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Can you summarize Fin Code CACL 1301?
Authorizations for Banks [1300. - 1301.] >
Short Summary
This legal document, added to the California Codes under the Financial Code, provides authorization for state or nationally chartered banks, their subsidiaries or affiliates transacting business in California, to bring an action for recovery of damages against a borrower in cases of fraud. The action can be brought if the loan is secured by a mortgage or deed of trust on real property, and the borrower’s fraudulent conduct induced the original lender to make the loan. The damages may include exemplary damages not exceeding 50 percent of the actual damages. However, the provisions of this section do not apply to loans secured by single-family, owner-occupied residential real property, when the property is actually occupied by the borrower and the loan amount is $150,000 or less. It is important to note that any action maintained under this section for damages shall not constitute a money judgment for deficiency or a deficiency judgment within the meaning of certain sections of the Code of Civil Procedure.
Whom does it apply to?
State or nationally chartered banks, their subsidiaries or affiliates transacting business in California
What does it govern?
Recovery of damages for fraudulent conduct by borrowers in mortgage loans
What are exemptions?
Loans secured by single-family, owner-occupied residential real property for an amount of $150,000 or less
What are the Penalties?
No specific penalties mentioned
Jurisdiction
California