California Legislature—2013–14 Regular Session

Assembly Bill No. 1240

Introduced by Assembly Member Jones

February 22, 2013

An act to amend Section 2920 of the Civil Code, relating to mortgages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1240, as introduced, Jones. Mortgages: deed of trust.

Existing law imposes various requirements prior to exercising a power of sale under a mortgage or deed of trust. Existing law defines “mortgage” for purposes of these provisions to include any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation secured.

This bill would eliminate the exclusion of a deed of trust from the definition of “mortgage” for purposes of these provisions.

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 2920 of the Civil Code is amended to
read:

2920.  

(a) A mortgage is a contract by which specific property,
including an estate for years in real property, is hypothecated for
the performance of an act, without the necessity of a change of
possession.

(b) For purposes of Sections 2924 to 2924h, inclusive,
“mortgage” also means any security device or instrument begin delete , other
than a deed of trust, end delete that confers a power of sale affecting real
property or an estate for years therein, to be exercised after breach
of the obligation so secured, including a real property sales
contract, as defined in Section 2985, which contains such a
provision.