Cal. Code Regs. Tit. 10, § 1537 - Sale of Security

(a) After repossession of any property securing a loan and prior to a public or private sale, (unless the collateral is perishable or threatens to decline speedily in value), a finance company shall give written notice to the borrower of the date, time and place at which the property will be sold in a public sale or the date and time on or after which the property may be sold in private sale. Notice shall be personally served on the borrower at least five (5) days before the date of the sale. If the notice is not served on the borrower personally it may be served by registered or certified mail sent to the borrower at his/her last known address. The notice must state the amounts required to release the collateral to the borrower. If a demand for the entire balance is made, the amount quoted must be the net pay-off as adjusted by any rebate of unearned precomputed charges and credit insurance premiums.

(b) If the finance company cannot obtain the fair market value of the property at the time of sale and the borrower does not demand that the sale proceed, the finance company may reschedule the sale of the property within a reasonable time thereafter. Written notice or announcement of the date, time and place of sale shall be provided to the borrower. The borrower is given credit for the actual selling price, or the highest bid obtained at the noticed sale, whichever is greater.

Notes

Cal. Code Regs. Tit. 10, § 1537

1. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).
2. Change without regulatory effect amending NOTE filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).
3. Amendment filed 8-4-98; operative 9-3-98 (Register 98, No. 32).

Note: Authority cited: Section 22150, Financial Code. Reference: Section 22150, Financial Code.

1. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).
2. Change without regulatory effect amending Note filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).
3. Amendment filed 8-4-98; operative 9-3-98 (Register 98, No. 32).