LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeFinancial CodeDiv. 9Ch. 4Art. 1§ 22716 Pace Contract Enforceability

§ 22716 Pace Contract Enforceability

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 22716 Pace Contract Enforceability

Key Takeaways

  • •If a company loses its license, old contracts with customers are still valid.
  • •Bonds (like loans) tied to those contracts are still enforceable.
  • •This rule also applies to special contracts called PACE assessments for property improvements.

Example

A company that helps homeowners pay for solar panels loses its license.

Even if the company can't work anymore, the homeowner still has to pay back the loan for the solar panels, and the company can still collect that money.

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

Official Source
View on CA.gov

§ 22716 Pace Contract Enforceability

(a) The revocation, suspension, expiration, or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower or property owner, nor the validity and enforceability of any bonds issued and secured by those contracts. This division does not affect the validity and enforceability of any PACE assessment contracts entered into or bonds issued and secured by those contracts. (b) This section shall become operative on January 1, 2019. (Amended (as added by Stats. 2017, Ch. 475, Sec. 83) by Stats. 2018, Ch. 813, Sec. 14. (AB 2063) Effective January 1, 2019.)

Last verified: January 23, 2026

Key Terms

revocationsuspensionexpirationsurrenderlicensepreexisting lawful contractborrowerproperty ownerbondsPACE assessment contracts

Related Statutes

  • § 22704 Commissioner'S Ongoing Investigative Authority
  • § 17609 Escrow License Revocation Effects
  • § 17609.1 Commissioner'S Ongoing Investigative Authority
  • § 22711 License Surrender Procedure
  • § 12304 Licensee Audit Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 22716.
View Official Source