South El Monte Municipal Code Ch. 8.31 Regulation of Properties in Foreclosure and Abandoned Properties

For the purposes of this chapter, certain words and phrases used in this chapter are defined as follows:

"Abandoned"

means any property that is vacant and is under a current notice of default and/or notice of trustee's sale, and/or any property which has been the subject of a foreclosure sale, trustee sale, or judicially authorized sale, where the title was retained by the beneficiary under its deed of trust upon the conclusion of the foreclosure and any property transferred by the trustor under a deed in lieu of foreclosure/sale to either the beneficiary, the trustee or to authorized entity as approved by the beneficiary.

"Accessible property"

means a property that is accessible through a compromised/breached gate, fence, wall, etc.

"Accessible structure"

means a structure/building that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons.

"Agent"

means and refers to a trustee, a mortgage servicer and any other person authorized to act on behalf of a beneficiary with respect to a mortgage loan account, or real property which is pledged to the beneficiary as security to a mortgage loan, and for the purposes of this chapter, the term "agent" includes any person authorized to act on behalf of a beneficiary who has completed a foreclosure of property from and after the time such beneficiary has acquired title to the property which was formerly secured by a deed of trust in favor of such beneficiary when the agent is undertaking any work or responsibility for the former beneficiary with respect to the ownership, maintenance, use or other disposition of such property, including any affiliate of such a beneficiary which acquire title to such property either, at the time of foreclosure (or recordation of a deed in lieu of foreclosure).

"Beneficiary"

means a lender under a promissory note to pay money secured by a deed of trust on property. The word "beneficiary" as used in this chapter means and includes any assignee or successor to such beneficiary, whether such assignee or successor acquires its interest in the beneficiary's promissory note either before a notice of default is recorded on the property securing the obligation payable to the beneficiary or after a notice of default is recorded. In the event that a property may provide security for the loan or obligation of more than one beneficiary, the beneficiary who causes its notice of default to be recorded shall be responsible for registering the property as set forth in this chapter.

"City"

means the city of South El Monte.

"City manager"

means the city manager of the city, or his or her designee.

"Deed in lieu of foreclosure/sale"

means an instrument that transfers ownership of a property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust.

"Deed of trust"

means an instrument by which title to real estate is transferred to a third party trustee as security for a real estate loan. This definition applies to any and all subsequent deeds of trust, i.e., second trust deed, third trust deed, etc.

"Default"

means the failure to fulfill a contractual obligation.

"Default inspection"

means a physical inspection of the exterior areas of the property conducted by the beneficiary or its agent following the occurrence of a breach or event of default by the trustor under a deed of trust.

"Evidence of vacancy"

means any fact or condition that on its own, or combined with other facts and conditions present, would lead a reasonable person to believe that the property is vacant. Such conditions include, but are not limited to, overgrown and/or dead vegetation, accumulation of newspapers, circulars, flyers and/or mail, past due utility notices and/or disconnected utilities, accumulation of trash, junk and/or debris, the absence of window coverings such as curtains, blinds and/or shutters, the absence of furnishings and/or personal items consistent with residential habitation, statements by neighbors, passersby, delivery agents, government employees that the property is vacant.

"Foreclosure"

means the process by which a property, placed as security for a real estate loan, is sold at auction to satisfy the debt if the trustor (borrower) defaults.

"Mortgage servicer" or "servicer"

means a person or entity responsible for the day-to-day management of a real estate or mortgage loan account, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing mortgage loan terms, either as the holder of the loan note or on behalf of the holder of the loan note.

"Notice of default"

means a recorded notice that states that a default has occurred under a deed of trust and that the beneficiary intends to proceed with a trustee's sale.

"Owner"

means any person, or entity, having a legal or equitable title or any interest in any real property.

"Owner of record"

means any person, or entity, who according to the public records contained at the Los Angeles County recorder's office, is the owner of a particular property.

"Property"

means any property either zoned or used for residential purposes.

"Securing"

means such measures as may be directed by the city manager that assist in rendering the property inaccessible to unauthorized persons, including, but not limited to, the installation or repair of fences and walls, chaining/padlocking of gates, the repair or boarding of door, window and/or other openings.

"Short-pay agreement"

means an agreement in writing in which the beneficiary agrees to release its lien on a property in return for payment of an amount less than the secured obligation affecting the property.

