State Codes and Statutes

Statutes > California > Mvc > 270-270.43

MILITARY AND VETERANS CODE
SECTION 270-270.43



270.  This article may be cited as the California National Guard
Members' Farm and Home Purchase Act of 1978.



270.01.  (a) The Legislature finds and declares that the California
National Guard exists to provide a military organization in
California with the capability to:
   (1) Protect the lives and property of the people of the state
during periods of natural disaster and civil disturbances.
   (2) Perform other functions required by the California Military
and Veterans Code or as directed by the Governor.
   (3) Provide military units ready for federal mobilization.
   (b) The Legislature further finds and declares that the California
National Guard performs an essential public purpose in protecting
the health, safety, and property of California's citizens; that in
order to fulfill its objectives, it is necessary for the California
National Guard to have sufficient human resources; and that the
elimination of the military draft has had a negative impact on the
California National Guard's ability to maintain an adequate strength
level to meet its responsibilities, so that the Military Department
is concerned that it may not be able to provide a sufficient number
of persons to deal with natural or man-caused disasters and
emergencies.
   (c) It is, therefore, the intent of the Legislature that, to
fulfill the public program of maintaining required strength in the
California National Guard, an enlistment inducement should be
provided by making low-interest farm and home loans available to
members who serve the state faithfully for a period of at least one
year of a regular enlistment period, since incentive programs such as
this have been highly successful in other states and have resulted
in substantially higher enlistment rates; and that, in addition, this
type of program would enhance the concept of a volunteer armed
service by granting a state benefit at no anticipated cost to the
taxpayer.
   (d) The Legislature further finds and declares that the enactment
of this article serves a substantial public purpose and that members
of the California National Guard are benefited only as an incident to
the general public purpose intended by this article.



270.02.  The provisions of this article are applicable, and the
benefits conferred thereby are available, to the commissioned
officers, warrant officers, and enlisted members of the California
National Guard. In the event that there are insufficient funds at any
time to meet the requirements of all applicants under this article,
the following order of priority shall apply:
   (a) First priority shall be given to commissioned officers of the
grade of captain (0-3) and below, warrant officers, and enlisted
members.
   (b) Second priority shall be given to commissioned officers of the
grade of major (0-4) and above.



270.03.  As used in this article:
   (a) "Farm" means a tract of land, which, in the opinion of the
department, is capable of producing sufficiently to provide a living
for the purchaser and his or her dependents.
   (b) "Home" means a parcel of real estate upon which there is a
dwelling house and such other buildings as will, in the opinion of
the department, suit the needs of the purchaser and the purchaser's
dependents as a place of abode. It includes a "condominium," as
defined in subdivision (h). "Home" also includes a "mobilehome," as
defined in subdivision (k).
   (c) "Purchaser" means a member of the California National Guard or
any person who has entered into a contract of purchase of a farm or
home from the department.
   (d) "Purchase price" means the price which the department pays for
any farm or home.
   (e) "Selling price" means the price for which the department sells
any farm or home.
   (f) "Initial payment" means the first payment to be made by a
purchaser to the department for a farm or home.
   (g) "Progress payment plan" means payment by the department for
improvements on real property in installments as work progresses.
   (h) "Condominium" means an estate in real property consisting of
an undivided interest in common in a portion of a parcel of real
property together with a separate interest in space in a residential
building on the real property, such as an apartment, which, in the
opinion of the department, suits the needs of the purchaser and the
purchaser's dependents as a place of abode. A condominium may
include, in addition, a separate interest in other portions of the
real property. "Condominium" also includes a half-duplex and a patio
home when the structure is situated on its own property line.
   (i) "Effective rate of interest" means the average rate of
interest on the unpaid balance due on a participation contract to
which the department's legal rights are subject, and the rate of
interest on the unpaid balance of the purchase price, as determined
by the department.
   (j) "Participation contract" means an obligation secured by a deed
of trust or mortgage, or other security interest established
pursuant to regulations of the department.
   (k) "Mobilehome" means either a parcel of real estate, or an
undivided interest in common in a portion of a parcel of real
property, on which is sited one or more mobilehome modules which
will, in the opinion of the department, suit the needs of the
purchaser and the purchaser's dependents as a place of abode and
meets all requirements of local governmental jurisdictions. However,
where the mobilehome module or modules are sited on trust land,
"local governmental jurisdictions" means the tribal governing body.
   For purposes of this subdivision, "module" means a section of a
mobilehome at least 10 feet wide and at least 40 feet long.
   (l) "Member" means an individual on active National Guard status
and assigned to a federally recognized unit of the California
National Guard.
   (m) "Indian member" means a member as defined in subdivision (l)
who in addition either belongs to an Indian tribe, band, group,
reservation, rancheria, or community which is recognized by the
United States as eligible for services from the United States Bureau
of Indian Affairs or is an Indian beneficiary and who is eligible
under this article for purchase by the department of a home or farm
sited on trust land.
   (n) "Trust land," with respect to an Indian member, means land
held in trust by the United States government for individual Indians,
Indians who belong to Indian tribes, or Indian tribes.
   (o) "Allotment trust land" means land held by the United States
under the Indian General Allotment Act of 1887, as amended, (Chapter
9 (commencing with Section 331) of Title 25 of the United States
Code), in trust for an individual Indian or for two or more Indians
holding individual interests in common. It includes both trust and
restricted public domain allotments and allotments within the
boundaries of an Indian reservation.
   (p) "Tribal trust land" means land held in trust by the United
States for an Indian tribe or band.
   (q) "Tribe" means any Indian tribe, band, group, reservation,
rancheria, or community which is recognized by the United States as
eligible for services from the United States Bureau of Indian
Affairs.
   (r) "Indian beneficiary" means an Indian for whom land is held in
trust by the United States government.
   (s) "Department" means the Department of Veterans Affairs.



