BILL NUMBER: SB 931	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2010
	AMENDED IN SENATE  MARCH 25, 2010
	AMENDED IN SENATE  MARCH 15, 2010

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 2, 2010

   An act to add Section 580e to the Code of Civil Procedure,
relating to mortgages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 931, as amended, Ducheny. Mortgages: deficiency judgments.
   Existing law authorizes an action for a deficiency judgment for
the balance due upon an obligation for the payment of which a deed of
trust or mortgage with power of sale upon real property or any
interest therein was given as security, as specified. Existing law
prohibits a deficiency judgment in any case in which the real
property or an estate for years therein has been sold by the
mortgagee or trustee under power of sale contained in the mortgage or
deed of trust.
   This bill would prohibit a deficiency judgment under a note
secured by a first deed of trust or first mortgage for a dwelling of
not more than 4 units in any case in which the trustor or mortgagor
sells the dwelling for less than the remaining amount of the
indebtedness due at the time of sale with the written consent of the
holder of the first deed of trust or first mortgage. The bill would
provide that written consent of the holder of the first deed of trust
or first mortgage to that sale shall obligate that holder to accept
the sale proceeds as full payment and to fully discharge the
remaining amount of the indebtedness on the first deed of trust or
first mortgage. The bill would specify that those provisions would
not limit the ability of the holder of the first deed of trust or
first mortgage to seek damages and use existing rights and remedies
against the trustor or mortgagor or any 3rd party for fraud or waste
if the trustor or mortgagor commits either fraud with respect to the
sale of, or waste with respect to, the real property that secures
that deed of trust or mortgage.  The bill would make these
provisions inapplicable if the trustor or mortgagor is a corporation
or political subdivision of the state. 
   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 580e is added to the Code of Civil Procedure,
to read:
   580e.  (a) No judgment shall be rendered for any deficiency under
a note secured by a first deed of trust or first mortgage for a
dwelling of not more than four units, in any case in which the
trustor or mortgagor sells the dwelling for less than the remaining
amount of the indebtedness due at the time of sale with the written
consent of the holder of the first deed of trust or first mortgage.
Written consent of the holder of the first deed of trust or first
mortgage to that sale shall obligate that holder to accept the sale
proceeds as full payment and to fully discharge the remaining amount
of the indebtedness on the first deed of trust or first mortgage.
   (b) If the trustor or mortgagor commits either fraud with respect
to the sale of, or waste with respect to, the real property that
secures the first deed of trust or first mortgage, this section shall
not limit the ability of the holder of the first deed of trust or
first mortgage to seek damages and use existing rights and remedies
against the trustor or mortgagor or any third party for fraud or
waste. 
   (c) This section shall not apply if the trustor or mortgagor is a
corporation or political subdivision of the state.