(a) It shall be unlawful for a person to recommend to a prospective trustor any person to serve as trustee with knowledge or having reason to believe that the proposed trustee is insolvent or is about to become insolvent. For purposes of this section, âinsolventâ means a person who has ceased to pay that personâs debts as they become due or whose liabilities exceed that personâs assets. (b) The provisions of this section shall not apply to any trustee named in any deed of trust or mortgage which secures a note or evidence of indebtedness on real property when such trustee acts solely in that capacity.
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