Statute · California Civil Code
Cal. Civ. Code § 1807.3 — Refinancing and Consolidation
Cal. Civ. Code § 1807.3
- Type
- Statute
- Source
- California Civil Code
- Jurisdiction
- California
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(a) If any payment, other than a deferred downpayment, under a contract or refinancing agreement is more than twice the amount of an otherwise regularly scheduled equal payment, the contract or refinancing agreement shall contain the following provision:
Citator
Cal. Civ. Code § 1807.3 — Refinancing and Consolidation is in force in the current edition of the Code, and nothing recorded condemns it.
(a) If any payment, other than a deferred downpayment, under a contract or refinancing agreement is more than twice the amount of an otherwise regularly scheduled equal payment, the contract or refinancing agreement shall contain the following provision:
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“The payment schedule contained in this contract requires that you make a balloon payment of |
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$(Amount of balloon payment) which is a payment of |
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more than double the amount of the regular payments. You have an absolute right to obtain a new payment schedule if you default in the payment of any balloon payment.” |
(b) If the buyer defaults in the payment of any balloon payment, he or she shall be given an absolute right to obtain a new payment schedule. Unless agreed to by the buyer, the periodic payments under the new schedule shall not be substantially greater than the average of the preceding installments.