1. (a) The title to any property acquired by foreclosure or by deed in lieu of foreclosure must be in the name of the industrial loan company, and the deed immediately recorded. The property shall be accounted for in the appropriate real property held for sale account. Subsidiary ledger accounts shall be maintained for each individual property. In accounting for the property, the amount at which it shall be carried on the books of the company shall include the following:

   1. (1) The balance of all senior liens.
   2. (2) The principal loan balance.
   3. (3) Any amounts paid after acquisition for real property taxes accrued prior to acquisition.
   4. (4) Assessments due or delinquent at the time of acquisition.
   5. (5) Necessary costs incurred in connection with acquisition of the property.
   6. (6) Reconditioning costs and improvements necessary for the preservation, sale or renting of the property. However, ordinary maintenance costs should not be capitalized.
2. (b) Any senior lien balance shall be set up in the appropriate liability account. If the total amount capitalized under subparagraphs (1) through (6) of this subsection (a) exceeds the current appraised market value, the excess amount shall be recorded in the appropriate allowance for loss account.

Note: Authority cited: Section 18347, Financial Code. Reference: Section 18041, Financial Code.

History

1. Change without regulatory effect renumbering former section 1135 to new section 40.303 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).