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 1917.069
The aggregate amount of any fee charged to the borrower for processing an application and preparing any necessary documents in connection with originating a shared appreciation loan shall not exceed the reasonable cost of providing the service. No prepaid interest shall be charged to the borrower, but nothing in this chapter shall preclude a lender from requiring a fee for providing commitments for shared appreciation loans to builders or others who will not be the ultimate borrower.
Notes
Limits aggregate fees charged to a shared-appreciation borrower for application processing and document preparation to the reasonable cost of those services and prohibits prepaid interest. Allows a lender to require a fee for providing shared-appreciation-loan commitments to builders or others who will not be the ultimate borrower.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.069 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-4/article-6/section-1917-069