"Short-pay demand statement"

means a written statement issued subsequent to and conditioned on the existence of a short-pay agreement that is prepared in response to a written demand made by a trustor or an authorized agent of such trustor, whereby a beneficiary sets forth an amount less than the outstanding debt, together with any other terms and conditions under which the beneficiary will execute and deliver a reconveyance of the deed of trust securing the note that is the subject of the short-pay demand statement.

"Trustee"

means the person, firm or corporation holding a deed of trust on a property.

"Trustor"

means a borrower under a deed of trust, who deeds property to a trustee as security for the payment of a debt.

"Vacant"

means any building that is unoccupied by any person, or that is occupied by an unauthorized person for any amount of time.

(Ord. 1168 §2, 2012)

A. Prior to recording a notice of default on a property which is subject to a deed of trust, the beneficiary, or its agent, shall conduct a default inspection of the property.

B. When practicable, each default inspection shall be conducted upon prior reasonable notice and consent of the trustor and any occupant of the property. In instances when prior reasonable notice and consent from the trustor and any occupant cannot reasonably be obtained despite due and diligent inquiry by the beneficiary, or where the trustor or the occupant expressly refuses to give the beneficiary consent to a default inspection, the beneficiary or its agent shall conduct the default inspection of the exterior areas of the property which may be viewed from the adjacent public right-of-way or from adjacent property on which the owner or occupant of such adjacent property has consented to entry for the purpose of conducting a default inspection of the adjoining property. The beneficiary, or its agent, shall maintain a written record of the time and date of each default inspection and shall identify the individual who conducted the default inspection. The written record of each default inspection shall at a minimum indicate whether, at the time of the default inspection, the property was:

1. Occupied or vacant, and if vacant, set forth facts to support the evidence of vacancy;

2. In compliance with the general maintenance and monitoring standard set forth in Section 8.31.050; and

3. If security devices have been installed on the property by either the trustor, the beneficiary or its agent, or by another entity, the default inspection report shall indicate whether the installed security devices are intact and in good and serviceable condition.

A default inspection report shall contain such other property-specific information as the city manager may direct in writing to the beneficiary.

(Ord. 1168 §2, 2012)

A. The beneficiary, or its agent, shall register the property with the city manager on forms provided by the city within ten days from the date the notice of default is recorded.

B. For all property for which a notice of default has been recorded before the effective date of this ordinance, and where since that date, such notice of default has not either been rescinded or superceded, modified or amended by a subsequent notice of default recorded after the effective date of this ordinance, then in such event, the beneficiary or its agent shall register the property with the city manager on forms provided by the city. The provisions of this section are intended to apply to all property where:

1. A foreclosure proceeding may have been initiated prior to the effective date of the ordinance codified in this chapter;

2. The notice of default has not been either rescinded or superceded, modified or amended by a separate notice of default recorded on or after the effective date of the ordinance codified in this chapter; and

3. The beneficiary has not completed the exercise of its remedy identified under such notice of default, for whatever reason, including, without limitation, one or more trial mortgage loan modification attempts by the trustor or borrower, loan forbearance by the beneficiary, beneficiary foreclosure moratorium or the effect of the pendency of bankruptcy proceedings of the trustor for which relief from stay has not been obtained from the bankruptcy court by the beneficiary.

(Ord. 1168 §2, 2012)

The beneficiary and its agents shall be deemed exempt from further compliance with the regulations of this chapter with respect to a property for which a notice of default has been recorded, upon the earlier of the following times:

A. Provided that the beneficiary is not then in violation of this chapter with respect to the particular property, the date on which the beneficiary or its agent gives the city the written notice described in Section 8.31.100(A) for the particular property.

B. Provided that the beneficiary is not then in violation of this chapter with respect to the particular property, the date on which the beneficiary or its agent gives the city the written notice described in Section 8.31.100(B) for the particular property.

