FORECLOSURE - FOR - JUDGES (1) A

PREDATORY LENDING & WRONGFUL FORECLOSURES
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Predatory Lending
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Wrongful Foreclosures
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Contents
-ABCDEFGBHDA 1 HOLA 31
+CIEJBDCK!#IAEHAL 3 NBA 32
TILA 32
Introductory Background
Successor Liability 32
Information 3
Procedural Issues 4 :CDALMFN!ODCIGNDPFCIP 33
Generalized Pleading 4 Generally 33
Judicial Notice 5 Tendering Debt 34
Deeds 5 Promissory Notes 37
Contracts 6 Procedural Irregularities 38
Notices of Default 7 Statutory Compliance 39
Financial Code Division 1.6 7 Presumption Of Regular
Applicability 7 Foreclosure 40
Remedies 10 Notice Of Default 42
Claim And Party Types 10 Trustee Duties 42
Generally 10 Participants Authorized To
Loan Brokers 11 Foreclose 43
Lenders 11 Loan Modifications 45
Negligence 11 Contract 45
Fiduciary Duty 12 Obligation 45
Special Relationship 12 Private Right of Action 47
Self Interests 13 Statute of Frauds 48
Fraud 13 Remedies 49
Loan Servicers 15 Civil Code Section 2925 49
MERS 15 Injunction 49
Yield Spread Premiums 16 Setting Aside Sale 51
Unfair Business Practices 17 Declaratory Relief 52
Breach of Contract 18 Reformation 52
Statutory Claims 18 Damages For Wrongful
Civil Code Section 1920 18 Foreclosure 52
EESA 19 Privileges 52
Generally 19 Common Law Claims 53
HAMP 19 Intentional Infliction Of
TARP 20 Emotional Distress 53
TILA 21 Anti-SLAPP Protection 53
Generally 21 Lis Pendens 53
Statute of Limitations 24 ODCIGNDPFCI!,IPGFIP 54
FDCPA 25 !
RESPA 26 !!
CLRA 28 !
HOEPA 28
FTCA 30
Forgery 30
Preemption 30
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1
Half of U.S. Home Loan Modifications Default Again, Bloomberg.com (3/24/10), at
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVYxPZ56vjys .
2
Increasing numbers of Californians are suing lenders to avoid foreclosures, Mercury News
(3/2/10), at
http://www.mercurynews.com/breaking-news/ci_14500350?source=rss&nclick_check=1
3
24% Of Home Mortgages 'Underwater,' MSN MONEY (2/24/10), at
http://articles.moneycentral.msn.com/Banking/HomeFinancing/24-percent-of-mortgages-
underwater.aspx .
4
Id.
5
Foreclosure rates surge, biggest jump in 5 years, YAHOO NEWS, at
http://news.yahoo.com/s/ap/20100415/ap_on_bi_ge/us_foreclosure_rates;_ylt=Auygcu1_fK7K
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ARzbGsDZm9yZWNsb3N1cmVy (4/15/10).
6
About Half Of U.S. Mortgages Seen Underwater By 2011, YAHOO! NEWS, at
http://news.yahoo.com/s/nm/20090805/bs_nm/us_usa_housing_deutschebank (Aug. 7, 2009).
7
For convenient summaries of recent California legislation, see, Office of the Governor, Press
Release, Governor Schwarzenegger Signs Mortgage Protection Legislation, available at
http://gov.ca.gov/press-release/13574/ (10/12/09).
8
“[T]he California Rules of Court do not prohibit citation to unpublished federal cases, which
may properly be cited as persuasive, although not binding, authority.” Landmark Screens, LLC
v. Morgan, Lewis & Bockius, LLP (2010) _ Cal.App.4th _, _ n.6, 2010 WL 1176494, 10.
Accord Tichinin v. City of Morgan Hill (2009) 177 Cal.App.4th 1049, 1070 n.10.
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UJK! BJTI! eFEHGHJN! ADBHGI! DM! CIGDCEIE! EIIEP6! SFB! ADB! BQI! QIJCPJK! DC!
EHPWFBJSNI!MJGBP!JPPICBIE!HA!BQIUim!!%DFBQ!%QDCI!#JAE!.D9!X9!+IBICPIA!
g4?dbi!77d!.JN9!&WW9!7E!h7c6!hbd!gGDFCBP!GJAADB!eFEHGHJNNK!ADBHGI!EIIEP!
JAE!GDAXIKJAGIP!DM!WCHXJBI!WJCBHIP6!SFB!UJK!JP!BD!BQDPI!EDGFUIABP!JP!
SIBVIIA!DMMHGHJN!IABHBHIPi9!!!
!
ODC! -AMDCUJBHDAJN! WFCWDPIP! DANK6! DAI! UHLQB! ADBI! BQJB! JA! FAWFSNHPQIE!
.JNHMDCAHJ! DWHAHDA! gADB! GHBIJSNIi! CIJPDAIE! BQJB! NIJXI! BD! JUIAE! GJA! SI!
GDABCJHAEHGJBIE! SK! eFEHGHJN! ADBHGI! DM! J! EIIE9! ! See ! (DAfJNIf! X9!
=HGQINFGGHR;JCECHGT! g7848i! 7848! .JN9! &WW9! *AWFS9! #)p-%! 7cb6! q4cR4d!
g['DC! GJA! BQI! GDUWNJHAB! SI! JUIAEIE! BD! JNNILI! BQJB! BQIPI! EIMIAEJABP!
VICI!lGCIEHBDCP6k!SIGJFPI!BQI!eFEHGHJNNK!ADBHGIE!EIIE!DM!BCFPB\9]i9!
Contracts
!
#IPP!NHTINK!HP!BQI!WCDWCHIBK!DM!BJTHAL!eFEHGHJN!ADBHGI!DM!GDABCJGB!EDGFUIABP!
FAJBBJGQIE!BD!BQI!GDUWNJHAB9!
!
3FEHGHJN! ADBHGI! DM! GDABCJGBP! HP! HUWCDWIC9! ! OCIIUDAB! -AEIU9! .D9! X9!
OCIUDAB!(IAICJN!.DCW9!!g788hi!4b5!.JN9&WW9bBQ!?h6!44bR4c!gGDFCB!CFNHAL!
DA!EIUFCCIC!GJAADB!BJTI!eFEHGHJN!ADBHGI!DM!GDABCJGB!JNNILIENK!JUSHLFDFP!
DC!FAIAMDCGIJSNIim!!&ZFHNJ6!-AG9!X9!%FW9!.B9!g788hi!4b5!.JN9!&WW9!bBQ!ccd6!
ch4m! ! (DFNE! X9! =JCKNJAE! %DFAE! -AEFPBCHIP6! -AG9! g4??ci! `4! .JN9&WW9bBQ!
44`h6! 44bcRbd! gY3FEHGHJN! ADBHGI! FAEIC! )XHEIAGI! .DEI! PIGBHDA! bc76!
PFSEHXHPHDA! gQi! HP! HABIAEIE! BD! GDXIC! MJGBP! VQHGQ! JCI! ADB! CIJPDAJSNK!
PFSeIGB! BD! EHPWFBI! JAE! JCI! IJPHNK! XICHMHIE9\! BQI! nMJGBn! J! GDABCJGB! IaHPBP!
SIBVIIA! BQI! WJCBHIP! HP! MCIZFIABNK! BQI! PFSeIGB! DM! CIJPDAJSNI! EHPWFBI9Yi9!!
See also generally :IHN! r! >CDVA6! .JN9! +CJG9! (FHEI2! .HX9! +CD9! >IMDCI!
/CHJN!g/QI!,FBBIC!(CDFW!788?i!sh24hQm!!4!:HBTHA!.JN9!)XHE9!gbBQ!IE9!7888i!
3FEHGHJN!'DBHGI!j`89!
!
:QIA! J! GDUWNJHAJAB! JBBJGQIP! JA! IABHCI! GDABCJGB! BD! J! GDUWNJHAB6! BQI!
GDFCB! UJK! BJTI! eFEHGHJN! ADBHGI! DM! HB! gIXIA! HM! HB! HP! JA! FAPHLAIE! GDWKi9!!
>FCAIBB!X9!.QHUAIK!%VIIW!g788bi!47`!.JN9!&WW9!bBQ!48ch6!48db9!
! !
:QIA!J!WNJHABHMM!JBBJGQIP!WJCB!DM!J!GDABCJGB!BD!J!GDUWNJHAB6!BQI!GDFCB!UJK!
BJTI! eFEHGHJN! ADBHGI! DM! BQI! IABHCI! GDABCJGB! HA! CFNHAL! DA! J! EIUFCCIC9!!
)UWNDKICP!-AP9!.D9!X9!%BJBI!DM!.JN9!g4?h8i!`!.JN9È!ch`6!chc!A9!4!gADBHAL!
PFGQ!MJGBP6!SFB!DANK!HUWNKHAL!BQI!CFNIi9!!!!
6
!
:QIA! J! GDABCJGB! CINJBIP! BD! J! GDUWNJHAB6! BQI! GDFCB! UJK! BJTI! eFEHGHJN!
ADBHGI! DM! BQI! GDABCJGB! HA! CFNHAL! DA! J! EIUFCCIC9! ! &PGQICUJA! X9! (IAICJN!
,IHAPFCJAGI!.DCW9!g4?5di!45`!.JN9!&WW9!È!`8h6!`48!gADBHAL!PFGQ!MJGBP6!
SFB!DANK!HUWNKHAL!BQI!CFNIi9
!
!
Notices of Default
!
&!.DFCB!EIGNHAIE!BD!BJTI!GDAGNFPHXI!eFEHGHJN!ADBHGI!DM!J!ADBHGI!DM!EIMJFNB!
MDC!BQI!JPPICBHDA!BQJB!BQI!UDCBLJLII!QJE!GDABJGBIE!BQI!SDCCDVIC!JP!
CIZFHCIE!SK!.HXHN!.DEI!%IGBHDA!7?7`6!SIGJFPI!BQI!MJGB!GDFNE!SI!PFSeIGB!
BD!EHPWFBI9!!>NJAGD!X9!&UIC9!;DUI!=DCBL9!%ICXHGHAL6!-AG9!g)919.JN9!
788?i!788?!:#!bdhb?8b6!?!A9c9!
!
!
!
!
Financial Code Division 1.6
!
Applicability
!
Y^/_QCDFLQ! BQI! IAJGBUIAB! DM! 1HXHPHDA! 49d6! BQI! #ILHPNJBFCI! QJP! MFNNK!
DGGFWHIE!BQI!MHINE!DM!CILFNJBHDA!DM!WCIEJBDCK!BJGBHGP!HA!QDUI!UDCBLJLIP6Y!
HAGNFEHAL! YIaGIPPHXI! WCIWJKUIAB! MIIP6! UJTHAL! NDJAP! VHBQDFB! JAK!
CIJPDAJSNI! IaWIGBJBHDA! BQIK! GJA! SI! CIWJHE6! CIMHAJAGHAL! VHBQ! AD! SIAIMHB!
BD! BQI! SDCCDVIC6! IAGDFCJLHAL! EIMJFNB! DA! JA! IaHPBHAL! NDJA! HA! GDAAIGBHDA!
VHBQ! CIMHAJAGHAL! BQJB! NDJA6! MHAJAGHAL! FAAIGIPPJCK! WCDEFGBP! PFGQ! JP!
GCIEHB! HAPFCJAGI6! FAMJHCNK! JGGINICJBHAL! HAEISBIEAIPP6! JAE! MHAJAGHAL!
IaGIPPHXI!WDHABP!JAE!MIIP9Y!!&UICHGJA!OHAJAGHJN!%ICXHGIP!&PPA9!X9!.HBK!
DM!$JTNJAE!g788ci!`b!.JN9!bBQ!47`?6!47cd!gGHBHAL6!e.g96!OHA9!.9!jb?h8!IB!
PIZ9i9!
!
1HXHPHDA!49d!JWWNHIP!BD!J![GDAPFUIC!NDJA6]!UIJAHAL![J!GDAPFUIC!GCIEHB!
BCJAPJGBHDA!BQJB!HP!PIGFCIE!SK!CIJN!WCDWICBK!NDGJBIE!HA!BQHP!PBJBI!FPIE6!DC!
HABIAEIE! BD! SI! FPIE! DC! DGGFWHIE6! JP! BQI! WCHAGHWJN! EVINNHAL! DM! BQI!
GDAPFUIC\9]!!OHA9!.9!jb?h8gEi9!!See also generally!!=HNNIC!r!%BJCC6!47!
.JN9!,IJN!)PB9!j`d27?!gÈ!IE9i9!
!
&NPD6!HB!JWWNHIP!BD!J![.DXICIE!NDJA6]!PBJBFBDCHNK!EIMHAIE!JP!MDNNDVP2!
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gSi![.DXICIE!NDJA]!UIJAP!J!GDAPFUIC!NDJA!HA!VQHGQ!BQI!DCHLHAJN!
WCHAGHWJN! SJNJAGI! DM! BQI! NDJA! EDIP! ADB! IaGIIE! BQI! UDPB! GFCCIAB!
GDAMDCUHAL! NDJA! NHUHB! MDC! J! PHALNIRMJUHNK! MHCPB! UDCBLJLI! NDJA!
