10200.  All real estate license fees shall be payable in advance of
issuing the licenses and at the time of filing the application.
   Unless otherwise provided, all licenses expire at midnight of the
last day of the period for which issued.



10201.  The holder of a license who fails to renew it prior to the
expiration of the period for which it was issued and who has
otherwise qualified for such license, may renew it within two years
from such expiration upon proper application and the payment of a
late renewal fee in an amount equal to one and one-half times the
regular renewal fee in effect at the time the license is reinstated.



10201.6.  Any person who has qualified in an examination for a real
estate license shall file the required application and fee for the
license within one year thereafter.



10202.  The definitions contained in this article are solely for the
purposes of this article.



10207.  The amount of the real estate fees prescribed for an
examination or for a license under this chapter is that fixed by the
following provisions of this article.  No part of any fee paid in
accordance with the provisions of this chapter is refundable.  It is
deemed earned by the department upon its receipt.



10208.5.  The real estate broker license examination fee is
ninety-five dollars ($95).  The real estate broker license
reexamination fee is ninety-five dollars ($95).
   If an applicant fails to appear for the examination within two
years from the date of filing his or her application and fee for the
examination, his or her application shall thereupon lapse and no
further proceedings thereon shall be taken.
   This section shall remain in effect unless it is superseded
pursuant to subdivision (a) of Section 10226.5.



10209.  (a) The commissioner shall, by regulation, establish fees
for applications for approval of equivalent courses of study as
defined in Section 10153.5 in an amount sufficient to cover the cost
of administration.  The fee for an application for approval of each
course given by a private vocational school, including any branch
school which gives the same course, shall not exceed one hundred
fifty dollars ($150).
   (b) The commissioner shall notify every applicant of his decision
on the application no later than 60 days after receipt by the
commissioner of a completed application.  The application shall be on
a form to be supplied by the commissioner.



10209.2.  The commissioner shall, by regulation, establish fees for
applications for approval of educational courses, seminars,
workshops, conference, or their equivalent, or for the evaluation of
petition based on a claim of equivalency, as authorized by Section
10170.4 in an amount sufficient to cover the cost of processing such
applications or petitions.



10209.5.  The fee for a restricted broker license shall  be the same
as that for an unrestricted license as provided in Section 10210.



10210.  The fee for a real estate broker license shall not exceed
three hundred dollars ($300).
   In the case of an original applicant, the fee is payable after the
applicant is notified of passing the examination for license.
   This section shall remain in effect unless it is superseded
pursuant to Section 10226 or subdivision (a) of Section 10226.5,
whichever is applicable.


10211.  If the licensee is a corporation, the license issued to it
entitles one officer thereof, on behalf of the corporation, to engage
in the business of real estate broker without the payment of any
further fee, such officer to be designated in the application of the
corporation for a license. For each officer other than the officer so
designated, through whom it engages in the business of real estate
broker, the appropriate original or renewal fee is to be paid in
addition to the fee paid by the corporation.



10213.5.  The real estate salesperson license examination fee is
sixty dollars ($60).  The real estate salesperson license
reexamination fee is sixty dollars ($60).
   If an applicant fails to appear for the examination within two
years from the date of filing his or her application and fee for the
examination, his or her application shall thereupon lapse and no
further proceedings thereon shall be taken.
   This section shall remain in effect unless it is superseded
pursuant to subdivision (a) of Section 10226.5.



10213.6.  If an applicant for any examination fails to take the
examination on the date scheduled, he or she may make application in
writing to the principal office of the department in Sacramento for a
new date.  A fee of twenty dollars ($20) shall accompany the written
request for applying for the first new examination date in the case
of a broker applicant, and a fee of fifteen dollars ($15) shall
accompany the written request for the first new examination date in
the case of a salesperson applicant.  A fee of thirty dollars ($30)
shall accompany the written request for all subsequent new
examination dates for both broker and salesperson applicants.
   This section shall remain in effect unless it is  superseded
pursuant to subdivision (a) of Section 10226.5.



10214.5.  The fee for a restricted salesperson license shall  be the
same as that for an unrestricted license as provided in Section
10215.


