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California Civil Code Section 2957

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The following definitions shall apply for the purposes of
this article:
   (a) "Arranger of credit" means:
   (1) A person, other than a party to the credit transaction (except
as provided in paragraph (2)), who is involved in developing or
negotiating credit terms, participates  in the completion of the
credit documents, and directly or indirectly receives compensation
for arrangement of the credit or from any transaction or transfer of
the real property which is facilitated by that extension of credit.
As used in this paragraph, "arranger of credit" does not apply to an
attorney who is representing one of the parties to the credit
transaction.
   (2) A party to the transaction who is either a real estate
licensee, licensed  under provisions of Part 1 (commencing with
Section 10000) of Division 4 of the Business and Professions Code, or
is an attorney licensed under Chapter 4 (commencing with Section
6000) of Division 3 of the Business and Professions Code if neither
party to the transaction is represented by an agent who is a real
estate licensee.  In any transaction in which disclosure is required
solely by the provisions of this paragraph, the obligations of this
article shall apply only to a real estate licensee or attorney who is
a party to the transaction, and not to any other party.
   (3) An arranger of credit does not include a person acting in the
capacity as an escrow in the transaction.
   (4) Persons described in paragraph (2) who are acting in the
capacity as an escrowholder in the transaction shall nevertheless be
deemed arrangers of credit where such persons act on behalf of a
party to the transaction or an agent of such party in the development
or negotiation of credit terms.  Neither the completion of credit
documents in accordance with instructions of a party or his or her
agent nor the furnishing of information regarding credit terms to a
party or his or her agent shall be considered to be the development
or negotiation of credit terms.
   (b) "Balloon payment note" means a note which provides for a final
payment as originally scheduled which is more than twice the amount
of any of the immediately preceding six regularly scheduled payments
or which contains a call provision; provided, however, that if the
call provision is not exercised by the holder of the note, the
existence of the unexercised call provision shall not cause the note
to be deemed to be a balloon payment note.
   (c) "Call provision" means a note contract term that provides the
holder of the note with the right to call the note due and payable
either after a specified period has elapsed following closing or
after a specified date.
   (d) "Credit" means the right granted by a vendor to a purchaser to
purchase property and to defer payment therefore.
   The credit involved must be subject to a finance charge or payable
by written agreement in more than four installments, whether
providing for payment of principal and interest, or interest only,
not including a downpayment.
   (e) "Credit documents" are those documents which contain the
binding credit  terms, and include a note or a contract of sale if
the contract spells out terms upon which a vendor agrees to provide
financing for a purchaser.
   (f) "Purchase" includes acquisition of equitable title by a real
property sales contract as defined in Section 2985, or lease with an
option to purchase, where the facts demonstrate intent to transfer
equitable title.
   (g) "Security documents" include a mortgage, deed of trust, real
property sales contract as defined in Section 2985, or lease with an
option to purchase, where the facts demonstrate an intent to transfer
equitable title.
   (h) "All inclusive trust deed" is an instrument which secures
indebtedness owed by the trustor to the beneficiary, which
indebtedness includes a debt  or debts owed by that beneficiary to
the beneficiary of another security document secured by the same
property which is senior in priority.

Last modified: January 12, 2009