270.04.  The administration of the provisions of this article is
vested in the Department of Veterans Affairs.
   The department shall adopt rules and regulations in keeping with
the purpose of this article to establish preferences in the granting
of benefits conferred by this article.



270.05.  (a) No benefits shall be awarded pursuant to this article
nor application therefor accepted until on and after January 1, 1980.
Persons becoming members on and after January 1, 1979, shall, to be
eligible for benefits pursuant to this article, be enlisted or
commissioned for a period of not less than six years and shall have
not less than one year of satisfactory service at the time of
application for benefits.
   (b) Members as of January 1, 1979, shall, to be eligible for
benefits pursuant to this article, have not less than one year of
satisfactory service at the time of application and shall extend
their commitment for the minimum amount of time prescribed by federal
law or regulation.
   (c) No member shall be eligible for benefits pursuant to this
article who is presently receiving benefits pursuant to the Veterans'
Farm and Home Purchase Act of 1943 (Article 3 (commencing with
Section 985) of Chapter 6 of Division 4) or the Veterans' Farm and
Home Purchase Act of 1974 (Article 3.1 (commencing with Section
987.50) of Chapter 6 of Division 4).
   (d) Members who either have been honorably discharged from any
branch of the United States Armed Forces or have served in the
California National Guard for 10 or more years, and who otherwise
qualify under this section, shall be eligible for benefits pursuant
to this article after 90 days of satisfactory service at the time of
application for benefits.


270.06.  The department shall prescribe and determine the
qualifications of all members. Any member desiring to benefit
hereunder, shall submit to the department information, in such form
as the department prescribes, which will enable the department to
determine his eligibility and qualifications. The department may make
further inquiries and investigations in order to determine such
eligibility and qualifications. Members who are otherwise qualified
and who were wounded or disabled as a result of their service shall
be given first preference in the benefits conferred by this article.
The department shall determine, in each case, whether or not the
member was wounded or disabled as a result of service.
   The following group shall be given second preference in the
benefits conferred by this article:
   (a) The unremarried spouse of members killed in the line of duty.
   (b) The unremarried spouse of members designated by the armed
forces as missing in action.
   Nothing in this section regarding preferences shall affect any
eligibility requirement for benefits conferred by this article.



270.07.  All applications for the benefits contained in this article
shall be filed with the department at least one year prior to the
date of the applicant's discharge from the National Guard, except
applications filed by either:
   (a) Members who were wounded or are disabled as a result of
National Guard service; or
   (b) Members who were previously declared prisoners of war.



270.08.  (a) If a member dies after filing his application for a
farm or a home, and his application setting forth his eligibility and
qualifications is subsequently approved, the member's surviving
spouse may, in the discretion of the department, succeed to his
rights under the application, and may be entitled to the rights,
privileges, and benefits under this article that would have been his,
but for his death. The contract of purchase which the department
otherwise would have made with such member may be made with the
member's surviving spouse.
   (b) If a member was killed in the line of duty, he shall be
considered to be a "member" for the purposes of this article, and the
member's unremarried spouse may file an application, may be entitled
to the same rights, privileges and benefits and may contract with
the department as provided in the case of a surviving spouse under
the provisions of subdivision (a) of this section.



270.09.  When a member has been authorized by the department to
select a farm or home, he shall submit his selection in such form as
the department prescribes.