7
IPBJSNHPQIE!SK!BQI!OIEICJN!'JBHDAJN!=DCBLJLI!&PPDGHJBHDA!HA!BQI!
GJPI! DM! J! UDCBLJLI! DC! EIIE! DM! BCFPB6! JAE! VQICI! DAI! DM! BQI!
MDNNDVHAL!GDAEHBHDAP!JCI!UIB2!
!
g4i!ODC!J!UDCBLJLI!DC!EIIE!DM!BCFPB6!BQI!JAAFJN!WICGIABJLI!
CJBI! JB! GDAPFUUJBHDA! DM! BQI! BCJAPJGBHDA! VHNN! IaGIIE! SK!
UDCI! BQJA! IHLQB! WICGIABJLI! WDHABP! BQI! KHINE! DA! /CIJPFCK!
PIGFCHBHIP! QJXHAL! GDUWJCJSNI! WICHDEP! DM! UJBFCHBK! DA! BQI!
4cBQ!EJK!DM!BQI!UDABQ!HUUIEHJBINK!WCIGIEHAL!BQI!UDABQ!HA!
VQHGQ!BQI!JWWNHGJBHDA!MDC!BQI!IaBIAPHDA!DM!GCIEHB!HP!CIGIHXIE!
SK!BQI!GCIEHBDC9!
!
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DC! SIMDCI! GNDPHAL! MDC! J! UDCBLJLI! DC! EIIE! DM! BCFPB! VHNN!
IaGIIE!d!WICGIAB!DM!BQI!BDBJN!NDJA!JUDFAB9!
!
!
OHA9.9! jb?h8gSi9! ! See also! ! %FBQICNJAE! X9! 1HXICPHMHIE! .JWHBJN! -AG9!
g'919.JN9! 7885i! ! 7885! :#! 7?c4`c`6! 7! g[-A! 3FAI! DM! 788b6! OJAAHI! =JI!
PIB! BQI! NDJA! NHUHB! MDC! J! PHALNIRMJUHNK! MHCPB! UDCBLJLI! NDJA! JB! t```6h88\9!
/QI!IXHEIAGI!HP!FAEHPWFBIE!BQJB!BQI!NDJA!JB!HPPFI!VJP!MDC!tc8868886!JAE!
VJP! BQICIMDCI! J! ADARGDAMDCUHAL! eFUSD! NDJA9! &P! J! CIPFNB! j! b?h`gMig4i!
EDIP!ADB!JWWNK!BD!+NJHABHMMnP!NDJA9]i9!
!
&A! HPPFI! UJK! JCHPI! JP! BD! VQIBQIC! J! WNJHABHMM! QJP! JNNILIE! J! PBJBFBDCHNK!
GDXICIE!NDJA!JP!EIMHAIE!HA!%IGBHDA!b?h8gSi9!!See, e.g.6!!'DDN!X9!;DUIu!
%ICXHGHAL!g)919.JN9!788?i!788?!:#!7?8chbc6!c!g[EDIP!ADB!JNNILI!IHBQIC!
BQJB! BQI! JAAFJN! WICGIABJLI! CJBI! JB! GDAPFUUJBHDA! DM! BQI! BCJAPJGBHDA!
IaGIIEIE! BQI! /CIJPFCK! PIGFCHBHIP! CJBI! SK! UDCI! BQJA! IHLQB! WICGIABJLI!
WDHABP!DC!BQJB!BQI!BDBJN!WDHABP!JAE!MIIP!WJHE!SK!BQI!GDAPFUIC!JB!DC!SIMDCI!
GNDPHAL!IaGIIEIE!PHa!WICGIAB!DM!BQI!BDBJN!NDJA!JUDFAB9]i9!
!
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dhi9! .JNHMDCAHJnP! WCIEJBDCK! NIAEHAL! NJVP6! QDVIXIC6! CINJBI! BD! NDJA!
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!
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8
!
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BQI! NDJA! EHPGNDPIP! BD! BQI! GDAPFUIC! BQJB! BQI! NDJA! GDABJHAP! J!
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GDAPFUUJBIE6!BQI!WICPDA!CIJPDAJSNK!SINHIXIP!BQI!GDAPFUIC6!DC!
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GDAPFUICP6! VHNN! SI! JSNI! BD! UJTI! BQI! PGQIEFNIE! WJKUIABP! BD!
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JAE! IaWIGBIE! HAGDUI6! GFCCIAB! DSNHLJBHDAP6! IUWNDKUIAB! PBJBFP6!
JAE!DBQIC!MHAJAGHJN!CIPDFCGIP6!DBQIC!BQJA!BQI!GDAPFUICnP!IZFHBK!HA!
BQI! EVINNHAL! BQJB! PIGFCIP! CIWJKUIAB! DM! BQI! NDJA9]! ! Id.! JB!
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BQI! GDAPFUIC! AD! NJBIC! BQJA! BQCII! SFPHAIPP! EJKP! WCHDC! BD! PHLAHAL!
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9
Remedies
!
/QI! PBJBFBDCK! CIUIEHIP! MDC! XHDNJBHDAP! DM! 1HXHPHDA! 49d! gOHA9! .9! jb?h8! IB!
PIZ9i!JCI!PBJBIE!JP!MDNNDVP2!
!
gJi! &! WICPDA! VQD! MJHNP! BD! GDUWNK! VHBQ! BQI! WCDXHPHDAP! DM! BQHP!
EHXHPHDA!HP!GHXHNNK!NHJSNI!BD!BQI!GDAPFUIC!HA!JA!JUDFAB!IZFJN!BD!JAK!
JGBFJN! EJUJLIP! PFMMICIE! SK! BQI! GDAPFUIC6! WNFP! JBBDCAIKP! MIIP!
JAE!GDPBP9!ODC!J!VHNNMFN!JAE!TADVHAL!XHDNJBHDA!DM!BQHP!EHXHPHDA6!BQI!
WICPDA! PQJNN! SI! NHJSNI! BD! BQI! GDAPFUIC! HA! BQI! JUDFAB! DM! MHMBIIA!
BQDFPJAE! EDNNJCP! gt4c6888i! DC! BQI! GDAPFUICP! JGBFJN! EJUJLIP6!
VQHGQIXIC!HP!LCIJBIC6!WNFP!JBBDCAIKP!MIIP!JAE!GDPBP9!
!
gSig4i! -M! J! WCDXHPHDA! HA! J! GDABCJGB! HA! J! GDXICIE! NDJA! XHDNJBIP!
PFSEHXHPHDA! gJi6! gSi6! gGi6! gEi6! gIi6! DC! gHi! DM! %IGBHDA! b?h`6! %IGBHDA!
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GDFCB! HA! VQHGQ! JAK! JGBHDA! HP! SCDFLQB! SK6! DC! DA! SIQJNM! DM6! JA!
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CIMDCU!BQI!BICUP!DM!BQI!GDXICIE!NDJA!BD!GDAMDCU!BD!BQI!WCDXHPHDAP!
DM!BQHP!EHXHPHDA9!
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!
Claim And Party Types
!
Generally
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!
-B! HP! QHLQNK! GDUUDA! MDC! NIAEICP6! NDJA! PICXHGICP! JAE! DBQIC! NDJA!
WJCBHGHWJABP! BD! JCLFI! HA! EIUFCCICP6! DC! UDBHDAP! MDC! PFUUJCK! eFELUIAB6!
BQJB! BQIK! DVI! AD! MHEFGHJCK! DC! DBQIC! EFBK! BD! J! SDCCDVIC9! ! -A! GDABCJPB6!
SDCCDVICP! BKWHGJNNK! GDABIAE! BQJB! NIAEICP! QJE! XJCHDFP! EFBHIP! BD! JEXHPI!
BQIU6!HAGNFEHAL!JP!BD!BQI!JGGFCJBI!HABICIPB!CJBI6!JAE!BQIHC!JSHNHBK!BD!JMMDCE!
UDCBLJLI!WJKUIABP!HA!NHLQB!DM!BQIHC!HAGDUI9!!&P!JEECIPPIE!SINDV6!BQICI!
JCI! IaGIWBHDAP! BD! BQI! LIAICJN! CFNI! DM! NJGT! DM! MHEFGHJCK! EFBK! DM! NIAEICP6!
VQHGQ!UJK!JWWNK6!EIWIAEHAL!FWDA!BQI!MJGBP6!HAGNFEHAL!VQICI!BQI!NIAEIC!
JGBP!SIKDAE!HBP!BCJEHBHDAJN!CDNI!HA!EIJNHAL!VHBQ!BQI!SDCCDVIC6!PFGQ!JP!SK!
10
PICXHAL! JP! JA! HAXIPBUIAB! JEXHPDC! gVQHGQ! PDUI! WNJHABHMMP! JNNILI! QJP!
DGGFCCIEi9!
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EIMIAEJABP!CILFNJCNK!DXICNDDT!BQI!HUWDCBJAGI!DM!BQI!LDXICAHAL!GDABCJGBP!
BD!EIBICUHAHAL!JAK!EFBK!SIBVIIA!BQI!WJCBHIP!HAXDNXIE!HA!UDCBLJLI!NDJAP9!!
&AK!MHEFGHJCK!EFBHIP!SIBVIIA!WJCBHGHWJABP!HA!UDCBLJLI!NDJA!BCJAPJGBHDAP6!
HAGNFEHAL! NDJA! PICXHGICP6! GJA! EIWIAE! FWDA! BQI! BICUP! DM! BQI! JWWNHGJSNI!
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EIMIAEJABkP!CDNI!UJK!SI!HUWDPPHSNI9!
!
!
Loan Brokers
!
&! UDCBLJLI! NDJA! SCDTIC! DVIP! J! MHEFGHJCK! EFBK! DM! LDDE! MJHBQ! JAE! QJP! J!
EFBK! DM! WCDXHEHAL! J! MFNN! EHPGNDPFCI! DM! JNN! UJBICHJN! MJGBP! BQJB! UHLQB! JMMIGB!
BQI!EIGHPHDA!DM!J!SDCCDVIC!GDAGICAHAL!BQI!BCJAPJGBHDA9!!>JCCK!X9!,JPTDX!
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Lenders
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Negligence
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12
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13
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788?! :#! ?d4??c6! b! g[=),%! VJP! J! ADUHAIIoSIAIMHGHJCK! DM! BQI! NIAEIC6!
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!
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=),%! JAE! .JNHMDCAHJ! NHGIAPHAL6! JA! FAWFSNHPQIE! EIGHPHDA! gADB! GHBJSNIi!
CIJPDAIE! BQJB! =),%! HP! ADB! CIZFHCIE! BD! CILHPBIC! JP! J! GDCWDCJBHDA! HA!
.JNHMDCAHJ9! ! See! %FNJT! X9! =DCBLJLI! )NIGB9! ,ILHPBCJBHDA! %KPBIUP6! -AG9!
g788di!788d!:#!`c4b5h`6!?!gGHBHAL!.DCW9!.9!j4?4gGi6!gEi!gEIMHAHAL!VQJB!
GDAPBHBFBIP! HABCJPBJBI! SFPHAIPP6! JAE! IaGNFEHAL! JGZFHCHAL! DC! JPPHLAHAL!
NDJA! HABICIPBP6! NDJA! DVAICPQHW! JAE! IAMDCGIUIAB! HAGNFEHAL! SK! PICXHGHAL!
NDJAP!DC!MDCIGNDPFCIii9!
!
!
!
Yield Spread Premiums
!
!
+NJHABHMMP!GDUUDANK!JNNILI!BQJB!NIAEICP!GDAGIJNIE!BQI!IaWIAPI!DM!J!KHINE!
PWCIJE!WCIUHFU!JEEIE!BD!UDCBLJLI!WJKUIABP9!
!
&!KHINE!PWCIJE!WCIUHFU!g@%+i!HP!J!SDAFP!WJHE!BD!J!SCDTIC!DCHLHAJBHAL!J!
NDJA6!JB!JA!HABICIPB!CJBI!QHLQIC!BQJA!BQI!UHAHUFU!HABICIPB!CJBI!JWWCDXIE!
16
SK! BQI! NIAEIC! MDC! J! WJCBHGFNJC! NDJA6! HA! GDAAIGBHDA! VHBQ! J! CIPHEIABHJN!
UDCBLJLI9!!/QI!WCIUHFU!HP!ADB!J!WCIEJBDCK!NIAEHAL!WCJGBHGI!HAGNFEIE!HA!
BQI! EIMHAHBHDA! DM! WDHABP! JAE! MIIP! WJKJSNI! SK! J! SDCCDVIC! JB! DC! SIMDCI!
GNDPHAL6!DM!OHAJAGHJN!.DEI!%IGBHDA!b?h89!!:DNPTH!X9!OCIUDAB!-AXIPBUIAB!
r! #DJA! ! g788ci! 47h! .JN9&WW9bBQ! `bh6! `c46! `ch! gY:I! JCI! UHAEMFN! BQJB!
@%+nP!JCI!GDAPHEICIE!SK!PDUI!BD!SI!J!WCIEJBDCK!NIAEHAL!WCJGBHGI6!JAE!
VI! GJA! FAEICPBJAE! VQK! GDAPFUIC! LCDFWP! VDFNE! VJAB! BQIU! CILFNJBIE9!
;DVIXIC6! PIGBHDA! b?h8! EHE! ADB! IMMIGB! BQJB! CILFNJBHDA9! /QI! CIUIEK! BD!
UJTI! BQJB! GQJALI! HP! VHBQ! BQI! #ILHPNJBFCI9Yi9! ! Accord! ! >KJCP! X9! %.=)!
=DCBLJLI! >JATICP6! -AG9! g788ì! 48?! .JN9! &WW9! bBQ! 44`b6! 44b7Rb?9! ! See
also generally!!.JN9!.HX9!+CJG9!g/QDUPDA!,IFBICP!788?i!,IJN!+CDW9!#HBHL9!
jb2bh9!
Unfair Business Practices

