§ 8006 Construction Lender Definition

Civil Code·California

AI SummaryVerified

Key Takeaways

•A construction lender is someone who gives money to pay for building or fixing something.
•This can be a bank or someone who gets the money from the original lender.
•It can also be a person or company holding money in a special account to pay for the work.
•The money is only for paying the costs of building or improving something.

Example

You want to build a new house but don't have all the money upfront.

A bank gives you a loan to pay the builders step by step as they work. The bank is the construction lender because they are giving the money to pay for the building work.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 8006 Construction Lender Definition

“Construction lender” means either of the following: (a) A mortgagee or beneficiary under a deed of trust lending funds with which the cost of all or part of a work of improvement is to be paid, or the assignee or successor in interest of the mortgagee or beneficiary. (b) An escrow holder or other person holding funds provided by an owner, lender, or another person as a fund for with which the cost of all or part of a work of improvement is to be paid. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Last verified: January 21, 2026

Key Terms

Construction lender mortgagee beneficiary under a deed of trust escrow holder work of improvement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 8006.

§ 8006 Construction Lender Definition

Civil Code·California

AI SummaryVerified

§ 8006 Construction Lender Definition

Key Takeaways

•A construction lender is someone who gives money to pay for building or fixing something.
•This can be a bank or someone who gets the money from the original lender.
•It can also be a person or company holding money in a special account to pay for the work.
•The money is only for paying the costs of building or improving something.

Example

You want to build a new house but don't have all the money upfront.

A bank gives you a loan to pay the builders step by step as they work. The bank is the construction lender because they are giving the money to pay for the building work.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 8006 Construction Lender Definition

Last verified: January 21, 2026

Key Terms

Construction lender mortgagee beneficiary under a deed of trust escrow holder work of improvement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 8006.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References