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§ 5004. Collection Requirements for Collection Guarantees.

10 CA ADC § 5004Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 7. Business, Transportation and Housing Agency: Small Business Loans and Guarantees
Article 2. Loan Guarantees
10 CCR § 5004
§ 5004. Collection Requirements for Collection Guarantees.
Currentness
(a) A Lender shall not be authorized to file a Demand for a Collection Guarantee unless it has complied with this section. The requirements contained in this section are in addition to the requirements contained in section 5003.
(b) The Lender must liquidate all Collateral, but shall not be required to file a lawsuit against any Borrower or guarantor. “Liquidate” as used in this paragraph means that the Lender has exhausted all Collateral by one of the following methods:
(1) converted the Collateral into cash;
(2) demonstrated, to the satisfaction of the Corporation that the Collateral is without sufficient value to convert to cash; or
(3) demonstrated that the Borrower has filed for bankruptcy.

Credits

Note: Authority cited: Section 14022(b), Corporations Code. Reference: Section 14064, Corporations Code.
History
1. Editorial correction filed 2-16-83 (Register 83, No. 8).
2. Repealer and new section filed 6-24-91; operative 7-24-91 (Register 91, No. 42).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 5004, 10 CA ADC § 5004
End of Document