!
!
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SJPI!BQI!GJFPI!DM!JGBHDA!DA!DBQIC!FAEICNKHAL!GNJHUP9!!;IAGI6!LIAICJNNK!
BQI!XHJSHNHBK!DM!BQI!GNJHU!LIAICJNNK!EIWIAEP!FWDA!VQIBQIC!BQI!FAEICNKHAL!
GJFPIP! DM! JGBHDA! VHBQPBJAE! PGCFBHAK9! ! E.g.6! ! %JNEJBI! X9! :HNPQHCI! .CIEHB!
.DCW9!g)919.JN9!7848i!7848!:#!d7bbbc6!44!!g[:QICI!J!WNJHABHMM!GJAADB!
PBJBI! J! GNJHU! FAEIC! BQI! [SDCCDVIE]! NJV6! PQI! GJAADB! PBJBI! J! *.#! GNJHU!
IHBQIC9]im!!'DDN!X9!;DUIu!%ICXHGHAL!g)919.JN9!788?i!788?!:#!7?8chbc6!
h! g[+NJHABHMMPn! j! 4h788! GNJHU! EIWIAEP! DA! BQI! PHa! GJFPIP! DM! JGBHDA!
EHPGFPPIE\9]im! ! <IIA! X9! &UIC9! ;DUI! =DCBL9! %ICXHGHAL6! -AG9! g)919.JN9!
788?i! 788?! :#! ``58bcb6! 47! ! g[>IGJFPI! WNJHABHMMnP! *.#! GNJHU! HP!
WCIEHGJBIE! DA! MJGBP! PFWWDCBHAL! QIC! DBQIC! GNJHUP6! JNN! DM! VQHGQ! BQI! GDFCB!
QJP! EHPUHPPIE6! EIMIAEJABPn! UDBHDA! BD! EHPUHPP! WNJHABHMMnP! PIXIABQ! GJFPI!
DM! JGBHDA! MDC! XHDNJBHDAP! DM! .JNHMDCAHJ! >FPHAIPP! r! +CDMIPPHDAP! .DEI! j!
4h788!HP!(,&'/)19]im!!0ILJ!X9!3+=DCLJA!.QJPI!>JAT6!'9&9!g)919.JN9!
788?i! 788?! :#! 7h`48`?6! 44! g[PHAGI! WNJHABHMMnP! /-#&! GNJHU! MJHNIE6!
WNJHABHMMnP!*.#!GNJHU!WCIEHGJBIE!DA!/-#&!NHTIVHPI!MJHNIE]i9!
!
&! GJFPI! DM! JGBHDA! MDC! XHDNJBHDA! DM! >FPHAIPP! JAE! +CDMIPPHDAP! .DEI!
PIGBHDA! 4h788! MJHNP! VQICI! HB! HP! WCIEHGJBIE! DA! J! XHDNJBHDA! DM! WCIEJBDCK!
NIAEHAL! NJV! BQJB! JNPD! MJHNP9! ! :DNPTH! X9! OCIUDAB! -AXIPBUIAB! r! #DJA!!
g788ci!47h!.JN9&WW9bBQ!`bh6!`ch9!
!
-A! JA! JEXHPDCK! DWHAHDA6! J! MIEICJN! GDFCB6! JWWNKHAL! .JNHMDCAHJ! NJV6!
EHPUHPPIE! JNN! DM! BQI! WNJHABHMMnP! WCIEHGJBI! XHDNJBHDAP6! JAE! GDAGNFEIE! BQJB!
BQI! WNJHABHMM! GDFNE! ADB! PBJBI! J! GNJHU! MDC! FAMJHC! SFPHAIPP! WCJGBHGIP9! ! See!
17
+JABDeJ! X9! .DFABCKVHEI! ;DUI! #DJAP6! -AG9! g'919! .JN9! 788?i! 788?! :#!
7b7`h8`6!?9!
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WCIEJBDCK!NIAEHAL6!WNJHABHMMP!UJK!MJHN!BD!WNIJE!FNBHUJBI!MJGBP!HA!PFWWDCB!DM!
GNJHUP! MDC! FAMJHC! SFPHAIPP! WCJGBHGIP9! ! See! .DNNHAP! X9! +DVIC! 1IMJFNB!
%ICXHGIP6! -AG9! g'919.JN9! 7848i! 7848! :#! 7`b?876! b9! g[+NJHABHMMP! PHUWNK!
JNNILI! BQJB! l1IMIAEJABP! GDUUHBBIE! FANJVMFN6! FAMJHC6! JAEoDC! MCJFEFNIAB!
SFPHAIPP!WCJGBHGIPk\9]i9!!!
!
;DVIXIC6! FAEIC! SHAEHAL! .JNHMDCAHJ! NJV6! JWWNHGJSNI! LIAICJNNK6! GNJHUP! MDC!
FAMJHC!SFPHAIPP!WCJGBHGIP!AIIE!ADB!SI!WNIE!PWIGHMHGJNNK9!!uFINHUJAI!.D9!
X9! %BIVJCB! /HBNI! (FJC9! .D9! g4??5i! 4?! .JN9! bBQ! 7d6! bd! ! gHUWNHIENK!
EHPJWWCDXHAL!CIZFHCIUIAB!DM!CIJPDAJSNI!WJCBHGFNJCHBK!PBJBIE!HA!<QDFCK!X9!
=JNKnP! DM! .JN9! g4??ì! 4b! .JN9! &WW9! bBQ! d476! d4?im! ! vQJAL! X9! %FW9! .B9!
g788?i! 4h5! .JN9! &WW9! bBQ! 48546! 485c! gGDFCB! HP! [CIZFHCIE! BD! LHXI! J!
LIAICDFP! HABICWCIBJBHDA! DM! BQI! WNIJEHAL! HA! MJXDC! DM! PBJBHAL! J! GJFPI! DM!
JGBHDA]!FAEIC!>FP9!r!+CDM9!.9!j4h788i9!!
!
!
Breach of Contract
!
&NNILJBHDAP!DM!J!XJLFI!WCDUHPI!BD!WCDXHEI!JA!JMMDCEJSNI!NDJA!JCI!
HAPFMMHGHIAB!BD!PBJBI!J!GJFPI!DM!JGBHDA!MDC!SCIJGQ!DM!GDABCJGB6!JGGDCEHAL!BD!
J!MIEICJN!EIGHPHDA9!!>NJAGD!X9!&UIC9!;DUI!=DCBL9!%ICXHGHAL6!-AG9!
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!
!
!
Statutory Claims
!
Civil Code Section 1920
!
.HXHN! .DEI! %IGBHDA! 4?78! HUWDPIP! CIZFHCIUIABP! JP! BD! J! UDCBLJLI!
HAPBCFUIAB! VHBQ! CILJCE! BD! XJCHJSNI! HABICIPB! CJBIP6! HAGNFEHAL! BQJB6!
[^P_BJAEJCEP! MDC! BQI! JEeFPBUIAB! DM! HABICIPB! CJBIP! DC! UDABQNK! WJKUIABP!
PQJNN! GDAPHEIC! MJGBDCP! VQHGQ! GJA! CIJPDAJSNK! SI! EIIUIE! BD! JMMIGB! BQI!
JSHNHBK!DM!SDCCDVICP!BD!UIIB!BQIHC!UDCBLJLI!DSNHLJBHDAP9]!
!
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ADBHGIP! PWIGHMKHAL! J! GQJALIE! HABICIPB! CJBI6! UDABQNK! WJKUIABP6! JAE! BQI!
FAWJHE!WCHAGHWJN!SJNJAGI9!
!
18
&GGDCEHAL! BD! J! MIEICJN! CFNHAL6! [PIGBHDA! 4?78! HUWDPIP! EFBHIP! DA! BQI!
NIAEIC6!ADB!BQI!NDJA!PICXHGIC9]!!'DDN!X9!;DUIu!%ICXHGHAL!g)919.JN9!788?i!
788?!:#!7?8chbc6!d9!
!
!
EESA
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Generally
!
!
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%BJSHNHfJBHDA!&GB!DM!7885!g))%&6!47!*9%9.9!jj!c784!IB!PIZ9i6!MDC!EISBDCP!
BD!MDCGI!NIAEICP!BD!IABIC!HABD!J!NDJA!UDEHMHGJBHDA6!DC!BQI!;DWI!MDC!
;DUIDVAICP!&GB9!!%JABDP!X9!.DFABCKVHEI!;DUI!#DJAP!g)919.JN9!788?i!
788?!:#!`hcd``h6!`!!!gGHBHAL!,JUHCIf!X9!#HBBDA!#DJA!%ICXHGHAL6!#+!!
g19&CHf9!788?i!788?!:#!4hc8d4h6!4m!!>JCCIK!X9!$GVIA!#DJA!%ICXHGHAL6!
##.!g19&CHP9!788?i!788?!:#!4?b8h4h6!4i9!
!
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g19=HAA9!788?i!788?!:#!`hch`586!d9!!!
!
HAMP
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!
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1HPBCHGB!3FELI!EIGHEHAL!:HNNHJUP6!supra6!QINWMFNNK!IaWNDCIE!HB!HA!PDUI!
EIBJHN9!!
!
.JNGFNJBHDAP!FAEIC!BQI!;DUI!&MMDCEJSNI!=DEHMHGJBHDA!+CDLCJU!g;&=+i6!
HAXDNXI!JPPHLAHAL!XJNFIP!BD!GICBJHA!XJCHJSNIP!BQJB!JCI!NJCLINK!VHBQHA!
PICXHGICPn!EHPGCIBHDA6!PFGQ!BQJB!BQICI!HP!AD!IABHBNIUIAB!BD!NDJA!
UDEHMHGJBHDAP9!!:HNNHJUP!X9!(IHBQAIC!g19=HAA9!788?i!788?!:#!`hch`586!
d9!!!
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*9%9.9!jc784!g7885ii9!!%ICXHGICP!UJK!XDNFABJCHNK!WJCBHGHWJBI!HA!;&=+!JP!
BD!UDCBLJLIP!DVAIE6!PIGFCHBHfIE6!DC!LFJCJABIIE!SK!OJAAHI!=JI!DC!
OCIEEHI!=JG9!!Ibid.!!!
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46!788?m!
19
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VQHGQ!HP!BQI!SDCCDVICnP!WCHAGHWJN!CIPHEIAGIm!
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WICGIAB!DM!UDABQNK!HAGDUI6!JAE!QJP!HAPFMMHGHIAB!JPPIBP!BD!UJTI!
BQI!WJKUIABm!JAE!
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PICXHGIC!=*%/!DMMIC!BQI!UDEHMHGJBHDA9!-M!BQI!'+0!CIPFNB!MDC!AD!
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PGIAJCHD6!BQI!UDEHMHGJBHDA!CIPFNB!HP!EIIUIE!lAILJBHXIk!JAE!BQI!
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20
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TILA
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21
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22
MDC! BQJB! NDJA! JAE! J! PBJBIUIAB! BQJB! BQI! WICHDEHG!

