1. (a) Unless otherwise provided in these regulations, a repossession, whether voluntary or involuntary, and sale shall be conducted in accordance with the California Commercial Code.
2. (b) Upon repossession of property securing a loan, a finance company must deal fairly and justly with the borrower in selling such property and obtain on such sale the fair market value of the property.
3. (c) Reasonable care of such property must be taken while in the possession of the finance company.
4. (d) If a borrower requests, and if the lender agrees, the property securing a loan may be repossessed and sold even though the loan is not in default. The repossession and sale of such property shall be processed in accordance with this Article.

Note: Authority cited: Section 22150, Financial Code. Reference: Section 22150, Financial Code.

History

1. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).

2. Change without regulatory effect amending subsection (b) and Note filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).