California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 5 — Shared Appreciation Loans, Article 7 — Notices and Disclosures, Section 1917.173

Each lender making a shared appreciation loan 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

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. Interest rate on this loan: __%.

3. Lender’s share of net appreciated value: __%.

4. Amount of this loan: $__.

5. Amount of the monthly payments: $__.

6. Term of this loan: __ years.

7. Amortization period on which payments are calculated: __ years.

8. Prepayment charge (if any): __.

Notes

Requires each shared appreciation lender, before consummating the loan, to give the prospective borrower a statement listing the prevailing and loan interest rates, lender's appreciation share, loan amount, monthly payment, loan term, amortization period, and any prepayment charge. The statement must identify those loan terms for the prospective borrower.

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