§ 5283. Guarantee Procedures.
10 CA ADC § 5283Barclays Official California Code of Regulations
10 CCR § 5283
§ 5283. Guarantee Procedures.
Upon receipt of a completed application from a potential borrower applying for a guarantee, the corporation shall review and process the application in accordance with the following procedures:
(a) Before considering whether to approve a guarantee, the corporation shall provide the reviewing agencies a copy of the application. Upon completion of their review, each reviewing agency shall return to the corporation the application, together with their determination regarding approval of the application.
(2) If any reviewing agency deems the application incomplete, the reviewing agency shall provide a written notice to the applicant and corporation and specify those parts of the application which are incomplete and shall indicate the manner in which they can be made complete, including a list and thorough description of the specific information needed to complete the application. The reviewing agency shall specify in the notice of deficiency a date for submitting the necessary information. The applicant shall submit to the reviewing agency materials necessary to make the application complete, as specified by the reviewing agency in the written notice of incompleteness. No later than 45 calendar days after receiving additional application materials, submitted in response to a notice of incompleteness, the reviewing agency shall notify the applicant in writing whether the application with the additional materials is complete.
(b) No guarantee shall be executed by a corporation until the application has been approved by all reviewing agencies, and the proposed guarantee has been reviewed by the corporation's loan committee and approved by its board of directors, unless the corporation's board of directors has delegated the authority to approve a proposed guarantee to the corporation's loan committee. No guarantee shall be approved or executed by a corporation if the lender is the same entity as the corporation issuing the guarantee.
(d) In the event that a guarantee is issued to a lender without first complying with the requirements of subsections (a) and (b), and the lender relies upon the guarantee in making the loan, the failure by the corporation to so comply shall not constitute a defense on the part of either the agency or the corporation to paying a demand for payment made pursuant to section 5285.
Credits
Note: Authority cited: Section 42106, Public Resources Code. Reference: Sections 42101, 42101.3, 42102.4 and 42103, Public Resources Code.
History
1. New section filed 7-26-2006 as an emergency; operative 7-26-2006 (Register 2006, No. 30). This regulatory action is deemed an emergency, was filed directly with the Secretary of State, and shall remain in effect until revised or repealed by the Business, Transportation and Housing Agency pursuant to Public Resources Code section 42106.
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 5283, 10 CA ADC § 5283
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