(a) “Applicant.” A city, county, or district which requests or receives a loan and has the statutory authority to undertake the development of a small craft harbor, described in Section 71.4 of the Harbors and Navigation Code.
(b) “Collateral.” Property, both real and personal, whether tangible or not, pledged as security for repayment of a debt, including but not limited to any or all of the following: an interest in real property; a mortgage or security interest (deed of trust) in real estate, including buildings or property of the applicant, a deed of trust or lease and leaseback of the project area; an irrevocable letter of credit in an amount equal to the principal and estimated accrued interest; a collateral assignment of rents and leases equal to not less than 125 percent of applicant's total annual debt service to the department; a security agreement; a Uniform Commercial Code financing statement (UCC-1).
(c) “Commission.” The Boating and Waterways Commission.
(d) “Contract.” A contract to implement the disbursement of loan funds.
(e) “Default”:
(1) The failure of an applicant to make any payment required by the contract within 30 days of the due date of the payment,
(2) the failure of an applicant to comply with any other requirement of the contract. Such defaults, for failure to comply with terms of contract other than payments, may be cured by complying with the requirement within 180 days after receipt of written notice from the department specifying such failure,
(3) the provision of false representations or false warranties by the applicant in response to any obligations under the contract,
(4) the failure of an applicant to conduct appropriate proceedings in good faith to contest any levy or proceeding against the collateral or applicant's interest therein; or
(5) the filing of a petition by an applicant under the provisions of the Bankruptcy Code, or the failure of an applicant to conduct appropriate proceedings in good faith to contest a bankruptcy filing by a third party when such action affects the collateral.
(f) “Department.” The Department of Boating and Waterways.
(g) “Loan.” A loan for the purpose of acquisition, construction, and/or improvement, maintenance or operation of small craft harbors, related facilities, or connecting waterways, pursuant to Harbors and Navigation Code Section 71.4.
(h) “Project.” Any construction, improvement, acquisition, maintenance or operation of small craft harbors, related facilities, or connecting waterways.
(i) “Project Area.” A delineated area in which the project is to be located.
(j) “Project Costs.” Those contract, equipment, labor, material and construction costs which are incurred by the applicant for the purpose of completing the project; however, such project costs shall not include indirect or overhead charges incurred by the applicant for its own personnel.
(k) “Reserve Fund.” A separate and independent fund for the exclusive purpose of providing extraordinary, non-routine maintenance, repair or replacement during the loan period.
(l) “Surplus Revenues.” Revenues received by an applicant from any source within a project area less the applicant's expenses for (1) loan repayment, and (2) operation and maintenance (including the Reserve Fund) of the project; tax revenues may be considered as a revenue source.
(m) “Unpaid Balance.” Total outstanding debt, including principal, interest and penalties, if applicable.
