Amended in Senate May 16, 2016

Amended in Senate May 3, 2016

Amended in Senate March 28, 2016

Senate BillNo. 983


Introduced by Senator Morrell

February 10, 2016


An act to amend Sectionsbegin delete 2924c, 2924d, and 2934a of,end deletebegin insert 2924c and 2924d of,end insert and to amend and repeal Section 2924.11 of, the Civil Code, relating to mortgages.

LEGISLATIVE COUNSEL’S DIGEST

SB 983, as amended, Morrell. Mortgages and deeds of trust.

begin delete

Existing law requires a legal owner to maintain vacant residential property purchased at a foreclosure sale or acquired by the owner through foreclosure under a mortgage or deed of trust and authorizes a governmental entity to impose a civil fine, as specified, for a violation. Existing law requires a governmental entity, prior to imposing a fine or penalty for failure to maintain a vacant property, as specified, to provide the owner of that property with a notice of the violation and an opportunity to correct that violation.

end delete
begin delete

This bill would provide that a trustee named in a recorded substitution of trustee is not a legal owner or owner, as applicable, for purposes of the provisions described above.

end delete

Existing law requires a mortgagee, beneficiary, or authorized agent to record a rescission of a notice of default or cancel a pending trustee sale, if applicable, upon the borrower executing a permanent foreclosure prevention alternative. Existing law, in the case of a short sale, requires the rescission or cancellation of the pending trustee’s sale to occur when the short sale has been approved and proof of funds or financing has been provided, as specified.

This bill would make a clarifying change by eliminating the reference to rescission in the case of a pending trustee’s sale.

Existing law limits the amount of trustee’s or attorney’s fees that may be charged in connection with the enforcement of certain terms of obligation upon default in payment under a mortgage or deed of trust prior to reinstatement of a monetary default, or until the notice of sale is deposited in the mail, or otherwise at any time prior to the decree of foreclosure, to a base amount not to exceed $300 for an unpaid principal balance sum of $150,000 or less, or $250 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000. Existing law, in lieu of an authorized charge, limits the amount of trustee’s or attorney’s fees after the notice of sale is deposited in the mail and until the property is sold by power of sale, to a base amount not to exceed $425 for an unpaid principal balance sum of $150,000 or less, or $360 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000.

This bill would increase the base limitations on the amount of those trustee’s or attorney’s fees by $50.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 2924.11 of the Civil Code, as added by
2Section 14 of Chapter 86 of the Statutes of 2012, is amended to
3read:

4

2924.11.  

(a) If a foreclosure prevention alternative is approved
5in writing prior to the recordation of a notice of default, a mortgage
6servicer, mortgagee, trustee, beneficiary, or authorized agent shall
7not record a notice of default under either of the following
8circumstances:

9(1) The borrower is in compliance with the terms of a written
10trial or permanent loan modification, forbearance, or repayment
11plan.

12(2) A foreclosure prevention alternative has been approved in
13writing by all parties, including, for example, the first lien investor,
14junior lienholder, and mortgage insurer, as applicable, and proof
15of funds or financing has been provided to the servicer.

P3    1(b) If a foreclosure prevention alternative is approved in writing
2after the recordation of a notice of default, a mortgage servicer,
3mortgagee, trustee, beneficiary, or authorized agent shall not record
4a notice of sale or conduct a trustee’s sale under either of the
5following circumstances:

6(1) The borrower is in compliance with the terms of a written
7trial or permanent loan modification, forbearance, or repayment
8plan.

9(2) A foreclosure prevention alternative has been approved in
10writing by all parties, including, for example, the first lien investor,
11junior lienholder, and mortgage insurer, as applicable, and proof
12of funds or financing has been provided to the servicer.

13(c) When a borrower accepts an offered first lien loan
14modification or other foreclosure prevention alternative, the
15mortgage servicer shall provide the borrower with a copy of the
16fully executed loan modification agreement or agreement
17evidencing the foreclosure prevention alternative following receipt
18of the executed copy from the borrower.