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23
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:#!7?454h6!c!gGHBHAL6!I9L96!!4c!*9%9.9!j4d87gVii9!
!
!
Statute of Limitations
!
[/QI! CIUIEHIP! FAEIC! /-#&! HAGNFEI! GHXHN! NHJSHNHBK! JAE! EJUJLIP9! -M! JAK!
CIZFHCIE! EHPGNDPFCIP! JCI! ADB! LHXIA6! BQI! SDCCDVICnP! CHLQB! BD! CIPGHAE! HP!
IaBIAEIE!MCDU!BQCII!EJKP!BD!BQCII!KIJCP!JMBIC!BQI!EJBI!DM!GDAPFUUJBHDA!
DM! BQI! BCJAPJGBHDA9]! ! +JGHMHG! %QDCI! OFAEHAL! X9! #DfD! ! g788di! 4`5!
.JN9&WW9bBQ!4`b76!4`c89!
!
OFCBQIC6!DAI!UHLQB!ADBI!BQJB!JA!FAWFSNHPQIE!DWHAHDA!QINE!BQJB!EJUJLIP!
JCI!ADB!CIGDXICJSNI!MDC!J!/-#&!XHDNJBHDA!JSPIAB!J!PQDVHAL!BQJB!EJUJLIP!
VICI! GJFPIE! SK! BQI! XHDNJBHDA6! JAE! BQJB! J! NIAEIC! EHE! ADB! GJFPI! J!
SDCCDVICkP! MJHNFCI! BD! UJTI! BQI! WJKUIABP! EFI! NIJEHAL! BD! MDCIGNDPFCI9!!
See! ! <HAAHGT! X9! %JCJBDLJ! .JWHBJN6! -AG9! g788?i! 788?! :#! `d84db?6! d!
gGHBHAL! 4c! *9%9.9! j4db8gJig4im! ! -A! CI! %UHBQ! g?BQ! .HC9! 7887i! 75?! O9È!
44cc6!44chi9!
!
[/-#&!CIZFHCIP!SDCCDVICP!BD!MHNI!JA!JGBHDA!lVHBQHA!DAI!KIJC!MCDU!BQI!EJBI!
DM!BQI!DGGFCCIAGI!DM!BQI!XHDNJBHDA9k]!!+JGHMHG!%QDCI!OFAEHAL!X9!#DfD!
g788di!4`5!.JN9&WW9bBQ!4`b76!4`cc!gZFDBHAL!g4c!*9%9.9!4db8gIii9!![&A!
JGBHDA!MDC!EJUJLIP!FAEIC!/-#&!UFPB!SI!SCDFLQB!VHBQHA!DAI!KIJC!DM!BQI!
JNNILIE!XHDNJBHDA\9]!!/QI!XHDNJBHDA!DGGFCP!FWDA!GDAPFUUJBHDA!DM!BQI!
NDJA9]!!.DAEIC!X9!;DUI!%JX9!DM!&UIC9!g.919.JN9!7848i!7848!:#!
4?5c4?6!7!gGHBHAL!4c!*9%9.9!j!4db8gIim!!>IBJAGDFCB!X9!.DFABCKVHEI!
;DUI!#DJAP6!-AG9!g19.DND9!788bi!`bb!O9%FWW97E!47c`6!47c5i6!order!
24
superseded by!!.DAEIC!X9!;DUI!%JXHALP!DM!&UIC9!g.919.JN9!4o7ho486!
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788?i!788?!:#!7?8chbc6!79!!
!
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IZFHBJSNK! BDNNIE! [FABHN! BQI! SDCCDVIC! EHPGDXICP! DC! QJE! CIJPDAJSNI!
DWWDCBFAHBK! BD! EHPGDXIC! BQI! MCJFE! DC! ADAEHPGNDPFCIP! BQJB! MDCU! BQI! SJPHP!
DM!BQI!/-#&!JGBHDA9]!!<HAL!X9!.JNHMDCAHJ!g?BQ!.HC9!.JN9!4?5di!h5b!O97E!?486!
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JBBIUWBHAL!BD!GDNNIGB!BQIHC!DVA!EISB!MCDU!+NJHABHMM9]i9!!
%HUHNJCNK6! DBQIC! eFELIP! QJXI! QINE! BQJB6! BQI! O1.+&! GDAGICAP! FAMJHC! EISB!
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25
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!
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26
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CIZFHCIUIABP6!PFGQ!JP!BD!CILFNJBHAL!MJHC!GCIEHB!WCJGBHGIP!JAE!NIAEIC!
EHPGNDPFCIP9!!>NJGT!X9!OHA9!OCIIEDU!%IAHDC!OFAEHAL!.DCW9!g7884i!?7!.JN9!
&WW9!bBQ!?4h6!?`d9!
!
!
Successor Liability
!
1IMIAEJABP!BQJB!QJXI!WFCGQJPIE!JPPIBP!DM!MJHNIE!SJATP!MCDU!BQI!OIEICJN!
1IWDPHB!-APFCJAGI!.DCWDCJBHDA!gO1-.i6!PFGQ!JP!3+=DCLJA!.QJPI!>JAT6!
'&6!UHLQB!JCLFI!BQJB!eFEHGHJN!ADBHGI!DM!J![+FCGQJPI!JAE!&PPFUWBHDA!
&LCIIUIAB6]!SK!VQHGQ!BQIK!WFCGQJPIE!BQI!JPPIBP6!EIUDAPBCJBIP!BQJB!
BQIK!JPPFUIE!AD!NHJSHNHBK!MDC!JAK!GNJHUP!DM!SDCCDVICP9!!/QJB!WDPHBHDA!HP!
LIAICJNNK!GDCCIGB6!FAEIC!PIXICJN6!CIGIAB!MIEICJN!DWHAHDAP6!SFB!VHBQ!
IaGIWBHDAP!JP!BD!g4i!BQI!WCIEIGIPPDC!SJATkP!NDJA!PICXHGHAL!gJP!
EHPBHALFHPQIE!MCDU!NIAEHALi6!JAE!g7i!BQI!PFGGIPPDC!EIMIAEJABPk!DVA6!
WDPBRNDJA!GDAEFGB9!
!
&GGDCEHAL!BD!JA!DMBIA!GHBIE!MIEICJN!JWWINNJBI!DWHAHDA2!![:QIA!
:JPQHALBDA!=FBFJN!MJHNIE6!.QJPI!>JAT!JGZFHCIE!UJAK!JPPIBP!SFB!HBP!
JLCIIUIAB!VHBQ!BQI!O1-.!CIBJHAP!MDC!BQI!O1-.!lJAK!NHJSHNHBK!JPPDGHJBIE!
VHBQ!SDCCDVIC!GNJHUP!MDC!WJKUIAB!DM!DC!JAK!NHJSHNHBK!BD!JAK!SDCCDVIC!MDC!
UDAIBJCK!CINHIM6!DC!BQJB!WCDXHEI!MDC!JAK!DBQIC!MDCU!DM!CINHIM!BD!JAK!
SDCCDVIC9k]!!@IDUJNJTHP!X9!O919-9.9!g.9&94!g=JPP9i!788?i!cd7!O9È!cd6!
d89!!Accord!!:HNNHJUP!X9!O919-9.9!!g)919.JN9!788?i!788?!:#!c4??7`h6!d!
g[-B!HP!GNIJC!BQJB!WNJHABHMMnP!GNJHUP!JCI!WCIUHPIE!PDNINK!DA!BQI!WCIXHDFP!
JGBP!DM!:JPQHALBDA!=FBFJN!JAE!ADB!JAK!HUWCDWIC!GDAEFGB!SK!.QJPI9!
:QHNI!.QJPI!JPPFUIE!BQI!GCIEHB!GJCE!JGGDFABP!DM!:JPQHALBDA!=FBFJNnP!
32
UIUSICP6!NHJSHNHBK!MDC!JAK!GNJHUP!JCHPHAL!DFB!DM!BQIPI!JGGDFABP!SIMDCI!BQI!
MJHNFCI!DM!:JPQHALBDA!=FBFJN!CIUJHAIE!VHBQ!BQI!O1-.9]im!!OIEICHGH!X9!
=DACDK!g'919.JN9!7848i!7848!:#!4`bc7hd6!`!g[>IGJFPI!JNN!DM!BQI!
GNJHUP!JLJHAPB!.CDPPR1IMIAEJAB!3+=DCLJA!JCI!SJPIE!DA!:J=FnP!
NIAEHAL!JGBHXHBHIP6!BQI!NHJSHNHBK!MDC!VQHGQ!VJP!IaWNHGHBNK!ADB!JPPFUIE!SK!
3+=DCLJA!HA!HBP!WFCGQJPI!DM!:J=FnP!JPPIBP6!BQI!O&..!EDIP!ADB!PBJBI!
JAK!GNJHUP!FWDA!VQHGQ!CINHIM!GDFNE!SI!LCJABIE!JLJHAPB!3+=DCLJA9]im!!
=DNHAJ!X9!:JPQHALBDA!=FB9!>JAT!g%919.JN97848i!!7848!:#!b`4b`?6!b!!
g[3+=DCLJA!QJP!IaWCIPPNK!ADB!JPPFUIE!:&=*nP!NHJSHNHBHIP!CINJBHAL!BD!
SDCCDVIC!GNJHUP9]i9!!But see!!3DQAPDA!X9!:JPQHALBDA!=FB9!g)919.JN9!
7848i!!7848!:#!d57bcd6!b!!g[lBQI!^+&&_!JWWIJCP!BD!JNNDGJBI!:&=*nP!
NIAEIC!NHJSHNHBK!BD!BQI!O1-.!JAE!BD!BCJAPMIC!:&=*nP!PICXHGHAL!NHJSHNHBK!BD!
3+=DCLJA!.QJPI9kYim!!%GQFNTIA!X9!:JPQHALBDA!=FB9!>JAT!g'919.JN9!
788?i!788?!:#!b4h`c7c6!b!g[EDIP!ADB!HUUFAHfI!1IMIAEJAB!.QJPI!MCDU!
JNN!NHJSHNHBK!PBIUUHAL!MCDU!NDJAP!GDXICIE!SK!BQI!+!r!&!&LCIIUIAB!VQICI!
1IMIAEJAB!.QJPInP!DVA!JGBHDAP!JCI!JB!HPPFI9]i9!!^)UWQJPIP!JEEIE9_!!
!
&P!MDC!LDXICAHAL!.JNHMDCAHJ!NJV2!!/QICI!HP!J!LIAICJN!CFNI!DM!ADARNHJSHNHBK!DM!
PFGGIPPDC!GDCWDCJBHDAP6!VHBQ!IaGIWBHDAP!VQICI!BQICI!VJP!J!EI!MJGBD!
UICLIC6!J!UICI!GDABHAFJBHDA!DM!BQI!GDCWDCJBHDA6!JA!JLCIIUIAB!BD!
JPPFUI!NHJSHNHBK6!DC!J!MCJFEFNIAB!JBBIUWB!BD!JXDHE!NHJSHNHBK9!!.IABIC+DHAB!
)AICLK6!-AG9!X9!%FW9!.B9!!g788hi!4ch!.JN9&WW9bBQ!44846!4478m!!OCJATNHA!X9!
*%p!.DCW9!g7884i!5h!.JN9!&WW9!bBQ!d4c6!d7h!gGDAGNFEHAL!BQJB!BQICI!VJP!
AD!UICLIC6!GDABHAFJAGI!DC!JLCIIUIAB!BD!JPPFUI!NHJSHNHBHIP6!MDC!HUWDPHAL!
JAK!PFGGIPPDC!NHJSHNHBK6!HA!JPSIPBDP!GJPIim!!=G.NINNJA!X9!'DCBQCHELI!+JCT!
/DVAQDUI!$VAICP!&PPnA!g7884i!5?!.JN9!&WW9!bBQ!hbd6!hc`Rcb9!
!
!
!
!
!
!
!
:CDALMFN!ODCIGNDPFCIP!
Generally
!
+CINHUHAJCHNK6!EIMIAEJABP!PDUIBHUIP!ZFIPBHDA!VQIBQIC!J!GJFPI!DM!JGBHDA!
MDC![VCDALMFN!MDCIGNDPFCI]!HP!IXIA!GDLAHfJSNI9!
!
33
/QI! INIUIABP! DM! J! GDUUDARNJV! GJFPI! DM! JGBHDA! MDC! EJUJLIP! MDC!
VCDALMFN!MDCIGNDPFCI!JCI2!
!
49! /CFPBII!DC!UDCBLJLII!GJFPIE!JA!HNNILJN6!MCJFEFNIAB!DC!VHNNMFNNK!
DWWCIPPHXI!PJNI!DM!CIJN!WCDWICBKm!
79! WFCPFJAB!BD!J!WDVIC!DM!PJNI!GDABJHAIE!HA!J!UDCBLJLI!DC!EIIE!
DM!BCFPBm!JAE!
`9! BQI!/CFPBDC!DC!UDCBLJLDC!PFPBJHAIE!EJUJLIP9!
!
=FALIC! X9! =DDCI! g4?h8i! 44! .JN9! &WW9! È! 46! h9! ! See also generally! b!
:HBTHA6!%FU9!$M!.JN9!#JV!g48BQ!IE9!788ci!%IGFCIE!/CJAPJGBHDAP!HA!,IJN!
+CDWICBK6!j4d59!
!
ODC! HAMDCUJBHDAJN! WFCWDPIP! DANK6! DAI! UJK! ADBI! BQJB! JA! FAWFSNHPQIE!
EIGHPHDA! CIJPDAIE! BQJB! JA! JUIAEIE! GDUWNJHAB! PFMMHGHIABNK! JNNILIE! J!
GJFPI!DM!JGBHDA!MDC!VCDALMFN!MDCIGNDPFCI6!IXIA!BQDFLQ!EHMMICIABNK!NJSINIE9!!
See!!(CJFWAIC!X9!%INIGB!+DCBMDNHD!%ICXHGHAL!g788?i!788?!:#!b75ch56!c9!
!
&NPD6!JGGDCEHAL!BD!JA!JEXHPDCK!MIEICJN!CFNHAL2!![:CDALMFN!MDCIGNDPFCI!HP!
JA!JGBHDA!HA!IZFHBK6!VQICI!J!WNJHABHMM!PIITP!BD!PIB!JPHEI!J!MDCIGNDPFCI!
PJNI9]!!%JABDP!X9!.DFABCKVHEI!;DUI!#DJAP!g)919.JN9!788?i!788?!:#!
`hcd``h6!`9!
!
'DAeFEHGHJN! MDCIGNDPFCIP! JCI! LDXICAIE! SK! .HXHN! .DEI! PIGBHDAP! 7?7b!
BQCDFLQ!7?7bT9!!(JCCIBPDA!X9!+DPB!g788hi!4cd!.JN9!&WW9!bBQ!4c856!4c4cR
4d9!!ODCIGNDPFCI!PJNIP!JCI!J!UIJAP!MDC!CIGDXICHAL!J!EISB6!DC!IAMDCGHAL!J!
GNJHU! PIGFCIE! SK! J! EIIE! DM! BCFPB! DC! UDCBLJLI9! ! Ibid.! ! -A! ADAeFEHGHJN!
MDCIGNDPFCIP6!BCFPBIIP!UJK!IaICGHPI!J!WDVIC!DM!PJNI!LHXIA!SK!BQI!EIIE!
DM! BCFPB9! ! Ibid.! ! &! ADAeFEHGHJN! MDCIGNDPFCI! PJNI! HP! J! GCIJBFCI! DM! PBJBFBI9!
<JGQNDA!X9!=JCTDVHBf!g7885i!4d5!.JN9&WW9bBQ!`4d6!``b!g[/QI!.HXHN!.DEI!
GDABJHAP! J! GDUWCIQIAPHXI! PBJBFBDCK! PGQIUI! CILFNJBHAL! ADAeFEHGHJN!
MDCIGNDPFCI9]i9!
!
Tendering Debt
!
1IMIAEJABP! MCIZFIABNK! JBBJGT! GNJHUP! DM! VCDALMFN! MDCIGNDPFCIP! SK! JPPICBHAL!

