California Civil Code

§ 2948.5

CIV § 2948.5 Effective Jan 1, 2004Div. 3 · Title 14 · Part 4 · Ch. 2 · Art. 2

Statute text

(a)A borrower shall not be required to pay interest on a principal obligation under a promissory note secured by a mortgage or deed of trust on real property improved with between one to four residential dwelling units for any period that meets any of the following requirements:

(1)Is more than one day prior to the date that the loan proceeds are disbursed from escrow.

(2)In the event of no escrow, if a request for recording is made in connection with the disbursement, is more than one day prior to the date the loan proceeds are disbursed to the borrower, to a third party on behalf of the borrower, or to the lender to satisfy an existing obligation of the borrower.

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Legislative history

Amended by Stats. 2003, Ch. 554, Sec. 1. Effective January 1, 2004.