California has a number of formal acts in statute. Civil Code Division 3, Part 4, Title 14, Chapter 2a provides the Home Equity Loan Disclosure Act, which is contained in Sections 2970 and 2971. Chapter 2a was added in 1988 by Chapter 1315. Section 2970 defines the term “home equity loan.”
Section 2971 provides that, at the time that a customer makes an initial application to a creditor for a home equity loan in person, or within three business days if the customer applies by mail or telephone, the creditor is required to provide the applicant with a disclosure in either of specified forms.
The required disclosure is to be made in either of two specified ways. If a creditor is required by federal statute or regulation to make a substantially similar disclosure to that required under state law, and the creditor complies with that federal statute or regulation, the creditor is deemed to have complied with the requirements of this chapter.
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