(Ord. 1168 §2, 2012)

A. Properties which are abandoned shall be maintained and kept free of weeds, dry brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices (except those required by federal, state or local law), discarded personal items, including, but not limited to, furniture, clothing, large and small appliances, printed material or any other items that give the appearance that the property is abandoned. Such property shall be maintained free of graffiti, tagging or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior of the structure. In general, the maintenance of abandoned property shall comply with the standards set forth in Section 8.30.030 and HUD Mortgagee Letter 2007-03, dated January 25, 2007, or such other standard as may hereafter be ordered in writing by the city manager. Adherence to the maintenance and monitoring standard set forth in this section does not relieve the beneficiary/trustee or property owner of any obligations set forth in any covenants, conditions and restrictions and/or homeowners' association rules and regulations which may apply to the property.

B. Each property which is acquired by a beneficiary following the recordation of a notice of default, whether acquired by such beneficiary by foreclosure, deed in lieu of foreclosure, judgment of foreclosure, or in any other manner, shall be maintained by the beneficiary in accordance with the general standard set forth in subsection A, as long as the beneficiary owns the property.

C. Nothing in this section shall be deemed to prevent the city upon appropriate written application to the Superior Court, from seeking appointment of a receiver for property under applicable law, to provide appropriate preservation, maintenance, security or abatement of adverse conditions on property, or to appoint a receiver or take other action for property acquired by the beneficiary following the recordation of a notice of default, whether acquired by such beneficiary by foreclosure, deed in lieu of foreclosure, judgment of foreclosure, or in any other manner, but which thereafter is not being maintained under the standards set forth in this chapter. The remedies available to the city under this chapter are expressly declared to be cumulative with all other remedies available to the city under applicable law.

(Ord. 1168 §2, 2012)

Properties which are abandoned shall be maintained by the beneficiary in a secure manner so as not to be accessible to unauthorized persons. In general, the security of abandoned property by the beneficiary shall comply with the standards set forth in Sections 8.30.020, 8.30.030 and HUD Mortgagee Letter 2007-03, dated January 25, 2007, or such other standard as may hereafter be ordered in writing addressed to the beneficiary by the city manager.

If the property is owned by a corporation or out-of-area, beneficiary/trustee/owner shall contract with a local property management company to perform weekly inspections to verify that the requirements of this section, and any other applicable law, are being satisfied.

The posting shall be no less than eighteen inches by twenty-four inches and shall be of a font that is legible from a distance of forty-five feet and shall contain the words "THIS PROPERTY IS MANAGED BY [insert name of owner or manager]" and "TO REPORT PROBLEMS OR CONCERNS CALL [insert telephone number of owner or manager] OR CALL THE CITY OF SOUTH EL MONTE AT (626) 579-6540." The notice shall be placed in a location that is visible from the street adjacent to the front lot line, in the following order:

A. Interior of a window;

B. Exterior of the building if no window is visible from the street; or

C. If the notice cannot be posted in either subsection A or B, in a location not readily accessible to vandals.

Notices posted on exterior locations shall be constructed of and printed with weather resistant materials. The local property management company shall make available to the city upon request written confirmation that the property has been inspected not less frequently than once per week to assist the city in determining whether the property is in compliance with the requirements of this chapter.

(Ord. 1168 §2, 2012)

A. Property which is acquired by a beneficiary following the recordation of a notice of default, whether acquired by such beneficiary by foreclosure, deed in lieu of foreclosure or judgment of foreclosure, shall also be subject to compliance with the provisions of Section 8.31.080 of this chapter, upon the sale, exchange, transfer or other conveyance of such property by the beneficiary to a third person.

B. Property which is abandoned at the time of acquisition by a beneficiary, whether acquired by such beneficiary by foreclosure, deed in lieu of foreclosure or judgment of foreclosure shall also be subject to compliance with the provisions of Section 8.31.080 of this chapter, prior to the earlier date of either:

1. Re-occupancy of such property by any tenant of the beneficiary; or

2. Sale, exchange, transfer or other conveyance of such property by the beneficiary to a third person.

C. Property which is occupied by either the trustor or a tenant of the trustor at the time of acquisition by a beneficiary, whether acquired by such beneficiary by foreclosure, deed in lieu of foreclosure or judgment of foreclosure, shall also be subject to compliance with the provisions of Section 8.31.080 of this chapter prior to the earlier date of either:

1. The re-occupancy of such property by any successor tenant to the trustor or such other successor tenant to the tenant in possession of the property at the time of the beneficiary's acquisition of the property; or

