TITLE 1.85. CONSUMER CREDIT CONTRACTS
California Civil Code Section 1799.1a-1799.103

1799.1a.  (a) No person, including an individual, firm, corporation,
association, partnership, or joint venture, or any employee or agent
thereof, shall disclose information obtained from a federal or state
income tax return or any information obtained from a tax schedule
submitted with the return by a consumer in connection with a
financial or other business-related transaction unless the disclosure
is within any of the following:
   (1) Consented to in writing by the consumer in a separate document
that states to whom the disclosure will be made and how the
information will be used.  If the consumer agrees, this separate
consent document may be in the form of an electronic record, executed
by an electronic signature as provided by Title 2.5 (commencing with
Section 1633.1) of Part 2 of Division 3 of the Civil Code.
   (2) Authorized or required by state or federal law.
   (3) Necessary to complete or service the financial or
business-related transaction or to effect, administer, or enforce a
financial or business-related transaction requested by the consumer.

   (4) Pursuant to court order.
   (5) Required to complete any of the transactions described in
subparagraphs (A) to (D), inclusive, by a person, including an
individual, firm, corporation, association, partnership or joint
venture, if the disclosure is made solely for that purpose.  The
provisions of this section apply to any person, including an
individual, firm, corporation, association, partnership, or joint
venture, and any employee or agent thereof, receiving information as
a result of a disclosure authorized by this paragraph.
   (A) A proposed or actual sale, merger, transfer, or exchange of
all or a portion of a business or operating unit.
   (B) A proposed or actual securitization or secondary market sale,
including the sale of servicing rights.
   (C) To provide information to insurance rate advisory
organizations, guaranty funds or agencies, rating agencies, and other
persons assessing compliance with industry standards.
   (D) To protect against or to prevent actual or potential fraud and
unauthorized transactions and claims and for institutional risk
control activities.
   (b) No unrelated use shall be made of a federal or state tax
return or any information obtained therefrom or any information
submitted with the return by a consumer in connection with a
financial or other business-related transaction.  "Unrelated use"
means any use that is not necessary to effect, administer, or enforce
the financial or other business-related transaction with the
consumer or that is beyond the scope of the stated purpose to which
the consumer consented for the use of the return or any other
information he or she submitted.
   (c) (1) For purposes of this section, the following definitions
shall apply:
   (A) "Affiliate" means any entity that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is
under common control with, another entity.
   (B) "Consumer" means an individual who requests or obtains
financial or other business-related services.
   (C) "Tax return" means a return, declaration, statement, refund
claim, or other document required to be made or to be filed in
connection with state or federal income taxes or state bank and
corporation franchise taxes.
   (2) A disclosure prohibited by this section includes a disclosure
made internally within the entity or by that entity to any of its
subsidiaries or affiliates.
   (3) The information described in subdivision (a) includes that
information obtained through an electronic medium.
   (d) No person, including an individual, firm, corporation,
association, partnership, or joint venture, or any employee or agent
thereof, shall dispose of any of the information described in
subdivision (a) in a manner in which the identity of the consumer may
be determined from the disposed information alone or in combination
with other publicly available information.  This subdivision shall
not become operative if Assembly Bill 2246 of the 1999-2000 Regular
Session is enacted and becomes effective on or before January 1,
2001.
   (e) The civil remedies in Chapter 3 (commencing with Section
1799.2) shall be applicable to a violation of this section.  Each
violation of this section shall constitute a separate cause of action
for which damages are recoverable.
   (f) The treatment of tax returns by tax preparers, as defined in
Section 22251 of the Business and Professions Code, shall be governed
by Section 17530.5 of the Business and Professions Code.



