Problem.Reinstatement

     A. Drafters of statutes, like drafters of contracts, often feel compelled to cover every conceivable variation on a theme. As a consequence, the critical operative language sometimes gets buried amidst the verbiage (for example, 375 words in the first sentence of Cal. Civ. Code 2924(c)(a)(1)) . Find the language in that section that grants the right to reinstate. To whom is that right given? Why are persons other than the original debtor given the right?  If the holder of a junior lien reinstates, what will that holder likely do next?

     B. The California legislature has given the right to reinstate to all debtors whose debts are secured by real property.  If the collateral is a motor vehicle, the legislature has given the right to reinstate if the debtor grants a purchase-money security interest interest to a dealer that finances acquisition of the motor vehicle, or if the debtor grants a security interest, whether purchase- money or non-purchase money, to a regulated entity known in California as a consumer finance lender.  See Commentary.Reinstatement.   However, credit unions and banks, for example, are exempt from the Consumer Finance Lenders Law and are not otherwise required by statute to permit the debtor reinstatement.  Should the debtor's right to reinstate a debt secured by a motor vehicle depend on the identity of the lender?  Why are such distinctions made where the collateral is a motor vehicle but not where the collateral is real property?  No California legislation gives a right to reinstate where the debt is secured by personal property other than a motor vehicle (e.g. a mobilehome, or jewelry, or furniture).  Is there sense to that distinction? 

     C. You are in-house counsel for a savings and loan. Upon the default of one of your borrowers on a note secured by a deed of trust on real property, you initiated non-judicial foreclosure by recording and sending to the debtor a Notice of Default. The form and content of the Notice complied with the requirements of Cal. Civ. Code 2924c(b) and, upon the debtor's inquiry, you advised the debtor that $2200 would be required to reinstate. In response, the debtor sent a check for $1500. What do you advise?