§ 5285. Demand Procedures.
10 CA ADC § 5285Barclays Official California Code of Regulations
10 CCR § 5285
§ 5285. Demand Procedures.
(1) Providing proof to the corporation that the borrower is in default and lender has delivered to both the borrower and the corporation a minimum of two letters subsequent to the delinquency, at least thirty (30) days apart, explaining the consequences for failure to remedy the delinquency. This requirement shall not apply if borrower is in bankruptcy.
(c) Within five (5) days of receipt of the demand letter, the corporation shall contract with the California Department of Financial Institutions or an independent auditor to conduct an investigation to determine whether the lender has complied with the terms of the guarantee, and to issue a report to both the corporation and the agency. The investigation shall address each of the following issues:
(2) Whether all collateral for the loan and guarantee been perfected and maintained. Whether all collateral available for assignment to the corporation in the event that payment is made upon the demand. Whether any collateral is not available as a result of lender's negligence, breach of contract, foreclosure or other cause, and a description of any such collateral.
(6) In a section entitled “Loan Information” the report shall include the following information obtained solely from a review of lender files: a description of the borrower's business, a description of the collateral for the loan, and a discussion as to whether the lender files contain any reference to matters material to borrower's compliance with any environmental laws or regulations. The description of collateral shall identify all real property collateral as one or more of the following: industrial, commercial, agricultural, single family residence, multi-unit residential, vacant lot, or unknown.
(3) Deliver or cause to be delivered to the corporation a statement that the investigation was incomplete, and requiring the corporation to complete the investigation and resubmit the request for payment to the agency within five (5) calendar days from the date the statement is received by the corporation.
(g) Within one working day of receiving the check from the agency, the corporation shall contact the lender and arrange to deliver the check to the lender. The corporation shall deliver the check and simultaneously collect an assignment by the lender of the lender's interest in the loan. The assignment shall include the loan note and all collateral, except as provided in section 5286.
(h) Demand must be made upon the corporation no later than noon on the thirty-first calendar day following the date on which the guarantee terminates; provided, however, that if the thirty-first day is not a day upon which the corporation is open for business, the last day for making a demand shall occur on the next succeeding day upon which the corporation is open for business.
Credits
Note: Authority cited: Section 42106, Public Resources Code. Reference: Sections 42101 and 42102.4, 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, § 5285, 10 CA ADC § 5285
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