19(d) A mortgagee, beneficiary, or authorized agent shall record
20a rescission of a notice of default or cancel a pending trustee’s
21sale, if applicable, upon the borrower executing a permanent
22foreclosure prevention alternative. In the case of a short sale, the
23cancellation of the pending trustee’s sale shall occur when the
24short sale has been approved by all parties and proof of funds or
25financing has been provided to the mortgagee, beneficiary, or
26authorized agent.

27(e) The mortgage servicer shall not charge any application,
28processing, or other fee for a first lien loan modification or other
29foreclosure prevention alternative.

30(f) The mortgage servicer shall not collect any late fees for
31periods during which a complete first lien loan modification
32application is under consideration or a denial is being appealed,
33the borrower is making timely modification payments, or a
34foreclosure prevention alternative is being evaluated or exercised.

35(g) If a borrower has been approved in writing for a first lien
36loan modification or other foreclosure prevention alternative, and
37the servicing of that borrower’s loan is transferred or sold to
38another mortgage servicer, the subsequent mortgage servicer shall
39continue to honor any previously approved first lien loan
P4    1modification or other foreclosure prevention alternative, in
2accordance with the provisions of the act that added this section.

3(h) This section shall apply only to mortgages or deeds of trust
4described in Section 2924.15.

5(i) This section shall not apply to entities described in
6subdivision (b) of Section 2924.18.

7(j)  This section shall remain in effect only until January 1, 2018,
8and as of that date is repealed, unless a later enacted statute, that
9is enacted before January 1, 2018, deletes or extends that date.

10

SEC. 2.  

Section 2924.11 of the Civil Code, as added by Section
1114 of Chapter 87 of the Statutes of 2012, is repealed.

12

SEC. 3.  

Section 2924c of the Civil Code is amended to read:

13

2924c.  

(a) (1) Whenever all or a portion of the principal sum
14of any obligation secured by deed of trust or mortgage on real
15property or an estate for years therein hereafter executed has, prior
16to the maturity date fixed in that obligation, become due or been
17declared due by reason of default in payment of interest or of any
18installment of principal, or by reason of failure of trustor or
19mortgagor to pay, in accordance with the terms of that obligation
20or of the deed of trust or mortgage, taxes, assessments, premiums
21for insurance, or advances made by beneficiary or mortgagee in
22accordance with the terms of that obligation or of the deed of trust
23or mortgage, the trustor or mortgagor or his or her successor in
24interest in the mortgaged or trust property or any part thereof, or
25any beneficiary under a subordinate deed of trust or any other
26person having a subordinate lien or encumbrance of record thereon,
27at any time within the period specified in subdivision (e), if the
28power of sale therein is to be exercised, or, otherwise at any time
29prior to entry of the decree of foreclosure, may pay to the
30beneficiary or the mortgagee or their successors in interest,
31respectively, the entire amount due, at the time payment is
32tendered, with respect to (A) all amounts of principal, interest,
33taxes, assessments, insurance premiums, or advances actually
34known by the beneficiary to be, and that are, in default and shown
35in the notice of default, under the terms of the deed of trust or
36mortgage and the obligation secured thereby, (B) all amounts in
37default on recurring obligations not shown in the notice of default,
38and (C) all reasonable costs and expenses, subject to subdivision
39(c), that are actually incurred in enforcing the terms of the
40obligation, deed of trust, or mortgage, and trustee’s or attorney’s
P5    1fees, subject to subdivision (d), other than the portion of principal
2as would not then be due had no default occurred, and thereby cure
3the default theretofore existing, and thereupon, all proceedings
4theretofore had or instituted shall be dismissed or discontinued
5and the obligation and deed of trust or mortgage shall be reinstated
6and shall be and remain in force and effect, the same as if the
7acceleration had not occurred. This section does not apply to bonds
8or other evidences of indebtedness authorized or permitted to be
9issued by the Department of Business Oversight or made by a
10public utility subject to the Public Utilities Code. For the purposes
11of this subdivision, the term “recurring obligation” means all
12amounts of principal and interest on the loan, or rents, subject to
13the deed of trust or mortgage in default due after the notice of
14default is recorded; all amounts of principal and interest or rents
15advanced on senior liens or leaseholds that are advanced after the
16recordation of the notice of default; and payments of taxes,
17assessments, and hazard insurance advanced after recordation of
18the notice of default. If the beneficiary or mortgagee has made no
19advances on defaults that would constitute recurring obligations,
20the beneficiary or mortgagee may require the trustor or mortgagor
21to provide reliable written evidence that the amounts have been
22paid prior to reinstatement.

