§ 344. Default and Foreclosure.

If a contract holder fails to comply with any of the terms of the Cal-Vet loan contract, the Department may cancel the contract and thereby terminate the interests of the contract holder and any and all junior lienholders. Upon cancellation, all payments theretofore made by or on behalf of the contract holder shall be deemed to be rental paid for occupancy, and thereafter any occupants of the Cal-Vet loan property shall be deemed to be tenants at will. As used herein, ”junior lienholder” means any entity or person who claims an interest through the purchaser and who holds a security interest of record in Cal-Vet loan property under a mortgage or deed of trust, or who holds any other kind of lien or charge of record against the property, whether with or without the consent of the Department.

HISTORY

1. New section filed 4-4-88; operative 5-4-88 (Register 88, No.17).

Note

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Sections 987.5 and 987.77, Military and Veterans Code.