Does a bona fide encumbrancer who is not a borrower have to be a "bona fide purchaser" of a loan?

California, United States of America


The following excerpt is from Denham v. Harry E. Westover & Assocs., B269825 (Cal. App. 2017):

6. Bona fide encumbrancers are treated the same as bona fide purchasers, using the same legal principles. (Caito v. United California Bank (1978) 20 Cal.3d 694, 702.)

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