10215.  The fee for a real estate salesperson license shall not
exceed two hundred forty-five dollars ($245), except that for an
applicant qualifying pursuant to Section 10153.4 who has not
satisfied all of the educational requirements prior to issuance of
the license, the fee shall not exceed two hundred seventy-five
dollars ($275).
   In the case of an original applicant, the fee is payable after the
applicant is notified of passing the examination for license.
   This section shall remain in effect unless it is superseded
pursuant to Section 10226 or subdivision (a) of Section 10226.5,
whichever is applicable.


10222.  For any examination required under any order issued pursuant
to the provisions of the Administrative Procedure Act, the fee
shall be the same as for a salesperson or broker license examination,
as appropriate.


10225.  An application for a permit to sell real property securities
secured by liens on real property situated outside the State of
California shall be accompanied by the filing fee together with an
amount equivalent to twenty-five cents ($0.25) a mile for each mile
going and returning, or where public transportation is available the
actual round trip fare pertaining thereto, estimated by the
commissioner to be traveled from the office of the Department of Real
Estate where the application is filed to the location of the
property, and the amount estimated to be necessary to cover the
expense of the inspection and appraisal of the property, not to
exceed seventy-five dollars ($75) a day for each day actually spent
in the inspection and appraisal of the property or properties.



10226.  (a) The commissioner may periodically by regulation
prescribe fees lower than the maximum fees provided in Sections
10209.5, 10210, 10214.5, 10215, and 10250.3 whenever he or she
determines those lower fees are sufficient to offset the costs and
expenses incurred in the administration of Part 1 (commencing with
Section 10000) of this division. The commissioner shall hold at least
one regulation hearing each calendar year, to determine if lower
fees should be prescribed.
   (b) If, as of June 30 of any fiscal year, the balance of funds in
the Real Estate Fund exceeds an amount equal to 50 percent of the
department's authorized budget for the following year, then within 30
days thereafter the commissioner shall, notwithstanding the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
issue regulations reducing real estate license and subdivision fees
so that as of June 30 of the next fiscal year the balance of funds in
the Real Estate Fund shall not exceed an amount equal to 50 percent
of the department's authorized budget for that year.
   (c) If the commissioner fails to reduce these fees within the
timeframe specified in subdivision (b), then fees shall automatically
be reduced to the levels as indicated in subdivision (b) of Section
10226.5.  That reduction shall be effective no later than September 1
of the fiscal year wherein the commissioner is obliged to issue
regulations pursuant to subdivision (b).



