Section 4974 Of Chapter 3. Enforcement From California Financial Code >> Division 1.7. >> Chapter 3.
4974
. (a) Any compliance failure that was not willful or
intentional and resulted from a bona fide error, that occurred
notwithstanding the maintenance of procedures reasonably adopted to
avoid those errors, including, but not limited to, those involving
clerical, calculation, computer malfunction and programming, and
printing errors shall be corrected no later than 45 days after
receipt of the complaint or discovery of the error. A person who
originates a covered loan shall not be administratively, civilly, or
criminally liable for a bona fide error corrected pursuant to this
section.
(b) If a person who originates covered loans makes a loan where
the person knew of and showed reckless disregard for a violation of
this division by a broker, the person and broker shall be jointly and
severally liable for all damages awarded under this division with
respect to the broker's unlawful conduct.
This section does not impose or transfer liability for a breach of
the broker's fiduciary duty.