Cal. Code Regs. Tit. 10, § 3102 - Substantially Complete Application

Current through Register 2021 Notice, Register No. 40, October 1, 2021

Except as provided in Section 3101 of these regulations, an application for payment from the Recovery Account is "substantially complete" within the meaning of Section 10471.2(b) of the Code if it contains all of the documents and information enumerated below:

(a) Proof that the judgment debtor was served with the Notice and Application.
(b) A copy of the judgment showing it to be a final judgment as defined in this article, and any findings of facts, conclusions of law, jury verdicts, jury special verdicts, statements of decisions, memorandum decisions, or any other indication by the court or jury, as the case may be, of its decision and the reasons for the decision. If the original judgment was appealed, copies of the appellate decision and remittitur.
(c) Copies of the original complaint, answer, cross-complaints, answers to cross-complaints, and all amendments or other subsequent versions of any of those documents.
(d) Copies of any pre-trial or post-trial briefs or settlement conference statements.
(e) A listing of all depositions and interrogatories taken in the underlying action, describing the party or parties taking the deposition or pro pounding the interrogatories, the deponent or person responding to interrogatories, and all persons present at any deposition.
(f) Copies of any demurrers or motions for summary judgment, supporting documents, and rulings thereon.
(g) Copies of all documents reflecting the terms of the underlying transaction, including for example offers, counteroffers, escrow instructions, closing statements, deeds, notes and deeds of trust.
(h) A detailed narrative description by the claimant under penalty of perjury of all the facts of the underlying transaction, including how he or she was damaged by the judgment debtors, and the roles of all other persons involved in the transaction (such as other brokers or salespersons, sellers and buyers).
(i) A description by the claimant of the basis for each element of damages.
(j) If the only judgment debtor was a salesperson, a statement as to why the employing broker was not either sued or taken to judgment.
(k) If any codefendants were dismissed from the underlying lawsuit, a statement of the reason for dismissal as to each such codefendant.
(l) A list of the names of any witnesses who testified at the underlying trial and the present or last known addresses of the witnesses to the extent known by the claimant.
(m) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the assets of the judgment debtor and the assets of all other persons liable to the claimant in the transaction which assets may be liable to be sold or applied to the losses suffered by the claimants, an itemized valuation of the assets discovered, and the results of actions by the claimant to have the assets applied to the losses suffered by the claimant.
(n) If the claimant claimed any loss related to the transaction as a deduction on his or her tax return or returns, a description of the amount of the tax benefit derived therefrom.
(o) A statement whether the judgment debtor is known to have filed bankruptcy. If so, a statement whether the claimant was named as a creditor in the bankruptcy, filed a claim in the bankruptcy, and pursued an adversary complaint to have the debt determined to be nondischargeable. If the judgment debtor filed bankruptcy and the claimant failed to take any of the foregoing actions, a statement as to why the claimant failed to take such actions.
(p) Abstracts of judgment bearing evidence of having been recorded in the county or counties in which the judgment debtor may possibly have assets.
(q) If any of the above items are not included in the initial application, or are requested in a deficiency letter and not supplied, a statement under penalty of perjury that the claimant has made a diligent effort to locate and produce the items but has been unable to locate them or has found that they do not exist.
(r) All documents or copies of documents submitted to meet the requirements of this section must be clear and legible.
(s) Certification by the claimant that all documents submitted are true and correct copies of the originals, and if such documents purport to be copies of documents filed in court, that they are true and correct copies of the originals filed with the court.


Cal. Code Regs. Tit. 10, § 3102

Note: Authority cited: Sections 10080 and 10471.2, Business and Professions Code. Reference: Section 10471.2, Business and Professions Code.

1. New section filed 12-15-86; designated effective 1-1-87 pursuant to Government Code Section 11346.2(d) (Register 86, No. 51).
2. Amendment of subsection (a) filed 3-18-88; operative 4-17-88 (Register 88, No. 14).

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