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California 20252026

AB 1278

Mortgages: hazard insurance proceeds: interest.

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Source: Open States / PluralLatest available (refresh delayed). Last refreshed: 2026-10-19 09:12:31 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Mortgages, hazardinsuranceproceeds, interest
Introduced / first action
2025-02-21 00:00:00

Alternate titles

  • Emergency Management Assistance Compact.

Source-supplied abstracts

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation, and makes the department responsible for administering various laws relating to financial institutions and products, including mortgages. Existing law defines and regulates mortgages. Existing law requires a financial institution that makes loans upon the security of real property containing only a one- to 4-family residence in this state or purchases obligations secured by the property and that holds hazard insurance proceeds in a loss draft account pending property rebuilding or repair to pay interest on those funds at a rate of at least 2% simple interest per annum, as specified. Existing law requires that interest to be credited to the above-described loss draft account annually or upon termination of the account, whichever is earlier. This bill would, instead, require that interest to be credited to the above-described loss draft account, or paid directly to the borrower, annually or upon termination of the account, whichever is earlier, as specified. The bill would require payments made directly to the borrower as described above to be made by check, electronic funds transfer, or another payment method agreed to by the borrower, as specified. The bill would make a check issued pursuant to the above-described provision that is uncashed 90 calendar days after delivery canceled, as specified.

Sponsors

Source-supplied history

Actions

  1. Chaptered by Secretary of State - Chapter 877, Statutes of 2026.

    became-law

  2. Approved by the Governor.

    executive-signature

  3. Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0. Page 6137.).

    amendment-passage, committee-passage, committee-passage-favorable

  5. In Assembly. Concurrence in Senate amendments pending.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5321.).

    passage, reading-1, reading-3

  7. Read second time. Ordered to Consent Calendar.

    reading-1, reading-2

  8. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

    committee-passage, reading-1, reading-2

  9. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (June 30). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  10. Read second time and amended. Re-referred to Com. on JUD.

    amendment-passage, reading-1, reading-2, referral-committee

  11. From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 17).

    amendment-introduction, amendment-passage, committee-passage, referral-committee

  12. Referred to Coms. on B. & F.I. and JUD.

    referral-committee

  13. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  14. Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 3885.)

    passage, reading-1, reading-3

  15. Read second time. Ordered to Consent Calendar.

    reading-1, reading-2

  16. From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (January 22).

    committee-passage, committee-passage-favorable

  17. Re-referred to Com. on APPR.

    referral-committee

  18. Read second time and amended.

    amendment-passage, reading-1, reading-2

  19. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (January 12).

    amendment-introduction, amendment-passage, committee-passage, referral-committee

  20. Re-referred to Com. on B. & F.

    referral-committee

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  22. Referred to Com. on B. & F.

    referral-committee

  23. Read first time.

    reading-1

  24. From printer. May be heard in committee March 24.

  25. Introduced. To print.

    introduction

When supplied by the API

Related measures

No resolvable related measure is supplied.