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<ns0:Id>20250SB__132098AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-24</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>1320</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Archuleta</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Archuleta</ns0:Name>
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<ns0:Title>An act to add Section 9527 to the Commercial Code, relating to secured transactions.</ns0:Title>
<ns0:RelatingClause>secured transactions</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Financing statements: residential real property.</ns0:Subject>
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<html:p>The Uniform Commercial Code-Secured Transactions (UCC) generally regulates the perfection of certain security interests, including a financing statement filed as a fixture filing.</html:p>
<html:p>This bill would prohibit the filing of a financing statement against owner-occupied residential real property in a manner that purports to create or otherwise perfect a security interest in, or otherwise encumber, title to that owner-occupied residential real property and would make a person who knowingly files, or causes to be filed, a financing statement in violation of the bill liable to the owner of the owner-occupied residential real property identified in the financing
statement, as specified.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 9527 is added to the
<ns0:DocName>Commercial Code</ns0:DocName>
, to read:
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<ns0:Num>9527.</ns0:Num>
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(a)
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For purposes of this section, “owner-occupied residential real property” means residential real property that is occupied by an owner of record as the owner’s primary residence at the time the financing statement is filed.
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<html:p>
(b)
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A financing statement shall not be filed against owner-occupied residential real property in a manner that purports to create or perfect a security interest in, or otherwise encumber, title to that owner-occupied residential real property.
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(c)
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A financing statement that describes collateral as including fixtures located on owner-occupied residential real property shall be deemed to create a security interest only in the goods or fixtures described and
not in the real property.
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(d)
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A financing statement filed in violation of this section shall be void and of no force or effect with respect to the owner-occupied residential real property.
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(e)
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A person who knowingly files, or causes to be filed, a financing statement in violation of this section shall be liable to the owner of the owner-occupied residential real property identified in the financing statement for all of the following relief:
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(1)
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Actual damages caused by the filing.
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(2)
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Reasonable attorney’s fees and costs.
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(3)
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A civil penalty not to exceed five thousand dollars ($5,000) for each violation.
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