California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 7 — Shared Appreciation Loans for Seniors, Article 6 — Notices and Disclosures, Section 1917.714
Each deed of trust and evidence of debt executed in connection with a shared appreciation loan for seniors shall contain a statement, printed or written in a size equal to at least 12-point bold type, consisting of substantially the following language: “THIS IS A [DURATION] SHARED APPRECIATION LOAN FOR SENIORS. THE LENDER'S INTEREST INCLUDES [PERCENT] OF THE NET APPRECIATED VALUE OF THE PROPERTY. A BALLOON PAYMENT OF PRINCIPAL WILL BE REQUIRED. FOR FURTHER INFORMATION, READ THE FLYER ENTITLED "INFORMATION ABOUT THE [NAME OF LENDER] SHARED APPRECIATION LOAN FOR SENIORS.”’ The notice required by this section shall be completed to state the terms of the shared appreciation loan and the lender’s share of the net appreciated value.
Notes
Requires each deed of trust and evidence of debt for a senior shared-appreciation loan to contain the prescribed warning in at least 12-point bold type. The completed notice must identify the loan duration, lender’s percentage share of net appreciated value, balloon-payment requirement, lender name, and reference to the required informational flyer.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.714 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-7/article-6/section-1917-714