270.10.  The department may acquire a farm or home from the owner
thereof, or may contract with a member for the construction of a
dwelling house and other improvements for a farm or home, upon the
terms agreed if:
   (a) The department is satisfied of the desirability of the
property submitted.
   (b) The member has agreed with the department that the member or
the member's immediate family will actually reside on the property
within 60 days from the date of purchase by the department or, if the
residence on the property is not complete on the date of purchase,
within 60 days after the residence is completed.
   (c) The sum to be expended by the department pursuant to a
contract for the construction of a dwelling house and other
improvements does not exceed fifty-five thousand dollars ($55,000)
or, for members who qualify under subdivision (d) of Section 270.05,
not to exceed seventy-five thousand dollars ($75,000).
   (d) Where the department is to contract with a member for the
construction of a dwelling house and other buildings, or for the
purchase of a mobilehome:
   (1) The member is the owner in fee of the real property on which
the dwelling house and other buildings are to be constructed, or is
the owner in fee of the real property or the owner of an undivided
interest in common in a portion of a parcel of real property on which
a mobilehome is to be situated, and agrees to convey that property
to the department without cost.
   (2) The member has paid a reasonable fee set by the department to
cover the cost of the preliminary service of the department necessary
to process the application.
   (3) The member has filed with the department adequate plans and
specifications for the improvements to be constructed upon the real
property, together with a contract, executed by a contractor licensed
by the State of California, for the construction of the improvements
in accordance with the plans and specifications within eight months
after the acquisition of the real property by the department, and a
bond, that is executed by a surety company authorized to do business
in the State of California, obtained by the contractor providing for
compliance with the terms of the contract and for the payment of
materialmen and labor furnishing material or labor on the jobs.
   (4) The plans, specifications, contract, and bond are approved by
the department.
   (5) The member has placed in escrow all sums of money to be
advanced by him or her where the cost is in excess of the maximum
that may be expended by the department.
   As used in this section, "immediate family" includes only the
following:
   Spouse, children, either natural or adoptive; and the parents if
they are dependent upon the member for 50 percent or more of their
support.


270.101.  (a) For purposes of the construction of a dwelling house
or other improvements for a farm or home or the acquisition of a farm
or home for an Indian member pursuant to this article, references to
property or real property include the Indian member's beneficial
interest in trust land held by the United States for that member and
a leasehold interest acquired by the Indian member from an Indian
beneficiary when the Indian member is not a beneficiary of trust
land; references to the purchase or acquisition of property or real
property include the assignment of an Indian member's beneficial
interest in trust land held by the United States for that member and
a leasehold interest in trust land acquired by the Indian member from
an Indian beneficiary; references to the sale of property or real
property include the assignment of an Indian member's beneficial
interest in trust land held by the United States for that member and
a leasehold interest in trust land acquired by the Indian member from
an Indian beneficiary; and references to purchaser, seller, purchase
price, and selling price refer to the acquisition or sale of a home
situated or constructed upon or a farm comprising an assignment of an
Indian member's beneficial interest in trust land held by the United
States for that member or a leasehold interest in trust land
acquired by the Indian member from an Indian beneficiary.
   (b) Subject to the conditions and limitations specified in Section
270.103, the department may acquire an Indian member's leasehold
interest in allotment trust land, or a sufficient portion of the
leasehold interest necessary to secure the loan, as determined by the
department and the Bureau of Indian Affairs, for the purpose of
entering into a contract with the Indian member for the acquisition
of a farm or home or for the construction of a dwelling house or
other improvements for a farm or home or for the purchase and
installation of a mobilehome on the leasehold land.
   (c) Subject to the conditions and limitations specified in Section
270.103, the department may acquire an assignment of an Indian
member's beneficial interest in trust land held by the United States
for that member, or a sufficient portion of the beneficial interest
necessary to secure the loan, as determined by the department and the
Bureau of Indian Affairs, for the purpose of entering into a
contract for the acquisition of a farm or home or for the
construction of a dwelling house or other improvements for a farm or
home or for the purchase of a mobilehome on trust land assigned to
the department by the Indian member beneficiary.
   (d) For purposes of this section, the leasehold interest to be
acquired by the department shall have been granted by the person or
persons for whom the land is held in trust for a term of at least 25
years renewable without notice on the same terms and conditions for
an additional period of at least 25 years. The lease shall be in a
form acceptable to the department and to the United States Secretary
of the Interior. The Indian member shall satisfy the department that
the department and its assignees will have access to the property for
the term of the lease. The Indian member shall assign the lease to
the department without cost and shall obtain the consent of the
United States Secretary of the Interior to that assignment.
   (e) For purposes of this section, the beneficial interest to be
assigned by the Indian member shall be assigned to the department as
security for a contract entered into pursuant to this article. The
assignment shall be in a form acceptable to the department and to the
United States Secretary of the Interior. The Indian beneficiary
member shall satisfy the department that the department and its
assignees will have access to the property for the term of the
assignment. The beneficial interest of the Indian beneficiary member
shall be assigned at no cost to the department and with the consent
of the United States Secretary of the Interior.