2. Sale, exchange, transfer or other conveyance of such property by the beneficiary to a third person.

D. All property which is proposed to be transferred, sold or otherwise conveyed by a trustor to a third party bona fide purchaser following the recordation of a notice of default and the issuance by the beneficiary (or its agent) of a short-pay demand statement, shall prior to the completion of such transfer, sale or other conveyance, be subject to compliance with the provisions of Section 8.31.080 of this chapter. The beneficiary, and each of its agents who cause to be recorded the reconveyance of the deed of trust securing the note that is subject to the short-pay agreement, shall each be responsible for obtaining compliance with Section 8.31.080 of this chapter in the event that the bona fide purchaser may fail to provide the city with an acceptable surety for such compliance prior to the recordation of the reconveyance of the deed of trust described in the short-pay demand statement.

E. For the purpose of compliance with provisions of Section 8.31.080 of this chapter, in the case of property sold at auction to a bona fide purchaser pursuant to the powers conferred on a trustee by a deed of trust following the recordation of a notice of default, the beneficiary under such deed of trust, and each of its agents shall be presumed to be the parties who are responsible for the completion of all needed corrections identified in the property inspection report, as provided in Section 8.31.080 unless:

1. At least one business day prior to the recordation of the trustee's deed conveying such property to the bona fide purchaser following the completion of the foreclosure sale, the trustee provides a copy of the text of this chapter to such bona fide purchaser; and

2. The trustee provides written notice to the city manager of the full name, address and telephone or email contact information of such bona fide purchaser within ten business days following the recordation of the trustee's deed under subsection (E)(1), above.

(Ord. 1168 §2, 2012)

A. Property Inspection Report. A beneficiary (and any of its agents), that acquire property, whether by foreclosure, deed in lieu of foreclosure, or judgment of foreclosure, or a trustor of property in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, shall apply to the city for the preparation of a property inspection report in the case of any sale, exchange, transfer or conveyance of the property in question. The property inspection report shall be prepared by the city manager.

B. Exceptions. The requirements of this section shall not apply to the sale, exchange, transfer or conveyance of any of the following:

1. Multifamily residential buildings containing five or more residential dwelling units;

2. Real property that is both vacant and unimproved; or

3. Real property that will soon be made vacant and unimproved and thereafter remain vacant and unimproved for an indefinite period of time, provided the beneficiary and its agents, or a trustor in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, posts a demolition compliance bond and provided all demolition and debris removal is completed within one hundred eighty calendar days of the date sale, exchange, transfer or conveyance, whichever the case may be.

C. Mixed-Use Developments—Rented Units. If all residential dwelling units within the residential portion of a mixed-use development are owned by a single owner with each such unit being rented, leased, licensed or otherwise made available for residential purposes by the single owner (e.g., as would be the case with a multi-unit apartment complex), the requirements of this section shall not apply if the residential portion of the mixed-use development consists of five or more residential dwelling units.

D. Mixed-Use Developments—Owned Units. If two or more residential dwelling units within the residential portion of a mixed-use development are owned by different owners under an arrangement of separate ownership (e.g., as would be the case with a multi-unit condominium complex), the requirements of this section shall apply to the sale, exchange, transfer or conveyance of any residential unit within the residential portion of the mixed-use development.

E. Demolition Compliance Bond. In the event of any sale, exchange, transfer or conveyance of property that will soon be made vacant and unimproved with the aim of leaving said property in a vacant and unimproved state for an indefinite period of time, the beneficiary and its agents, or a trustor of property in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, shall be required to post a demolition compliance bond to guarantee the full and timely demolition of all buildings, structures and other improvements upon the property. The amount of the demolition compliance bond shall be determined by the city manager utilizing such criteria and methodology as may be adopted, and from time to time revised and/or modified, by city council resolution.

F. Content of Property Inspection Report. The property inspection report shall contain the following information:

1. The street address and legal description of the subject property;

2. The zone classification;

3. The legally authorized use of the subject property;

4. The identification of all land use restrictions including, but not limited to, those imposed by way of variances, modifications, conditional use permits, subdivision maps, parcel maps and the like;

5. All corrections needed to bring the subject property into compliance with provisions of this Code relating to building and construction standards; zoning requirements and restrictions; and housing restrictions; and

6. All other corrections needed to correct any other condition constituting a violation of this Code, including, but not limited to, provisions relating to public health and safety.

