Financing statements: mortgages.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill amends California’s Commercial Code to clarify how a record of a mortgage is considered a financing statement. Specifically, it changes the requirements for identifying the debtor when the debtor is an individual, allowing for the use of the individual’s name or surname and first name instead of requiring the name on their driver’s license or identification card. This change aims to improve clarity and notice regarding mortgages.
Key provisions
- Changes the requirement for identifying the debtor on a mortgage record when the debtor is an individual.
- Allows use of the individual’s name or surname and first name instead of the name on a driver’s license or ID card.
- Clarifies that a mortgage record is effective as a financing statement if it meets specific conditions regarding collateral description and recordation.
- Specifies that a financing statement can be filed before a security agreement is created.
- Reinforces the need for the record to indicate the goods or accounts covered by the mortgage.
Who is affected
- Mortgage lenders
- Borrowers
- Real estate professionals
- Title companies
- Consumers with mortgages
Notable changes
- Modifies the requirements for identifying the debtor on mortgage records.
- Simplifies the process for establishing a mortgage as a financing statement.
Bill text
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Sponsors
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1 on record
Primary sponsor
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