270.102.  (a) Subject to the conditions and limitations specified in
Section 270.103, the department may acquire an Indian member's
leasehold interest in tribal trust land for the purpose of entering
into a contract with the Indian member for the acquisition of a farm
or home or for the construction of a dwelling house or other
improvements for a farm or home or for the purchase and installation
of a mobilehome on the leasehold land.
   (b) For purposes of this section, the leasehold interest to be
acquired by the department shall have been granted by the tribe for
which the land is held in trust to the Indian member for a term of at
least 25 years renewable without notice on the same terms and
conditions for an additional period of at least 25 years. The lease
shall be in a form acceptable to the tribe, the department, and the
United States Secretary of the Interior, shall be duly executed in
accordance with the tribe's constitution and bylaws or other tribal
laws, and shall provide that the Indian member and the Indian member'
s assignees shall have access to the property for the term of the
lease. The Indian member shall assign the lease to the department
without cost and shall obtain the consent of the tribe and the United
States Secretary of the Interior to that assignment.



270.103.  (a) The department may acquire an assignment of an Indian
member's beneficial interest in trust land held by the United States
for that member or a leasehold interest in trust land acquired by the
Indian member from an Indian beneficiary and contract with an Indian
member as provided in Sections 270.101 and 270.102 upon the terms
agreed, if all of the following conditions are met:
   (1) The department is satisfied of the desirability of the
property submitted.
   (2) The Indian member has agreed with the department that the
Indian member or the Indian member's immediate family will actually
reside on the property within 60 days from the date of the
acquisition by the department or, if the residence on the property is
not complete on the date of acquisition, within 60 days after the
residence is completed.
   (3) The sum to be expended by the department pursuant to a
contract for the acquisition of a home or the construction of a
dwelling house and other improvements does not exceed forty-three
thousand dollars ($43,000) or, for members who qualify under
subdivision (d) of Section 270.05, not to exceed fifty-five thousand
dollars ($55,000).
   (4) The Indian member has paid a reasonable fee set by the
department to cover the cost of preliminary service of the department
that may be necessary to process the application.
   (5) The Indian member has filed with the department adequate plans
and specifications for the improvements to be constructed upon the
real property, together with a contract executed by a contractor
licensed by the State of California or by an Indian contractor
approved by the department for the construction of the improvements
in accordance with the plans and specifications within eight months
after the assignment of the Indian member's beneficial interest or
acquisition of the Indian member's leasehold interest in the real
property by the department, and a bond, which is executed by a surety
company authorized to do business in the State of California,
obtained by the contractor providing for compliance with the terms of
the contract and for the payment of persons furnishing material or
labor on the job.
   (6) The plans, specifications, contract, and bond are approved by
the department.
   (7) The Indian member has placed in escrow all sums of money to be
advanced by the Indian member where the cost is in excess of the
maximum that may be expended by the department.
   (b) As used in this section, "immediate family" includes only the
member's spouse; children, either natural or adoptive; and the
parents, if they are dependent upon the member for 50 percent or more
of their support.



270.11.  The department may purchase property, subject to a
participation contract providing for a loan term of not less than 23
years. In no event shall the purchase price plus the participation
contract exceed fifty-five thousand dollars ($55,000) or, for members
who qualify under subdivision (d) of Section 270.05, not to exceed
seventy-five thousand dollars ($75,000) or equal more than 95 percent
of the market value of the property as determined by department
appraisal, whichever is the lower amount.



270.12.  The department, after consummating a purchase under the
provisions of this article and the member having occupied the
property as required by Section 270.10, may waive the occupancy
requirement for a period not to exceed four years on a showing of
good cause. The department may also waive the occupancy requirement
for any period of time if the property is a farm and if the member
personally cultivates the property and harvests the crops or tends
livestock. The department shall establish standards for the occupancy
waiver and shall make those standards known.



270.13.  Notwithstanding other provisions of this article relating
to the occupancy, leasing, letting, or subletting of a farm or home
acquired pursuant to this article, in the case of any member who
after consummating a purchase of a farm or home under this article
and occupying such farm or home enters the active military, naval, or
air service of the United States, and is required to move pursuant
to orders to a duty station beyond a reasonable commuting distance
from the farm or home, as determined by the department, the
department may waive the occupancy requirement for the period of such
active service and for a reasonable period subsequent to the
termination of such active service and consent to the leasing,
letting, or subletting of the farm or home during such period or
periods.


