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AB-1240 Mortgages: deed of trust.(2013-2014)

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CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1240

Introduced by Assembly Member Jones

February 22, 2013

An act to amend Section 2920 of the Civil Code, relating to mortgages.


LEGISLATIVE COUNSEL'S DIGEST


AB 1240, as introduced, Jones. Mortgages: deed of trust.
Existing law imposes various requirements prior to exercising a power of sale under a mortgage or deed of trust. Existing law defines “mortgage” for purposes of these provisions to include any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation secured.
This bill would eliminate the exclusion of a deed of trust from the definition of “mortgage” for purposes of these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2920 of the Civil Code is amended to read:

2920.
 (a) A mortgage is a contract by which specific property, including an estate for years in real property, is hypothecated for the performance of an act, without the necessity of a change of possession.
(b) For purposes of Sections 2924 to 2924h, inclusive, “mortgage” also means any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation so secured, including a real property sales contract, as defined in Section 2985, which contains such a provision.