California Health and Safety Code

§ 129050

HSC § 129050 Effective Jul 27, 2021Div. 107 · Part 6 · Ch. 1 · Art. 2

Statute text

A loan shall be eligible for insurance under this chapter if all of the following conditions are met:

(a)The loan shall be secured by a first mortgage, first deed of trust, or other first priority lien on a fee interest of the borrower or by a leasehold interest of the borrower having a term of at least 20 years, including options to renew for that duration, longer than the term of the insured loan. The security for the loan shall be subject only to those conditions, covenants and restrictions, easements, taxes, and assessments of record approved by the office, and other liens securing debt insured under this chapter. The department may require additional agreements in security of the loan.

(b)The borrower obtains an American Land Title Association title insurance policy with the department designated as beneficiary, with liability equal to the amount of the loan insured under this chapter, and with additional endorsements that the department may reasonably require.

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Legislative history

Amended by Stats. 2021, Ch. 143, Sec. 233. (AB 133) Effective July 27, 2021.