270.15.  The purchase price of a home to the department shall not
exceed fifty-five thousand dollars ($55,000) or, for members who
qualify under subdivision (d) of Section 270.05, not to exceed
seventy-five thousand dollars ($75,000), except that the purchase
price of a mobilehome, as defined in subdivision (k) of Section
270.03, to the department shall not exceed thirty thousand dollars
($30,000), and a member purchasing the home may advance, subject to
Section 270. 14, the difference between the total price or cost of
the home and the sum of the purchase price of the home to the
department and any amount the department is required under Section
270.19 to add to the purchase price of the home in fixing the selling
price thereof to the member. Any amount of the purchase price to the
department may be provided by funds from participation contracts or
revenue bonds. The purchase price of a farm to the department shall
not exceed one hundred twenty thousand dollars ($120,000), and a
member purchasing the farm may advance the difference between the
total price of the farm or cost of the dwelling and improvements to
be constructed on a farm under a contract and the sum of such
purchase price to the department or contract price to the department
and any amount which the department is required under Section 270.19
to add to such purchase or contract price to the department in fixing
the selling price of the farm to the member.




270.155.  The maximum purchase price for a mobilehome which is to be
sited in a mobilehome park as defined in Section 18214 of the Health
and Safety Code, shall be twenty-two thousand five hundred dollars
($22,500), with an amortization period not to exceed 25 years. For
purchases under the provisions of this section, the department shall
charge a rate of interest one percent higher than that which is
charged to purchasers of conventional housing or of a mobilehome
sited on a lot owned by the purchaser.



270.156.  A mobilehome which is purchased under this article shall
not be moved from its original site to any other location, without
first obtaining prior authorization from the department.
   Any person who moves or causes to be moved a mobilehome under this
act, without first obtaining approval from the department, shall be
jointly and severally liable to the department for the full amount of
the mobilehome loan balance.



270.16.  The department may acquire a farm in which the member to
whom such farm is to be sold has theretofore acquired an interest.



270.17.  Before the purchase of any property by the department there
shall be filed with the department (1) an appraisement of the market
value of the property by an employee or an authorized agent of the
department or (2) in lieu of the appraisal by the department, the
department may accept an appraisement of the market value of the
property by either the Federal Housing Administration or the Veteran'
s Administration, and in addition there may be filed with the
department an appraisement of the market value of the property by an
authorized appraiser of a banking corporation formed under the laws
of this state or of a national banking association having a place of
business in this state. Each appraisement shall be certified by the
maker thereof. The certification shall state that it is made in good
faith, and that the valuation is honestly determined and represents
the bona fide opinion of the maker.



270.18.  The department, before consummating a purchase under the
provisions of this article, shall cause the title of the property
sought to be purchased to be examined and may require for that
purpose an abstract, an unlimited certificate of title, or a policy
of title insurance, and may refer the same to the Attorney General
for his opinion.



270.19.  The department shall then enter into a contract with the
member for the sale of the property to the member. The department
shall fix the selling price of the property by adding to the purchase
price thereof, to the total cost of improvements constructed, or to
the value of such property as determined by the department when such
property is acquired by the department in a manner other than by
purchase, all expenses incurred and estimated to be incurred by the
department in relation thereto, inclusive of interest,
administration, appraisals, examination of title, incidental
expenses, and the sum deemed necessary to meet unforeseen
contingencies. In the case of real property acquired from a member
for the purpose of constructing improvements thereon, the department
shall forthwith after acquiring said real property enter into the
contract with the member authorized by this section at a selling
price determined by the amount of the contract price for the
improvements and any of the other additions herein authorized. After
the execution of said contract between the member and the department
and the making of the initial payment thereon the department shall be
authorized to pay the cost of the improvements contracted to be
constructed on said real property, making progress payments thereon
in such amounts and at such times as the department approves. The
department shall upon written request of the member and his
contractor have authority to approve additions to or deletions from
the improvements contracted to be constructed and any savings
affected or added cost incurred shall be deducted from or added to
the amount due the department by the member under the terms of his
contract.
   Where the department enters into a contract for the sale of
property on trust land to an Indian member, the contract shall
include the following conditions:
   (a) The dwelling house or other improvements contracted to be
constructed on trust land shall be completed in compliance with the
standards of the building code applicable on the trust land. If there
is no building code in force on the trust land, the applicable
standards shall be those of the building code of the county in which
the trust land is located.
   (b) On the completion of construction, the Indian member shall
provide to the department an inspection certificate from a qualified
building inspector certifying that the dwelling house or other
improvements comply with the standards of the building code as
required by subdivision (a).



270.20.  For the purposes of this article, any member who is under
the age of 18 shall be deemed to be of the age of majority and to be
an adult person for the purpose of entering into any contract for the
purchase of a farm or home from the department or any other contract
with respect to such property.