10226.5.  (a) If at any time funds are transferred from the Real
Estate Fund to the General Fund by the Budget Act then 30 days from
and after the date of the transfer, fees shall be reduced as
indicated in subdivision (b), irrespective of any provisions of the
Budget Act precluding that reduction.
   (b) Fees shall be reduced pursuant to paragraph (a) to the
following maximum amounts:
   (1) Broker examination or reexamination:  Fifty dollars ($50).
   (2) First reschedule of broker examination:  Fifteen dollars
($15); subsequent reschedules:  Twenty-five dollars ($25).
   (3) Real estate broker license, original or renewal:  One hundred
sixty-five dollars ($165).
   (4) Salesperson examination or reexamination:  Twenty-five dollars
($25).
   (5) First reschedule of salesperson examination:  Ten dollars
($10); subsequent reschedules:  Twenty-five dollars ($25).
   (6) Real estate salesperson license, normal original or renewal:
One hundred twenty dollars ($120).
   (7) Real estate salesperson license without all educational
requirements:  One hundred forty-five dollars ($145).
   (8) A notice of intention without a completed questionnaire:  One
hundred fifty dollars ($150).
   (9) An original public report for subdivision interests described
in Section 11004.5:  One thousand six hundred dollars ($1,600) plus
ten dollars ($10) for each subdivision interest to be offered.
   (10) An original public report for subdivision interests other
than those described in Section 11004.5:  Five hundred dollars ($500)
plus ten dollars ($10) for each interest to be offered.
   (11) A conditional public report for subdivision interests
described in Section 11004.5:  Five hundred dollars ($500).
   (12) A conditional public report for subdivision interests other
than those described in Section 11004.5:  Five hundred dollars
($500).
   (13) A preliminary public report for subdivision interests
described in Section 11004.5:  Five hundred dollars ($500).
   (14) A preliminary public report for subdivision interests other
than those described in Section 11004.5:  Five hundred dollars
($500).
   (15) A renewal public report for subdivision interests described
in Section 11004.5:  Five hundred dollars ($500).
   (16) A renewal public report for subdivision interests other than
those described in Section 11004.5:  Five hundred dollars ($500).
   (17) An amended public report for subdivision interests described
in Section 11004.5:  Three hundred dollars ($300) plus ten dollars
($10) for each subdivision interest to be offered under the amended
public report for which a fee has not previously been paid.
   (18) An amended public report to offer subdivision interests other
than those described in Section 11004.5:  Three hundred dollars
($300) plus ten dollars ($10) for each subdivision interest to be
offered under the amended public report for which a fee has not
previously been paid.
   (19) An application for an original, renewal, or amended
registration as required by Section 10249:  One hundred dollars
($100).
   (20) The filing fee for an application for a permit to be issued
pursuant to Article 8.5 (commencing with Section 10250) for each
subdivision or phase of the subdivision in which interests are to be
offered for sale or lease shall be as follows:
   (A) One thousand six hundred dollars ($1,600) plus ten dollars
($10) for each subdivision interest to be offered for an original
permit application.
   (B) Five hundred dollars ($500) plus ten dollars ($10) for each
subdivision interest to be offered that was not permitted to be
offered under the permit to be renewed for a renewal permit
application.
   (C) Three hundred dollars ($300) plus ten dollars ($10) for each
subdivision interest to be offered under the amended permit for which
a fee has not previously been paid for an amended permit
application.
   (D) Five hundred dollars ($500) for a conditional permit
application.


10229.  Any transaction that involves the sale of or offer to sell a
series of notes secured directly by an interest in the same real
property, or the sale of undivided interests in a note secured
directly by real property equivalent to a series transaction, shall
comply with all of the following:
   (a) (1) A notice in the following form and containing the
following information shall be filed with the commissioner within 30
days after the first transaction and within 30 days of any material
change in the information required in the notice:


TO:  Real Estate Commissioner
     Mortgage Loan Section
     2201 Broadway
     Sacramento, CA 95818

This notice is filed pursuant to Section 10229 of the Business and
Professions Code.

( ) Original Notice                ( ) Amended Notice

1.  Name of Broker conducting transaction under Section 10229:


___________________________________________________________________

2.  Broker license identification
number:______________________________

3.  List the month the fiscal year
ends:_______________________________

4.  Broker's telephone
number:_________________________________________

5.  Firm name (if different from "1"):


___________________________________________________________________


6.  Street address (main location):


___________________________________________________________________
    # and Street               City           State     ZIP Code


7.  Mailing address (if different from "6"):


___________________________________________________________________


8.  Servicing Agent:  Identify by name, address, and telephone number

    the person or entity who will act as the servicing agent in
    transactions pursuant to Section 10229 (including the undersigned

    Broker if that is the case):


___________________________________________________________________

___________________________________________________________________


9.  Total number of multilender notes arranged:
_______________________

10. Total number of interests sold to investors on the
    multilender's
notes:_______________________________________________

11. Inspection of trust account (before answering this question,
review
    the provisions of paragraph (3) of subdivision (j) of Section
    10229).

CHECK ONLY ONE OF THE FOLLOWING:

( )  The undersigned Broker is (or expects to be) required to file
     reports of inspection of its trust account(s) with the Real
     Estate Commissioner pursuant to paragraph (3) of subdivision (j)

     of Section 10229.

Amount of Multilender Payments Collected Last Fiscal
Quarter:
______________________________________________________________

Total Number of Investors Due Payments Last Fiscal
Quarter:____________

( )  The undersigned Broker is NOT (or does NOT expect to be)
required
     to file reports of inspection of its trust account(s) with the
     Real Estate Commissioner pursuant to paragraph (3) of
subdivision
     (j) of Section 10229.

