California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 4 — Shared Appreciation Loans of E.R.I.S.A. Pension Funds, Article 6 — General Provisions, Section 1917.066
The lien of a shared appreciation loan, including the principal amount and all interest, whether accrued or to be accrued, and all amounts of contingent deferred interest, shall attach from the time of the recordation of the deed of trust securing the loan, and the lien, including the lien of the interest accrued or to be accrued and of the contingent deferred interest, shall have priority over any other lien or encumbrance affecting the property secured by the shared appreciation instrument which is recorded after the time of recordation of the shared appreciation instrument. However, nothing in this section or Section 1917.165 shall preclude a junior lien or encumbrance subordinate to the obligation of the shared appreciation loan.
Notes
Establishes that a shared appreciation loan lien, including principal, accrued or future interest, and contingent deferred interest, attaches when the deed of trust is recorded and has priority over liens or encumbrances recorded later. Allows a junior lien or encumbrance that remains subordinate to the shared appreciation loan obligation despite that priority rule.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.066 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-4/article-6/section-1917-066