2009 California Civil Code - Section 1917.610-1917.619 :: Article 5. General Provisions

CIVIL CODE
SECTION 1917.610-1917.619

1917.610.  The relationship of the borrower and the lender of a
shared appreciation loan for seniors is that of debtor and creditor
and shall not be, or be construed to be, a joint venture, an equity
venture, a partnership, or other relationship.

1917.611.  Any waiver of any right of a borrower under the
provisions of this chapter shall be void and unenforceable.

1917.612.  This chapter facilitates one method of making shared
appreciation loans to senior citizens in this state. The terms and
conditions of any shared appreciation loan for seniors 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 made pursuant to other provisions of law, or
which is not otherwise unlawful. Nothing in this chapter shall be
construed in any way to affect shared appreciation financing of
residential property of senior citizens not meeting the criteria
specified in this chapter.

1917.613.  A shared appreciation loan for seniors 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
interest rate or renegotiable interest instruments, or which requires
particular language or provisions in security instruments securing
variable or renegotiable rate obligations or in evidences of those
debts.
   This section is declaratory of existing law.

1917.614.  The lien of a deed of trust securing a shared
appreciation loan for seniors shall include and secure the total loan
obligation of the shared appreciation loan for seniors.

1917.615.  The lien of a shared appreciation loan for seniors,
including the total loan obligation, shall attach from the time of
the recordation of the deed of trust securing the loan, and the lien,
including the lien of the total loan obligation accrued or to be
accrued, shall have priority over any other lien or encumbrance
affecting the property secured by the shared appreciation instrument
and recorded after the time of recordation of the shared appreciation
instrument. However, nothing in this section or Section 1917.614
shall preclude a junior lien or encumbrance subordinate to the total
loan obligation of the shared appreciation loan for seniors. In no
case may a junior lien achieve priority over the lien securing the
total loan obligation of the shared appreciation loan, provided that
nothing in this section shall be construed to supersede Section 3134.

1917.616.  A shared appreciation loan for seniors which bears a
fixed interest rate complying with the usury provisions of Article XV
of the California Constitution shall not be deemed to become
usurious by reason of the payment of actual contingent interest
pursuant to this chapter; provided, however, that in no event may the
amount of actual contingent interest received by the lender, plus
the stated interest received by the lender, result in an annual
percentage rate in excess of 1.5 times the applicable usury rate
calculated pursuant to Article XV of the California Constitution,
when all of such interest is applied over the actual term of the
loan.

1917.617.  The qualification requirements of Sections 25110, 25120,
and 25130 of the Corporations Code do not apply to a shared
appreciation loan for seniors to the extent the exemption afforded by
subdivision (p) of Section 25100 of that code is applicable.

1917.618.  Any loan made pursuant to this chapter shall be subject
to Section 580b of the Code of Civil Procedure.

1917.619.  Pursuant to the authority contained in Section 1 of
Article XV of the California Constitution, the restrictions upon
rates of interest contained in Section 1 of Article XV of the
California Constitution shall not apply to any obligation of any loan
made by any lender pursuant to this chapter.
   This section creates and authorizes lenders under this chapter as
an exempt class of persons pursuant to Section 1 of Article XV of the
Constitution.


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