Cal. Code Regs. tit. 25 § 8062

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

Section 8062 - Default Reserve Subaccount

(a) The department shall establish an owner-occupied housing default reserve subaccount in the account. The default reserve subaccount shall be maintained at an amount equivalent to three percent of the amount of encumbrances from the account for deferred payment loans made pursuant to this subchapter.

(b) The department may use amounts available in the default reserve subaccount for the purpose of curing or avoiding a borrower's defaults on the terms of any loan or other obligation which jeopardizes the department's security in property securing the deferred payment loan. These defaults include defaults or impending defaults in payments on mortgages, failures to pay taxes, failures to maintain insurance, or any combination thereof.

(c) Where it becomes necessary to use monies pursuant to this section to protect the department's security in a particular borrower's property, the department shall take those actions necessary, including, but not limited to, foreclosing or forced sale of the borrower's property, to prevent similar occurrences and ensure compliance with the terms of the applicable agreements.

Cal. Code Regs. Tit. 25, § 8062

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 A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.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 A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.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 filed 7-26-90 as an emergency; operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be transmitted to OAL by 11-23-90 or emergency language will be repealed by operation of law on the following day.
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 A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.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 A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.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 (b) and (c) 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(a), Health and Safety Code.