1799.90.  As used in this title:
   (a) "Consumer credit contract" means any of the following
obligations to pay money on a deferred payment basis, where the
money, property, services or other consideration which is the subject
matter of the contract is primarily for personal, family or
household purposes:
   (1) Retail installment contracts, as defined in Section 1802.6.
   (2) Retail installment accounts, as defined in Section 1802.7.
   (3) Conditional sales contracts, as defined in Section 2981.
   (4) Loans or extensions of credit secured by other than real
property, or unsecured, for use primarily for personal, family or
household purposes.
   (5) Loans or extensions of credit for use primarily for personal,
family or household purposes where such loans or extensions of credit
are subject to the provisions of Article 7 (commencing with Section
10240) of Chapter 3 of Part I of Division 4 of the Business and
Professions Code, Division 7 (commencing with Section 18000),
Division 9 (commencing with Section 22000), or Division 10
(commencing with Section 24000) of the Financial Code, whether
secured by real property or otherwise.
   (6) Lease contracts, as defined in Section 2985.7.
   (b) "Creditor" means an individual, partnership, corporation,
association or other entity, however designated, who enters into or
arranges for consumer credit contracts in  the ordinary course of
business.


1799.91.  (a) Unless the persons are married to each other, each
creditor who obtains the signature of more than one person on a
consumer credit contract shall deliver to each person  who does not
in fact receive any of the money, property, or services which are the
subject matter of the consumer credit contract, prior to that person'
s becoming obligated on the consumer credit contract, a notice in
English and Spanish in at least 10-point type as follows:
      NOTICE TO COSIGNER (Traduccion en Ingles Se Requiere Por La
Ley)

   You are being asked to guarantee this debt.  Think carefully
before you do.  If the borrower doesn't pay the debt, you will have
to.  Be sure you can afford to pay if you have to, and that you want
to accept this responsibility.
   You may have to pay up to the full amount of the debt if the
borrower does not pay.  You may also have to pay late fees or
collection costs, which increase this amount.
   The creditor can collect this debt from you without first trying
to collect from the borrower.  The creditor can use the same
collection methods against you that can be used against the borrower,
such as suing you, garnishing your wages, etc.  If this debt is ever
in default, that fact may become a part of your credit record.
   This notice is not the contract that makes you liable for the
debt.
      AVISO PARA EL FIADOR (Spanish Translation Required By Law)

   Se le esta pidiendo que garantice esta deuda.  Pienselo con
cuidado antes de ponerse de acuerdo.  Si la persona que ha pedido
este prestamo no paga la deuda, usted tendra que pagarla.  Este
seguro de que usted podra pagar si sea obligado a pagarla y de que
usted desea aceptar la responsabilidad.
   Si la persona que ha pedido el prestamo no paga la deuda, es
posible que usted tenga que pagar la suma total de la deuda, mas los
cargos por tardarse en el pago o el costo de cobranza, lo cual
aumenta el total de esta suma.
   El acreedor (financiero) puede cobrarle a usted sin, primeramente,
tratar de cobrarle al deudor.  Los mismos metodos de cobranza que
pueden usarse contra el deudor, podran usarse contra usted, tales
como presentar una demanda en corte, quitar parte de su sueldo, etc.
Si alguna vez no se cumpla con la obligacion de pagar esta deuda, se
puede incluir esa informacion en la historia de credito de usted.
   Este aviso no es el contrato mismo en que se le echa a usted la
responsabilidad de la deuda.

   (b) Whenever notice is required to be given under subdivision (a)
or (d) and the consumer credit contract is written in a language
other than English or Spanish, the creditor shall deliver the notice
as required in subdivision (a) or (d) in English and, in addition to
or in lieu of Spanish, in the language in which the consumer contract
is written.
   (c) The requirements of subdivisions (a) and (b) do not apply to a
creditor offering or extending open-end credit, as defined in
Regulation Z, to joint applicants if all of the following conditions
are satisfied:
   (1) The application or agreement signed by each applicant clearly
and conspicuously discloses that after credit approval each applicant
shall have the right to use the open-end credit plan to the extent
of any limit set by the creditor and may be liable for all amounts
extended under the plan to any joint applicant.
   (2) After credit approval, the creditor issues for the use of each
applicant any credit device such as a credit card which may be used
to obtain credit under the open-end credit plan and sends the credit
device to the address specified in the application or otherwise
delivers the credit device in a manner specified in the application
or agreement signed by each applicant.
   This paragraph does not apply to a creditor who does not issue a
credit card or other credit device in order to obtain credit under
the creditor's open-end credit plan.
   (d) Unless the persons are married to each other, a lessor under a
lease shall deliver to each person who does not in fact receive the
vehicle which is the subject of the lease contract, prior to that
person becoming liable on the lease contract, the following notice in
English and Spanish in at least 10-point type in lieu of the notice
required by subdivision (a):
      NOTICE TO COSIGNER (Traduccion en Ingles Se Requiere Por La
Ley)