23(2) If the trustor, mortgagor, or other person authorized to cure
24the default pursuant to this subdivision does cure the default, the
25beneficiary or mortgagee or the agent for the beneficiary or
26mortgagee shall, within 21 days following the reinstatement,
27execute and deliver to the trustee a notice of rescission that rescinds
28the declaration of default and demand for sale and advises the
29trustee of the date of reinstatement. The trustee shall cause the
30notice of rescission to be recorded within 30 days of receipt of the
31notice of rescission and of all allowable fees and costs.

32No charge, except for the recording fee, shall be made against
33the trustor or mortgagor for the execution and recordation of the
34notice which rescinds the declaration of default and demand for
35sale.

36(b) (1) The notice, of any default described in this section,
37recorded pursuant to Section 2924, and mailed to any person
38pursuant to Section 2924b, shall begin with the following
39statement, printed or typed thereon:


P6    1“IMPORTANT NOTICE [14-point boldface type if printed or
2in capital letters if typed]
3

4IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE
5YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD
6WITHOUT ANY COURT ACTION, [14-point boldface type if
7printed or in capital letters if typed] and you may have the legal
8right to bring your account in good standing by paying all of your
9past due payments plus permitted costs and expenses within the
10time permitted by law for reinstatement of your account, which is
11normally five business days prior to the date set for the sale of
12your property. No sale date may be set until approximately 90 days
13from the date this notice of default may be recorded (which date
14of recordation appears on this notice).


15

 

This amount is   

as of   

   

  (Date)

P6   1812P6   19

 

19and will increase until your account becomes current.

20While your property is in foreclosure, you still must pay other
21obligations (such as insurance and taxes) required by your note
22and deed of trust or mortgage. If you fail to make future payments
23on the loan, pay taxes on the property, provide insurance on the
24property, or pay other obligations as required in the note and deed
25of trust or mortgage, the beneficiary or mortgagee may insist that
26you do so in order to reinstate your account in good standing. In
27addition, the beneficiary or mortgagee may require as a condition
28to reinstatement that you provide reliable written evidence that
29you paid all senior liens, property taxes, and hazard insurance
30premiums.

31Upon your written request, the beneficiary or mortgagee will
32give you a written itemization of the entire amount you must pay.
33You may not have to pay the entire unpaid portion of your account,
34even though full payment was demanded, but you must pay all
35amounts in default at the time payment is made. However, you
36and your beneficiary or mortgagee may mutually agree in writing
37prior to the time the notice of sale is posted (which may not be
38earlier than three months after this notice of default is recorded)
39to, among other things, (1) provide additional time in which to
40cure the default by transfer of the property or otherwise; or (2)
P7    1establish a schedule of payments in order to cure your default; or
2both (1) and (2).

3Following the expiration of the time period referred to in the
4first paragraph of this notice, unless the obligation being foreclosed
5upon or a separate written agreement between you and your creditor
6permits a longer period, you have only the legal right to stop the
7sale of your property by paying the entire amount demanded by
8your creditor.