270.21.  The purchaser shall make an initial payment of at least 5
percent of the selling price of the property. Purchasers of homes
where the purchase price is equal to or less than fifty-five thousand
dollars ($55,000) shall make an initial payment of at least 3
percent of the selling price of the property. The department may
waive the initial payment in any case where the value of the property
as determined by the department appraisal shall equal the amount to
be paid by the department plus at least 5 percent where the purchase
price is greater than fifty-five thousand dollars ($55,000). In the
case of homes where the purchase price is equal to or less than
fifty-five thousand dollars ($55,000), the department may waive the
initial payment where the value of the property as determined by the
department appraisal equals the amount to be paid by the department
plus at least 3 percent. The balance of the purchase price may be
amortized over a period fixed by the department, not exceeding 40
years for farms or homes, but not exceeding 25 years for mobilehomes,
together with interest thereon at the rate as determined by the
department pursuant to Section 270.37 for such amortization purposes.
The purchaser on any installment date may pay any or all
installments still remaining unpaid subject to the imposition of a
prepayment charge which the department finds to be reasonable and
necessary for the administration of this article. In any individual
case the department may for good cause postpone from time to time
upon terms as the department deems proper, the payment of the whole
or any part of any installment of the purchase price or interest
thereon. Each installment shall include an amount sufficient to pay
the principal and interest on the participation contract to which the
interest of the department is subject, and such amount as may be
required by any covenant or provision contained in any resolution of
issuance.



270.22.  The provisions of Section 270.21, relative to the rate of
interest to be charged to member purchasers do not apply to assignees
of such purchasers who are not members, but as to such assignees the
rate of interest shall be as fixed by the department, compounded at
periods fixed by the department.


270.23.  (a) Except as provided in subdivision (b), the department
in each individual case may specify the terms of the contract entered
into with the purchaser, but no property sold under the provisions
of this article shall, voluntarily or involuntarily, by operation of
law or otherwise, be transferred, assigned, encumbered, leased, let
or sublet, in whole or in part, nor shall any mobilehome be removed
from its original site, except in case of emergency where temporary
removal is necessary to avoid potential damage, without the written
consent of the department, until the purchaser has paid therefor in
full and has complied with all the terms and conditions of this
contract of purchase.
   (b) The consent of the department shall not be required where a
member, alone or jointly with his spouse, transfers his interest in
property which is the subject of a loan agreement with the department
into a revocable trust established for the benefit of the member or
of the member and his spouse.



270.24.  The contract made between the department and purchaser
shall provide that the purchaser maintain the farm or home as his
place of residence and keep in good order and repair all buildings,
fences, and other permanent improvements situate thereon and that the
purchaser, if required, insure and keep insured against fire or
other hazards, all buildings, fences, other permanent improvements,
or crops on the property, loss, if any, under the policies therefor
to be made payable to the department as its interest appears.
Insurance shall be in the amount, with the insurance companies, and
under the conditions specified by the department.




270.25.  If the purchaser fails or neglects to pay, satisfy, and
discharge at maturity all taxes and assessments, and all other
charges and encumbrances which are a lien upon the property being
purchased from the department, or any part thereof, and also all
taxes and assessments levied or assessed upon the interest created by
the contract of purchase of such property; or to keep the buildings,
fences, other permanent improvements upon such property insured and
in good order and repair, or to keep the crops upon such property
insured; or to keep in good order and repair all buildings, fences,
and other permanent improvements, situated upon such property; then,
in such event, the department may pay, satisfy, discharge, settle, or
compromise the taxes, assessments, charges, or encumbrances, or
insure the buildings, fences, permanent improvements, or crops, or do
the work and supply the materials necessary to keep the buildings,
fences, and other improvements in good order and repair. All moneys
so expended by the department shall be added to the selling price of
the property and bear interest at the rate of interest designated in
Section 270.21 from the date of expending the same, and shall be
repaid by the purchaser to the department on demand. The department
may amortize the repayment of such expenditures or permit repayment
in installments upon the terms and conditions which it deems proper.



270.26.  The department shall be the sole judge of:
   (a) The legality or validity of taxes, assessments, charges, or
encumbrances, and the amount necessary to be paid in satisfaction or
discharge thereof.
   (b) The amount of insurance to be placed upon the buildings,
fences, other permanent improvements, and crops and the amount
necessary to be paid for the premiums for such insurance.
   (c) The necessity and nature of the work necessary to keep the
buildings, fences, and other improvements in good order and repair,
and the amount necessary to be paid therefor.



270.265.  In the event of the purchaser's failure to comply with the
terms of his military obligation, the department may adjust the
interest rate of the contract of purchase to the current market rate
of interest for home purchase contracts or similar obligations, or
may proceed in accordance with the provisions of Section 270.27.




