Cal. Code Regs. tit. 25 § 8052

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 8052 - Defaults on Borrower Loans

(a) If a borrower or successor-in-interest breaches or violates any provision of (1) the loan agreement entered into pursuant to section 8056 (b), (2) the promissory note, (3) the deed of trust, (4) any other agreement pertaining to the deferred payment loan, or (5) these regulations, the department shall give written notice to the borrower to cure the breach or violation within a period of not less than 30 days from such notice. If the breach or violation is not cured to the satisfaction of the department within the specified time period, the department, at its option, may declare a default under the relevant document and seek legal remedies for the default which shall include the following:

(1) The department shall accelerate all amounts, including outstanding principal and interest, due under the deferred payment loan and demand immediate repayment. Upon a failure to repay such accelerated amount in full, the department shall proceed with a foreclosure in accordance with the provisions of the deed of trust; or

(2) The department may seek such other remedies as may be available under the relevant agreement or any law.

(b) The department may use any amounts available in the default reserve subaccount established pursuant to section 8062(a) for the purpose of curing or avoiding a borrower's default on the terms of the loan which jeopardize the department's security in the property.

(1) The payment or advance of funds from the default reserve subaccount to cure or avoid a borrower's default on the terms of a loan shall be solely within the discretion of the department. No borrower shall be entitled to payment of funds from the default reserve subaccount.

(2) All funds so advanced on behalf of the borrower shall become part of the deferred payment loan and, upon demand, due and payable to the department.

(3) If funds from the default reserve subaccount are used to assist a borrower to avoid a threatened default or foreclosure, the department shall take those actions necessary to prevent similar occurrences and to insure compliance with the terms of the applicable agreements. Such actions by the department shall include foreclosure or forced sale of the borrower's property.

Cal. Code Regs. Tit. 25, § 8052

1. New section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No. 49). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.
2. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.
3. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.
4. Amendment of subsection (a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. New section refiled 11-16-90 as an emergency; operative 11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 4-22-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90 and 11-16-90, including amendment of subsections (a) and (b) transmitted to OAL 11-30-90 and filed 12-31-90 (Register 91, No. 7).

Note: Authority cited: Section 50668.5 (g), Health and Safety Code. Reference: Section 50668.5 (b), Health and Safety Code.

1. New section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No. 49). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.
2. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.
3. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.
4. Amendment of subsection (a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. New section refiled 11-16-90 as an emergency; operative 11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 4-22-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90 and 11-16-90, including amendment of subsections (a) and (b) transmitted to OAL 11-30-90 and filed 12-31-90 (Register 91, No. 7).