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TITLE 2. CREDIT SALES
CHAPTER 1. RETAIL INSTALLMENT SALES
Article 4. Restrictions on Retail Installment Contracts
California Civil Code Section 1804.1-1804.4




1804.1.  No contract or obligation shall contain any provision by
which:
   (a) The buyer agrees not to assert against a seller a claim or
defense arising out of the sale or agrees not to assert against an
assignee such a claim or defense other than as provided in Section
1804.2.
   (b) In the absence of the buyer's default in the performance of
any of his or her obligations, the holder may accelerate the maturity
of any part or all of the amount owing thereunder.
   (c) A power of attorney is given to confess judgment in this
state, or an assignment of wages is given; provided, that nothing
herein contained shall prohibit the giving of an assignment of wages
contained in a separate instrument, executed pursuant to Section 300
of the Labor Code.
   (d) The seller or holder of the contract or other person acting on
his or her behalf is given authority to enter upon the buyer's
premises unlawfully or to commit any breach of the peace in the
repossession of goods.
   (e) The buyer waives any right of action against the seller or
holder of the contract or other person acting on his or her behalf,
for any illegal act committed in the collection of payments under the
contract or in the repossession of goods.
   (f) The buyer executes a power of attorney appointing the seller
or holder of the contract, or other person acting on his or her
behalf, as the buyer's agent in collection of payments under the
contract or in the repossession of goods.
   (g) The buyer relieves the seller from liability for any legal
remedies which the buyer may have against the seller under the
contract or any separate instrument executed in connection therewith.

   (h) The buyer agrees to the payment of any charge by reason of the
exercise of his or her right to rescind or void the contract.
   (i) The seller or holder of the contract is given the right to
commence an action on a contract under the provisions of this chapter
in a county other than the county in which the contract was in fact
signed by the buyer, the county in which the buyer resides at the
commencement of the action, the county in which the buyer resided at
the time that the contract was entered into, or in the county in
which the goods purchased pursuant to the contract have been so
affixed to real property as to become a part of such real property.
   (j) The seller takes a security interest, other than a mechanics'
lien, in the buyer's real property which is the buyer's primary
residence where the buyer is a person who is 65 years of age or older
and the contract is for a home improvement, as defined in Section
7151.2 of the Business and Professions Code.



1804.2.  (a) An assignee of the seller's rights is subject to all
equities and defenses of the buyer against the seller arising out of
the sale, notwithstanding an agreement to the contrary, but the
assignee's liability may not exceed the amount of the debt owing to
the assignee at the time of the assignment.
   (b) The assignee shall have recourse against the seller to the
extent of any liability incurred by the assignee pursuant to this
section regardless of whether the assignment was with or without
recourse.



1804.3.  (a) No contract other than one for services shall provide
for a security interest in any goods theretofore fully paid for or
which have not been sold by the seller.
   (b) Any contract for goods which provides for a security interest
in real property where the primary goods sold are not to be attached
to the real property shall be a violation of this chapter and subject
to the penalties set forth in Article 12.2 (commencing with Section
1812.6).
   (c) This section shall become operative October 1, 1982.



1804.4.  Any provision in a contract which is prohibited by this
chapter shall be void but shall not otherwise affect the validity of
the contract.

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