   You are being asked to guarantee this lease.  Think carefully
before you do.  If the lessee doesn't pay, you will have to.  Be sure
you can afford to pay if you have to, and that you want to accept
this responsibility.
   You may have to pay up to the full amount owed on the lease if the
lessee does not pay.  You may also have to pay late fees or other
collection costs, which increase this amount.
   The lessor can collect on the lease from you without first trying
to collect from the lessee.  The lessor can use the same collection
methods against you that can be used against the lessee, such as
suing you, garnishing your wages, etc.  If this lease is ever in
default, that fact may become part of your credit record.
   This notice is not the contract that makes you liable for the
lease obligation.

      AVISO PARA EL FIADOR (Spanish Translation Required By Law)

   Se le esta piediendo que garantice este arrendamiento.  Pienselo
con cuidado antes de ponerse de acuerdo.  Si el arrendatario no paga,
usted tendra que pagar.  Este seguro de que usted podra pagar si sea
obligado a pagar y de que usted desea aceptar la responsabilidad.
   Si el arrendatario no paga, es posible que usted tenga que pagar
la suma total debida en el contrato de arrendamiento, mas los cargos
por tardarse en el pago o el costo de cobranza, los cuales aumentan
el total de esta suma.
   La compania arrendadora puede cobrarle a usted por la suma debida
en el arrendamiento, sin, primeramente, tratar de cobrarle al
arrendatario.  Los mismos metodos de cobranza que pueden usarse
contra el arrendatario, podran usarse contra usted, tales como
presentar una demanda en corte, quitar parte de su sueldo, etc.  Si
alguna vez no se cumpla con la obligacion del arrendamiento, se puede
incluir esa informacion en la historia de credito de usted.
   Este aviso no es el contrato mismo en que se le echa a usted la
responsabilidad del arrendamiento.

   (e) "Regulation Z" has the meaning set forth in Section 1802.18.
   (f) The word "your" in the last sentence of the third paragraph of
the notice in English set forth in subdivisions (a) and (d) shall be
italicized.


1799.92.  (a) If the notice required by Section 1799.91 is included
with the text of the consumer credit contract or with any other
document establishing the liability of the person, the statement
shall appear immediately above the space reserved for that person's
signature or above or adjacent to any other notices required by law
to be placed immediately above the signature space and shall be
contained in a box formed by a heavy line.
   (b) If the notice required by Section 1799.91 is not included with
the text of the consumer credit contract it shall be on a separate
sheet which shall not contain any other text except as is necessary
to identify the creditor and consumer credit contract to which the
statement refers and to provide for the date and the person's
acknowledgment of receipt.



1799.93.  (a) The creditor shall not obtain the signature of any
person entitled to notice under Section 1799.91 if the consumer
credit contract contains blank spaces to be filled in after the
person's signature has been obtained.
   (b) The creditor shall give each person entitled to notice under
Section 1799.91 a copy of the debt instrument and security agreement
or deed of trust, if any, evidencing the consumer credit contract
and, if separate therefrom, a copy of the notice required by Section
1799.91 and a copy of the document evidencing that person's
obligations.



1799.94.  The text of the statement required by Section 1799.91 of
this title shall not be construed to alter or affect the rights and
obligations of the parties to any consumer credit contract.



1799.95.  No action shall be brought, nor shall any security
interest be enforced, by any creditor or any assignee of a creditor
on any consumer credit contract which fails to comply with this title
against any person, however designated, who is entitled to notice
under Section 1799.91 and who does not in fact receive any of the
money, property or services which are the subject matter of the
consumer credit contract.
   Nothing herein shall affect the rights of any bona fide purchaser
for value of property sold pursuant to the enforcement of a security
interest if the purchase was made without notice of any facts
constituting a violation of this title.



1799.96.  If federal law or regulations require or permit the use of
a notice substantially similar to that required by Section 1799.91,
the use of such federally sanctioned notice and an accurate Spanish
translation thereof shall constitute compliance with Section 1799.91.
  However, the other provisions of this title shall remain
unaffected.



