Article 2Unclaimed Property

Section § 1917.020

Explanation

This section explains key terms used in shared appreciation loans. 'Adjusted fair market value' is the property's sale price or appraised value, excluding foreclosure sales. 'Borrower’s cost' includes all expenses the borrower pays to buy property. 'Contingent deferred interest' is a portion of the property's value increase that the lender claims. 'Cost of capital improvements' considers construction upgrades. The 'lender' is the party who provides the loan, often a pension fund. 'Net appreciated value' is the property’s increased worth minus purchase and improvement costs. The 'net sale price' deducts selling expenses. The 'prevailing rate' is a benchmark interest rate tied to federal mortgage data. Finally, a 'shared appreciation loan' is a mortgage where the lender earns part of the property's value increase when sold.

For purposes of this chapter:
(a)CA Civil Law Code § 1917.020(a) “Adjusted fair market value” means all of the following:
(1)CA Civil Law Code § 1917.020(a)(1) The net sale price, in the case of a bona fide sale made in good faith prior to the maturity date of the shared appreciation loan, but excluding any sale upon a foreclosure or trustee’s sale pursuant to Section 726 of the Code of Civil Procedure or Section 2924.
(2)CA Civil Law Code § 1917.020(a)(2) In all other cases, the amount of value of the property specified in the most recent annual appraisal performed pursuant to Section 1917.040 or 1917.042.
(b)CA Civil Law Code § 1917.020(b) “Borrower’s cost of the property” means the total cost to the borrower incident to the purchase of the property, including documentary transfer taxes, escrow and recording fees, and title insurance premiums.
(c)CA Civil Law Code § 1917.020(c) “Contingent deferred interest” means the sum resulting upon multiplying the net appreciated value by one-third.
(d)CA Civil Law Code § 1917.020(d) “Cost of capital improvements” means the amount of the credit, if any, determined pursuant to Article 5 (commencing with Section 1917.050).
(e)CA Civil Law Code § 1917.020(e) “Lender” means any person who makes a shared appreciation loan on behalf of a pension fund specified in Section 1917.030. Subsequent to an assignment of a shared appreciation loan to a pension fund pursuant to Section 1917.030, “lender” shall mean the pension fund assignee (or any subsequent assignee) and its agents designated to service the shared appreciation loan.
(f)CA Civil Law Code § 1917.020(f) “Net appreciated value” means the adjusted fair market value less the sum of the borrower’s cost of the property and the cost of capital improvements.
(g)CA Civil Law Code § 1917.020(g) “Net sale price” means the gross sale price less expenses of sale actually paid by the borrower, including real estate commissions, advertising, documentary transfer taxes, legal, escrow and recording fees, and title insurance premiums.
(h)CA Civil Law Code § 1917.020(h) “Prevailing rate” means the weighted average yield accepted by the Federal National Mortgage Association in its most recent free market system auction for four-month conventional mortgage commitments or, if the Federal National Mortgage Association alters its free market system auction, then the system which is adopted by the Federal National Mortgage Association which substantially replaces or supersedes the present free market system auction for four-month commitments, or if no auction or equivalent thereof has been conducted within the six months immediately preceding the date the application for a shared appreciation mortgage loan is executed, the weighted average cost of funds for the 11th District Savings and Loan Associations as computed by the Federal Home Loan Bank of San Francisco.
(i)CA Civil Law Code § 1917.020(i) “Shared appreciation loan” means any loan made pursuant to this chapter upon the security of owner-occupied real property of a type specified in Section 1917.030, and in connection with which the lender has a right to receive a share of the appreciation in the value of the security property. “Shared appreciation loan” includes a deed of trust and any evidence of debt issued in connection with the loan.
shared appreciation loans adjusted fair market value borrower’s cost contingent deferred interest cost of capital improvements lender pension fund net appreciated value net sale price prevailing rate Federal National Mortgage Association free market system auction 11th District Savings and Loan Associations owner-occupied real property deed of trust
(Amended by Stats. 1984, Ch. 1267, Sec. 1. Inoperative January 1, 1990, by Stats. 1982, Ch. 466, Sec. 11.5.)

Section § 2081

Explanation

This law allows carriers like railroads, express companies, commission merchants, innkeepers, or warehouse operators to store goods with a responsible third party if the rightful owner doesn't claim them. They can do this until any fees or charges for transportation or storage are paid by the owner or an authorized person.

