New State Bill Signals Expanded Anti-Deficiency Protection
July 18, 2013
SB 426, newly signed into law on July 11, prohibits not just a deficiency judgment against the borrower in connection with certain real estate secured lending but also liability for any deficiency. However, the bill recognizes the right of a lender to collect a deficiency from any additional collateral that it holds or from a third-party guarantor.
See CBA’s Regulatory Compliance Bulletin, written by Peter Munoz, partner of Reed Smith and member of CBA’s legal affairs committee for more information.