9To find out the amount you must pay, or to arrange for payment
10to stop the foreclosure, or if your property is in foreclosure for any
11other reason, contact:

 

   

   

   

(Name of beneficiary or mortgagee)

   

   

   

(Mailing address)

   

   

   

(Telephone)

P6   19

 

20If you have any questions, you should contact a lawyer or the
21governmental agency that may have insured your loan.

22Notwithstanding the fact that your property is in foreclosure,
23you may offer your property for sale, provided the sale is concluded
24prior to the conclusion of the foreclosure.

25Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO
26NOT TAKE PROMPT ACTION. [14-point boldface type if printed
27or in capital letters if typed]”

28Unless otherwise specified, the notice, if printed, shall appear
29in at least 12-point boldface type.

30If the obligation secured by the deed of trust or mortgage is a
31contract or agreement described in paragraph (1) or (4) of
32subdivision (a) of Section 1632, the notice required herein shall
33be in Spanish if the trustor requested a Spanish language translation
34of the contract or agreement pursuant to Section 1632. If the
35obligation secured by the deed of trust or mortgage is contained
36in a home improvement contract, as defined in Sections 7151.2
37and 7159 of the Business and Professions Code, which is subject
38 to Title 2 (commencing with Section 1801), the seller shall specify
39on the contract whether or not the contract was principally
40negotiated in Spanish and if the contract was principally negotiated
P8    1in Spanish, the notice required herein shall be in Spanish. No
2assignee of the contract or person authorized to record the notice
3of default shall incur any obligation or liability for failing to mail
4a notice in Spanish unless Spanish is specified in the contract or
5the assignee or person has actual knowledge that the secured
6obligation was principally negotiated in Spanish. Unless specified
7in writing to the contrary, a copy of the notice required by
8subdivision (c) of Section 2924b shall be in English.

9(2) Any failure to comply with the provisions of this subdivision
10shall not affect the validity of a sale in favor of a bona fide
11purchaser or the rights of an encumbrancer for value and without
12notice.

13(c) Costs and expenses that may be charged pursuant to Sections
142924 to 2924i, inclusive, shall be limited to the costs incurred for
15recording, mailing, including certified and express mail charges,
16publishing, and posting notices required by Sections 2924 to 2924i,
17inclusive, postponement pursuant to Section 2924g not to exceed
18fifty dollars ($50) per postponement and a fee for a trustee’s sale
19guarantee or, in the event of judicial foreclosure, a litigation
20guarantee. For purposes of this subdivision, a trustee or beneficiary
21may purchase a trustee’s sale guarantee at a rate meeting the
22standards contained in Sections 12401.1 and 12401.3 of the
23Insurance Code.

24(d) Trustee’s or attorney’s fees that may be charged pursuant
25to subdivision (a), or until the notice of sale is deposited in the
26mail to the trustor as provided in Section 2924b, if the sale is by
27power of sale contained in the deed of trust or mortgage, or,
28otherwise at any time prior to the decree of foreclosure, are hereby
29authorized to be in a base amount that does not exceed three
30hundred fifty dollars ($350) if the unpaid principal sum secured
31is one hundred fifty thousand dollars ($150,000) or less, or three
32hundred dollars ($300) if the unpaid principal sum secured exceeds
33one hundred fifty thousand dollars ($150,000), plus one-half of 1
34percent of the unpaid principal sum secured exceeding fifty
35thousand dollars ($50,000) up to and including one hundred fifty
36 thousand dollars ($150,000), plus one-quarter of 1 percent of any
37portion of the unpaid principal sum secured exceeding one hundred
38fifty thousand dollars ($150,000) up to and including five hundred
39thousand dollars ($500,000), plus one-eighth of 1 percent of any
40portion of the unpaid principal sum secured exceeding five hundred
P9    1thousand dollars ($500,000). Any charge for trustee’s or attorney’s
2fees authorized by this subdivision shall be conclusively presumed
3to be lawful and valid where the charge does not exceed the
4amounts authorized herein. For purposes of this subdivision, the
5unpaid principal sum secured shall be determined as of the date
6the notice of default is recorded.

