4
Summary of California Law (10th), Security Transactions in Real Property
I. INTRODUCTION
<d2.o n="A. [§1] Types of
Security Transactions.
<d2.o n="B. [§2] Texts and
Practice Works.
<d2.o n="C. [§3] Mortgage.
<d2.o n="D. Deed of Trust.
<d3.o n="1. [§4] Origin and
Validity.
<d3.o n="2. [§5] Mortgage
Compared.
<d3.o n="3. [§6] Effect of
Deed of Trust.
<d3.o n="4. [§7] Strict
Trust Compared and Distinguished.
<d3.o n="5. [§8] Substitution
of Trustee.
<d3.o n="6. [§9] Trustee''s Declaration of Nonmonetary
Status.
<d2.o n="E. Deed Construed as Mortgage.
<d3.o n="1. [§10] Intention
To Create Security Interest.
<d3.o n="2. [§11] Test:
Survival of Obligation.
<d3.o n="3. [§12] Variant
Forms.
<d3.o n="4. [§13] Rights of
Bona Fide Purchaser.
<d2.o n="F. Equitable Mortgage.
<d3.o n="1. [§14] Rule and
Theory.
<d3.o n="2. [§15] Equitable
Mortgage Established.
<d3.o n="3. [§16] Equitable
Mortgage Not Established.
<d3.o n="4. [§17] Effect of
Equitable Mortgage.
<d2.o n="G. Other Equitable Liens.
<d3.o n="1. [§18] In
General.
<d3.o n="2. [§19] Vendor's Lien.
<d3.o n="3. [§20] Construction
Lender''s Lien.
<d3.o n="4. [§21] No
Subcontractor''s Lien
on Loan Fund.
<d3.o n="5. [§22] No
Contractor''s Lien on
Loan Fund.
<d2.o n="H. [§23] Reverse
Mortgage.
<d2.o n="I. Real Property Sales Contract.
<d3.o n="1. [§24] In
General.
<d3.o n="2. [§25] Rights of
Defaulting Purchaser.
<d2.o n="J. Mechanic''s Lien.
<d3.o n="1. [§26] In
General.
<d3.o n="2. [§27] Right to
Lien.
<d3.o n="3. [§28] Amount of
Lien.
<d3.o n="4. [§29] Enforcing
or Protecting Against Lien.
<d3.o n="5. Release of Lien.
<d4.o n="(a) [§30] In
General.
<d4.o n="(b) [§31] Conditional
Waiver of Release.
<d2.o n="K. [§32] Design Professional's Lien.
<d2.o n="L. [§33] Conflict
of Laws.
II. REQUISITES OF MORTGAGE AND DEED OF TRUST
<d2.o n="A. [§34] What
Property Can Be Mortgaged.
<d2.o n="B. Statutory Regulation.
<d3.o n="1. [§35] Institutional
Lenders.
<d3.o n="2. [§36] Federal
Preemption.
<d3.o n="3. [§37] Aspects
Regulated.
<d3.o n="4. [§38] Other
Legislation.
<d2.o n="C. Form, Content, and Terms.
<d3.o n="1. [§39] In
General.
<d3.o n="2. [§40] Mortgage.
<d3.o n="3. [§41] Deed of
Trust.
<d3.o n="4. [§42] Alternative
Mortgage Transactions for Residential Loans.
<d3.o n="5. [§43] Wrap-Around
Mortgage.
<d3.o n="6. [§44] “Dragnet” and Future Advances
Clauses.
<d2.o n="D. [§45] Construction
of Note and Security Instrument.
<d2.o n="E. [§46] Recordation.
<d2.o n="F. [§47] Lien Is
Incident of Debt.
III. PRIORITIES
<d2.o n="A. In General.
<d3.o n="1. [§48] Priority
in Time.
<d3.o n="2. [§49] Effect of
Recordation.
<d3.o n="3. [§50] Effect of
Notice.
<d2.o n="B. Subordination Agreements.
<d3.o n="1. [§51] In
General.
<d3.o n="2. [§52] Types of
Agreements.
<d3.o n="3. [§53] Circuity
of Liens.
<d3.o n="4. [§54] Notice
Requirements.
<d3.o n="5. Enforcement of Executory Agreement.
<d4.o n="(a) [§55] Reasonableness
of Agreement.
<d4.o n="(b) [§56] Waiver of
Invalid Clause.
<d3.o n="6. [§57] Compliance
With Terms of Agreement.
<d3.o n="7. [§58] Subordination
by Prior Recordation.
<d2.o n="C. Real Mortgage and Tax Lien.
<d3.o n="1. [§59] Priority
of Tax Lien Over Mortgage.
<d3.o n="2. Priorities Between Tax Liens.
<d4.o n="(a) [§60] Statutory
Parity.
<d4.o n="(b) [§61] Priority
of Tax Title.
<d4.o n="(c) [§62] Statute of
Limitations.
<d3.o n="3. Federal Tax Lien.
<d4.o n="(a) [§63] In
General.
<d4.o n="(b) [§64] Priority.
<d4.o n="(c) [§65] Uniform
Federal Lien Registration Act.
<d2.o n="D. Real Mortgage and Secured Interest in Personal
Property.
<d3.o n="1. [§66] Growing
Crops.