NJV!CIZFHCHAL!EISBDCP!BD!BIAEIC!BQI!EISB!DVIE!JP!J!GDAEHBHDA!MDC!CINHIM!MCDU!J!
XDHEJSNI! MDCIGNDPFCI! PJNI9! ! ! >IGJFPI! BQI! AJBFCI! DM! MDCIGNDPFCIP! HAXDNXIP!
QDUIDVAICPk!NJGT!DM!MFAEP6!WNJHABHMMPk!JSHNHBK!BD!JNNILI!JAE!WCDXI!J!BIAEIC!DM!
BQI!EISB!LIAICJNNK!VHNN!SI!FANHTINK9!
34
[^-_A!BQI!GDABIaB!DM!DXICGDUHAL!J!XDHEJSNI!PJNI6!BQI!EISBDC!UFPB!BIAEIC!JAK!
JUDFABP!EFI!FAEIC!BQI!EIIE!DM!BCFPB9]!!1HUDGT!X9!)UICJNE!+CDWICBHIP!##.!
g7888i!54!.JN9&WW9bBQ!5d56!5hhRh59!!Accord!!=G)NCDK!X9!.QJPI!=JAQJBBJA!
=DCBLJLI!.DCW9!g788ci!4`b!.JN9!&WW9!bBQ!`556!`?c!g[EHE!ADB!UJTI!J!WCDWIC!
BIAEIC!FAEIC!.HXHN!.DEI!PIGBHDAP!7?8c!JAE!7?7bG6!PFSEHXHPHDA!gJig4i!BD!GFCI!
BQI!EIMJFNB6!MDCIGNDPFCI!VJP!BQICIMDCI!WCDWIC\9]i9!
[&! XJNHE! JAE! XHJSNI! BIAEIC! DM! WJKUIAB! DM! BQI! HAEISBIEAIPP! DVHAL! HP!
IPPIABHJN! BD! JA! JGBHDA! BD! GJAGIN! J! XDHEJSNI! PJNI! FAEIC! J! EIIE! DM! BCFPB9]!!
<JCNPIA!X9!&UICHGJA!%JX9!r!#DJA!&PPA9!g4?h4i!4c!.JN9!&WW9!È!4476!44h9!!!
Accord!!%HICCJR>JK!OIE9!#JAE!>JAT!&PPnA!X9!%FW9!.B9!g4??4i!77h!.JN9!&WW9!
È!`456!``h!gEISBDCP!UJK!DSBJHA!IZFHBJSNI!CINHIM!BD!PIB!JPHEI!J!MDCIGNDPFCI6!
FWDA! PQDVHAL! JA! DMMIC! BD! WJK! BQI! EISBim! ! &SEJNNJQ! X9! *AHBIE! %JX9! >JAT!
g4??di!b`!.JN9!&WW9!bBQ!44846!448?!gCIZFHCIE!BD!JNNILI!BIAEIC!DM!JUDFAB!DM!
PIGFCIE! HAEISBIEAIPP6! HA! DCEIC! BD! UJHABJHA! JAK! GJFPI! DM! JGBHDA! CI! PJNI!
HCCILFNJCHBKim! ! $EHAUJ! X9! &FCDCJ! #DJA! %ICXHGIP! g'919.JN9! 7848i! 7848! :#!
77`74d?6!cm!!0ILJ!X9!3+=DCLJA!.QJPI!>JAT6!'9&9!!g)919.JN9!788?i!788?!
:#!7h`48`?6!c9!!See also generally!!b5Rccc!.JNHMDCAHJ!ODCUP!DM!+NIJEHAL!
JAE!+CJGBHGIRR&AADBJBIE!g=>!788?i!jccc9d`6!available at!VVV9#IaHP9GDU!9!
%HUHNJCNK6!BQICI!QJP!SIIA!J!NDALRPBJAEHAL!IZFHBJSNI!CFNI!BQJB![J!UDCBLJLDC!DM!
CIJN!WCDWICBK!GJAADB6!VHBQDFB!WJKHAL!QHP!EISB6!ZFHIB!QHP!^DC!QIC_!BHBNI!JLJHAPB!
BQI! UDCBLJLII9]! ! =HNNIC! X9! +CDXDPB! g4??bi! 7d! .JN9&WW9bBQ! 4h8`6! 4h8h9!!
Accord!!=G)NCDK!X9!.QJPI!=JAQJBBJA!=DCBL9!.DCW9!g788ci!4`b!.JN9&WW9bBQ!
`556! `?bm! ! =Ha! X9! %DEE! g4?54i! 47d! .JN9&WW9È! `5d6! `?8m! ! %JABDP! X9!
.DFABCKVHEI! ;DUI! #DJAP! g)919.JN9! 788?i! 788?! :#! `hcd``h6! b! gBQI!
INIUIAB! DM! ZFHIB! BHBNI! DM! SIHAL! BQI! CHLQBMFN! DVAICP! DM! BQI! WCDWICBK! CIZFHCIP!
BQJB! WNJHABHMMP! QJXI! PJBHPMHIE! BQIHC! DSNHLJBHDAP! FAEIC! BQI! EIIE! DM! BCFPB! SK!
WJKHAL!BQI!EISB!DVIEim!!'DDN!X9!;DUIu!%ICXHGHAL!g)919.JN9!788?i!788?!:#!
7?8chbc6!h9!!But see!!'IVPDA!X9!.DFABCKVHEI!;DUI!#DJAP6!-AG9!g'919.JN9!
7848i!7848!:#!78`bhd?6!47!gJ!ZFHIBRBHBNI!GJFPI!DM!JGBHDA!AIIE!ADB!JNNILI!
BQJB! WNJHABHMMP! JGBFJNNK! BIAEICIE! BQI! JUDFAB! DM! BQI! NDJA! WCDGIIEP6! SFB!
PFMMHGHIABNK!JNNILI!J!VHNNHALAIPP!BD!BIAEIC!BQI!JUDFABi9!
Y-A! DSBJHAHAL! CIPGHPPHDA! DC! GJAGINNJBHDA6!BQI! CFNI! HP! BQJB!BQI! GDUWNJHAJAB! HP!
CIZFHCIE!BD!ED!IZFHBK6!JP!J!GDAEHBHDA!BD!QHP!DSBJHAHAL!CINHIM6!SK!CIPBDCHAL!BD!
BQI! EIMIAEJAB! IXICKBQHAL! DM! XJNFI! VQHGQ! BQI! WNJHABHMM! QJP! CIGIHXIE! HA! BQI!
BCJAPJGBHDA9999! /QI! CFNI! JWWNHIP! JNBQDFLQ!BQI! WNJHABHMM! VJP! HAEFGIE! BD! IABIC!
HABD! BQI! GDABCJGB! SK! BQI! MCJFEFNIAB! CIWCIPIABJBHDAP! DM! BQI! EIMIAEJAB9Y!
ONIUHAL!X9!<JLJA!g4?d4i!45?!.JN9!&WW9!7E!h?46!h?d9!
OFCBQIC6! BIAFDFP! JNNILJBHDAP! DMMICHAL! J! BIAEIC! DM! JUDFABP! EFI! JCI!

