BILL NUMBER: AB 2678	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 19, 2010

   An act to amend Section 2924g, of the Civil Code, relating to
mortgages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2678, as introduced, Torrico. Mortgages: Notice of sale.
   Existing law requires that before any sale of property can be made
under the power of sale contained in any deed of trust or mortgage,
or any resale resulting from a rescission for a failure of
consideration, notice of the sale must be given, published, and
posted in a specified manner at least 20 days before the date of
sale, as specified. Existing law also requires the mortgagee,
trustee, or other person authorized to record the notice of default
or the notice of sale to send to each mortgagee or trustee a copy of
the notice of sale at least 20 days before the date of sale. Existing
law provides that there may be a postponement or postponements of
the sale proceedings, under specified circumstances.
   This bill would provide that if there is a postponement, or if
there are postponements, of the sale proceedings, the borrower shall
receive a new notification before the date of the actual sale.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2924g of the Civil Code is amended to read:
   2924g.  (a) All sales of property under the power of sale
contained in any deed of trust or mortgage shall be held in the
county where the property or some part thereof is situated, and shall
be made at auction, to the highest bidder, between the hours of 9
a.m. and 5 p.m. on any business day, Monday through Friday.
   The sale shall commence at the time and location specified in the
notice of sale. Any postponement shall be announced at the time and
location specified in the notice of sale for commencement of the sale
or pursuant to paragraph (1) of subdivision (c).
   If the sale of more than one parcel of real property has been
scheduled for the same time and location by the same trustee, (1) any
postponement of any of the sales shall be announced at the time
published in the notice of sale, (2) the first sale shall commence at
the time published in the notice of sale or immediately after the
announcement of any postponement, and (3) each subsequent sale shall
take place as soon as possible after the preceding sale has been
completed.
   (b) When the property consists of several known lots or parcels,
they shall be sold separately unless the deed of trust or mortgage
provides otherwise. When a portion of the property is claimed by a
third person, who requires it to be sold separately, the portion
subject to the claim may be thus sold. The trustor, if present at the
sale, may also, unless the deed of trust or mortgage otherwise
provides, direct the order in which property shall be sold, when the
property consists of several known lots or parcels which may be sold
to advantage separately, and the trustee shall follow that direction.
After sufficient property has been sold to satisfy the indebtedness,
no more can be sold.
   If the property under power of sale is in two or more counties,
the public auction sale of all of the property under the power of
sale may take place in any one of the counties where the property or
a portion thereof is located.
   (c) (1) There may be a postponement or postponements of the sale
proceedings, including a postponement upon instruction by the
beneficiary to the trustee that the sale proceedings be postponed, at
any time prior to the completion of the sale for any period of time
not to exceed a total of 365 days from the date set forth in the
notice of sale. The trustee shall postpone the sale in accordance
with any of the following:
   (A) Upon the order of any court of competent jurisdiction.
   (B) If stayed by operation of law.
   (C) By mutual agreement, whether oral or in writing, of any
trustor and any beneficiary or any mortgagor and any mortgagee.
   (D) At the discretion of the trustee. 
   (2) If there is a postponement, or if there are postponements, of
the sale proceedings, as described in paragraph (1), the borrower
shall receive a new notification, as provided in Section 2924b,
before the date of the actual sale.  
   (2) 
    (3)  In the event that the sale proceedings are
postponed for a period or periods totaling more than 365 days, the
scheduling of any further sale proceedings shall be preceded by
giving a new notice of sale in the manner prescribed in Section
2924f. New fees incurred for the new notice of sale shall not exceed
the amounts specified in Sections 2924c and 2924d, and shall not
exceed reasonable costs that are necessary to comply with this
paragraph.
   (d) The notice of each postponement and the reason therefor shall
be given by public declaration by the trustee at the time and place
last appointed for sale. A public declaration of postponement shall
also set forth the new date, time, and place of sale and the place of
sale shall be the same place as originally fixed by the trustee for
the sale. No other notice of postponement need be given. However, the
sale shall be conducted no sooner than on the seventh day after the
earlier of (1) dismissal of the action or (2) expiration or
termination of the injunction, restraining order, or stay that
required postponement of the sale, whether by entry of an order by a
court of competent jurisdiction, operation of law, or otherwise,
unless the injunction, restraining order, or subsequent order
expressly directs the conduct of the sale within that seven-day
period. For purposes of this subdivision, the seven-day period shall
not include the day on which the action is dismissed, or the day on
which the injunction, restraining order, or stay expires or is
terminated. If the sale had been scheduled to occur, but this
subdivision precludes its conduct during that seven-day period, a new
notice of postponement shall be given if the sale had been scheduled
to occur during that seven-day period. The trustee shall maintain
records of each postponement and the reason therefor.
   (e) Notwithstanding the time periods established under subdivision
(d), if postponement of a sale is based on a stay imposed by Title
11 of the United States Code (bankruptcy), the sale shall be
conducted no sooner than the expiration of the stay imposed by that
title and the seven-day provision of subdivision (d) shall not apply.