270.27.  In the event of a failure of a purchaser to comply with any
of the terms of his contract of purchase or of his military
obligation, the department may cancel such contract, and thereupon be
released from all obligations, at law or in equity, to convey the
property, and the purchaser shall forfeit all right thereto. All
payments theretofore made shall be deemed to be rental paid for
occupancy. Upon such forfeiture, the department shall take possession
of the property covered by such contract, and shall remove all
persons and personal property therefrom without any liability
whatsoever on the part of the department or of any official or
employee thereof for any damage or injury caused by or incident to
the entry or removal. The failure of the department to exercise any
option to cancel or to exercise any other privilege under such
contract for any default shall not constitute a waiver of the right
to exercise such option or privilege for any other default on the
part of the purchaser.



270.28.  (a) In the event of a forfeiture of a contract of purchase
under this article, the department may sell or otherwise dispose of
the property covered by the forfeited contract to any person and upon
any terms and conditions as it deems proper.
   (b) Where the department elects in the event of a forfeiture to
sell or otherwise dispose of an assignment of an Indian member's
beneficial interest or of a leasehold interest in allotment trust
land, the department shall first offer it for sale to the person or
persons for whom the land is held in trust, including an Indian
member having a beneficial interest in the land on which the
forefeiture occurred, at a price equal to the unpaid balance of the
contract price. If none of the persons for whom the land is held in
trust accepts the offer, the department shall next offer it to the
United States Secretary of the Interior at the same price.
   (c) Where the department elects in the event of forfeiture to sell
or otherwise dispose of a leasehold interest in tribal trust land,
the department shall first offer it for sale to the tribe for whom
the land is held in trust at a price equal to the unpaid balance of
the contract price. If the tribe fails to accept the offer, the
department shall next offer it to the United States Secretary of the
Interior at the same price.
   (d) Where all the parties to whom the department is required to
offer the property under subdivision (b) or (c) fail to accept the
offer, the department may sell or otherwise dispose of the property
covered by the forfeited contract as provided by subdivision (a) and,
so doing, the department shall give first preference to any good
faith offer by a person approved by the tribal council of the
reservation, rancheria, or land held under the jurisdiction of that
particular tribal governing body on which the allotment land is
sited.
   (e) If the property is subject to a participation contract, the
department may, at its option, pay the balance due upon the
participation contract, including accrued interest, without penalty.



270.29.  The department may, in the contract of purchase with a
member provide that, in the event of default by the member and
forfeiture of the member's rights under the contract and subsequent
sale of the property by the department, it may pay to the member any
net gain realized by the department upon the sale. The department is
the sole judge of the net gain.



270.30.  The department may insure and keep insured against fire or
other hazards all buildings, fences, other permanent improvements, or
crops situated upon any property which has reverted to and is under
the control of the department, or may do the work and supply the
materials necessary to keep the buildings, fences, and other
improvements situated upon the property in good order and repair. The
department may lease or let the property, in whole or in part, upon
such terms as it deems proper. In the case of a farm, the department
may cultivate the farm or harvest the crop.



270.31.  If illness or acccident prevents a purchaser of a farm from
cultivating his farm or harvesting any crop, the department may
enter and cultivate the farm or harvest the crop. In such event the
department has a first lien upon the crop for all moneys expended and
may sell the harvested crop. Out of the proceeds of the sale the
department may reimburse itself for any expense which it has incurred
in the cultivation of the farm, the harvesting of crops and the sale
thereof, and retain any moneys due to the department from the
purchaser. Any balance shall be paid by the department to the
purchaser.


270.32.  When a purchaser dies, indebted to the department under
contract of purchase, his rights acquired under this article and such
contract shall devolve upon his heirs, devisees, or personal
representatives, but subject to all rights, claims, and charges of
the department. Default on the part of an heir, devisee, or personal
representative, with respect to any right, claim, or charge of the
department shall have the same effect as would default on the part of
the purchaser but for his death.



270.34.  The right to declare a forfeiture for breach of a condition
contained in any deed to real property may not be enforced as
against the interest of the department in said real property or any
portion thereof.


270.35.  The department shall not acquire a home in which the member
has an interest of record except in the following instances:
   (a) Where the application is for aid for the construction of a
home upon unimproved real property owned by the applicant.
   (b) Where the member had no interest of record in the property at
the time of filing his or her application and thereafter secured
interim financing pending the processing and approval of the
application by the department.
   (c) Where the application is to pay the balance due on an existing
loan not insured or guaranteed by the federal government, and which
bears an interest rate of more than 2 percent higher than the
prevailing rate pursuant to this article.
   (d) Where the application is for purchase of a mobilehome to be
situated upon real property, or an undivided interest therein, owned
by the applicant.
   (e) Where the applicant is an Indian member and the application is
for the construction of a dwelling house or other improvements on,
or for the purchase of a mobilehome to be situated on, trust land in
which the Indian member has a beneficial interest or owns an interest
of record.