When any goods, merchandise, or other property has been received by any railroad or express company, other common carrier, commission merchant, innkeeper, or warehouseman, for transportation or safekeeping, and is not delivered to the owner, consignee, or other authorized person, the carrier, commission merchant, innkeeper, or warehouseman may hold or store the property with some responsible person until the freight and all just and reasonable charges are paid.
goods storage freight charges common carrier express company warehouseman innkeeper consignee property transportation safekeeping commission merchant responsible person delivery issues authorized person unclaimed property storage fees
(Added by Stats. 1951, Ch. 656.)

Section § 2081.1

Explanation

If nobody claims their goods and pays the fees within 60 days, the company holding the items, like a transport or storage business, can auction them off to cover those costs. They have to provide the usual auction notice before selling.

If within 60 days after its receipt no person calls for the property and pays the freight and charges upon it, the carrier, commission merchant, innkeeper, or warehouseman may sell the property, or so much of it as will pay freight and charges, to the highest bidder at public auction, after first causing such notice of sale to be given as is customary in sales of goods by auction at the place where the goods are held or stored.
public auction unclaimed property freight charges commission merchant innkeeper warehouseman sale notice highest bidder 60 days goods storage auction process property claim auctioneer fees and charges notice requirement
(Added by Stats. 1951, Ch. 656.)

Section § 2081.2

Explanation
After selling an item, if there's any money left over after covering costs like shipping, storage, and the sale itself, this leftover money should be given to the item's owner if they ask for it within 60 days.
If any surplus remains after paying the freight, storage, expenses of sale, and other reasonable charges, the sum remaining shall be paid over to the owner of the property, upon his demand at any time within 60 days after the sale.
surplus distribution freight costs storage expenses sale expenses reasonable charges owner reimbursement surplus funds property owner demand post-sale process sale proceeds owner claim deadline surplus payout financial overage payment to owner sixty day limit
(Added by Stats. 1951, Ch. 656.)

Section § 2081.3

Explanation

If someone sells property and makes extra money, the original owner has 60 days to claim that extra money. If they don't, the money goes to the county, but the owner can still ask for it later.

If the owner or his agent fails to demand the surplus within 60 days after the sale, it shall be paid into the county treasury, subject to the order of the owner.
surplus funds owner's claim property sale county treasury time limit 60 days payment demand agent responsibility unclaimed funds financial excess sale proceeds treasury order owners' rights
(Added by Stats. 1951, Ch. 656.)

Section § 2081.4

Explanation

Once property is stored, the carrier, commission merchant, innkeeper, or warehouse operator is no longer responsible for loss or damage unless it was due to their negligence or lack of proper care.

After the storage of the property the responsibility of the carrier, commission merchant, innkeeper, or warehouseman ceases. The person with whom the property is stored is not liable for loss or damage on its account unless the loss or damage results from his negligence or want of proper care.
storage responsibility carrier liability commission merchant innkeeper responsibility warehouseman liability loss or damage negligence duty of care warehouse storage risk after storage property storage loss prevention careful storage
(Added by Stats. 1951, Ch. 656.)

Section § 2081.5

Explanation

If someone who sells goods for others, like a commission merchant or warehouseman, receives items to sell and lends money against them, they can sell those items if the loan isn't repaid within 60 days. They must follow specific advertising and selling rules when doing so.

When any commission merchant or warehouseman receives produce, merchandise, or other property on consignment and makes advances upon it, either to the owner or for freight and charges, if the advances are not paid to him within 60 days from the date made, he may cause the produce, merchandise, or property on which the advances were made, to be advertised and sold pursuant to this article.
commission merchant warehouseman consignment advances produce merchandise property sale advertising rules 60-day repayment freight charges unpaid advances consigned goods loan on consignment property on consignment
(Added by Stats. 1951, Ch. 656.)

Section § 2081.6

Explanation

This law states that all actions or processes under this specific article must follow the rules laid out in that article only, and other related laws mentioned in a different part of the code do not influence or control these proceedings.

All proceedings pursuant to this article are governed entirely by its provisions and are not controlled or affected by Article 2, Chapter 3, Title 7, Part 4, Division 3 of this code.
proceedings provisions governing rules process control article-specific laws independent provisions legal code separation legal proceedings autonomy non-affected by other laws distinct regulations
(Added by Stats. 1951, Ch. 656.)