California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 2 — Credit Sales, Chapter 1 — Retail Installment Sales, Article 4 — Restrictions on Retail Installment Contracts, Section 1804.3
(a) No contract other than one for services shall provide for a security interest in any goods theretofore fully paid for or which have not been sold by the seller.
(b) Any contract for goods which provides for a security interest in real property where the primary goods sold are not to be attached to the real property shall be a violation of this chapter and subject to the penalties set forth in Article 12.2 (commencing with Section 1812.6).
(c) This section shall become operative October 1, 1982.
Notes
Prohibits non-service contracts from taking a security interest in goods already fully paid for or goods not sold by the seller. Treats a goods contract securing real property as a chapter violation when the primary goods are not to be attached to that real property, subjecting it to referenced penalties; the provision became operative October 1, 1982.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1804.3 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-2/chapter-1/article-4/section-1804-3