12.  Signature.  The contents of this notice are true and correct.

     _______________
_________________________________________________
          Date                       Type Name of Broker


_________________________________________________
                        Signature of Broker or of Designated Officer
                                     of Corporate Broker


_________________________________________________
                         Type Name of Person(s) Signing This Notice
NOTE:  AN AMENDED NOTICE MUST BE FILED BY THE BROKER WITHIN 30 DAYS
OF ANY MATERIAL CHANGE IN THE INFORMATION REQUIRED TO BE SET FORTH
HEREIN.

   (2) A broker or person who becomes the servicing agent for notes
or interest sold pursuant to this section, upon which payments due
during any period of three consecutive months in the aggregate exceed
one hundred twenty-five thousand dollars ($125,000) or the number of
persons entitled to the payments exceeds 120, shall file the notice
required by paragraph (1) with the commissioner within 30 days after
becoming the servicing agent.
   (b) All advertising employed for transactions under this section
shall (1) show the name of the broker and (2) comply with Section
10235 of the Business and Professions Code and Sections 260.302 and
2848 of Title 10 of the California Code of Regulations.  Brokers and
their agents are cautioned that a reference to a prospective investor
that a transaction is conducted under this section may be deemed
misleading or deceptive if this representation may reasonably be
construed by the investor as an implication of merit or approval of
the transaction.
   (c) The real property directly securing the notes or interests is
located in this state, the note or notes are not by their terms
subject to subordination to any subsequently created deed of trust
upon the real property, and the note or notes are not promotional
notes secured by liens on separate parcels of real property in one
subdivision or in contiguous subdivisions.  For purposes of this
subdivision, a promotional note means a promissory note secured by a
trust deed, executed on unimproved real property or executed after
construction of an improvement of the property but before the first
purchase of the property as so improved, or executed as a means of
financing the first purchase of the property as so improved, that is
subordinate, or by its terms may become subordinate, to any other
trust deed on the property.  However, the term "promotional note"
does not include either of the following:
   (1) A note that was executed in excess of three years prior to
being offered for sale.
   (2) A note secured by a first trust deed on real property in a
subdivision that evidences a bona fide loan made in connection with
the financing of the usual cost of the development in a residential,
commercial, or industrial building or buildings on the property under
a written agreement providing for the disbursement of the loan funds
as costs are incurred or in relation to the progress of the work and
providing for title insurance ensuring the priority of the security
as against mechanic's and materialmen's liens or for the final
disbursement of at least 10 percent of the loan funds after the
expiration of the period for the filing of mechanic's and materialmen'
s liens.
   (d) The notes or interests are sold by or through a real estate
broker, as principal or agent.  At the time the interests are
originally sold or assigned, neither the broker nor an affiliate of
the broker shall have an interest as owner, lessor, or developer of
the property securing the loan, or any contractual right to acquire,
lease, or develop the property securing the loan.  This provision
does not prohibit a broker from conducting the following transactions
if, in either case, the disclosure statement furnished by the broker
pursuant to subdivision (k) discloses the interest of the broker or
affiliate in the transaction and the circumstances under which the
broker or affiliate acquired the interest:
   (1) A transaction in which the broker or an affiliate of the
broker is acquiring the property pursuant to a foreclosure under, or
sale pursuant to, a deed of trust securing a note for which the
broker is the servicing agent or that the broker sold to the holder
or holders.
   (2) A transaction in which the broker or an affiliate of the
broker is reselling from inventory property acquired by the broker
pursuant to a foreclosure under, or sale pursuant to, a deed of trust
securing a note for which the broker is the servicing agent or that
the broker sold to the holder or holders.
   (e) (1) The notes or interests shall not be sold to more than 10
persons, each of whom meets one or both of the qualifications of
income or net worth set forth below and signs a statement, which
shall be retained by the broker for four years, conforming to the
following:


Transaction Identifier: _______________________________________

Name of Purchaser: ________________________  Date: ____________

Check either one of the following, if true:
( ) My investment in the transaction does not exceed 10% of my
    net worth, exclusive of home, furnishings, and automobiles.