HAPFMMHGHIAB9!!See!!#JN!X9!&UIC9;DUI!%ICXHGHAL6!-AG9!g)919!.JN9!7848i!7848!
35
:#!77cc7b6!`!g[/QHP!PIZFIAGI!DM!IXIABP!HP!MJC!BDD!BIAFDFP!BD!JPPFCI!BQHP!
.DFCB!BQJB!BQI!SDCCDVICP!VHNN!SI!JSNI!BD!UIIB!BQIHC!DSNHLJBHDAP9]i9!
&EEHBHDAJNNK6! J! .DFCB! CIeIGBIE! JA! JCLFUIAB! BD! BQI! IMMIGB! BQJB! JA! DMMIC! BD!
BIAEIC!AIIE!ADB!SI!JNNILIE!VQICI!EHPGDXICK!HP!AIIEIE9!&P!ADBIE!HA!%DUICJ!
X9!-AEKUJG!OIEICJN!>JAT!g)919.JN9!7848i!7848!:#!hd4774!JB!W9!?2!
-A! CIPWDAPI! BD! EIMIAEJABPn! JPPICBHDAP! BQJB! BQIK! NJGT! BQI! JSHNHBK! BD!
BIAEIC! WJKUIAB6! WNJHABHMMP! GDABIAE! BQJB! UDCI! EHPGDXICK! HP! AIIEIE!
SIMDCI! BQIK! TADV! QDV! UFGQ! BD! BIAEIC\9! ;DVIXIC6! WNJHABHMMP! MJHN! BD!
PIB!MDCBQ!JAK!MJGBFJN!JNNILJBHDAP!EIUDAPBCJBHAL!JA!HUUIEHJBI!JSHNHBK!
DC!VHNNHALAIPP!BD!BIAEIC!WJKUIAB9!
>FB!HB!HP!ADB!GNIJC!BQJB!BIAEICHAL!BQI!EISB!HP!JP!JA!JSPDNFBI!CIZFHCIUIAB!JP!
NIAEICPk!JBBDCAIKP!MCIZFIABNK!DWHAI6!JAE!BQI!CIZFHCIUIAB!JCLFJSNK!HP!FAMJHC!
VQICI! BQI! XICK! IaHPBIAGI! DM! BQI! NDJA! HP! FANJVMFN! PFGQ! BQJB! BQI! HNNILJNHBK!
PQDFNE!ADB!SI!IAMDCGIE!JAE!WICWIBFJBIE9!!
OHCPB6! J! SDCCDVIC! AIIE! ADB! BIAEIC! BQI! MFNN! JUDFAB! DM! BQI! UDCBLJLI!
HAEISBIEAIPP! JP! J! WCICIZFHPHBI! MDC! SCHALHAL! JA! JGBHDA! FAEIC! .HXHN! .DEI!
%IGBHDA! 7?7`9c9! ! =JSCK! X9! %FW9! .B9! g7848i! "! .JN9&WW9bBQ! "6! "6! ! 7848! :#!
7458c`86!49!
&EEHBHDAJNNK6! BD! PIB! JPHEI!XDHEJSNI! BCFPBIInP! PJNI6! BCFPBDC! UFPB! DMMIC! BD! WJK!
BQI!EISB6!DC!EINHAZFIAGHIP!JAE!GDPBP!EFI!MDC!CIEIIUHAL6!FANIPP!HAIZFHBJSNI!
BD!ED!PD9!$ADMCHD!X9!,HGI!!g4??hi!cc!.JN9&WW9bBQ!b4`6!b7b9!!&A!DMMIC!BD!WJK!
BQI!EISB!HP!ADB!CIZFHCIE!JP!BD!GNJHUP!BD!PIB!JPHEI!MDCIGNDPFCI!PJNIP6!VQICI!HB!
VDFNE!SI!HAIZFHBJSNI6!PFGQ!JP!VQICI!WNJHABHMMP!ED!ADB!DVI!BQI!EISB6!DC!QJXI!
J!NILJN!CHLQB!BD!JXDHE!BQI!PJNI9!!;FUSDNEB!%JX9!>JAT!X9!=G.NIXICBK!g4?44i!
4d4!.JN9!75c6!7?49!
$AI!BCIJBHPI!DWHAIP!BQJB!BQICI!HP!AD!CIZFHCIUIAB!BD!BIAEIC!BQI!EISB6!VQICI!
BQI!JUDFAB!DVIE!HP!EHPWFBIE6!DC!BQI!SJPHP!MDC!CINHIM!HP!MCJFE9!![-M!BQICI!HP!AD!
EHPWFBI! JP! BD! BQI! EIMJFNB! DC! BQI! JUDFAB! HA! EIMJFNB6! HA! DCEIC! BD! DSBJHA! JA!
HAeFAGBHDA!BQI!BCFPBDC!UFPB!ED!IZFHBK!JAE!DMMIC!BD!GFCI!BQI!EIMJFNB6\!SFB!HM!J!
BIUWDCJCK! HAeFAGBHDA! HP! PDFLQB! HA! JA! JGBHDA! BD! CIPGHAE! MDC! MCJFE! J! BIAEIC!
PQDFNE!ADB!SI!CIZFHCIE9]!!!c!>JaBIC!1FAJVJK6!#JV!DM!1HPBCIPPIE!,IJN!)PB9!
g/QDUPDA!,IFBICP!788?i!jdb24dh!gGHBHAL6!e.g96!!%BDGTBDA!X9!'IVUJA!g4?chi!
4b5!.JN9!&WW9!7E!cc56!cdì6!available at VVV9:IPBNJV9GDU!9!
&NDAL!BQI!PJUI!NHAI!DM!BQDFLQB6!Carter v. Deutsche Bank National Trust Co9!

