Cal. Civil Code § 2948.5

Find cases: SyfertCases citing this section CA-LEGleginfo.legislature.ca.gov JustiaCode on Justia CornellLII Search CasesGoogle Scholar

(a)A borrower shall not be required to pay interest on a principal obligation under a promissory note secured by a mortgage or deed of trust on real property improved with between one to four residential dwelling units for any period that meets any of the following requirements:

(1)Is more than one day prior to the date that the loan proceeds are disbursed from escrow.

(2)In the event of no escrow, if a request for recording is made in connection with the disbursement, is more than one day prior to the date the loan proceeds are disbursed to the borrower, to a third party on behalf of the borrower, or to the lender to satisfy an existing obligation of the borrower.

(3)In all other circumstances where there is no escrow and no request for recording, is prior to the date funds are disbursed to the borrower, to a third party on behalf of the borrower, or to the lender to satisfy an existing obligation of the borrower.

(b)Interest may commence to accrue on the business day immediately preceding the day of disbursement, for obligations described in paragraphs (1) and (2) of subdivision (a) if both of the following occur:

(1)The borrower affirmatively requests, and the lender agrees, that the disbursement will occur on Monday, or a day immediately following a bank holiday.

(2)The following information is disclosed to the borrower in writing: (A) the amount of additional per diem interest charged to facilitate disbursement on Monday or the day following a holiday, as the case may be, and (B) that it may be possible to avoid the additional per diem interest charge by disbursing the loan proceeds on a day immediately following a business day. This disclosure shall be provided to the borrower and acknowledged by the borrower by signing a copy of the disclosure document prior to placing funds in escrow.

(c)This section does not apply to a loan that is subject to subdivision (c) of Section 10242 of the Business and Professions Code.

Notes of Decisions

Cited in 5 cases, 2003–2006 · leading case: Wells Fargo Bank, N.A. v. Boutris

Sort: Relevance Newest Treatment

Wells Fargo Bank, N.A. v. Boutris (2003) caed · cites it 5× “Cal. Civ.Code § 2948.5; Cal. Fin. Code § 50204 (o).”

Wells Fargo Bank N.A. v. Boutris (2005) ca9 · cites it 3× “The court also entered a permanent injunction against the Commissioner, barring him from “exercising visitorial powers over Plaintiffs and from enforcing California Financial Code § 50204(o) and California Civil Code § 2948.5 against Plaintiffs.”

Quicken Loans, Inc. v. Wood (2006) ca9 · cites it 4× “Code § 50204 (o) (2000) (amended 2003 to prohibit violating a similar provision located at Cal. Civ. Code § 2948.5 ). In addition, California Civil Code section 2948.”

Wells Fargo Bank, N.A. v. Boutris (2003) caed “(including § 50204(o)), California Civil Code § 2948.5, and the California Financial Lenders Law, Cal.”

Quicken Loans, Inc., a Michigan Corporation v. William P. Wood, in His Official Capacity as Commissioner of the Californ (2006) ca9 “In addition, California Civil Code section 2948.5 provides that a borrower is not required to pay interest for a period in excess of one day prior to recording.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.