( ) My investment in the transaction does not exceed 10% of my
    adjusted gross income for federal income tax purposes for
    my last tax year or, in the alternative, as estimated for
    the current year.

                        _______________________________________
                                       Signature

   (2) The number of offerees shall not be considered for the
purposes of this section.
   (3) A husband and wife and their dependents, and an individual and
his or her dependents, shall be counted as one person.
   (4) A retirement plan, trust, business trust, corporation, or
other entity that is wholly owned by an individual and the individual'
s spouse or the individual's dependents, or any combination thereof,
shall not be counted separately from the individual, but the
investments of these entities shall be aggregated with those of the
individual for the purposes of the statement required by paragraph
(1).  If the investments of any entities are required to be
aggregated under this subdivision, the adjusted gross income or net
worth of these entities may also be aggregated with the net worth,
income, or both, of the individual.
   (5) The "institutional investors" enumerated in subdivision (i) of
Section 25102 or subdivision (c) of Section 25104 of the
Corporations Code, or in a rule adopted pursuant thereto, shall not
be counted.
   (f) The notes or interests of the purchasers shall be identical in
their underlying terms, including the right to direct or require
foreclosure, rights to and rate of interest, and other incidents of
being a lender, and the sale to each purchaser pursuant to this
section shall be upon the same terms, subject to adjustment for the
face or principal amount or percentage interest purchased and for
interest earned or accrued.  This subdivision does not preclude
different selling prices for interests to the extent that these
differences are reasonably related to changes in the market value of
the loan occurring between the sales of these interests.  The
interest of each purchaser shall be recorded.
   (g) (1) Except as provided in paragraph (2), the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the real property
senior thereto, shall not exceed the following percentages of the
current market value of the real property, as determined in writing
by the broker or appraiser pursuant to Section 10232.6, plus the
amount for which the payment of principal and interest in excess of
the percentage of current market value is insured for the benefit of
the holders of the notes or interests by an insurer admitted to do
business in this state by the Insurance Commissioner:


(A)  Single-family residence, owner occupied ..................
80%
(B)  Single-family residence, not owner occupied ..............
75%
(C)  Commercial and income-producing properties ...............
65%
(D)  Single-family residentially zoned lot or parcel which
     has installed offsite improvements including
     drainage, curbs, gutters, sidewalks, paved roads, and
     utilities as mandated by the political subdivision
     having jurisdiction over the lot or parcel ...............
65%
(E)  Land that has been zoned for (and if required,
     approved for subdivision as) commercial or
     residential development ..................................
50%
(F)  Other real property ......................................
35%

