California · Business and Professions Code - BPC

BPC §17530.1: (a) It shall be unlawful for a person to recommend to a prospective trustor any person to serve as trustee with knowledge or having reason to believe that the proposed trustee is insolvent or is about

Misdemeanor

What this law says, in plain English

It is unlawful to recommend an insolvent person as a trustee when knowing or believing they are or will become insolvent, except for trustees acting solely under deeds of trust or mortgages.

Read the full statutory text

(a) It shall be unlawful for a person to recommend to a prospective trustor any person to serve as trustee with knowledge or having reason to believe that the proposed trustee is insolvent or is about to become insolvent. For purposes of this section, “insolvent” means a person who has ceased to pay that person’s debts as they become due or whose liabilities exceed that person’s assets. (b) The provisions of this section shall not apply to any trustee named in any deed of trust or mortgage which secures a note or evidence of indebtedness on real property when such trustee acts solely in that capacity.

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.