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California Code of Civil Procedure Section 580b

Legal Research Home > California Laws > Code of Civil Procedure > California Code of Civil Procedure Section 580b

580b.  (a) Except as provided in subdivision (c), no deficiency
shall be owed or collected, and no deficiency judgment shall lie, for
any of the following:
   (1) After a sale of real property or an estate for years therein
for failure of the purchaser to complete his or her contract of sale.
   (2) Under a deed of trust or mortgage given to the vendor to
secure payment of the balance of the purchase price of that real
property or estate for years therein.
   (3) Under a deed of trust or mortgage on a dwelling for not more
than four families given to a lender to secure repayment of a loan
that was used to pay all or part of the purchase price of that
dwelling, occupied entirely or in part by the purchaser. For purposes
of subdivision (b), a loan described in this paragraph is a
"purchase money loan."
   (b) No deficiency shall be owed or collected, and no deficiency
judgment shall lie, on a loan, refinance, or other credit transaction
(collectively, a "credit transaction") that is used to refinance a
purchase money loan, or subsequent refinances of a purchase money
loan, except to the extent that in a credit transaction the lender or
creditor advances new principal (hereafter "new advance") that is
not applied to an obligation owed or to be owed under the purchase
money loan, or to fees, costs, or related expenses of the credit
transaction. A new credit transaction shall be deemed to be a
purchase money loan except as to the principal amount of a new
advance. For purposes of this section, any payment of principal shall
be deemed to be applied first to the principal balance of the
purchase money loan, and then to the principal balance of a new
advance, and interest payments shall be applied to any interest due
and owing. This subdivision applies only to credit transactions that
are executed on or after January 1, 2013.
   (c) The fact that no deficiency shall be owed or collected under
the circumstances set forth in subdivisions (a) and (b) does not
affect the liability that a guarantor, pledgor or other surety might
otherwise have with respect to the deficiency, or that might
otherwise be satisfied in whole or in part from other collateral
pledged to secure the obligation that is the subject of the
deficiency.
   (d) When both a chattel mortgage and a deed of trust or mortgage
have been given to secure payment of the balance of the combined
purchase price of both real and personal property, no deficiency
judgment shall lie under any one thereof if no deficiency judgment
would lie under the deed of trust or mortgage on the real property or
estate for years therein.

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Last modified: March 17, 2014