   (2) The percentage amounts specified in paragraph (1) may be
exceeded when and to the extent that the broker determines that the
encumbrance of the property in excess of these percentages is
reasonable and prudent considering all relevant factors pertaining to
the real property.  However, in no event shall the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the property senior
thereto, exceed 80 percent of the current fair market value of
improved real property or 50 percent of the current fair market value
of unimproved real property, except in the case of a single-family
zoned lot or parcel as defined in paragraph (1), which shall not
exceed 65 percent of the current fair market value of that lot or
parcel, plus the amount insured as specified in paragraph (1).  A
written statement shall be prepared by the broker that sets forth the
material considerations and facts that the broker relies upon for
his or her determination, which shall be retained as a part of the
broker's record of the transaction.  Either a copy of the statement
or the information contained therein shall be included in the
disclosures required pursuant to subdivision (k).
   (3) A copy of the appraisal or the broker's evaluation shall be
delivered to each purchaser.  The broker shall advise purchasers of
their right to receive a copy.  For purposes of this paragraph,
"appraisal" means a written estimate of value based upon the
assembling, analyzing, and reconciling of facts and value indicators
for the real property in question.  A broker shall not purport to
make an appraisal unless the person so employed is qualified on the
basis of special training, preparation, or experience.
   (h) The documentation of the transaction shall require that (1) a
default upon any interest or note is a default upon all interests or
notes and (2) the holders of more than 50 percent of the record
beneficial interests of the notes or interests may govern the actions
to be taken on behalf of all holders in accordance with Section
2941.9 of the Civil Code in the event of default or foreclosure for
matters that require direction or approval of the holders, including
designation of the broker, servicing agent, or other person acting on
their behalf, and the sale, encumbrance, or lease of real property
owned by the holders resulting from foreclosure or receipt of a deed
in lieu of foreclosure.  The terms called for by this subdivision may
be included in the deed of trust, in the assignment of interests, or
in any other documentation as is necessary or appropriate to make
them binding on the parties.
   (i) (1) The broker shall not accept any purchase or loan funds or
other consideration from a prospective lender or purchaser, or
directly or indirectly cause the funds or other consideration to be
deposited in an escrow or trust account, except as to a specific loan
or note secured by a deed of trust that the broker owns, is
authorized to negotiate, or is unconditionally obligated to buy.
   (2) All funds received by the broker from the purchasers or
lenders shall be handled in accordance with Section 10145 for
disbursement to the persons thereto entitled upon recordation of the
interests of the purchasers or lenders in the note and deed of trust.
  No provision of this section shall be construed as modifying or
superseding applicable law regulating the escrowholder in any
transaction or the handling of the escrow account.
   (3) The books and records of the broker or servicing agent, or
both, shall be maintained in a manner that readily identifies
transactions under this section and the receipt and disbursement of
funds in connection with these transactions.
   (4) If required by paragraph (3) of subdivision (j), the review by
the independent certified public accountant shall include a sample
of transactions, as reflected in the records of the trust account
required pursuant to paragraph (1) of subdivision (j), and the bank
statements and supporting documents.  These documents shall be
reviewed for compliance with this section with respect to the
handling and distribution of funds.  The sample shall be selected at
random by the accountant from all these transactions and shall
consist of the following:  (A) three sales made or 5 percent of the
sales made pursuant to this section during the period for which the
examination is conducted, whichever is greater, and (B) 10 payments
processed or 2 percent of payments processed under this section
during the period for which the examination is conducted, whichever
is greater.
   (5) For the purposes of this subdivision, the transaction that
constitutes a "sale" is the series of transactions by which a series
of notes of a maker, or the interests in the note of a maker, are
sold or issued to their various purchasers under this section,
including all receipts and disbursements in that process of funds
received from the purchasers or lenders.  The transaction that
constitutes a "payment," for the purposes of this subdivision, is the
receipt of a payment from the person obligated on the note or from
some other person on behalf of the person so obligated, including the
broker or servicing agent, and the distribution of that payment to
the persons entitled thereto.  If a payment involves an advance paid
by the broker or servicing agent as the result of a dishonored check,
the inspection shall identify the source of funds from which the
payment was made or, in the alternative, the steps that are
reasonably necessary to determine that there was not a disbursement
of trust funds.  The accountant shall inspect for compliance with the
following specific provisions of this section:  paragraphs (1), (2),
and (3) of subdivision (i) and paragraphs (1) and (2) of subdivision