1799.97.  (a) No consumer credit contract shall provide for a
security interest in any religious books, religious artifacts, or
religious materials, valued at less than five hundred dollars ($500),
unless the religious books, artifacts, or materials are specifically
pledged as collateral.
   (b) Any provision in any contract which provides for a security
interest in violation of subdivision (a) shall be void and
unenforceable.



1799.98.  (a) Nothing in this title shall be construed to make
applicable or affect or operate as a waiver of any of the provisions
of any of the following:
   (1) Title 13 (commencing with Section 2787) of Part 4 of Division
3 of this code.
   (2) Parts 1 (commencing with Section 700), 2 (commencing with
Section 760), 3 (commencing with Section 900), and 4 (commencing with
Section 1100) of Division 4 of the Family Code.
   (3) Sections 4301 and 4302 of the Family Code.
   (b) The delivery of notice pursuant to Section 1799.91 is not
evidence that the person to whom the notice was delivered entered or
did not enter the transaction in the capacity of a surety.



1799.99.  (a) This section applies to transactions, other than
consumer credit contracts as defined in Section 1799.90, which are
subject to 16 C.F.R.  444.3, 12 C.F.R. 227.14, or 12 C.F.R. 535.3,
whichever is applicable to the creditor.
   (b) Unless the persons who are obligated under the transaction are
married to each other, no action shall be brought, nor shall any
security interest be enforced, against any person entitled to receive
notice under 16 C.F.R. 444.3, 12 C.F.  R. 227.14, or 12 C.F.R.
535.3, whichever is applicable to the creditor, if that person did
not receive the notice in the manner prescribed by the applicable
regulation and an accurate Spanish translation of the notice.



1799.100.  (a) It is unlawful for any person to take a security
interest in any household goods, as defined in subdivision (g), in
connection with a consumer credit contract or other credit obligation
incurred primarily for personal, family, or household purposes
unless (1) the person takes possession of the household goods or (2)
the purchase price of the household goods was financed through the
consumer credit contract or credit obligation.
   (b) An agreement or other document creating a nonpossessory
security interest in personal property as defined in subdivision (d)
in connection with a consumer credit contract or other credit
obligation incurred primarily for personal, family, or household
purposes shall contain a statement of description reviewed and signed
by the consumer indicating each specific item of the personal
property in which the security interest is taken.  A consumer credit
contract or other credit obligation subject to the Unruh Act (Chapter
1 (commencing with Section 1801) of Title 2) that complies with the
provisions of subdivision (a) of Section 1803.3, or of subdivision
(f) of Section 1810.1, shall be deemed to comply with this
subdivision.
   (c) Notwithstanding any other provision of law, a person who has a
nonpossessory security interest in personal property, described in
subdivision (d), taken in connection with a consumer credit contract
or other credit obligation incurred primarily for personal, family,
or household purposes shall only enforce the security interest by
judicial action unless the property is abandoned or freely and
voluntarily surrendered by the consumer.
   (d) The provisions of subdivisions (b) and (c) apply only to the
following types of personal property:
   (1) Any goods, as defined in subdivision (h) of Section 9105 of
the Commercial Code, except for vessels, vehicles, and aircraft, that
are used or bought for use primarily for personal, family, or
household purposes and that has a fair market value of less than one
thousand dollars ($1,000) per individual item at the time the
security interest is created.
   (2) The property described in Section 704.050 and subdivision (a)
of Section 704.060 of the Code of Civil Procedure, except for
vessels, vehicles, and aircraft.
   (e) Any security interest taken in violation of either subdivision
(a) or (b) is void and unenforceable.
   (f) Any person injured by a violation of this section may bring a
civil action for the recovery of damages, equitable relief, and
attorney's fees and costs.
   (g) For the purpose of this section:
   (1) "Household goods" means and includes clothing, furniture,
appliances, one radio, one television, linens, china, crockery,
kitchenware, personal effects, and wedding rings.  "Household goods"
does not include works of art, electronic entertainment equipment
(except one radio and one television), items acquired as antiques,
and jewelry (except wedding rings).
   (2) "Antique" means any item over one hundred years of age,
including such items that have been repaired or renovated without
changing their original form or character.



