Cal. Code Regs. tit. 25 § 8051

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

Section 8051 - Sales, Transfers, Encumbrances, and Assumptions

(a) Deferred payment loans shall be due and repaid upon sale, conveyance, or transfer of the property or any interest therein, except in the case of the transfer of the property to a borrower's spouse as a consequence of marriage, dissolution of marriage, death, or unless assumed by an eligible borrower.

(b) The borrower shall not encumber, pledge, or hypothecate the property or any interest therein or portion thereof with liens which are recorded in a senior position to that of the deferred payment loan without the prior written approval of the department. The borrower shall cure any unapproved lien, charge, or assessment against the property as required by the department pursuant to section 8052(b). The department may subordinate the deferred payment loan and permit refinancing of existing liens or additional financing secured by the property to the extent that such financing does not exceed the loan-to-value ratio pursuant to section 8050(a) and (c).

(c) When a deferred payment loan is repaid, the loan agreement required pursuant to section 8056(b) shall be terminated, the deed of trust shall be reconveyed, and any other security documents shall be terminated.

(d) With prior approval of the department, the deferred payment loan may be assumed by a borrower who meets the eligibility requirements and who shall be subject to the requirements of this subchapter.

Cal. Code Regs. Tit. 25, § 8051

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 A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.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 A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.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 A Certificate of Compliance must be transmitted to OAL by 11-23-90 or emergency language will be repealed by operation of law on the following day.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 A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.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 (a), (b), and (d) 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 50662, 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 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 (a), (b), and (d) transmitted to OAL 11-30-90 and filed 12-31-90 (Register 91, No. 7).