7(e) Reinstatement of a monetary default under the terms of an
8obligation secured by a deed of trust, or mortgage may be made
9at any time within the period commencing with the date of
10recordation of the notice of default until five business days prior
11to the date of sale set forth in the initial recorded notice of sale.

12In the event the sale does not take place on the date set forth in
13the initial recorded notice of sale or a subsequent recorded notice
14of sale is required to be given, the right of reinstatement shall be
15revived as of the date of recordation of the subsequent notice of
16sale, and shall continue from that date until five business days
17prior to the date of sale set forth in the subsequently recorded notice
18of sale.

19In the event the date of sale is postponed on the date of sale set
20forth in either an initial or any subsequent notice of sale, or is
21postponed on the date declared for sale at an immediately preceding
22postponement of sale, and, the postponement is for a period that
23exceeds five business days from the date set forth in the notice of
24sale, or declared at the time of postponement, then the right of
25reinstatement is revived as of the date of postponement and shall
26 continue from that date until five business days prior to the date
27of sale declared at the time of the postponement.

28Nothing contained herein shall give rise to a right of
29reinstatement during the period of five business days prior to the
30date of sale, whether the date of sale is noticed in a notice of sale
31or declared at a postponement of sale.

32Pursuant to the terms of this subdivision, no beneficiary, trustee,
33mortgagee, or their agents or successors shall be liable in any
34manner to a trustor, mortgagor, their agents or successors or any
35beneficiary under a subordinate deed of trust or mortgage or any
36other person having a subordinate lien or encumbrance of record
37thereon for the failure to allow a reinstatement of the obligation
38secured by a deed of trust or mortgage during the period of five
39business days prior to the sale of the security property, and no such
40right of reinstatement during this period is created by this section.
P10   1Any right of reinstatement created by this section is terminated
2five business days prior to the date of sale set forth in the initial
3date of sale, and is revived only as prescribed herein and only as
4of the date set forth herein.

5As used in this subdivision, the term “business day” has the same
6meaning as specified in Section 9.

7

SEC. 4.  

Section 2924d of the Civil Code is amended to read:

8

2924d.  

(a) Commencing with the date that the notice of sale
9is deposited in the mail, as provided in Section 2924b, and until
10the property is sold pursuant to the power of sale contained in the
11mortgage or deed of trust, a beneficiary, trustee, mortgagee, or his
12or her agent or successor in interest, may demand and receive from
13a trustor, mortgagor, or his or her agent or successor in interest,
14or any beneficiary under a subordinate deed of trust, or any other
15person having a subordinate lien or encumbrance of record those
16reasonable costs and expenses, to the extent allowed by subdivision
17(c) of Section 2924c, that are actually incurred in enforcing the
18terms of the obligation and trustee’s or attorney’s fees that are
19hereby authorized to be in a base amount that does not exceed four
20hundred seventy-five dollars ($475) if the unpaid principal sum
21secured is one hundred fifty thousand dollars ($150,000) or less,
22or four hundred ten dollars ($410) if the unpaid principal sum
23secured exceeds one hundred fifty thousand dollars ($150,000),
24plus 1 percent of any portion of the unpaid principal sum secured
25exceeding fifty thousand dollars ($50,000) up to and including one
26hundred fifty thousand dollars ($150,000), plus one-half of 1
27percent of any portion of the unpaid principal sum secured
28exceeding one hundred fifty thousand dollars ($150,000) up to and
29including five hundred thousand dollars ($500,000), plus
30one-quarter of 1 percent of any portion of the unpaid principal sum
31secured exceeding five hundred thousand dollars ($500,000). For
32purposes of this subdivision, the unpaid principal sum secured
33shall be determined as of the date the notice of default is recorded.
34Any charge for trustee’s or attorney’s fees authorized by this
35subdivision shall be conclusively presumed to be lawful and valid
36 where that charge does not exceed the amounts authorized herein.
37Any charge for trustee’s or attorney’s fees made pursuant to this
38subdivision shall be in lieu of and not in addition to those charges
39authorized by subdivision (d) of Section 2924c.

