Shown verbatim: the complete text as captured from the official bulk data posted by the California Legislature, fetched 2026-08-03. Nothing is edited or removed. The official bill page.
An act to add Section 9527 to the Commercial Code, relating to secured transactions. LEGISLATIVE COUNSEL'S DIGEST The Uniform Commercial Code-Secured Transactions (UCC) generally regulates the perfection of certain security interests, including a financing statement filed as a fixture filing. 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. The people of the State of California do enact as follows: SECTION 1. Section 9527 is added to the Commercial Code, to read: 9527. (a) 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. (b) 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. (c) 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. (d) 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. (e) 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: (1) Actual damages caused by the filing. (2) Reasonable attorney’s fees and costs. (3) A civil penalty not to exceed five thousand dollars ($5,000) for each violation.
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