G. Completion Period. Each property inspection report shall be completed within ten city business days from the date the property in question is inspected and shall remain valid for a period of six months from the date of its issuance by the city manager. If a property inspection report is not completed within the foregoing ten-day period, the requirements of this section shall be deemed waived. The foregoing notwithstanding, the waiver of the requirements of this section shall not constitute a waiver of any other requirements set forth under this chapter nor shall such waiver preclude the city from pursuing any and all remedies available to it at law or in equity in order to enforce the requirements and standards set forth under this Code.

H. Nonliability of City for Failure to Identify All Deficiencies. In issuing a property inspection report, neither the city nor the city manager warrant or represent that all outstanding code violations or deficiencies are stated therein. Violations and deficiencies identified in each property inspection report represent the city's best attempt to identify all outstanding violations and deficiencies, but do not necessarily represent an exhaustive listing of such violations or deficiencies. The failure of the city to identify a violation or deficiency in the property inspection report shall not prevent the city from taking all legal action available to it to cause such violation to be corrected.

I. Delivery of Report to Prospective Buyer. A beneficiary and its agents, or a trustor in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, shall deliver the property inspection report to any bona fide purchaser attempting to acquire the subject property and within fourteen calendar days thereafter shall deliver to the city manager a delivery confirmation receipt evidencing the successful delivery of the property inspection report.

J. Time Period for Making Corrections to Property. If the subject property is in need of corrections as specified in the property inspection report, a beneficiary and its agents, or a trustor in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, shall initiate such corrections within thirty calendar days of the date the property inspection report is issued and shall complete such corrections no later than one hundred eighty calendar days from the date the property inspection report is issued.

K. Parties Responsible for Corrections. A beneficiary and its agents, or a trustor in which a notice of default has been recorded and the beneficiary has issued a short-pay demand statement, shall be responsible for the completion of all needed corrections identified in the property inspection report. Any bond fide purchaser attempting to acquire the property may assume legal responsibility for the completion of all corrections by execution and submission of an "Acknowledgement & Assumption Affidavit" coincident with the completion of the property sale or exchange.

L. Compliance Bond. The execution of an "Acknowledgement & Assumption Affidavit" shall in turn require the posting by the buyer of a compliance bond with the city to guarantee the full and timely completion of all required corrections. The compliance bond shall be submitted at the same time as the submission of the "Acknowledgement & Assumption Affidavit" and no "Acknowledgement & Assumption Affidavit" shall be considered complete absent the posting of an adequate compliance bond. The amount of the compliance bond shall be determined by the city manager using such criteria and methodology as may be adopted, and from time to time revised and/or modified, by city council resolution.

M. Failure to Make Corrections. If any corrections prescribed in the property inspection report are not corrected within the time frame specified herein such failure shall constitute a violation of this chapter.

(Ord. 1168 §2, 2012)

Upon prior written application in a form approved by the city manager, a beneficiary or a trustee or agent on behalf of one or more beneficiaries, may enter into a memorandum of agreement with the city for administration of the provisions of this chapter to one or more properties which are either owned by such beneficiary (or represented group of such beneficiaries) or for which the beneficiary has caused to be recorded a notice of default. Such a memorandum shall have a duration of not more than twelve months, unless renewed or extended by the beneficiary and the city and shall contain other provisions reasonably acceptable to the city manager. Each memorandum of agreement shall be subject to the approval of the city council.

(Ord. 1168 §2, 2012)

A. Within ten days following the release of a notice of default and the reinstatement of the loan of the trustor, the beneficiary or its agent shall give the city written notice of such release and reinstatement.

B. Within ten days following the sale, transfer or other conveyance to a third person of a property registered with the city under this chapter, the beneficiary or its agent, shall give the city written notice of such sale, transfer or other conveyance together with current contact information for such bona fide purchaser/successor-in-interest to the beneficiary of such property.

(Ord. 1168 §2, 2012)

The beneficiary or its agent shall annually renew a registration of each property which the beneficiary has previously registered with the city under this chapter, and in which such beneficiary retains either an equitable or legal interest as of the first anniversary of the registration of such property with the city. The beneficiary or its agent shall re-register the property on forms provided by the city.

