Each lender making a shared appreciation loan shall additionally furnish to the prospective borrower, prior to the consummation of the loan, a statement containing the following information:
IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN
You are being offered a shared appreciation loan. Before you decide to accept this loan read this statement, which is designed to provide important information that you should consider.
1.Prevailing interest rate: __%.
2.Fixed interest rate on this loan: __%.
3.Lender’s share of net appreciated value: one-third.
4.Amount of this loan: $__.
5.Amount of the monthly payments: $__.
6.Term of this loan: __ years.
7.Amortization period on which payments are calculated: 30 years.
8.Prepayment penalty (if any) __.
Source:
Section 1917.073, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1917.073..