g'919.JN96!7848i!7848!:#!45hch456!JB!W9!76!PBJBIP!JP!MDNNDVP2!!^/_QI!.DFCB!
HP! FAJVJCI! DM! JAK! CIZFHCIUIAB\! 6! BQJB! J! WNJHABHMM! UFPB! BIAEIC! HM! BQI!
36
GDUWNJHAB!JNNILIP!MCJFE!DC!J!PFSPBJABHXI!HCCILFNJCHBK9!:QHNI!J!BIAEIC!UJK!SI!
CIZFHCIE! VQIA! J! WNJHABHMM! JNNILIP! J! WCDGIEFCJN! HCCILFNJCHBK6! BQJB! HP! ADB! BQI!
BQIDCK!BQJB!WNJHABHMMP!JEXJAGI!HA!BQIHC!GDUWNJHAB9Y!
!
!
Promissory Notes
!
!
+NJHABHMMP!MCIZFIABNK!JNNILI!BQJB!J!MDCIGNDPFCI!HP!XDHE!DA!BQI!LCDFAE!BQJB!
BQI!EIMIAEJABP!EHE!ADB!QJXI!BQI!DCHLHAJN!WCDUHPPDCK!ADBI9!!'D!.JNHMDCAHJ!
GJPI!BD!EJBI!QJP!PZFJCINK!JEECIPPIE!BQI!ZFIPBHDA6!JNBQDFLQ!JCLFJSNK!JA!
DNEIC! EIGHPHDA! HUWNHIE! BQI! CFNHAL! BQJB! BQI! JSPIAGI! DM! WCIeFEHGI! VDFNE!
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Procedural Irregularities
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38
Statutory Compliance
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39
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41
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!
!
!
Notice Of Default
!
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!
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Trustee Duties
!
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42
!
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Participants Authorized To Foreclose
!
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44
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Loan Modifications
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Contract
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Obligation
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45
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9
Civil Code Sections 2923.5, 2923.6, 2924.8, and 2924f were amended via Senate Bill No. 306
Filed with Secretary of State August 6, 2009, in respects involving technical and clarifying
changes, not material to the analysis herein. See SB 306, available at
http://leginfo.ca.gov/pub/09-10/bill/sen/sb_0301-0350/sb_306_bill_20090806_chaptered.pdf .
Also, the Senate Rules Committee analysis of SB 306 is available at
http://leginfo.ca.gov/pub/09-10/bill/sen/sb_0301-
0350/sb_306_cfa_20090707_133237_sen_floor.html .
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Remedies
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Civil Code Section 2925
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XDHEJSNI! FAEIC! PFSEHXHPHDA! gJi! DM! %IGBHDA! `b`?98b6! JLJHAPB! J! WICPDA! VQD!
BDDT! HA! LDDE! MJHBQ! JAE! MDC! J! CIJPDAJSNK! IZFHXJNIAB! XJNFI! DC! JLJHAPB! JAK!
PFSPIZFIAB!BCJAPMICII!DC!DSNHLII9]im!!=DINNIC!X9!#HIA!g4??bi!7c!.JN9&WW9bBQ!
5776! 5`4R`7! gYJP! J! LIAICJN! CFNI6! J! BCFPBDC! QJP! AD! CHLQB! BD! PIB! JPHEI! J!
BCFPBIInP!EIIE!JP!JLJHAPB!J!SDAJ!MHEI!WFCGQJPIC!MDC!XJNFI!SK!JBBJGTHAL!BQI!
XJNHEHBK! DM! BQI! PJNI9Yi9! ! 'IXICBQINIPP6! HA! PFGQ! HAPBJAGIP6! EJUJLIP! UJK! SI!
PDFLQB! JLJHAPB! BQI! BCFPBII9! !Ibid9! JB! 5`7! gY:QICI! BQI! BCFPBDC! HP! WCIGNFEIE!
51
MCDU! PFHAL! BD! PIB! JPHEI! BQI! MDCIGNDPFCI! PJNI6! BQI! BCFPBDC! UJK! CIGDXIC!
EJUJLIP!MCDU!BQI!BCFPBII9Yi!
!
Declaratory Relief
!
/QI! MJHNFCI! BD! PBJBI! J! GJFPI! DM! JGBHDA! MDC! VCDALMFN! MDCIGNDPFCI! UJK!
HAEHGJBI! J! MJHNFCI! BD! PBJBI! J! GNJHU! MDC! ZFHIBHAL! BHBNI! DC! EIGNJCJBDCK! CINHIM9!
See !=G)NCDK!X9!.QJPI!=JAQJBBJA!=DCBL9!.DCW9!g788ci!4`b!.JN9&WW9bBQ!
`556!`?b!gWNJHABHMMP!EHE!ADB!UJTI!J!WCDWIC!BIAEIC!BD!GFCI!BQI!EIMJFNB6!JAE!
MDCIGNDPFCI! VJP! BQICIMDCI! VJP! ADB! VCDALMFN6! PFGQ! BQJB! BQICI! VJP! AD!
JEXICPI! GNJHU! BD! BQI! WCDWICBK! HA! DCEIC! BD! PBJBI! J! GNJHU! DM! ZFHIB! BHBNI! DC!
EIGNJCJBDCK!CINHIMi9!
!
Reformation
!
&! GNJHU! MDC! CIMDCUJBHDA! UFPB! HAGNFEI! JNNILJBHDAP! BD! BQI! IMMIGB! BQJB! BQI!
GDABCJGB!EDIP!ADB!CIMNIGB!BQI!GDABCJGBHAL!WJCBHIPn!HABIAB6!JAE!JNNILHAL!DANK!
BQI!QDUIDVAICkP!HABIAB!HP!HAJEIZFJBI9!!3IAPIA!X9!uFJNHBK!#DJA!%ICXHGI!
.DCW9!g)919.JN9!7848i!7848!:#!44`d88c6!4`9!
!
!
Damages For Wrongful Foreclosure
!
[^:_QICI! J! UDCBLJLII! DC! BCFPBII! UJTIP! JA! FAJFBQDCHfIE! PJNI! FAEIC! J!
WDVIC!DM!PJNI!QI!^DC!PQI_!JAE!QHP!WCHAGHWJN!JCI!NHJSNI!BD!BQI!UDCBLJLDC!MDC!
BQI! XJNFI! DM! BQI! WCDWICBK! JB! BQI! BHUI! DM! BQI! PJNI! HA! IaGIPP! DM! BQI!
UDCBLJLIP!JAE!NHIAP!JLJHAPB!PJHE!WCDWICBK9]!!=FALIC!X9!=DDCI!g4?h8i!44!
.JN9&WW9È!46!449!
!
[^&_! BCFPBII! DC! UDCBLJLII! UJK! SI! NHJSNI! BD! BQI! BCFPBDC! DC! UDCBLJLDC! MDC!
EJUJLIP! PFPBJHAIE! VQICI! BQICI! QJP! SIIA! JA! HNNILJN6! MCJFEFNIAB! DC!
VHNMFNNK!DWWCIPPHXI!PJNI!DM!WCDWICBK!FAEIC!J!WDVIC!DM!PJNI!GDABJHAIE!HA!J!
UDCBLJLI!DC!EIIE!DM!BCFPB9]!!=FALIC!X9!=DDCI!g4?h8i!44!.JN9&WW9È!46!h9!
!
!
!
Privileges
!
/QICI!HP!J!PWNHB!DM!JFBQDCHBK!JP!BD!VQIBQIC!BQI!JSPDNFBI!NHBHLJBHDA!WCHXHNILI!
JWWNHIP! BD! ADAReFEHGHJN! MDCIGNDPFCIP9! <JGQNDA! X9! =JCTDVHBf! g7885i! 4d5!
.JN9! &WW9! bBQ! `4d6! ``h! g[BD! BQI! IaBIAB! (JCCIBPDA! GDAGNFEIE! BQJB! BQI!
4??d!JUIAEUIAB!UJTIP!BQI!NHBHLJBHDA!WCHXHNILI!JWWNHGJSNI!BD!ADAeFEHGHJN!
MDCIGNDPFCI6! VI! EHPJLCII\9]im! (JCCIBPDA! X9! +DPB! g788hi! 4cd! .JN9! &WW9!
52
bBQ!4c856!4c4h!g[.HXHN!.DEI!PIGBHDA!7?7b6!PFSEHXHPHDA!gEi!WCDXHEIP!BQJB!J!
GCIEHBDCnP! ADAeFEHGHJN! MDCIGNDPFCI! JGBHXHBK! GDAPBHBFBIP! WCHXHNILIE!
GDUUFAHGJBHDAP! FAEIC! BQI! NHBHLJBHDA! WCHXHNILI! g.HX9! .DEI6! j! bh6! PFSE9!
gSii9]i9!
!
/QI! UJHNHAL6! WFSNHGJBHDA6! JAE! EINHXICK! DM! ADBHGIP! HA! ADAeFEHGHJN!
MDCIGNDPFCI6! JAE! BQI! WICMDCUJAGI! DM! PBJBFBDCK! ADAeFEHGHJN! MDCIGNDPFCI!
WCDGIEFCIP6! MJNN! VHBQHA! BQI! ZFJNHMHIE6! GDUUDARHABICIPB! WCHXHNILI! DM! .HXHN!
.DEI!%IGBHDA!bhgGig4i6!JP!BD!VQHGQ!BQICI!HP!J!UJNHGI!IaGIWBHDA9!!<JGQNDA!
X9!=JCTDVHBf!!g7885i!4d5!.JN9&WW9bBQ!`4d6!```!gGHBHAL!.HX9!.9!j7?7bi9!
!
=JNHGI! FAEIC! BQI! GDUUDARHABICIPB! WCHXHNILI! HP! UDCI! BQJA! AILNHLIAGI6!
HAJEXICBIAGI6!DC!GJCINIPPAIPP6!SFB!HAPBIJE!UFPB!SI!J!VJABDA!JAE!CIGTNIPP!
EHPCILJCE!DM!BQI!CHLQBP!JAE!MIINHALP!DM!DBQICP9!!<JGQNDA!X9!=JCTDVHBf!g7885i!
4d5!.JN9&WW9bBQ!`4d6!`bb9!
Common Law Claims

!
Intentional Infliction Of Emotional Distress
!
DWHAHDA! gADB! GHBIJSNIi! CIJPDAIE! BQJB! J!NDJA! PICXHGICkP! JNNILIE! MDCIGNDPFCI!
EDAI! VHBQDFB! GDUUFAHGJBHAL! VHBQ! BQI! SDCCDVIC6! VJP! ADB! DFBCJLIDFP!
GDAEFGB6!IXIA!BQDFLQ!HB!VJP!JCLFJSNK!GJNNDFP9!!)NPBIJE!X9!3+!=DCLJA!.QJPI!
>JAT!g788?i!788?!:#!b7db`b86!h9!
Anti-SLAPP Protection
!
'DAeFEHGHJN! MDCIGNDPFCIP! ED! ADB! BCHLLIC! JABHR%#&++! WCDBIGBHDA9!.IABFCK! 74!