(Ord. 1168 §2, 2012)

In addition to the enforcement remedies established in Chapters 1.14 and 1.16 of this Code, the city manager shall have the authority to require the beneficiary/trustee/owner and/or owner of record of any property subject to this chapter to implement additional maintenance and/or security measures including but not limited to securing any/all door, window or other openings, installing additional security lighting, increasing onsite inspection frequency, employment of an on-site security guard, or other measures as may be reasonably required to prevent the decline of the property.

(Ord. 1168 §2, 2012)

Fees and charges established by this chapter shall be set by resolution of the city council.

(Ord. 1168 §2, 2012)

Where Property Serves as Security for Multiple Liens. In some instances, property may be subject to the recordation of multiple notices of default by different beneficiaries or other lienholders. The city may establish fees and charges for the administration of the regulatory program established by this chapter, which shall be applicable to the recordation of multiple notices of default by different beneficiaries or other lienholders, and such fees shall be set by resolution of the city council.

(Ord. 1168 §2, 2012)

A violation of this chapter may be enforced by any means authorized by Chapters 1.14 and 1.16 of this Code.

(Ord. 1168 §2, 2012)

A. Notwithstanding any other provision of this chapter or Chapter 1.14 to the contrary, the city may impose a fine on a beneficiary for its failure to timely register a property with the city under this chapter in the following amounts:

1. Two hundred fifty dollars for the first violation in the twelve months preceding the date of such violation;

2. Five hundred dollars for the second violation in the twelve months preceding the date of such violation;

3. One thousand dollars for the third and each subsequent violation in the twelve months preceding the date of such violation.

B. Notwithstanding any other provision of this chapter or Chapter 1.14 or Chapter 1.16 to the contrary, the city may impose a fine on an agent of a beneficiary for its failure to timely register a property with the city under this chapter or to give timely notice to the city of the disposition of the registered property under Section 8.31.100(A) or (B), in the following amounts:

1. Two hundred fifty dollars for the first violation in the twelve months preceding the date of such violation;

2. Five hundred dollars for the second violation in the twelve months preceding the date of such violation;

3. One thousand dollars for the third and each subsequent violation in the twelve months preceding the date of such violation.

(Ord. 1168 §2, 2012)

A. In the event that a property is encumbered by the security interests of more than one beneficiary at the time when a notice of default is recorded, the beneficiary who causes a notice of default for its security interest to be recorded shall be responsible for registering the property with the city as provided in Sections 8.31.030 and 8.31.110.

B. Upon the recordation of a notice of default on a property by any beneficiary, regardless of the security lien interest priority of such beneficiary in the property in relation to the priority of the security interests of the other beneficiaries in the same property, the city, in its discretion may elect to enforce the provisions of this Chapter 8.31 against one or more beneficiaries who have not separately recorded a notice of default against the property.

(Ord. 1168 §2, 2012)

Any person aggrieved by any of the requirements of this chapter, or by an order of the city manager, may appeal such matter to the city council as provided in Chapter 1.14 of this Code.

(Ord. 1168 §2, 2012)

Any person, firm or corporation that violates any portion of this chapter shall be subject to prosecution under Section 1.16.010 and administrative enforcement under Chapter 1.14 of this Code.

(Ord. 1168 §2, 2012)

A. It is unlawful for a trustee to sell a property at auction, pursuant to the powers conferred on such trustee by a deed of trust, to a bona fide purchaser following the recordation of a notice of default, unless the property sold at auction has been registered with the city as set forth under Section 8.31.030 by the beneficiary or its agent for at least thirty days prior to date on which the notice of sale for such property has been recorded which sets the initial time and date of the auction.

B. A violation of subsection A of this section shall be subject to prosecution under Section 1.16.010 and/or administrative enforcement under Chapter 1.14 of this Code.

(Ord. 1168 §2, 2012)

A. It is unlawful for a trustee to release and reconvey a deed of trust following the issuance of a short pay demand statement pursuant to the powers conferred on such trustee by a deed of trust following the recordation of a notice of default, unless the property which is the subject of the short pay demand statement has been registered with the city as set forth under Section 8.31.030 by the beneficiary or its agent.

B. A violation of subsection A of this section shall be subject to prosecution under Section 1.16.010 and administrative enforcement under Chapter 1.14 of this Code.

(Ord. 1168 §2, 2012)