§ 18270 Loan Security Agreements

Key Takeaways

•If you borrow money from a special kind of bank (industrial loan company), they can ask you to promise something valuable (like your house or car) as a backup plan in case you can't pay the money back.
•This promise is usually written down in a paper you sign, saying they can take that valuable thing if you don’t pay.
•The valuable thing can be something big like a house or something smaller like a car or even stuff inside your house.

Example

You need money to fix your car, so you go to a bank that lends money for things like this. They agree to give you the money but ask you to sign a paper saying they can take your car if you don’t pay them back.

This means if you don’t pay the bank back, they have the right to take your car because you promised it to them as a backup plan.

An industrial loan company may require the borrower to sign a contract of pledge, assignment, mortgage, security agreement, deed of trust, or trust receipt relating to real or personal property given by the borrower as security for the repayment of the loan and interest and charges thereon. (Added by Stats. 1976, Ch. 964.)

Key Takeaways

•If you borrow money from a special kind of bank (industrial loan company), they can ask you to promise something valuable (like your house or car) as a backup plan in case you can't pay the money back.
•This promise is usually written down in a paper you sign, saying they can take that valuable thing if you don’t pay.
•The valuable thing can be something big like a house or something smaller like a car or even stuff inside your house.

Example

This means if you don’t pay the bank back, they have the right to take your car because you promised it to them as a backup plan.

Key Takeaways

Example

Key Terms

References

§ 18270 Loan Security Agreements

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References