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§ 10092.10. Claims.

4 CA ADC § 10092.10Barclays Official California Code of RegulationsEffective: May 13, 2024

Barclays California Code of Regulations
Title 4. Business Regulations
Division 13. California Alternative Energy and Advanced Transportation Financing Authority
Article 6. Commercial Energy Efficiency Financing Program
Effective: May 13, 2024
4 CCR § 10092.10
§ 10092.10. Claims.
(a) An FPE may submit a claim for an Enrolled Financing Agreement when all of the following conditions are met:
(1) The claim is submitted within 15 years from the Enrollment Date, unless the project includes the “Solar Photovoltaic with Battery Storage” EEM as described in Section 10092.14, in which case the claim is submitted within 20 years from the Enrollment Date;
(2) The Eligible Commercial Financing Customer has defaulted on the Enrolled Financing Agreement and the FPE has charged off some or all of the outstanding Claim-Eligible Financed Amount;
(3) The FPE has taken reasonable steps in accordance with industry standards to seek recoveries through the liquidation of collateral and any personal guarantees, if applicable; and
(4) The FPE is in compliance with Program regulations, including, but not limited to, the reporting requirements in Section 10092.12.
(b) In the event of a charge-off, the FPE may submit a claim for up to 90% of the Claim-Eligible Charge-Off Amount.
(c) Claims will be paid net of any recovery and proceeds that the Finance Provider Entity has obtained prior to the filing of the claim such that the Finance Provider Entity will recoup no more than 100% of the Claim-Eligible Charge-Off Amount. Unless as described in Section 10092.10(d), a payment for a particular claim is limited to the funds in the Finance Provider Entity's Loss Reserve Account(s) at the time that the claim is approved by the Authority.
(d) If there are not sufficient funds in the FPE's Loss Reserve Account to cover 90% of the Claim-Eligible Charge-Off Amount at the time of a claim, the Loss Reserve Account Representative may ask that future contributions to the Loss Reserve Account (when new financings are enrolled) be paid out as part of the original claim until the end of the next annual rebalancing.
(e) Claim Applications. Claim applications must be submitted by the Loss Reserve Account Representative to the Authority within 180 calendar days of the date of charge-off of an Enrolled Financing Agreement. To make a claim, an FPE must be in compliance with the Program regulations, including, but not limited to, the reporting requirements in Section 10092.12. The claim application must include the following information provided by the Finance Provider Entity in a format to be determined by the Authority:
(1) The following data:
(A) Total Charge-Off Amount and claim amount requested;
(B) If the Enrolled Financing Agreement is secured, a statement of whether or not enforcement proceedings have commenced;
(C) Trustee account number(s) from which the claim payment will be made;
(D) The loss reserve payee; and
(E) The date of the Charge-Off.
(2) Certification that the claim was submitted as required by Section 10092.10(a) and certification that the charge-off was made in a manner consistent with the FPE's usual methods for taking action on financing agreements that are not Enrolled Financing Agreements under the Program;
(3) Certification that the FPE will comply with reporting requirements on recoveries and proceeds, as specified in Section 10092.12(g)(2); and
(4) The claim application must be signed by the Loss Reserve Account Representative and will include the signatory's printed name, title, and date.
(f) The Authority will approve claims within 30 calendar days of the Authority's receipt of a completed and qualified claim request, provided, however, that the Executive Director shall be authorized to reject a claim if they determine that any of the acknowledgements, certifications, representations, and warranties provided by the FPE pursuant to Section 10092.2(c)(4)-(7) and Section 10092.3(g) and (h) at the time of application to the Program were false, or if the Eligible Financing Agreement claimed upon does not conform to financing product(s) submitted in the application to participate in the Program pursuant to Section 10092.2(c)(3) or a subsequent update pursuant to Section 10092.12(f), or if the FPE is not in compliance with its obligations, including reporting obligations, under the regulations within this Article. The Authority, upon providing written notice to the FPE, may defer approval of claims up to an additional 30 calendar days if the Authority requires more information to determine if the claim will be paid. Prior to authorizing a disbursement from a Loss Reserve Account, the Authority may request documentation relating to the original Enrolled Financing Agreement, the servicing file, and the default.
(g) Upon the approval of a claim, the Authority will direct the Trustee to disburse the approved claim amount from the FPE's Loss Reserve Account to the Loss Reserve Account Representative within five business days.
(h) The Loss Reserve Representative may request that the Trustee disburse funds to a third party of its choosing. That request to disburse funds to a third party must be made by the Loss Reserve Account Representative to the Authority, in writing, at the time of the submission of the claim application.
(i) If, subsequent to the payment of a claim by the Authority the FPE recovers from the Eligible Commercial Financing Customer, the liquidation of collateral, personal guarantees, or any other source amounts for which the FPE applied to have recouped from the Authority, the FPE must promptly pay to the Authority or its agent for deposit in the Program Holding Account the amount received, net of reasonable and customary costs of collection, that in the aggregate exceeds the amount needed to fully cover the FPE's loss on the Claim-Eligible Charge-Off Amount.

Credits

Note: Authority cited: Sections 26006 and 26009, Public Resources Code. Reference: Sections 26002, 26002.5, 26003, 26006, 26011 and 26040, Public Resources Code.
History
1. New section filed 12-17-2018 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-17-2018 (Register 2018, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-17-2019 or emergency language will be repealed by operation of law on the following day.
2. Change without regulatory effect amending section filed 4-4-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 14).
3. New section refiled 6-11-2019 as a deemed emergency pursuant to Public Resources Code section 26009, including amendment of subsection (i) and amendment of Note; operative 6-18-2019 (Register 2019, No. 24). A Certificate of Compliance must be transmitted to OAL by 9-16-2019 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 9-12-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 9-16-2019 pursuant to Government Code section 11343.4(b)(2) (Register 2019, No. 37). A Certificate of Compliance must be transmitted to OAL by 12-16-2019 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 9-12-2019 order, including amendment of subsections (e), (e)(1)(A), (g) and (h), transmitted to OAL 12-13-2019 and filed 1-21-2020; amendments operative 1-21-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 4).
6. Amendment of section and Note filed 7-19-2021 as an emergency; operative 7-19-2021 (Register 2021, No. 30). A Certificate of Compliance must be transmitted to OAL by 1-18-2022 or emergency language will be repealed by operation of law on the following day.
7. Amendment of section and Note refiled 12-30-2021 as a deemed emergency pursuant to Public Resources Code section 26009; operative 1-18-2022 (Register 2021, No. 53). A Certificate of Compliance must be transmitted to OAL by 4-18-2022 or emergency language will be repealed by operation of law on the following day.
8. Amendment of section and Note refiled as a deemed emergency pursuant to Public Resources Code section 26009; operative 4-18-2022 (Register 2022, No. 15). A Certificate of Compliance must be transmitted to OAL by 7-18-2022 or emergency language shall be repealed by operation of law on the following day.
9. Certificate of Compliance as to 4-18-2022 order transmitted to OAL 7-12-2022 and filed 8-15-2022 (Register 2022, No. 33).
10. Amendment of subsections (a)(1) and (i) filed 5-13-2024 as a deemed emergency pursuant to public Resources Code section 26009; operative 5-13-2024 (Register 2024, No. 20). A Certificate of Compliance must be transmitted to OAL by 11-12-2024 or emergency language will be repealed by operation of law on the following day.
This database is current through 7/5/24 Register 2024, No. 27.
Cal. Admin. Code tit. 4, § 10092.10, 4 CA ADC § 10092.10
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