California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 7 — Shared Appreciation Loans for Seniors, Article 6 — Notices and Disclosures, Section 1917.713
Each lender making a shared appreciation loan for seniors shall additionally furnish to the prospective borrower, prior to consummation of the loan, a statement containing the following information:
IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN FOR SENIORS
You are being offered a shared appreciation loan. Before you decide to accept this loan, read this statement, which is designed to provide important information you should consider.
1. Prevailing interest rate: __%.
2. Stated interest rate on this loan: __%.
3. Projected contingent interest: __%.
4. Initial amount of this loan: $__.
5. Amount of the monthly annuity payments you will receive: $__.
6. Projected term of this loan: __ years.
7. Projected total loan obligation you will have to pay, assuming the loan continues to the end of the “borrower’s” life expectancy: $__.
Notes
Requires a lender making a shared appreciation loan for seniors to give the prospective borrower, before consummation, a statement listing the prevailing and stated interest rates, projected contingent interest, initial loan amount, monthly annuity payment, projected loan term, and projected total loan obligation assuming the loan continues through the end of the borrower’s life expectancy.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.713 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-7/article-6/section-1917-713