§ 1898.8. Release and Substitution of Promissory Notes.

(a) The Treasurer shall, within four business days of the request therefor, release to the depository all promissory notes, mortgages and/or deeds of trust requested by the depository to be released, so long as the aggregate value of the remaining promissory notes exceeds the minimum value prescribed by Section 1898.2.

(b) A depository may substitute promissory notes, upon the approval of the Treasurer as to the form of the note or notes proposed to be substituted and so long as the aggregate value of the promissory notes left to secure the state deposit (including the note or notes proposed to be substituted) exceeds the minimum value prescribed by Section 1898.2. The Treasurer shall approve or disapprove a substitution within four business days of the request therefor.

(c) A depository shall substitute for a promissory note:

(1) On which any payment is more than 90 days past due;

(2) Which is secured by a mortgage or deed of trust as to which there is a lien prior to the mortgage or deed of trust; or

(3) Which is secured by a mortgage or deed of trust as to which a notice of default has been recorded pursuant to Section 2924 of the Civil Code or an action has been commenced pursuant to Section 725a of the Code of Civil Procedure.

HISTORY

1. Amendment of subsection (c)(3) filed 1-13-78 as an emergency; designated effective 1-15-78. Certificate of Compliance included (Register 77, No. 51).