BILL NUMBER: AB 1321	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 18, 2011

   An act to amend Section 2934 of, and to add Sections 1214.5 and
2923.7 to, the Civil Code, and to amend Section 27280 of the
Government Code, relating to mortgages and deeds of trust.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1321, as introduced, Wieckowski. Mortgages and deeds of trust:
recordation.
   Existing law authorizes the recording of an instrument affecting
the title to or possession of real property, as well as the recording
of an assignment of a mortgage or a deed of trust. Under existing
law, the recordation of an interest in real property provides notice
of that interest to subsequent purchasers and mortgagees. Existing
law provides that an unrecorded conveyance of real property is void
against a duly recorded interest by a subsequent purchaser or
mortgagee, if he or she acted in good faith and paid valuable
consideration.
   This bill would instead require that mortgages and deeds of trust
as well as assignments of a mortgage or a deed of trust be recorded
within 30 days of the execution of the deed or other document
creating a security interest in the real property or within 30 days
of execution of the assignment. The bill would further require that
either the promissory note or a specified certificate affirming the
existence of the promissory note be attached at the time of
recordation.
   Existing law, upon a breach of the obligation of a mortgage or
transfer of an interest in property, authorizes the mortgagee,
trustee, or beneficiary to record a notice of default in the office
of the county recorder where the mortgaged or trust property is
situated.
   This bill would prohibit the mortgagee, trustee, or beneficiary
from recording a notice of default until 45 days after it has
recorded the mortgage or deed of trust and any assignment of the
mortgage and deed of trust.
   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 1214.5 is added to the Civil Code, to read:
   1214.5.  Every mortgage or deed of trust of real property shall be
recorded within 30 days of the execution of the deed or other
document creating a security interest in the real property. The
mortgage or deed of trust shall be recorded in the office of the
recorder of each county where the mortgaged or trust property or some
part or parcel thereof is situated, with either of the following
documents attached:
   (a) The promissory note.
   (b) A certificate that confirms the existence of the promissory
note and contains all of the following information:
   (1) The date of execution of the promissory note.
   (2) The identities of the parties to the promissory note.
   (3) The terms of the debt, including, as applicable, the interest
rate, prepayment penalties, and other escrow items.
  SEC. 2.  Section 2923.7 is added to the Civil Code, to read:
   2923.7.  (a) A mortgagee, trustee, or beneficiary may not file a
notice of default until 45 days after it has duly recorded the
mortgage or deed of trust and any subsequent assignments of the
mortgage or the beneficial interest under the deed of trust. Pursuant
to Sections 1214.5 and 2934, the mortgage and deed of trust and any
subsequent assignments shall be recorded with the promissory note or
certificate attached.
   (b) Nothing in this section shall be construed to require the
county recorder to certify that a mortgage, deed of trust, and any
assignments of the mortgage or beneficial interest under the deed of
trust have been properly recorded prior to recording a notice of
default.
  SEC. 3.  Section 2934 of the Civil Code is amended to read:
   2934.   (a)    Any assignment of a mortgage and
any assignment of the beneficial interest under a deed of trust
 may   shall  be recorded,  and
from   with the promissory note or the certificate
described in subdivision (b) of Section 1214.5 attached, within 30
days of execution of the assignment. From  the time the 
same   assignment  is filed for record  , it
 operates as constructive notice of the contents thereof to all
persons  ; and any   . 
    (b)     Any  instrument by which any
mortgage or deed of trust of, lien upon  ,  or interest in
real property, (or by which any mortgage of, lien upon  , 
or interest in personal property a document evidencing or creating
which is required or permitted by law to be recorded), is
subordinated or waived as to priority may be recorded, and from the
time  the same   it  is filed for record
operates as constructive notice of the contents thereof, to all
persons.
  SEC. 4.  Section 27280 of the Government Code is amended to read:
   27280.  (a)  Any   Except as provided in
subdivision (b), any  instrument or judgment affecting the title
to or possession of real property may be recorded pursuant to this
chapter. 
   (b) A mortgage or deed of trust shall be recorded within 30 days
of the execution of the deed or other document creating a security
interest in the real property pursuant to Section 1214.5 of the Civil
Code. An assignment of a mortgage or deed of trust shall be recorded
within 30 days of the execution of the assignment pursuant to
Section 2934 of the Civil Code.  
   (b) 
    (c)  Any instrument or document submitted for
recordation which effectuates a change in ownership may be
accompanied by a change in ownership statement as provided for in
Section 480 of the Revenue and Taxation Code. Upon receipt of such
change in ownership statement, the recorder shall transmit, as soon
as possible, the original statement or true copy thereof to the
county assessor along with the recorded document as required by
Section 255.7 of the Revenue and Taxation Code. The change in
ownership statement shall not be recorded nor open and available to
public inspection and shall at all times remain confidential, except
as provided in Section 408 of the Revenue and Taxation Code.