(a) “Borrower” means a Qualified Business which obtains a Qualified Loan from a Participating Financial Institution.

(b) “CalCAP” means California Capital Access Program.

(c) “Change in Terms” means any change in material terms of an enrolled loan, including changes to the name(s) of the borrower or co-borrowers, the total loan amount, the maturity date, or the interest rate.

(d) “Contribution” means any or all eligible funds deposited by the Authority or Independent Contributor to a Loss Reserve Account.

(e) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority, or his or her designee from time to time.

(f) “Fees” or “Fee” means a non-refundable fees or fee as set forth in Health and Safety Code Section 44559.4(c).

(g) “Financial Institution” means an institution as set forth in Health and Safety Code Section 44559.1(d). Financial Institution also includes microbusiness lenders, as defined in Section 13997.2 of the Government Code that make small business loans and require a minimum of four hours of preloan business technical and/or credit assistance to borrowers and a minimum of two hours of postloan assistance each year, and are subject to an audit requirement by its Federal or State regulated funding source.

(h) “Independent Contributor” means any individual, company, corporation, institution, foundation, utility, government agency or other entity, including any consortium of these persons or entities, whether public or private (but excluding any Borrower), that, pursuant to the provisions of this Article, deposits Contributions to a Loss Reserve Account.

(i) “Individual” means a natural person, together, if applicable, with any of his or her spouse, parents, siblings or children or the parents or spouse of any of them.

(j) “Law” means Article 8 (commencing with Section 44559) of Chapter 1 of Division 27 of the California Health and Safety Code, as amended from time to time.

(k) “Loss Reserve Account” means an account held by a Program Trustee or by any Participating Financial Institution that is established and maintained by the Authority for the benefit of a Participating Financial Institution for the purposes set forth in Sections 8073, 8078.6, 8078.11, 8078.18, and 8078.25.

(l) “Money Market Fund” means an open-ended management investment company regulated under the Investment Company Act of 1940, as amended, which values its securities pursuant to Section 270.2a-7 of Title 17 of the Code of Federal Regulations.

(m) “Participating Financial Institution” means a Financial Institution that has been approved by the Authority to enroll Qualified Loans in the Program and has agreed to all terms and conditions set forth in the Law and this Article and as may be required by any applicable federal law providing matching funding.

(n) “Passive Real Estate Ownership” means ownership of real estate for the purpose of deriving income from speculation, trade or rental, but does not include any of the following:

For purposes of clause (1) above, the Borrower must be using or planning to use upon acquisition or construction of a building, at least 51 percent of the space in an existing building or at least 67 percent of the space in a newly constructed building. The requirements of clause (1) above will be deemed to be satisfied when a Participating Financial Institution makes a Qualified Loan to an Individual, or to a partnership or trust wholly owned or controlled by one or more Individuals, for the purpose of financing property that will be leased to a Qualified Business that is wholly owned by those same Individuals, and in such case the Qualified Loan will be deemed to be made also to such Qualified Business.

(o) “Primary business location in California” means that a business will be deemed to be located in California if either:

(p) “Outstanding Principal Balance” means the amount due and owing to satisfy the payoff of the underlying loan, less interest and other charges.

(q) “Primary economic effect in California” means, as applied to a business activity, that either of the following conditions exists:

(r) “Program” means the Capital Access Loan Program for Small Businesses established pursuant to the Law.

(s) “Program Trustee” means a bank or trust company, or the State Treasurer, chosen by the Authority from time to time to hold or administer some or all of the Loss Reserve Accounts.

(t) “Qualified Business” and “Small Business Concern” means a business as set forth in Health and Safety Code Section 44559.1 subdivisions (i) and (m), that is not dominant in its field of operation, and that together with affiliates, has 500 or fewer employees.

(u) “Qualified Loan” means a loan or a portion of a loan made by a Participating Financial Institution to a Qualified Business for any business activity that has its Primary economic effect in California. A Qualified Loan may be made in the form of a line of credit, in which case the Participating Financial Institution shall specify the amount of the line of credit to be covered under the Program, which may be equal to the maximum commitment under the line of credit or an amount that is less than the maximum commitment. “Qualified Loan” does not include any of the following:

(v) “Quarterly Report” means the mandatory report on the status of loans enrolled submitted to the Authority by each Participating Financial Institution on a quarterly basis, no later than the 15th of the month following the end of each quarter.

(w) “Recapture” means the withdrawal of the Authority's Contributions pursuant to each program's rules set forth in Sections 8078.11, 8078.18, and 8078.25.

(x) “Refinance” means the revision or restructure of an existing debt obligation with or without a new debt obligation with different terms and conditions, including an increase to the outstanding principal balance, an extended maturity date or term, or permitting another borrower to assume the loan.

(y) “Severely Affected Community” means any area, as designated by the Executive Director, contiguous to the boundaries of a military base designated for closure pursuant to Public Law 101-150, as amended; and any other comparable economically distressed geographic area so designated by the Executive Director from time to time.

(z) “Small Business Assistance Fund” means a fund of that name created by the Authority.

(aa) “Standards” means the criteria to be used by an Independent Contributor in assisting businesses through the Program.

(bb) “TRAC Lease” means “Terminal Rental Adjustment Clause” as defined in Section 7701(h)(3) of Title 26 of the United States Code.