Beware Calif.'s 'One-Action Rule'

Law360, New York (May 27, 2011, 12:35 PM EDT) -- With Governor Jerry Brown recently signing into law Senate Bill 2, which increases California’s Renewable Portfolio Standard to 33 percent by 2020, the push to develop and finance renewable energy projects in California is likely to gain further momentum.

Financing renewable energy projects in California, however, has re-exposed lenders, who are often not native to California, to the "one-action rule." The one-action rule places limits on the ability of lenders to enforce and collect debt that is secured by real property located in California.[1]

While most...
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