TITLE 14. LIEN
CHAPTER 2a. HOME EQUITY LOAN DISCLOSURE ACT
California Civil Code Section 2970-2971

2970.  For purposes of this chapter "home equity loan" means any
open end consumer credit plan in which a consensual security interest
is created or retained against the consumer's dwelling.



2971.  (a) At the time that a customer makes an initial application
to a creditor for a home equity loan in person, or within three
business days if the customer applies by mail or telephone, the
creditor shall provide the applicant with a disclosure in either of
the following forms:
   (1) The statement:  "This home equity loan that you are applying
for will be secured by your home and your failure to repay the loan
for any reason could cause you to lose your home!"
   (2) A statement to the effect that a home equity loan is secured
by a lien against the home of the consumer and in the event of any
default the consumer risks the loss of the home.
   (b) The disclosure required in subdivision (a) shall be made by
either of the following means:
   (1) A separate and specific document attached to or accompanying
the application.
   (2) A clear and conspicuous statement on the application.
   (c) If a creditor is required by federal statute or regulation to
make a substantially similar disclosure to that required by
subdivision (a), and the creditor complies with that federal statute
or regulation, the creditor shall be deemed to have complied with the
requirements of this chapter.

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