<d3.o n="2. Fixtures.
<d4.o n="(a) [§67] Subsequent
Mortgage.
<d4.o n="(b) [§68] Prior
Mortgage.
<d2.o n="E. Real Mortgage and Mechanic's Lien.
<d3.o n="1. [§69] Basic
Rule.
<d3.o n="2. [§70] Commencement
of Work.
<d2.o n="F. [§71] Real
Mortgage and Design Professional's
Lien.
<d2.o n="G. Future Advances and Subsequent Liens.
<d3.o n="1. [§72] Obligatory
Advances.
<d3.o n="2. [§73] Optional
Advances.
<d2.o n="H. Purchase Money Mortgage.
<d3.o n="1. [§74] In
General.
<d3.o n="2. [§75] Priority
Over Vendor's Lien.
IV. RIGHTS AND OBLIGATIONS OF MORTGAGEE
<d2.o n="A. Reimbursement for Expenditures.
<d3.o n="1. Payment of Taxes.
<d4.o n="(a) [§76] In
General.
<d4.o n="(b) [§77] Action
Against Mortgagor.
<d3.o n="2. [§78] Clearing
Liens.
<d3.o n="3. [§79] Payment of
Insurance Premiums.
<d3.o n="4. [§80] Impound
Accounts.
<d2.o n="B. [§81] Right to
Condemnation Award.
<d2.o n="C. Right to Insurance Proceeds.
<d3.o n="1. [§82] Standard
Provisions.
<d3.o n="2. [§83] Lender
Named as Loss Payee.
<d3.o n="3. [§84] Security
Need Not Be Impaired.
<d2.o n="D. Remedies for Impairment of Security.
<d3.o n="1. [§85] Against
Mortgagor.
<d3.o n="2. [§86] Against
Third Person.
<d2.o n="E. Acceleration on Sale or Encumbrance.
<d3.o n="1. [§87] In
General.
<d3.o n="2. “Due on Sale” Clause.
<d4.o n="(a) [§88] In
General.
<d4.o n="(b) [§89] Validity
of Clause: California Cases.
<d4.o n="(c) [§90] Federal
Preemption.
<d3.o n="3. [§91] “Due on Encumbrance” Clause.
<d2.o n="F. Prepayment Charges.
<d3.o n="1. [§92] Nature and
Effect.
<d3.o n="2. [§93] Amount of
Penalty.
<d3.o n="3. [§94] Restrictive
Legislation.
<d2.o n="G. Right to Possession, Rents, and Profits.
<d3.o n="1. In Absence of Express Agreement.
<d4.o n="(a) [§95] In
General.
<d4.o n="(b) [§96] Rent
Skimming.
<d3.o n="2. Under Rents and Profits Agreement.
<d4.o n="(a) Former Law: Distinction Between Absolute
Assignment and Pledge as Additional Security.
<d5.o n="(1) [§97] In
General.
<d5.o n="(2) [§98] Absolute
Assignment.
<d5.o n="(3) [§99] Assignment
as Additional Security.
<d4.o n="(b) [§100] Distinction
Abolished.
<d4.o n="(c) [§101] Receiver.
<d3.o n="3. Mortgagee in Possession.
<d4.o n="(a) [§102] Duties of
Mortgagee in Possession.
<d4.o n="(b) [§103] Rights of
Mortgagee in Possession.
<d4.o n="(c) [§104] Possession
After Statute of Limitations Runs.
V. TRANSFER OF MORTGAGE OR PROPERTY
<d2.o n="A. Transfer of Debt and Mortgage.
<d3.o n="1. [§105] Assignment
of Debt.
<d3.o n="2. [§106] Assignment
of Mortgage.
<d2.o n="B. Transfer of Property and Assumption of Mortgage.
<d3.o n="1. [§107] In
General.
<d3.o n="2. [§108] Manner
and Requisites of Assumption.
<d3.o n="3. Mortgagor as Surety.
<d4.o n="(a) [§109] Release
of Part of Property.
<d4.o n="(b) [§110] Extension
of Time to Grantee.
<d4.o n="(c) [§111] Suretyship
Right of Subrogation.
<d3.o n="4. [§112] Failure
of First Grantee To Assume.
VI. EXTENSION, RENEWAL, AND DISCHARGE OF MORTGAGE
AND DEED OF TRUST
<d2.o n="A. Extension or Renewal.
<d3.o n="1. [§113] As
Between Parties.
<d3.o n="2. [§114] Effect on
Encumbrancers Before Renewal.
<d3.o n="3. [§115] Effect on
Encumbrancers or Purchasers After Renewal.
<d2.o n="B. Discharge.
<d3.o n="1. [§116] In
General.
<d3.o n="2. Payment and Satisfaction of Record.
<d4.o n="(a) [§117] In
General.
<d4.o n="(b) [§118] Mortgagee's Duty.
<d4.o n="(c) [§119] Release
When Mortgagee Cannot Be Found or Refuses To Act.
<d3.o n="3. [§120] Merger.
<d3.o n="4. Running of Statute of Limitations on Principal
Debt.
<d4.o n="(a) [§121] Mortgage.
<d4.o n="(b) [§122] Deed of
Trust.
<d2.o n="C. [§123] Revival
of Discharged Mortgage.
VII.