18036.5
. (a) As used in this section:
(1) "Act" means the federal Truth in Lending Act, as amended (15
U.S.C., Sec. 1601, et seq.).
(2) "Regulation Z" means any rule, regulation, or interpretation
promulgated by the Board of Governors of the Federal Reserve System
under the act and any interpretation or approval issued by an
official or employee of the Federal Reserve System duly authorized by
the board under the act to issue these interpretations or approvals.
(b) A conditional sale contract relating to a new or used
manufactured home or mobilehome subject to registration under this
part shall contain all the disclosures required by Regulation Z if
Regulation Z otherwise applies to the transaction. Any disclosure
violation corrected pursuant to subdivision (d) shall not be the
basis of any recovery by the buyer.
(c) With respect to a violation which is not corrected as provided
in subdivision (d), the seller shall be liable to the buyer in an
amount equal to the sum of:
(1) Any actual damage sustained by such person as a result of the
failure;
(2) (A) In the case of an individual action twice the amount of
any finance charge in connection with the transaction, except that
the liability under this subparagraph shall not be less than one
hundred dollars ($100) or greater than one thousand dollars ($1,000);
or
(B) In the case of a class action, such amount as the court may
allow, except that as to each member of the class no minimum recovery
shall be applicable, and the total recovery under this subparagraph
in any class action or series of class actions arising out of the
same failure to comply by the same seller shall not be more than the
lesser of five hundred thousand dollars ($500,000) or 1 per cent of
the net worth of the seller; and
(3) In the case of any successful action to enforce the foregoing
liability, the costs of the action, together with a reasonable
attorney's fee as determined by the court.
In determining the amount of award in any class action, the court
shall consider, among other relevant factors, the amount of any
actual damages awarded, the frequency and persistence of failures of
compliance by the seller, the resources of the seller, the number of
persons adversely affected, and the extent to which the seller's
failure of compliance was intentional. In connection with the
disclosures referred to in Section 128 of the act, a seller shall
have a liability determined under paragraph (2) of this subdivision
only for failing to comply with the requirements of paragraph (2)
(insofar as it requires a disclosure of the "amount financed"), (3),
(4), (5), (6), or (9) of Section 128(a) of the act. With respect to
any failure to make disclosures required under this section,
liability shall be imposed only upon the seller required to make
disclosure, except as provided in subdivision (k).
(d) A seller or assignee has no liability under this section for
any failure to comply with any requirement imposed under this section
if within 60 days after discovering an error, whether through the
seller's or assignee's own procedures or pursuant to procedures
permissible under the act, and prior to the institution of an action
under this section or the receipt of written notice of the error from
the buyer, the seller or assignee notifies the buyer concerned of
the error and makes whatever adjustments as are necessary to assure
that the buyer will not be required to pay an amount in excess of the
charge actually disclosed, or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower.
(e) A seller or assignee may not be held liable in any action
brought under this section if the seller or assignee shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid any such error. Examples of a
bona fide error include, but are not limited to, clerical,
calculation, computer malfunction and programming, and printing
errors, except that an error of legal judgment with respect to a
person's obligations under this section is not a bona fide error.
(f) When there are multiple buyers in a transaction, there shall
be no more than one recovery of damages under paragraph (2) of
subdivision (c).
(g) Any action under this section may be brought within one year
from the date of the occurrence of the violation. This subdivision
does not bar a person from asserting a violation of this section in
an action to collect the debt which was brought more than one year
from the date of the occurrence of the violation as a matter of
defense by recoupment or set-off in such action, except as otherwise
provided by law. No action may be brought under this section if an
action relating to the transaction or a defense thereto has been
brought or asserted under the act.
(h) No provision of this section imposing any liability shall
apply to any act done or omitted in good faith in conformity with any
rule, regulation, or interpretation thereof by the Board of
Governors of the Federal Reserve System or in conformity with any
interpretation or approval by an official or employee of the Federal
Reserve System duly authorized by the Board of Governors of the
Federal Reserve System to issue such interpretations or approvals
under such procedures as the Board of Governors of the Federal
Reserve System may prescribe therefor, notwithstanding that after
such act or omission has occurred, such rule, regulation,
interpretation, or approval is amended, rescinded or determined by
judicial or other authority to be invalid for any reason.
(i) The multiple failure to disclose to any person any information
required under this section shall entitle the buyer to a single
recovery.
(j) A buyer may not take any action to offset any amount for which
a seller or assignee is potentially liable to such buyer under
paragraph (2) of subdivision (c) against any amount owed by such
buyer, unless the amount of the seller's or assignee's liability
under this section has been determined by judgment of a court of
competent jurisdiction in an action to which such buyer was a party.
This subdivision does not bar a buyer then in default on the
obligation from asserting a violation of this section as an original
action, or as a defense or counterclaim to an action to collect
amounts owed by the buyer brought by a person liable under this
title.
(k) Except as otherwise specifically provided in this section, any
civil action for a violation of this section which may be brought
against a seller may be maintained against any assignee of such
seller only if the violation for which such action or proceeding is
brought is apparent on the face of the disclosure statement,
provided, however, that no civil action may be brought against such
assignee for such violation if the assignment was involuntary. For
purposes of this section, a violation apparent on the face of the
disclosure statement includes, but is not limited to, (1) a
disclosure which can be determined to be incomplete or inaccurate
from the face of the disclosure statement or other documents
assigned, or (2) a disclosure which does not use the terms required
to be used in Regulation Z.
( l) In any action or proceeding by or against any assignee of the
seller without knowledge to the contrary by the assignee when the
assignee acquires the obligation, written acknowledgment of receipt
by a buyer to whom disclosures are required to be given pursuant to
this section shall be conclusive proof of the delivery thereof and,
except as provided in subdivision (k), of compliance with this
section. This subdivision does not affect the rights of the buyer in
any action against the original seller.
(m) No final judgment shall be entered in an action brought
pursuant to this section in favor of a buyer until the later of (1)
the expiration of one year after the occurrence of the violation, or
(2) the entry of judgment in an action for the violation brought
under Section 130 of the act and filed within such one-year period. A
buyer who has recovered any amount by way of judgment, settlement,
or otherwise under Section 130 or 131 of the act shall not be
entitled to any damages or other relief for the violation under this
section.