Beginning July 9th, DocuTech will be providing a revised version of our Cx878 California Per Diem Interest Disclosure, which will now be based upon a sample disclosure provided by the California Department of Corporations.
This new version will contain checkboxes for you to indicate through field prompts whether the borrower elects to disburse their loan proceeds on a Monday (or a business day immediately following a Bank Holiday) or otherwise. It will also contain a substantially longer certification of compliance section, which is provided for you to show that the requirements of Cal. Civ. Code §2948.5 have been complied with, as required by Cal. Fin. Code §50204(o).
If you would prefer to use the per diem interest disclosure without the checkboxes, we can provide you with such a form (Cx6855), which is the same as our current version of Cx878, with the expanded certification section. Please contact DocuTech’s client support to have this change made.
Although the certification is the most efficient means of demonstrating compliance with Cal. Civ. Code §2948.5, the Department of Corporations has stated that there are other means for a lender to prove compliance, such as records (written or oral) reflecting communications between the lender and the settlement agent verifying the disbursement date of the loan proceeds and/or the disbursement date reflecting the settlement date issued pursuant to 12 U.S.C. §2603 (see Department of Corporations, Release No. 58-FS, August 1, 2007).
It is, therefore, not mandatory for you to fill out and sign the certification part of this disclosure. However, please be aware that by not filling it out, you must be able to demonstrate compliance with Cal. Civ. Code §2948.5 by other means, to the Department of Corporation’s satisfaction.
July 7, 2011