(j).
   (6) Within 30 days of the close of the period for which the report
is made, or within any additional time as the commissioner may in
writing allow in a particular case, the accountant shall forward to
the broker or servicing agent, as the case may be, and to the
commissioner, the report of the accountant, stating that the
inspection was performed in accordance with this section, listing the
sales and the payments examined, specifying the nature of the
deficiencies, if any, noted by the accountant with respect to each
sale or payment, together with any further information as the
accountant may wish to include, such as corrective steps taken with
respect to any deficiency so noted, or stating that no deficiencies
were observed.  If the broker meets the threshold criteria of Section
10232, the report of the accountant shall be submitted as part of
the quarterly reports required under Section 10232.25.
   (j) The notes or interests shall be sold subject to a written
agreement that obligates a licensed real estate broker, or a person
exempted from the licensing requirement for real estate brokers under
Chapter 3 (commencing with Section 10130) of Part 1 of Division 4,
to act as agent for the purchasers or lenders to service the note or
notes and deed of trust, including the receipt and transmission of
payments and the institution of foreclosure proceedings in the event
of a default.  A copy of this servicing agreement shall be delivered
to each purchaser.  The broker shall offer to the lenders or
purchasers the services of the broker or one or more affiliates of
the broker, or both, as servicing agent for each transaction
conducted pursuant to this section.  The agreement shall require all
of the following:
   (1) (A) That payments received on the note or notes be deposited
immediately to a trust account maintained in accordance with this
section and with the provisions for trust accounts of licensed real
estate brokers contained in Section 10145 and Article 15 (commencing
with Section 2830.1) of Chapter 6 of Title 10 of the California Code
of Regulations.
   (B) That payments deposited pursuant to subparagraph (A) shall not
be commingled with the assets of the servicing agent or used for any
transaction other than the transaction for which the funds are
received.
   (2) That payments received on the note or notes shall be
transmitted to the purchasers or lenders pro rata according to their
respective interests within 25 days after receipt thereof by the
agent.  If the source for the payment is not the maker of the note,
the agent shall inform the purchasers or lenders of the source for
payment.  A broker or servicing agent who transmits to the purchaser
or lenders the broker's or servicing agent's own funds to cover
payments due from the borrower but unpaid as a result of a dishonored
check may recover the amount of the advances from the trust fund
when the past due payment is received.  However, this section does
not authorize the broker, servicing agent, or any other person to
issue, or to engage in any practice constituting, any guarantee or to
engage in the practice of advancing payments on behalf of the
borrower.
   (3) If the broker or person who is or becomes the servicing agent
for notes or interests sold pursuant to this section upon which the
payments due during any period of three consecutive months in the
aggregate exceed one hundred twenty-five thousand dollars ($125,000)
or the number of persons entitled to the payments exceeds 120, the
trust account or accounts of that broker or affiliate shall be
inspected by an independent certified public accountant at no less
than three-month intervals during the time the volume is maintained.
Within 30 days after the close of the period for which the review is
made, the report of the accountant shall be forwarded as provided in
paragraph (5) of subdivision (i).  If the broker is required to file
an annual report pursuant to subdivision (n) or Section 10232.2, the
quarterly report pursuant to this subdivision need not be filed for
the last quarter of the year for which the annual report is made.
For the purposes of this subdivision, an affiliate of a broker is any
person controlled by, controlling, or under common control with the
broker.
   (4) Unless the servicing agent will receive notice pursuant to
Section 2924b of the Civil Code, the servicing agent shall file a
request for notice of default upon any prior encumbrances and
promptly notify the purchasers or lenders of any default on the prior
encumbrances or on the note or notes subject to the servicing
agreement.
   (5) The servicing agent shall promptly forward copies of the
following to each purchaser or lender:
   (A) Any notice of trustee sale filed on behalf of the purchasers
or lenders.
   (B) Any request for reconveyance of the deed of trust received on
behalf of the purchasers or lenders.
   (k) The broker shall disclose in writing to each purchaser or
lender the material facts concerning the transaction on a disclosure
form adopted or approved by the commissioner pursuant to Section
10232.5, subject to the following:
   (1) The disclosure form shall include a description of the terms
upon which the note and deed of trust are being sold, including the
terms of the undivided interests being offered therein, including the
following:
   (A) In the case of the sale of an existing note:
   (i) The aggregate sale price of the note.
   (ii) The percent of the premium over or discount from the
principal balance plus accrued but unpaid interest.
   (iii) The effective rate of return to the purchasers if the note
is paid according to its terms.
   (iv) The name and address of the escrowholder for the transaction.

