Each lender making a shared appreciation loan for seniors shall additionally furnish to the prospective borrower, prior to consummation of the loan, a statement containing the following information:
IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN FOR SENIORS
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 you should consider.
1.Prevailing interest rate: __%.
2.Stated interest rate on this loan: __%.
3.Projected contingent interest: __%.
4.Initial amount of this loan: $__.
5.Amount of the monthly annuity payments you will receive: $__.
6.Projected term of this loan: __ years.
7.Projected total loan obligation you will have to pay, assuming the loan continues to the end of the “borrower’s” life expectancy: $__.
Source:
Section 1917.713, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1917.713..