1799.100.  (a) It is unlawful for any person to take a security
interest in any household goods, as defined in subdivision (g), in
connection with a consumer credit contract or other credit obligation
incurred primarily for personal, family, or household purposes
unless (1) the person takes possession of the household goods or (2)
the purchase price of the household goods was financed through the
consumer credit contract or credit obligation.
   (b) An agreement or other document creating a nonpossessory
security interest in personal property as defined in subdivision (d)
in connection with a consumer credit contract or other credit
obligation incurred primarily for personal, family, or household
purposes shall contain a statement of description reviewed and signed
by the consumer indicating each specific item of the personal
property in which the security interest is taken.  A consumer credit
contract or other credit obligation subject to the Unruh Act (Chapter
1 (commencing with Section 1801) of Title 2) that complies with the
provisions of subdivision (a) of Section 1803.3, or of subdivision
(f) of Section 1810.1, shall be deemed to comply with this
subdivision.
   (c) Notwithstanding any other provision of law, a person who has a
nonpossessory security interest in personal property, described in
subdivision (d), taken in connection with a consumer credit contract
or other credit obligation incurred primarily for personal, family,
or household purposes shall only enforce the security interest by
judicial action unless the property is abandoned or freely and
voluntarily surrendered by the consumer.
   (d) The provisions of subdivisions (b) and (c) apply only to the
following types of personal property:
   (1) Any goods, as defined in paragraph (44) of subdivision (a) of
Section 9102 of the Commercial Code, except for vessels, vehicles,
and aircraft, that are used or bought for use primarily for personal,
family, or household purposes and that has a fair market value of
less than one thousand dollars ($1,000) per individual item at the
time the security interest is created.
   (2) The property described in Section 704.050 and subdivision (a)
of Section 704.060 of the Code of Civil Procedure, except for
vessels, vehicles, and aircraft.
   (e) Any security interest taken in violation of either subdivision
(a) or (b) is void and unenforceable.
   (f) Any person injured by a violation of this section may bring a
civil action for the recovery of damages, equitable relief, and
attorney's fees and costs.
   (g) For the purpose of this section:
   (1) "Household goods" means and includes clothing, furniture,
appliances, one radio, one television, linens, china, crockery,
kitchenware, personal effects, and wedding rings.  "Household goods"
does not include works of art, electronic entertainment equipment
(except one radio and one television), items acquired as antiques,
and jewelry (except wedding rings).
   (2) "Antique" means any item over one hundred years of age,
including such items that have been repaired or renovated without
changing their original form or character.