P11   1(b) Upon the sale of property pursuant to a power of sale, a
2trustee, or his or her agent or successor in interest, may demand
3and receive from a beneficiary, or his or her agent or successor in
4interest, or may deduct from the proceeds of the sale, those
5reasonable costs and expenses, to the extent allowed by subdivision
6(c) of Section 2924c, that are actually incurred in enforcing the
7terms of the obligation and trustee’s or attorney’s fees that are
8hereby authorized to be in an amount which does not exceed four
9hundred twenty-five dollars ($425) or 1 percent of the unpaid
10principal sum secured, whichever is greater. For purposes of this
11subdivision, the unpaid principal sum secured shall be determined
12as of the date the notice of default is recorded. Any charge for
13trustee’s or attorney’s fees authorized by this subdivision shall be
14conclusively presumed to be lawful and valid where that charge
15does not exceed the amount authorized herein. Any charges for
16trustee’s or attorney’s fees made pursuant to this subdivision shall
17be in lieu of and not in addition to those charges authorized by
18subdivision (a) of this section and subdivision (d) of Section 2924c.

19(c) (1) No person shall pay or offer to pay or collect any rebate
20or kickback for the referral of business involving the performance
21of any act required by this article.

22(2) Any person who violates this subdivision shall be liable to
23the trustor for three times the amount of any rebate or kickback,
24plus reasonable attorney’s fees and costs, in addition to any other
25remedies provided by law.

26(3) No violation of this subdivision shall affect the validity of
27a sale in favor of a bona fide purchaser or the rights of an
28encumbrancer for value without notice.

29(d) It shall not be unlawful for a trustee to pay or offer to pay a
30fee to an agent or subagent of the trustee for work performed by
31the agent or subagent in discharging the trustee’s obligations under
32the terms of the deed of trust. Any payment of a fee by a trustee
33to an agent or subagent of the trustee for work performed by the
34agent or subagent in discharging the trustee’s obligations under
35the terms of the deed of trust shall be conclusively presumed to
36be lawful and valid if the fee, when combined with other fees of
37the trustee, does not exceed in the aggregate the trustee’s fee
38authorized by subdivision (d) of Section 2924c or subdivision (a)
39or (b) of this section.

P12   1(e) When a court issues a decree of foreclosure, it shall have
2discretion to award attorney’s fees, costs, and expenses as are
3reasonable, if provided for in the note, deed of trust, or mortgage,
4pursuant to Section 580c of the Code of Civil Procedure.

begin delete
5

SEC. 5.  

Section 2934a of the Civil Code is amended to read:

6

2934a.  

(a) (1) The trustee under a trust deed upon real property
7or an estate for years therein given to secure an obligation to pay
8money and conferring no other duties upon the trustee than those
9which are incidental to the exercise of the power of sale therein
10conferred, may be substituted by the recording in the county in
11which the property is located of a substitution executed and
12acknowledged by: (A) all of the beneficiaries under the trust deed,
13or their successors in interest, and the substitution shall be effective
14notwithstanding any contrary provision in any trust deed executed
15on or after January 1, 1968; or (B) the holders of more than 50
16percent of the record beneficial interest of a series of notes secured
17by the same real property or of undivided interests in a note secured
18by real property equivalent to a series transaction, exclusive of
19any notes or interests of a licensed real estate broker that is the
20issuer or servicer of the notes or interests or of any affiliate of that
21licensed real estate broker.

22(2) A substitution executed pursuant to subparagraph (B) of
23paragraph (1) is not effective unless all the parties signing the
24substitution sign, under penalty of perjury, a separate written
25document stating the following:

26(A) The substitution has been signed pursuant to subparagraph
27(B) of paragraph (1).