270.36.  (a) Any member for whom a farm or home is purchased under
this article may be granted a subsequent opportunity to purchase
another farm or home if the farm or home purchased under this article
is sold prior to payment in full of the contract obligation. The
amount of any new loan shall not exceed the balance owing on the
original purchase contract.
   (b) The provisions in subdivision (a) permitting a new loan shall
apply only if the application for a subsequent loan is made within
two years from the date of sale.
   (c) The department may impose a reasonable fee for processing a
new loan pursuant to this section.


270.365.  There is hereby created the California National Guard
Finance Committee. The membership of the committee shall consist of
the State Controller, the State Treasurer, the Director of Finance,
the Commanding General of the State Military Forces, and the Director
of Veterans Affairs.



270.37.  (a) The department shall establish the actual interest rate
to be paid. To this end the department, by a majority vote of
California National Guard Finance Committee members, is empowered to
establish the rate of interest payable upon the amount remaining
unpaid under a member's purchase contract. All purchase contracts
acquired with the proceeds of or otherwise allocable to a particular
series of revenue bonds pursuant to the resolution of issuance of
such bonds shall bear a uniform rate of interest. Unless otherwise
provided in any resolution of issuance, all purchase contracts shall
bear a uniform rate of interest without regard to the series of
revenue bonds to which particular purchase contracts may be
allocable. The California National Guard Finance Committee shall make
a finding as to the rate of interest to be charged, determined by
the actual cost of revenue bond sales, plus a certain percent for
administrative costs to be determined at least annually by the
committee, taking into consideration the current value of money and
the solvency of the California National Guard Members' Farm and Home
Building Fund of 1978, and the interest paid on participation
contracts to which the interest of the department is subject. Subject
to agreements contained in any resolution of issuance, the
California National Guard Finance Committee may raise or lower the
effective rate of interest payable under such contracts for any given
period as many times and as frequently as it deems to be for the
best interest of the department, as well as the contract holders, if
in so doing its action is made applicable alike to any and all
contracts allocable to a particular series of bonds, and 90 days'
advance notice be given of the time when the new rate of interest is
to become effective.
   (b) The total amount of any installment payment shall be raised or
lowered to reflect a change in the effective rate of interest. The
actual interest rate to be paid on the amount remaining unpaid under
any member's purchase contract shall be a rate of interest which,
when combined with the interest paid on the unpaid balance of a
participation contract to which the department's interest is subject
equals the effective rate of interest.



270.38.  In the event the department enters into a master agreement
with one or more insurance companies to provide life or disability
insurance coverage for the purchasers of farms and homes from the
department, the master agreement shall be a form of group life or
group disability insurance for purposes of the Insurance Code and
shall provide both that the group life insurance coverage offered
under the master agreement will be offered by the insurance company
or companies to purchasers with a military duty-related disability
and nondisabled purchasers on an equal basis and that no purchaser
shall be denied coverage under the group life insurance policy
because that purchaser has a military duty-related disability at the
time of application.



270.39.  The action of a member purchaser for damages against any
third party does not affect his right of action for all damages
against any party other than the department. If the department
indemnifies, or becomes obligated to indemnify, the member purchaser,
it may likewise bring an action against any such third party
responsible for damage to the contract property. In the latter event,
the department may recover in the same suit all payments made on
behalf of the member purchaser.
   If either the member purchaser or the department brings an action
against such third party, the member purchaser or the department, as
the case may be, shall forthwith give to the other written notice of
the action and of the name of the court in which the action is
brought, by personal service or registered mail. Proof of such
service shall be filed in such action. If the action is brought by
either the member purchaser or the department, the other may, at any
time before trial on the facts, join as party plaintiff, or shall
consolidate the action if brought independently.
   The court shall first apply, out of the entire amount of any
judgment for any damage recovered by the member purchaser, a
sufficient amount to reimburse the department for the amount of its
expenditures for indemnification. If the department has not joined in
the action or has not brought action, or if the action has not been
consolidated, the court, on the department's application, shall allow
as a first lien against the entire amount of any judgment for any
damages recovered by the member purchaser, the amount of the
department's expenditures for indemnification.



270.41.  The department is authorized to issue to lenders or
investors supplying funds for the program a participation contract.



270.43.  Notwithstanding other provisions of this article relating
to maximum sums to be expended by the department and maximum purchase
price, the department may acquire or construct a home equipped with
solar energy heating devices at a purchase price not in excess of
five thousand dollars ($5,000) over the maximum amounts specified in
Sections 270.10, 270.11, 270.15, and 270.155.
State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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