California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2 — Mortgage, Article 1 — Mortgages in General, Section 2925
The fact that a transfer was made subject to defeasance on a condition, may, for the purpose of showing such transfer to be a mortgage, be proved (except as against a subsequent purchaser or incumbrancer for value and without notice), though the fact does not appear by the terms of the instrument.
Notes
Allows proof that a transfer was subject to defeasance on a condition, even when that fact does not appear in the instrument, for the purpose of showing the transfer was a mortgage. The proof is barred against a subsequent purchaser or encumbrancer who gave value and lacked notice.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2925 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2/article-1/section-2925