SECTIONS 20601-20605 - California Statutes

REVENUE AND TAXATION CODE

SECTION 20601-20605

20601. Subject to the limitations provided in this chapter, a
claimant may file with the Controller, pursuant to Article 3
(commencing with Section 20621) of this chapter, a claim for
postponement from the State of California of a sum equal to, but not
exceeding, the amount of property taxes, as defined in Section 20584,
due on the residential dwelling for the fiscal year for which the
claim is made. Claims for the 1977-78 fiscal year only shall also
constitute a claim for any amounts described in subparagraph (B) of
paragraph (4) of subdivision (b) of Section 20583.

20602. (a) Upon approval of a claim described in Section 20601, the
Controller may do either of the following:
(1) Make payments directly to a lender, mortgage company, escrow
company, or county tax collector for the property taxes owed on
behalf of a qualified claimant. Payments may, upon appropriation by
the Legislature, be made out of the amounts otherwise appropriated
pursuant to Section 16100 of the Government Code that are secured by
a lien and obligation as specified by Article 1 (commencing with
Section 16180) of Chapter 5 of Division 4 of the Government Code.
(2) Issue to the claimant a certificate of eligibility, which
shall consist of two parts, both of which shall contain the name of
the claimant, the address of the residential dwelling on which the
claimant has applied for property tax postponement, and that other
information and in that form as the Controller shall prescribe. In
the event that that residential dwelling is located in a chartered
city which levies and collects its own taxes, the Controller shall
issue a duplicate certificate of eligibility to pay all or any part
of the property taxes appearing on that city's tax bill. Each part of
a certificate of eligibility shall be payable in an unspecified
amount and shall contain statements to identify the property tax
installment to which it may be applied.
(b) The Controller shall prescribe the form of the certificates of
eligibility to pay all delinquent taxes and assessments authorized
by this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on their respective certificates
and mail both certificates to the tax collector at the same time,
and (2) those taxpayers will receive a refund check from the county
or city in the amount they entered on each certificate, within 30
days following the date on which the installment is paid by the
lender or the certificate of eligibility is received by the tax
collector, whichever is later, and (3) the intent of this procedure
is to make sure the taxes on the claimant's dwelling are not paid
twice.
(c) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, such certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and such signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the
payment of property taxes owing in the name of the claimant or his or
her spouse for purposes of all laws of this state.
(d) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(e) The Controller shall issue certificates of eligibility claims
approved on or before September 30 between October 15 and November 1
of the fiscal year for which postponement is claimed. Certificates
for claims approved after September 30 shall be issued at such times
as the Controller determines will best implement the purpose of this
chapter.
(f) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency pursuant to subdivision (b) may obtain a duplicate copy
of said certificate as a replacement. (Under such conditions as may
be prescribed by the Controller, a duplicate copy shall be deemed as
having been filed with the local agency as of the date a claimant
requests issuance of such duplicate copy.)

20603. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
postponement of property taxes.

20605. (a) The postponement of property taxes pursuant to this
chapter shall not affect the obligation of a borrower to continue to
make payments to a lender with respect to an impound, trust, or other
type of account described in Section 2954 of the Civil Code which
was established prior to the effective date of subdivision (b).
(b) Except where required by federal law or regulation and
notwithstanding Sections 7153.2 and 7153.8 of the Financial Code, or
in the case of a loan which is made, guaranteed, or insured by a
federal government lending or insuring agency requiring the borrower
to make payments to a lender with respect to an impound, trust, or
other type of account described in Section 2954 of the Civil Code, or
where this subdivision would impair the obligations of a loan
agreement executed prior to the effective date of this subdivision,
no lender shall require a borrower to maintain an impound, trust or
other type of account with regard to taxes once such borrower has
elected to postpone such taxes pursuant to this chapter and has first
submitted to such lender evidence of tax postponement. Any payments
made by such borrower, prior to the time of submission of such
evidence of tax postponement, to such an impound, trust or other type
of account with regard to taxes for any such period, if not
previously used in payment or partial payment of such taxes, shall be
refunded to such borrower within thirty days thereafter.