Qualification to hold a promissory note secured by California real property

[Goodman, Gary A.]

Do any of you know whether, under California law, the head office of a foreign bank is permitted be the holder of a promissory note secured by commercial real estate in California or may only its New York Branch hold that note?  Thanks, Gary

 

Gary A. Goodman

 

+1 212 768 6916   |   ​ +1 516 641 2775

 

New York

 

 

[Scott A. Weinberg]

Not sure about merely being the holder of a note, but I know the California licensing rules about originating loans are very strict, and non-compliance can have draconian consequences (I vaguely think the loan might be voidable by borrower without payment of interest, or something like that).  I'd also think that if California is like most states, you may only be able to use its courts if you are licensed to do business in California, which could be a problem on a foreclosure or guaranty action.  

My go to for bank regulatory type questions is my former colleauge Matt Yoon at Dentons (https://www.dentons.com/en/matthew-yoon)

Scott A. Weinberg
Cell 646-410-3396

email scottaw...@yahoo.com

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