan or the successor in interest to any such person. (f) “Net appreciated value” means the fair market value less the sum of the borrower’s cost of the property and the value of capital improvements. Nothing in this chapter shall, however, preclude a shared appreciation loan from additionally including a provision requiring deduction of any or all of the borrower’s costs of selling the property from fair market value in determining, “net appreciated value,” and if such a provision is included, the disclosures required by Section 1917.171 shall be modified accordingly. (g) “Prevailing rate” means the weighted average yield accepted by the Federal National Mortgage Association in its most recent free market system auction for four-month conventional mortgage commitments. In the event that the Federal National Mortgage Association discontinues or substantially alters its free market system auction for conventional mortgages then the “prevailing rate” shall be the average yield established at the most recent immediate delivery auction of the Federal Home Loan Mortgage Corporation, or if the auction has been discontinued, then the “prevailing rate” shall be specified in the shared appreciation loan as either (1) the most recently published Federal Home Loan Bank Board mortgage contract rate or (2) the average single-family home mortgage rate for the 10 largest savings and loan associations with principal offices in this state. (h) “Property” means the property financed by the shared appreciation loan. (i) “Sale” means any transfer of title to the property and additionally includes the execution of an installment sale contract giving the purchaser a right to possess the property before transfer of title, refinancing, judicial sale on execution or other legal process of foreclosure or trustee’s sale (regardless of whether initiated by the lender), but “sale” does not include a transfer specified in Section 2924.6. (j) “Shared appreciation loan” means any loan made pursuant to this chapter upon the security of owner-occupied real property of a type specified in Section 1917.130, and in connection with which the lender has a right to receive a share of the appreciation in the value of the security property. “Shared appreciation loan” includes a deed of trust and any evidence of debt issued in connection with the loan. (k) “Value of capital improvements” means the amount of the credit or credits for capital improvements, if any, determined pursuant to Article 5 (commencing with Section 1917.150). (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
  197. 1917.130.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )

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    Lenders may make shared appreciation loans for qualifying residential purchases, but the loans must finance only owner-occupied dwelling units, with a limited exception for two- to four-unit dwellings.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.130. Lenders may make shared appreciation loans pursuant to this chapter for the purchase of real property improved with one- to four-dwelling units, including structures ancillary to such dwelling units and including attached single-family dwelling units, single-family mobilehome units placed upon permanent foundations, residential condominium units, and dwelling units within a planned unit development. Shared appreciation loans shall be made to finance only owner-occupied dwelling units, but in the case of two- to four-unit dwellings financed under this chapter only one of the units need be owner-occupied. A dwelling unit shall be conclusively deemed to be owner-occupied for purposes of this chapter if an original recipient of the shared appreciation loan certifies in writing to the lender at the time the loan is made that he or she will occupy the property. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
  198. 1917.131.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )

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    This section sets required terms and cost limits for shared appreciation 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.131. A shared appreciation loan shall include the following terms and conditions: (a) The term of the loan, excluding any refinancing under Section 1917.133, shall be at least seven years, but not more than 30 years. (b) The repayment schedule for the loan, excluding any refinancing under Section 1917.133, shall be cast so that full amortization of the principal amount of the loan would occur in not less than 30 nor more than 40 years, regardless of the actual term of the loan. Any principal balance remaining at maturity shall be due and payable at that time, unless refinanced as provided in Section 1917.133. Monthly installment payments shall be equal in amount, except for the final payment when a principal balance is remaining at maturity, and in addition to amortization of principal shall include fixed interest pursuant to subdivision (d). (c) The loan shall be secured by a deed of trust on the real property financed. (d) The loan shall bear interest at a fixed rate, which shall be established in relation to the prevailing rate (1) in effect 90 days prior to the loan closing, (2) in effect at another date between that date and the loan closing if and as mutually agreed by the lender and borrower, or (3) in effect at the time of the lender’s loan commitment given to the borrower or to the person from whom the borrower purchases the property. The percentage by which the fixed interest rate is reduced below the applicable prevailing rate shall be at least one-half the lender’s percentage share of net appreciated value which is contingent deferred interest, except that if the shared appreciation loan is for less than 80 percent of the borrower’s purchase price of the property, the percentage by which the fixed interest rate is reduced below the applicable prevailing rate shall be at least two-thirds the lender’s percentage share of net appreciated value which is contingent deferred interest. (e) The borrower shall additionally be obligated to pay to the lender contingent deferred interest (1) at the time of sale of the property if the lender accelerates the principal balance of the loan in accordance with a provision in the shared appreciation loan authorized by Section 1917.162, (2) at the time the loan is prepaid in full, upon acceleration of the loan upon default, or (3) upon the maturity of the loan, whichever first occurs. (f) The aggregate amount of any fee charged to the borrower by the lender for processing an application, preparing any necessary documents, obtaining a credit report, or any other costs incurred by the lender in connection with originating a shared appreciation loan shall not exceed two percent of the principal amount of the loan or five hundred dollars ($500), whichever is greater. No prepaid interest shall be charged to the borrower, but nothing in this chapter shall preclude a lender from requiring a fee for providing commitments for shared appreciation loans to builders or others who purchase such commitments and who will not be the ultimate borrower. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
  199. 1917.132.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )

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    The borrower may prepay the shared appreciation loan at any time, in full or in part, including interest and contingent deferred 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.132. (a) The borrower shall have the right to prepay, at any time, in full or in part, the principal loan balance of the shared appreciation loan, together with accrued interest, including contingent deferred interest. (b) Nothing in this chapter shall prevent a borrower from obligating himself or herself, by an agreement in writing, to pay a prepayment charge upon prepayment of the loan, in full or in part, made within five years of the date of execution of the shared appreciation loan. (c) Any prepayment charge imposed upon the prepayment of a shared appreciation loan shall not exceed the amount authorized and specified in subdivision (b) of Section 2954.9. (d) No prepayment charge shall be imposed as to any portion of the contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
  200. 1917.133.

    ## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )

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    For certain shared appreciation loans, the lender must arrange refinancing at maturity and meet disclosure and timing 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 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.133. (a) If a shared appreciation loan with an original term of less than 10 years is not prepaid in full or the property is not sold or transferred prior to maturity of the loan, and provided the borrower is not then in default, the lender shall offer or arrange for refinancing of the unpaid balance of the loan upon maturity and all contingent deferred interest. The refinancing may be provided directly by the lender or another mortgage lender, or the lender may arrange at the time of making the shared appreciation loan for the refinancing to be provided by a federally or state chartered bank or savings and loan association doing business in this state or by a qualified mortgage banker. As used in this section “qualified mortgage banker” means a lender (1) meeting the criteria established by the Government National Mortgage Association for lenders selling over ten million dollars ($10,000,000) in mortgage loans to that organization annually and (2) which either has conducted an ongoing business of mortgage lending in this state for not less than five years immediately preceding the making of the shared appreciation loans, or made over fifty million dollars ($50,000,000) in mortgage loans in this state during the 12 months immediately preceding the making of the shared appreciation loan. If a refinancing commitment is arranged by the lender upon origination of the shared appreciation loan, this fact shall be fully and fairly disclosed to the borrower, a copy of the lender’s contract with the bank, savings and loan association or qualified mortgage banker making the commitment shall be supplied to the borrower at such time, and the contract shall be fully enforceable by the borrower as a third-party beneficiary thereto, but the lender shall not be a guarantor of the obligation of the bank, savings and loan association, or qualified mortgage banker to provide refinancing. If the original lender is a bank or savings and loan association doing business in this state or a qualified mortgage banker, it may provide the refinancing commitment to the borrower required by this section and assignees or successors in interest of the original lender shall not be guarantors of the refinancing obligation, provided the shared appreciation loan contains this limitation, which is fully and fairly disclosed to the borrower, and the original lender’s refinancing commitment is fully enforceable by the borrower. (b) The term of the loan for refinancing shall be established so that the borrower’s repayment schedule provides for the final installment payment not less than 30 years from the date of origination of the shared appreciation loan. However, if loans at that duration are not available, within the meaning of subdivision (d), the lender or other obligor shall give the borrower a choice of any form of loan and maturity for that type of loan which is available at the time of refinancing, within the meaning of subdivision (d). The lender or other obligor shall inform the borrower of the types of loans (and maturities) available for refinancing under this section not less than 60 days prior to maturity of the shared appreciation loan. (c) The interest rate for the refinancing loan shall not exceed rates generally available in the market for the type of loan instrument provided under subdivision (d) at the time of maturity of the shared appreciation loan. No loan origination fees shall be required of the borrower, either as prepaid interest or for processing services, as a condition of obtaining a refinancing loan pursuant to this section, but the borrower may be required to pay the costs of obtaining a policy of title insurance in accordance with the lender’s requirements. The refinancing loan need not be a fixed interest rate loan, subject to the limitations of subdivision (d). (d) The refinancing loan may be any form of loan which, at the time of refinancing, is generally offered to and utilized by the public for financing housing like the borrower’s property by banks or savings and loan associations doing business in this state. (e) The lender may require as a condition of the refinancing loan that it be secured by a deed of trust having a lien of first priority. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)

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