SECTIONS 17350-17351 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 17350-17351

17350. With respect to contracts entered into on or after the
effective date of this chapter, no financial institution shall enter
into a contract which provides for reassignment.

17351. For the purposes of this chapter:
(a) "Financial institution" means a bank, savings and loan
association, or credit union chartered under the laws of this state
or the United States or any other person or organization making loans
upon the security of real property.
(b) "Reassignment" means the exercise of a contractual right of a
financial institution which is the assignee of a contract which is
subject to the provisions of the Unruh Act (Chapter 1 (commencing
with Section 1801) of Title 2 of Part 4 of Division 3 of the Civil
Code) and which is secured by a mortgage as defined in Article 1
(commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of
Division 3 of the Civil Code on real property to return the contract
to the party assigning it to the financial institution, or to assign
it to any other person, upon the default of one or more of the
parties to the contract.