"To resolve the prior conflict between courts as to the interpretation of the statute, the California Appellate Court explained its disagreement with the Bankruptcy Court’s decisions as stated in footnote 2 of the Calvo decision:
“We find the analysis in [In re Salazar] unpersuasive . . .
Holdings of the federal courts are not binding or conclusive
in California courts though they may be entitled to
respect and careful consideration [citation omitted].
Therefore, the California Appellate Court reasoned that the Salazar and Doble decisions have no legal force or effect as to their interpretation of § 2932.5.
In Calvo, the California Court of Appeal has clarified and reinforced the longstanding rule that Civil Code § 2932.5 is inapplicable to deeds of trust. The assignment of the beneficial interest in the deed of trust does not have to be recorded prior to foreclosure.