Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2376Introduced by Assembly Member Mark StoneFebruary 14, 2018 An act relating to mortgage loan modification. to amend Section 526a of the Code of Civil Procedure, relating to civil actions.LEGISLATIVE COUNSEL'S DIGESTAB 2376, as amended, Mark Stone. Mortgage loan modification: services: fees.Civil actions: provisional remedies: injunctions.Existing law provides that a citizen resident or corporation who is assessed for and is liable to pay, or within one year before the commencement of the action, has paid, a tax in a county, town, city, or city and county may maintain an action to obtain a judgment restraining and preventing an illegal expenditure of, waste of, or injury to the estate, funds or other property of the political subdivision, as specified. The California Supreme Court in Weatherford v. City of San Rafael (2017) 2 Cal.5th 1241 held that this tax was not restricted to payment of a property tax. This bill would instead allow any resident of the county, town, city, or city and county to maintain an action under those circumstances. The bill would further clarify that a tax that funds the defendant government is sufficient to confer standing as a taxpayer, including, but not limited to, an income tax, a sales tax initially paid by a consumer to a retailer, a property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease, a use tax, a property tax, or a business license tax. The bill would define resident for these purposes to mean a person who lives, works, or attends school in the jurisdiction of the defendant government.Existing state and federal laws regulate financial institutions and mortgage lending. Existing state law prescribes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law requires any person who negotiates or offers to negotiate a residential mortgage loan modification for a fee paid by the borrower to provide a specified statement to the borrower prior to entering into a fee agreement. This bill would state the intent of the Legislature to enact legislation that would clarify the application of law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 526a of the Code of Civil Procedure is amended to read:526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.SECTION 1.It is the intent of the Legislature to enact legislation that would clarify the application of existing law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.
Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2376Introduced by Assembly Member Mark StoneFebruary 14, 2018 An act relating to mortgage loan modification. to amend Section 526a of the Code of Civil Procedure, relating to civil actions.LEGISLATIVE COUNSEL'S DIGESTAB 2376, as amended, Mark Stone. Mortgage loan modification: services: fees.Civil actions: provisional remedies: injunctions.Existing law provides that a citizen resident or corporation who is assessed for and is liable to pay, or within one year before the commencement of the action, has paid, a tax in a county, town, city, or city and county may maintain an action to obtain a judgment restraining and preventing an illegal expenditure of, waste of, or injury to the estate, funds or other property of the political subdivision, as specified. The California Supreme Court in Weatherford v. City of San Rafael (2017) 2 Cal.5th 1241 held that this tax was not restricted to payment of a property tax. This bill would instead allow any resident of the county, town, city, or city and county to maintain an action under those circumstances. The bill would further clarify that a tax that funds the defendant government is sufficient to confer standing as a taxpayer, including, but not limited to, an income tax, a sales tax initially paid by a consumer to a retailer, a property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease, a use tax, a property tax, or a business license tax. The bill would define resident for these purposes to mean a person who lives, works, or attends school in the jurisdiction of the defendant government.Existing state and federal laws regulate financial institutions and mortgage lending. Existing state law prescribes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law requires any person who negotiates or offers to negotiate a residential mortgage loan modification for a fee paid by the borrower to provide a specified statement to the borrower prior to entering into a fee agreement. This bill would state the intent of the Legislature to enact legislation that would clarify the application of law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly March 19, 2018
Amended IN Assembly March 19, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2376
Introduced by Assembly Member Mark StoneFebruary 14, 2018
Introduced by Assembly Member Mark Stone
February 14, 2018
An act relating to mortgage loan modification. to amend Section 526a of the Code of Civil Procedure, relating to civil actions.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2376, as amended, Mark Stone. Mortgage loan modification: services: fees.Civil actions: provisional remedies: injunctions.
Existing law provides that a citizen resident or corporation who is assessed for and is liable to pay, or within one year before the commencement of the action, has paid, a tax in a county, town, city, or city and county may maintain an action to obtain a judgment restraining and preventing an illegal expenditure of, waste of, or injury to the estate, funds or other property of the political subdivision, as specified. The California Supreme Court in Weatherford v. City of San Rafael (2017) 2 Cal.5th 1241 held that this tax was not restricted to payment of a property tax. This bill would instead allow any resident of the county, town, city, or city and county to maintain an action under those circumstances. The bill would further clarify that a tax that funds the defendant government is sufficient to confer standing as a taxpayer, including, but not limited to, an income tax, a sales tax initially paid by a consumer to a retailer, a property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease, a use tax, a property tax, or a business license tax. The bill would define resident for these purposes to mean a person who lives, works, or attends school in the jurisdiction of the defendant government.Existing state and federal laws regulate financial institutions and mortgage lending. Existing state law prescribes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law requires any person who negotiates or offers to negotiate a residential mortgage loan modification for a fee paid by the borrower to provide a specified statement to the borrower prior to entering into a fee agreement. This bill would state the intent of the Legislature to enact legislation that would clarify the application of law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.
Existing law provides that a citizen resident or corporation who is assessed for and is liable to pay, or within one year before the commencement of the action, has paid, a tax in a county, town, city, or city and county may maintain an action to obtain a judgment restraining and preventing an illegal expenditure of, waste of, or injury to the estate, funds or other property of the political subdivision, as specified. The California Supreme Court in Weatherford v. City of San Rafael (2017) 2 Cal.5th 1241 held that this tax was not restricted to payment of a property tax.
This bill would instead allow any resident of the county, town, city, or city and county to maintain an action under those circumstances. The bill would further clarify that a tax that funds the defendant government is sufficient to confer standing as a taxpayer, including, but not limited to, an income tax, a sales tax initially paid by a consumer to a retailer, a property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease, a use tax, a property tax, or a business license tax. The bill would define resident for these purposes to mean a person who lives, works, or attends school in the jurisdiction of the defendant government.
Existing state and federal laws regulate financial institutions and mortgage lending. Existing state law prescribes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law requires any person who negotiates or offers to negotiate a residential mortgage loan modification for a fee paid by the borrower to provide a specified statement to the borrower prior to entering into a fee agreement.
This bill would state the intent of the Legislature to enact legislation that would clarify the application of law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 526a of the Code of Civil Procedure is amended to read:526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.SECTION 1.It is the intent of the Legislature to enact legislation that would clarify the application of existing law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 526a of the Code of Civil Procedure is amended to read:526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.
SECTION 1. Section 526a of the Code of Civil Procedure is amended to read:
### SECTION 1.
526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.
526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.
526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:(1) An income tax.(2) A sales tax initially paid by a consumer to a retailer.(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.(4) A use tax.(5) A property tax.(6) A business licenses tax.(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.
526a. (a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a county, town, city or city and county of the state, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a citizen resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax therein. This that funds the defendant government, including, but not limited to, the following:
(1) An income tax.
(2) A sales tax initially paid by a consumer to a retailer.
(3) A property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.
(4) A use tax.
(5) A property tax.
(6) A business licenses tax.
(b) This section does not affect any right of action in favor of a county, city, town, or city and county, or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.
(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.
(d) For purposes of this section, resident means a person who lives, works, or attends school in the jurisdiction of the defendant government.
It is the intent of the Legislature to enact legislation that would clarify the application of existing law that prohibits the charging of advance fees by any individual or business that helps or offers to help a borrower obtain a loan modification or other form of mortgage loan forbearance or forgiveness from the institution servicing the borrowers residential mortgage loan.