1799.101.  (a) For the purposes of this section, the following terms
are defined as follows:
   (1) "Adverse information" means information directly or indirectly
indicating that a delinquency has occurred, because a cosigner has
not complied with the contractual provisions of a consumer credit
contract.
   (2) "Collection action" means requesting a cosigner to pay all or
part of the obligation on a consumer credit contract.
   (3) "Cosigner" means a natural person, other than the primary
obligor or the spouse of the primary obligor, who renders himself or
herself liable for the obligation on a consumer credit contract
without compensation.  The term includes a person whose signature is
requested by a creditor as a condition to granting credit to another
person.  A person who does not receive goods, services, or money in
return for executing a consumer credit contract does not receive
compensation within the meaning of this section.  "Cosigner" does not
include a joint applicant for open-end credit pursuant to
subdivision (c) of Section 1799.91.  A person is a cosigner within
the meaning of this section whether or not he or she is designated as
such on a consumer credit contract or other document creating the
consumer credit contract obligation for the cosigner.
   (4) "Delinquency" means a failure to make timely payment to the
creditor of all or a portion of any installment under a consumer
credit contract.
   (5) "Notice" means a writing which describes, recites, or
otherwise refers to a delinquency.
   (6) "Obligation" means an indebtedness incurred by an individual
for personal, family, or household purposes.
   (7) "Person" means an individual, firm, partnership, association,
limited liability company, or corporation.
   (8) "Primary obligor" means one or more persons, other than a
cosigner, who sign a consumer credit contract and assume an
obligation as debtor under that contract.
   (b) Except as provided in subdivisions (d) and (e), no creditor
shall provide any adverse information with respect to any cosigner,
to a consumer credit reporting agency regarding a delinquency on a
consumer credit contract entered into on or after July 1, 1992,
unless, at or before the time the information is provided to the
consumer credit reporting agency, written notice of the delinquency
is provided to the cosigner.
   (c) No creditor shall provide any information regarding the
cosigner's obligation on a consumer credit contract to a debt
collector, as defined in subdivision (c) of Section 1788.2, until
notice has been provided to the cosigner under subdivision (b).
   (d) The notice requirements of subdivisions (b) and (c) do not
apply to any cosigner whose address, as shown in the creditor's
records respecting the consumer credit contract, is the same as the
primary obligor.
   (e) The notice requirements of subdivisions (b) and (c) shall be
satisfied by mailing a copy of the required notice to the cosigner at
the cosigner's address, as shown in the creditor's records
respecting the consumer credit contract.  However, if more than one
cosigner reside at the same address, as shown in the creditor's
records respecting the consumer credit contract, a notice addressed
to any cosigner at that address shall be deemed notice to all the
cosigners residing at that address.
   (f) Nothing in this section shall require any particular form or
language with respect to a notice of delinquency sent to either a
primary obligor or cosigner.
   (g) Within a reasonable time after a creditor has reported to a
credit reporting agency that a delinquency or delinquencies that have
been reported to the consumer credit reporting agency and included
in the cosigner's file maintained by the consumer credit reporting
agency have been cured, the consumer credit reporting agency shall
indicate in the file that the payment was made.
   (h) Nothing in this section shall be construed to require notice
of a delinquency to be provided to a cosigner in any instance not
expressly specified in this section, or to provide notice to persons
other than cosigners.
   (i) This section shall become operative on July 1, 1992.



1799.102.  (a) A cosigner who suffers a loss as a result of a
violation of Section 1799.101 may bring an action to recover actual
damages or two hundred fifty dollars ($250), whichever is greater,
and reasonable attorney fees.
   (b) The cosigner shall, not less than 30 days prior to bringing an
action pursuant to subdivision (a), notify the person alleged to
have violated Section 1799.  101 of the cosigner's intention to bring
an action.  The notice shall include a statement of the specific
evidence that proves the loss suffered by the cosigner.  If within 25
days after the date of receiving the notice, the person alleged to
have violated Section 1799.101 tenders to the cosigner an amount
equal to the loss, or otherwise resolves the matter to the cosigner's
satisfaction, the cosigner shall be barred from further recovery of
that loss, including reasonable attorney fees.
   (c) This section shall become operative on July 1, 1992.



1799.103.  No consumer credit contract or guarantee of a consumer
credit contract shall provide for a security interest in any
investment property, as defined in paragraph (f) of subdivision (1)
of Section 9115 of the Commercial Code, that is pledged as
collateral, unless (a) the contract either specifically identifies
the investment property as collateral or (b) the secured party is a
securities intermediary, as defined in paragraph (14) of subdivision
(a) of Section 8102 of the Commercial Code, or commodity
intermediary, as defined in paragraph (d) of subdivision (1) of
Section 9115 of the Commercial Code, with respect to the investment
property.  The identification of an account shall include the name of
the holder, account number, and name of the institute holding the
investment property.  In the event that a consumer credit contract or
guarantee does not comply with this section, the security interest
in the investment property is void.


1799.103.  No consumer credit contract or guarantee of a consumer
credit contract shall provide for a security interest in any
investment property, as defined in paragraph (49) of subdivision (a)
of Section 9102 of the Commercial Code, that is pledged as
collateral, unless (a) the contract either specifically identifies
the investment property as collateral or (b) the secured party is a
securities intermediary, as defined in paragraph (14) of subdivision
(a) of Section 8102 of the Commercial Code, or commodity
intermediary, as defined in paragraph (17) of subdivision (a) of
Section 9102 of the Commercial Code, with respect to the investment
property.  The identification of an account shall include the name of
the holder, account number, and name of the institute holding the
investment property.  In the event that a consumer credit contract or
guarantee does not comply with this section, the security interest
in the investment property is void.

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