Code Section

Civil Code - CIV

DIVISION 4. GENERAL PROVISIONS [3274 - 9566]

  ( Heading of Division 4 amended by Stats. 1988, Ch. 160, Sec. 16. )
  

PART 5. Common Interest Developments [4000 - 6150]

  ( Part 5 added by Stats. 2012, Ch. 180, Sec. 2. )
  

CHAPTER 8. Assessments and Assessment Collection [5600 - 5740]

  ( Chapter 8 added by Stats. 2012, Ch. 180, Sec. 2. )
  

ARTICLE 3. Assessment Collection [5700 - 5740]
  ( Article 3 added by Stats. 2012, Ch. 180, Sec. 2. )

  
5735.  

(a) An association may not voluntarily assign or pledge the association’s right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association.

(b) Nothing in subdivision (a) restricts the right or ability of an association to assign any unpaid obligations of a former member to a third party for purposes of collection.

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)