   (v) A description of, and the estimated amount of, each cost
payable by the seller in connection with the sale and a description
of, and the estimated amount of, each cost payable by the purchasers
in connection with the sale.
   (B) In the case of the origination of a note:
   (i) The name and address of the escrowholder for the transaction.

   (ii) The anticipated closing date.
   (iii) A description of, and the estimated amount of, each cost
payable by the borrower in connection with the loan and a description
of, and the estimated amount of, each cost payable by the lenders in
connection with the loan.
   (2) A copy of the written statement or information contained
therein, as required by paragraph (2) of subdivision (g), shall be
included in the disclosure form.
   (3) Any interest of the broker or affiliate in the transaction, as
described in subdivision (d), shall be included with the disclosure
form.
   (4) When the particular circumstances of a transaction make
information not specified in the disclosure form material or
essential to keep the information provided in the form from being
misleading, and the other information is known to the broker, the
other information shall also be provided by the broker.
   (l) The broker or servicing agent shall furnish any purchaser of a
note or interest, upon request, with the names and addresses of the
purchasers of the other notes or interests in the loan.
   (m) No agreement in connection with a transaction covered by this
section shall grant to the real estate broker, the servicing agent,
or any affiliate of the broker or agent the option or election to
acquire the interests of the purchasers or lenders or to acquire the
real property securing the interests.  This subdivision shall not
prohibit the broker or affiliate from acquiring the interests, with
the consent of the purchasers or lenders whose interests are being
purchased, or the property, with the consent of the purchasers or
lenders, if the consent is given at the time of the acquisition.
   (n) Each broker who conducts transactions under this section, or
broker or person who becomes the servicing agent for notes or
interest sold pursuant to this section, who meets the criteria of
paragraph (3) of subdivision (j) shall file with the commissioner an
annual report of a review of its trust account.  The report shall be
prepared and filed in accordance with subdivision (a) of Section
10232.2 and the rules and procedures thereunder of the commissioner.
That report shall cover the broker's transactions under this section
and, if the broker also meets the threshold criteria set forth in
Section 10232, the broker's transactions subject to that section
shall be included as well.
   (o) Each broker conducting transactions pursuant to this section,
or broker or person who becomes the servicing agent for notes or
interest sold pursuant to this section, who meets the criteria of
paragraph (3) of subdivision (j) shall file with the commissioner a
report of the transactions that is prepared in accordance with
subdivision (c) of Section 10232.2.  If the broker also meets the
threshold criteria of Section 10232, the report shall include the
transactions subject to that section as well.  This report shall be
confidential pursuant to subdivision (f) of Section 10232.2.
   (p) The jurisdiction of the Commissioner of Corporations under the
Corporate Securities Law of 1968 shall be neither limited nor
expanded by this section.  Nothing in this section shall be construed
to supersede or restrict the application of the Corporate Securities
Law of 1968.  A transaction under this section shall not be
construed to be a transaction involving the issuance of securities
subject to authorization by the Real Estate Commissioner under
subdivision (e) of Section 25100 of the Corporations Code.
   (q) Nothing in this section shall be construed to change the
agency relationships between the parties where they exist or limit in
any manner the fiduciary duty of brokers to borrowers, lenders, and
purchasers of notes or interests in transactions subject to this
section.
     (r) For the purposes of this section, the following definitions
shall apply:
   (1) "Broker" means a person licensed as a broker under this part.

   (2) "Affiliate" means a person controlled by, controlling, or
under common control with, the broker.
   (3) "Servicing agent" means the real estate broker or person
exempted from the licensing requirements for real estate brokers
under Chapter 3 (commencing with Section 10130) of Part 1 of Division
4, to act as agent for the purchasers or lenders to service the
notes and deeds of trust, including the handling the receipt and
transmission of payments and the institution of foreclosure
proceedings in the event of a default.
   (4) Except as provided in paragraph (4) of subdivision (i), the
terms "sale" and "offer to sell," shall have the same meaning as set
forth in Section 25017 of the Corporations Code and include the acts
of negotiating and arranging the transaction.
   (s) (1) If any person other than a real estate broker makes or
keeps any of the books, accounts, or other records maintained in
connection with a transaction described in this section, the
provisions of this section and of any regulation or order issued
under this section shall apply to the person with respect to the
performance of those services and with respect to those books,
accounts, and other records to the same extent as if the person were
the broker.
   (2) If any person other than an affiliate of a broker makes or
keeps any of the books, accounts, or other records maintained in
connection with a transaction described in this section, or in the
case of an affiliate other than a parent or subsidiary of the broker,
the provisions of this section and of any regulation or order issued
under this section shall apply to the person with respect to those
books, accounts, and other records to the same extent as if the
person were the affiliate.