28(B) None of the undersigned is a licensed real estate broker or
29an affiliate of the broker that is the issuer or servicer of the
30obligation secured by the deed of trust.

31(C) The undersigned together hold more than 50 percent of the
32record beneficial interest of a series of notes secured by the same
33real property or of undivided interests in a note secured by real
34property equivalent to a series transaction.

35(D) Notice of the substitution was sent by certified mail, postage
36prepaid, with return receipt requested to each holder of an interest
37in the obligation secured by the deed of trust who has not joined
38in the execution of the substitution or the separate document.

39The separate document shall be attached to the substitution and
40be recorded in the office of the county recorder of each county in
P13   1which the real property described in the deed of trust is located.
2Once the document required by this paragraph is recorded, it shall
3constitute conclusive evidence of compliance with the requirements
4of this paragraph in favor of substituted trustees acting pursuant
5to this section, subsequent assignees of the obligation secured by
6the deed of trust and subsequent bona fide purchasers or
7encumbrancers for value of the real property described therein.

8(3) For purposes of this section, “affiliate of the licensed real
9estate broker” includes any person as defined in Section 25013 of
10the Corporations Code that is controlled by, or is under common
11control with, or who controls, a licensed real estate broker.
12“Control” means the possession, direct or indirect, of the power
13to direct or cause the direction of management and policies.

14(4) The substitution shall contain the date of recordation of the
15trust deed, the name of the trustor, the book and page or instrument
16number where the trust deed is recorded, and the name of the new
17trustee. From the time the substitution is filed for record, the new
18trustee shall succeed to all the powers, duties, authority, and title
19granted and delegated to the trustee named in the deed of trust. A
20substitution may be accomplished, with respect to multiple deeds
21of trust which are recorded in the same county in which the
22substitution is being recorded and which all have the same trustee
23and beneficiary or beneficiaries, by recording a single document,
24complying with the requirements of this section, substituting
25trustees for all those deeds of trust.

26(b) If the substitution is executed, but not recorded, prior to or
27concurrently with the recording of the notice of default, the
28beneficiary or beneficiaries or their authorized agents shall cause
29notice of the substitution to be mailed prior to or concurrently with
30the recording thereof, in the manner provided in Section 2924b,
31to all persons to whom a copy of the notice of default would be
32required to be mailed by the provisions of Section 2924b. An
33affidavit shall be attached to the substitution that notice has been
34given to those persons and in the manner required by this
35subdivision.

36(c) If the substitution is effected after a notice of default has
37been recorded but prior to the recording of the notice of sale, the
38beneficiary or beneficiaries or their authorized agents shall cause
39a copy of the substitution to be mailed, prior to, or concurrently
40with, the recording thereof, in the manner provided in Section
P14   12924b, to the trustee then of record and to all persons to whom a
2copy of the notice of default would be required to be mailed by
3the provisions of Section 2924b. An affidavit shall be attached to
4the substitution that notice has been given to those persons and in
5the manner required by this subdivision.

6(d) (1) A trustee named in a recorded substitution of trustee
7shall be deemed to be authorized to act as the trustee under the
8mortgage or deed of trust for all purposes from the date the
9 substitution is executed by the mortgagee, beneficiaries, or by their
10authorized agents. Nothing herein requires that a trustee under a
11recorded substitution accept the substitution. Once recorded, the
12substitution shall constitute conclusive evidence of the authority
13of the substituted trustee or his or her agents to act pursuant to this
14section.

15(2) A trustee named in a recorded substitution of trustee shall
16not be a legal owner or owner, as applicable, for purposes of
17Section 2929.3 or 2929.4.

18(e) Notwithstanding any provision of this section or any
19provision in any deed of trust, unless a new notice of sale
20containing the name, street address, and telephone number of the
21substituted trustee is given pursuant to Section 2924f after
22execution of the substitution, any sale conducted by the substituted
23trustee shall be void.

24(f) This section shall become operative on January 1, 1998.

end delete


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