.QJUSICNJHA!r!&PPDGHJBIP!X9!;JSICUJA!g788?i!4h`!.JN9&WW9bBQ!46!5!g[/QI!
EHPBHAGBHDA! SIBVIIA! JCSHBCJBHDA! JAE! eFEHGHJN! WCDGIIEHALP! HP! PHUHNJC! BD! BQI!
EHPBHAGBHDA! SIBVIIA! ADAeFEHGHJN! JAE! eFEHGHJN! MDCIGNDPFCI9! 'DAeFEHGHJN!
MDCIGNDPFCI!EDIP!ADB!BCHLLIC!JABHR%#&++!WCDBIGBHDA!SIGJFPI!HB!lHP!J!WCHXJBI6!
GDABCJGBFJN! WCDGIIEHALk! \! BQJB! lUICINK! WCDXHEIP! J! ADAeFEHGHJN6! WCHXJBI!
JNBICAJBHXI!BD!eFEHGHJN!MDCIGNDPFCI9k\]i9!
!
!
Lis Pendens
!
53
&B! BHUIP! PINMRCIWCIPIABIE! NHBHLJABP! JWWNK! BD! BQI! GDFCB! BD! BQI! GDFCB! MDC!
JWWCDXJN! DM! J! ADBHGI! DM! WIAEIAGK! DM! JGBHDA6! HA! DCEIC! BD! LHXI! DBQICP!
GDAPBCFGBHXI!ADBHGI!DM!BQI!JGBHDA6!JAE!WICQJWP!BQICISK!EIBIC!BQI!BCJAPMIC!
DM!BQI!CIJN!WCDWICBK9!
!
/QI! CIGDCEHAL! DM! J! NHP! WIAEIAP! CIZFHCIP! J! ADBHGI! IHBQIC! PHLAIE! SK! JA!
JBBDCAIK! DM! CIGDCE! HA! BQI! JGBHDA6! DC! SK! J! PINMRCIWCIPIABIE! NHBHLJAB! JP!
JWWCDXIE!SK!BQI!eFELI9!!..+!jb8c9749!
!
'D!WFSNHPQIE!.JNHMDCAHJ!GJPI!WCDXHEIP!LFHEJAGI!JP!BD!BQI!PBJAEJCEP!MDC!
JWWCDXHAL!DC!EIAKHAL!J!CIZFIPB!FAEIC!%IGBHDA!b8c9749!
!
;DVIXIC6! JGGDCEHAL! BD! ,IJN! +CDWICBK! #JV! %IGBHDA! .DUUIABP6! J! eFELI!
EIGHEHAL!VQIBQIC!BD!JWWCDXI!J!ADBHGI!DM!NHP!WIAEIAP!HP!BD!g4i!GDAMHCU!BQJB!
J! WIAEHAL! JGBHDA! GDABJHAP! J! CIJN! WCDWICBK! GNJHU! JP! EIMHAIE! SK! .DEI! DM!
.HXHN! +CDGIEFCI! %IGBHDA! b8c9b6! JAE! g7i! BQJB! BQI! ADBHGI! HP! HA! WCDWIC6! SFB!
BQI!JWWNHGJSNI!WCDGIEFCIP!JCI!FACIPBCHGBIE9!!`!:HBTHA!.JN9!+CD9!gcBQ! IE9!
7885i!&GBHDAP!j`5`9!!
!
OFCBQIC6! J! ADBHGI! DM! NHP! WIAEIAP! UFPB! PBJBI! WJCBK! AJUIP! JAE! EIPGCHSI!
BQI!JMMIGBIE!WCDWICBK9!!..+!jb8c9789!
!
[/QICI! JCI! AD! PBJBFBDCK! MDCUJB! CIZFHCIUIABP\9! /QICIMDCI6! NHP! WIAEIAP!
JCI!GFPBDUJCHNK!ECJMBIE!HA!BQI!MDCU!DM!J!PBJAEJCE!GDFCB!WNIJEHAL\9]!!.JN9!
.HX9!+CJG9!,IJN!+CDW9!#HBHL9!g/QDUPDA!,IFBICP!788?i!j442dd56!available
at!VVV9:IPBNJV9GDU!9!
!
!
!
!
!
!
!
!
!
!
ODCIGNDPFCI!,IPGFIP!
!
-A! NIPP! GDUUDA! GJPIP! HAXDNXHAL! PICXHGIP! MDC! CIPGFHAL! EISBDCP! MCDU!
UDCBLJLI! MDCIGNDPFCIP6! GDAPFUICP! DC! BQI! OIEICJN! /CJEI! .DUUHPPHDA!
BKWHGJNNK! GDUWNJHA! JSDFB! EIMIAEJABPk! UHPNIJEHAL! CIWCIPIABJBHDAP! JAE!
54
GQJCLHAL! MDC! PICXHGIP! BD! PBDW! MDCIGNDPFCIP9! ! E.g96! 3DQAPDA! X9! :QIINIC!
g19=E96788hi! b?7! O9%FWW97E! b?76! b?c! g[&P! QDUI! UDCBLJLI! MDCIGNDPFCIP!
QJXI! HAGCIJPIE! HA! CIGIAB! KIJCP6! PD! QJXI! PDRGJNNIE! lMDCIGNDPFCI! CIPGFI!
PGJUP9k! O'7! /KWHGJNNK6! J! QDUIDVAIC! MJGHAL! MDCIGNDPFCI! HP! HEIABHMHIE! SK! J!
CIPGFIC! BQCDFLQ! MDCIGNDPFCI! ADBHGIP! WFSNHPQIE! HA! BQI! AIVPWJWICP! DC! JB!
LDXICAUIAB! DMMHGIP9]im! !O9/9.9! X9! ;DUI! &PPFCI! ##.! g=919ONJ9! 788?i! 788?!
:#!48b`?cd6!4dR4?!gMHAEHAL!J!PFSPBJABHJN!NHTINHQDDE!BQJB!BQI!OIEICJN!/CJEI!
.DUUHPPHDA! VDFNE! WCIXJHN! DA! HBP! GNJHUP! BQJB! EIMIAEJABP! XHDNJBIE! 4c! *%.!
jbcgJi!SK!CIWCIPIABHAL!BD!GDAPFUICP!BQJB!BQIK!VDFNE!PBDW!MDCIGNDPFCIPi9!!
*AEIC! BQI! ;DUI! )ZFHBK! %JNIP! .DABCJGB! &GB! g;)%.&i6! JP! BD! J! EIMIAEJAB!
BJTHAL! FAGDAPGHDAJSNI! JEXJABJLI! DM! J! WCDWICBK! DVAIC! HA! JGZFHCHAL! J!
CIPHEIAGI! HA! MDCIGNDPFCI6! DC! WCDXHEHAL! BQI! DVAIC! VHBQ! HAGDUWNIBI! DC!
UHPNIJEHAL! HAMDCUJBHDA! CILJCEHAL! BQI! PJNI6! BQI! PINNIC! UJK! SI! IABHBNIE! BD!
CIPGHPPHDA!DC!DBQIC!IZFHBJSNI!CINHIM6!DC!EJUJLIP!HAGNFEHAL!WFAHBHXI!EJUJLIP9!!
%WIAGIC! X9! =JCPQJNN! g7885i! 4d5! .JN9&WW9bBQ! h5`6! h?bm! ! >DZFHNDA! X9!
>IGTVHBQ!!g4??di!b?!.JN9&WW9bBQ!4d?h6!4h48m!!%ILFCJ!X9!=G>CHEI!!g4??7i!c!
.JN9&WW9bBQ!48756!48`d!gGHBHAL6!e.g96!.9.9!j4d?c94ì9!
/QI! ODCIGNDPFCI! .DAPFNBJABP! &GB! gO.&i! HP! XICK! PHUHNJC! BD! ;)%.&6! HA!
LDXICAHAL! MDCIGNDPFCI! GDAPFNBJAB! PICXHGIP9! ! See generally! ! b! :HBTHA6!
%FUUJCK!g48BQ!IE9!788ci!%IGFCHBK!/CJAP9!-A!,IJN!+CDW9!j775!gGHBHAL6!e.g96!
.HX9.9!j7?bc94i9!
OHAJNNK6!HA!NHLQB!DM!BQI!NHBBNI!WFSNHPQIE!.JNHMDCAHJ!NJV!DA!WDHAB6!MDC!HAMDCUJBHDAJN!
WFCWDPIP!DANK6!DAI!UHLQB!CIJE!JA!FAWFSNHPQIE!.JNHMDCAHJ!GJPI!JEECIPPHAL!
JA! JNNILIE! MDCIGNDPFCI! CIPGFI! PGQIUI6! HA! BQI! GDABIaB! DM! DBQICVHPI! VINN!
IPBJSNHPQIE!NJV!JAE!GDUUDA!GNJHUP!NHTI!MCJFE6!JAE!SCIJGQ!DM!MHEFGHJCK!EFBK2!!
%JQAH!X9!)UICJNE!=DCBL9!.DCW9!g7885i!7885!:#!c`?b?`h6!49!
55
RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRDD$DDRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR!
56

FORECLOSURE - FOR - JUDGES (1) A

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PREDATORY LENDING & WRONGFUL FORECLOSURES

o! .DUWNIBI! DC! WJCBHJN! EHPWDPHBHDAP!HA! VCDALMFNRMDCIGNDPFCI! GJPIP! XICK!

Unfair Business Practices

/&,+! MFAEP! BD! GDAPHEIC! JNBICAJBHXIP! BD! MDCIGNDPFCI6! J! GDFCB! CIJPDAIE!

MDC! BQJB! NDJA! JAE! J! PBJBIUIAB! BQJB! BQI! WICHDEHG!

(IAICJNNK6! BQI! OJHC! 1ISB! .DNNIGBHDA!+CJGBHGIP! &GB! gO1.+&i6! LDXICAP! EISB!

1IMIAEJABP! MCIZFIABNK! JBBJGT! GNJHUP! DM! VCDALMFN! MDCIGNDPFCIP! SK! JPPICBHAL!

OFCBQIC6! BIAFDFP! JNNILJBHDAP! DMMICHAL! J! BIAEIC! DM! JUDFABP! EFI! JCI!

&NDAL!BQI!PJUI!NHAI!DM!BQDFLQB6!Carter v. Deutsche Bank National Trust Co9!

/QI! GDUWCIQIAPHXI! PBJBFBDCK! MCJUIVDCT! IPBJSNHPQIE! BD! LDXICA!

WJKUIAB! MDC! BQI! UDABQNK! WJKUIAB! CIZFHCIE! FAEIC! BQI! ADBI9!

MCJFEFNIAB! GDAXIKJAGI6! J! WCINHUHAJCK! HAeFAGBHDA! HP! WICUHBBIE! BD! WCIXIAB!

Common Law Claims

'DAeFEHGHJN! MDCIGNDPFCIP! ED! ADB! BCHLLIC! JABHR%#&++! WCDBIGBHDA9!.IABFCK! 74!

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