No consumer credit contract or guarantee of a consumer credit contract shall provide for a security interest in any investment property, as defined in paragraph (49) of subdivision (a) of § 9102 of the Commercial Code, that is pledged as collateral, unless (a) the contract either specifically identifies the investment property as collateral or (b) the secured party is a securities intermediary, as defined in paragraph (14) of subdivision (a) of § 8102 of the Commercial Code, or commodity intermediary, as defined in paragraph (17) of subdivision (a) of § 9102 of the Commercial Code, with respect to the investment property. The identification of an account shall include the name of the holder, account number, and name of the institute holding the investment property. In the event that a consumer credit contract or guarantee does not comply with this section, the security interest in the investment property is void.

(Amended by Stats. 1999, Ch. 991, Sec. 4. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)

Terms Used In California Civil Code 1799.103

  • Consumer credit contract: means any of the following obligations to pay money on a deferred payment basis, where the money, property, services or other consideration which is the subject matter of the contract is primarily for personal, family or household purposes:

    California Civil Code 1799.90

  • Contract: A legal written agreement that becomes binding when signed.
  • property: includes property real and personal. See California Civil Code 14
  Previous section
Next section  
 Title 1.85 Contents