LEGISLATIVE COUNSEL'S DIGEST


AB 1160, as amended, Fong. Contracts: translation.
Existing law requires a person in a trade or business who
negotiates specified contracts or agreements primarily in the
languages of Spanish, Chinese, Tagalog, Vietnamese, or Korean to
deliver to the other party, prior to execution of the contract or
agreement, a translation of the contract or agreement in the
applicable foreign language, except as specified. Under existing law,
failure to comply with these provisions entitles the aggrieved party
to rescind the contract or agreement. Under existing law, these
provisions apply to specified loans or extensions of credit subject
to the Industrial Loan Law and the California Finance Lenders Law.
This bill would, in the alternative, require a supervised
financial organization, as defined, that negotiates primarily in one
of those languages in the course of entering into a contract or
agreement for a loan or extension of credit secured by residential
real property, to deliver, prior to the execution of the contract or
agreement, and no later than 3 business days after receiving the
written application, a specified form in that language summarizing
the terms of the contract or agreement, as specified. The bill would
provide that a supervised financial organization that complies with
these provisions would be deemed to be in compliance with the
translation requirement in existing law described above. The bill
would also provide that a supervised financial organization that
complies with the translation requirement in existing law would be in
compliance with these provisions. The bill would provide for
administrative penalties against specified licensed persons for
violations of these provisions. The bill would require the Department
of Corporations and the Department of Financial Institutions to
create a new form for these purposes, as provided, and to make it
available in each of the languages described above.
The bill would authorize an action against a supervised financial
organization for a violation of these provision to be brought only by
a licensing agency or by the Attorney General.
These provisions would become operative beginning on July 1, 2010,
or 90 days after issuance of a form as provided, whichever occurs
later.
The provisions of this bill would not affect the obligation's of a
real estate broker, as specified.

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Comments/questions on AB 1160 (Fong): Contracts: translation.