Section 51153 Of Article 3. Loans To Qualified Mortgage Lenders From California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 5. >> Article 3.
51153
. In connection with loans made pursuant to this article, the
agency may collect, enforce the collection of, and foreclose on any
collateral securing the loans and may acquire or take possession of
such collateral and sell the same at public or private sale, with or
without public bidding, and otherwise deal with such collateral as
may be necessary to protect the interest of the agency therein. The
exercise of the powers specified in this subdivision shall be subject
to any agreements with bondholders.
With respect to deposit of moneys in the fund pursuant to this
section, the agency may require that any collateral provided on
account thereof be lodged with a financial institution or trust
company located in the state designated by the agency as custodian
therefor. In the absence of such requirement the financial
institution shall, if collateral is to be provided for the loan or
securities purchased, upon receipt of the proceeds from the agency,
enter into an agreement with the agency containing such provisions as
the agency shall deem necessary to adequately identify and maintain
such collateral and service the same and shall provide that such
financial institution shall hold such collateral as an agent for the
agency and shall be held accountable as the trustee of an express
trust for the application and disposition thereof and the income
therefrom solely to the uses and purposes in accordance with the
provisions of such agreement. A copy of each such agreement and any
revisions or supplements thereto shall be filed with the Secretary of
State and no further filing or other action under the California
Uniform Commercial Code or any other law of the state shall be
required to perfect the security interest of the agency in such
collateral or any additions thereto or substitutions therefor, and
the lien and trust for the benefit of the agency so created shall be
binding from and after the time made against all parties having
claims of any kind in tort, contract, or otherwise against such
financial institution.