California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 5 — Common Interest Developments, Chapter 8 — Assessments and Assessment Collection, Article 3 — Assessment Collection, Section 5735
(a) An association may not voluntarily assign or pledge the association’s right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association.
(b) Nothing in subdivision (a) restricts the right or ability of an association to assign any unpaid obligations of a former member to a third party for purposes of collection.
Notes
Prohibits an association from voluntarily assigning or pledging its collection, assessment, lien-enforcement, or foreclosure rights to a third party, except to a federally or state-chartered or licensed financial institution or lender as security for an association loan within its authority. The restriction does not prevent assigning a former member's unpaid obligations to a third party for collection.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 5735 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-5/chapter-8/article-3/section-5735