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MOBILEHOMES-MANUFACTURED HOUSING ACT OF 1980
violation of this section as an original action, or as a defense or counterclaim to an action to collect amounts owed by the
buyer brought by a person liable under this title.
(k) Except as otherwise specifically provided in this section, any civil action for a violation of this section which may
be brought against a seller may be maintained against any assignee of such seller only if the violation for which such action
or proceeding is brought is apparent on the face of the disclosure statement, provided, however, that no civil action may
be brought against such assignee for such violation if the assignment was involuntary. For purposes of this section, a
violation apparent on the face of the disclosure statement includes, but is not limited to, (1) a disclosure which can be
determined to be incomplete or inaccurate from the face of the disclosure statement or other documents assigned, or (2)
a disclosure which does not use the terms required to be used in Regulation Z.
(l) In any action or proceeding by or against any assignee of the seller without knowledge to the contrary by the
assignee when the assignee acquires the obligation, written acknowledgment of receipt by a buyer to whom disclosures
are required to be given pursuant to this section shall be conclusive proof of the delivery thereof and, except as provided in
subdivision (k), of compliance with this section. This subdivision does not affect the rights of the buyer in any action
against the original seller.
(m) No final judgment shall be entered in an action brought pursuant to this section in favor of a buyer until the later
of (1) the expiration of one year after the occurrence of the violation, or (2) the entry of judgment in an action for the violation
brought under Section 130 of the act and filed within such one–year period. A buyer who has recovered any amount by way
of judgment, settlement, or otherwise under Section 130 or 131 of the act shall not be entitled to any damages or other
relief for the violation under this section.
§ 18037. Assignee’s recourse against seller
Notwithstanding any agreement to the contrary, the holder of a conditional sale contract for which Regulation Z disclosures
are required pursuant to Section 18036.5 is subject to all equities and defenses of the buyer against the seller, except as
provided by Section 18036.5. However, the assignee’s liability may not exceed the amount of the debt owing to the
assignee at the time of assignment. The assignee shall have recourse against the seller to the extent of any liability
incurred by the assignee pursuant to this section whether the assignment was with or without recourse except to the extent
of any written agreement between the seller and assignee which expressly references this section and modifies its effect.
§ 18037.5. Default; Notice requirements; Repossession; Proceeds of sale; Accounting
(a) In the event of default under the provisions of any security agreement relating to a loan or conditional sale
contract which, according to its terms, gives the secured party the right to foreclose its security interest in a
manufactured home, mobilehome, truck camper, or floating home subject to registration under this part which is not inventory
of a dealer, including the right to repossess the property, notwithstanding any contrary provisions in the security
agreement or conditional sale contract or in any other agreement entered into prior to default, the secured party may
foreclose its security interest only by satisfying the requirements of this section.
(1) Unless the registered owner of the manufactured home, mobilehome, truck camper, or floating home has
abandoned the property or has voluntarily surrendered possession of the property to the foreclosing creditor, the foreclosing
creditor shall deposit or cause to be deposited in the United States mail an envelope addressed to each registered owner as
shown on the current registration of the manufactured home, mobilehome, truck camper, or floating home, registered or
certified with postage prepaid, containing a notice in substantially the following form and in at least 10–point type, which
notice shall be signed by the foreclosing creditor:
NOTICE OF DEFAULT
To:
(names of all registered owners)
You (if the registered owner is not the person who is in default, substitute name of defaulting person(s)) are in
default under the terms of the
(identify security agreement by title or caption and date)
in that
(describe default)
This default gives the creditor named below the right to sell your manufactured home, mobilehome, truck camper,
or floating home which is registered with the Department of Housing and Community Development under registration
number(s), located at
(give registration number(s))
(give location of property as shown on current registration)
unless the default is promptly cured.
You may cure the default by
(describe conditions precedent to reinstatement required to cure default)
or by entirely repaying the outstanding secured indebtedness on or before
(state final date available for cure, which date shall be no earlier than 45 days after mailing of the notice)
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