California § 1917.162. 1917.162. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12.)

California Statutes

§ 1917.162. — 1917.162. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12.)

California § 1917.162.

JurisdictionCalifornia

Code CIVCivil Code - CIV

Div. 3.DIVISION 3. OBLIGATIONS

Title4.

Part 4.TITLE 4. LOAN

Ch. 5.CHAPTER 5. Shared Appreciation Loans

Art. 6.ARTICLE 6. General Provisions

This text of California § 1917.162. (1917.162. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12.)) is published on Counsel Stack Legal Research, covering California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Cal. Civil Code - CIV Code § 1917.162. (2026).

Text

(a)Notwithstanding Section 711, a provision in a shared appreciation loan made pursuant to this chapter permitting the lender to accelerate the maturity date of the principal and accrued interest on the loan upon sale of the property shall be valid and enforceable against the borrower, except as may be precluded by Section 2924.6.

(b)The Legislature finds and declares that potential exposure to liability for enforcement of a “due-on-sale” clause consistent with Section 711, as interpreted by the courts, makes use of such a provision impractical. Moreover, the additional risks to the lender inherent in shared appreciation financing are greater with longer loan terms (which are more desirable from the standpoint of housing affordability), but this risk is reduced with an enforceable “due

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(a)
Notwithstanding Section 711, a provision in a shared appreciation loan made pursuant to this chapter permitting the lender to accelerate the maturity date of the principal and accrued interest on the loan upon sale of the property shall be valid and enforceable against the borrower, except as may be precluded by Section 2924.6.
(b)
The Legislature finds and declares that potential exposure to liability for enforcement of a “due-on-sale” clause consistent with Section 711, as interpreted
by the courts, makes use of such a provision impractical. Moreover, the additional risks to the lender inherent in shared appreciation financing are greater with longer loan terms (which are more desirable from the standpoint of housing affordability), but this risk is reduced with an enforceable “due-on-sale” clause. Therefore, in order to facilitate shared appreciation financing, it is necessary to establish the exception specified in subdivision (a).