View Document - California Code of Regulations

Home Table of Contents

§ 8057. Authority Approval.

4 CA ADC § 8057Barclays Official California Code of Regulations

Barclays California Code of Regulations

Title 4. Business Regulations

Division 11. California Pollution Control Financing Authority (Refs & Annos)

Article 5. California Loans for Environmental Assistance Now

4 CCR § 8057

§ 8057. Authority Approval.

Currentness

(a) Upon receipt of a letter from the Coordinator pursuant to Section 8056, the Authority shall be authorized to approve the Application when:

(1) It received the recommendation to that effect from the Coordinator pursuant to Section 8056(c) or when it approves an appeal pursuant to Section 8057(b);

(2) The Environmental Audit supports or does not materially adversely affect the decision to make the Loan; and

(3) Funds are available.

(b) If the Coordinator has determined that an Application is not eligible, the Applicant may appeal by filing a written appeal with the Authority. The appeal must be received by the Authority not later than twenty (20) days from the date stated on the Section 8056(c)(2) letter and must address each of the issues set forth in the letter. The Authority shall review the appeal and deliver to the Coordinator a written decision within thirty (30) days following the Authority's first regularly scheduled meeting following receipt of the appeal. In making its determination, the Authority shall review the written appeal, Application, Environmental Audit, Assessment Report and Coordinator recommendation (which materials shall be supplied to the Authority by the Coordinator). There are no further administrative appeals following this decision.

(c) Where any of the conditions and requirements in subsection (a) have not been met, the Authority shall deny the Loan request and inform the Coordinator with respect to the specific actions, if any, the Applicant must take to reapply.

(d) No later than forty-five (45) days from the date upon which the Coordinator delivers or mails the letter pursuant to Section 8056(c), the Coordinator shall notify the Applicant of the decision, along with any explanation required by subsection (c); provided, however, that in the case of an appeal, the Applicant shall be notified not later than twenty (20) days following receipt by the Coordinator of the written decision of the Authority made pursuant to Section 8057(b). If the Loan is approved, the notification shall consist of a letter committing the Authority to provide Loan funds so long as the Applicant strictly complies with the terms and conditions contained therein.

(e) The commitment letter described in subsection (d) shall include the following:

(1) Borrower's and any guarantor's name(s).

(2) Loan amount and term.

(3) Interest rate and loan fee.

(4) Disbursement process, including a statement that Loan proceeds shall be disbursed on a reimbursement basis.

(5) Proposed Security, together with appropriate method for placing a lien on and insuring same.

(6) A requirement that the Applicant execute environmental indemnity agreements in favor of the Authority, the State of California, and the Contractor, if any, fully indemnifying against loss or damage due to Hazardous Material. Such indemnity shall not be secured by the deed of trust or other Loan documents.

(7) Insurance requirements.

(8) Conditions and covenants.

(9) Prepayment conditions, if any.

(10) The date when the commitment expires.

(11) A statement that the Authority, by and through the Coordinator, reserves the right to modify or cancel its commitment upon failure of the Applicant to execute a Loan Agreement that includes all of the terms and conditions set forth in the letter of commitment, or if it becomes aware of any matter which, if known at the time of Loan review or approval, would have resulted in the Application not being approved. Such matters include:

(A) A determination that the Application was prepared incorrectly, contains incorrect information or omits required information.

(B) Business circumstances that would negatively affect the Applicant's ability to rely or collateralize the Loan.

(f) If the Authority approves the Application, the Authority or the Coordinator shall be authorized to enter into a Loan Agreement that embodies the terms specified in the commitment letter described in subsection (e).

(g) If the Authority denies the Application, the Applicant shall have no right to administratively appeal the decision, but may reapply for a Loan at any time.

(h) The Authority shall be authorized to give priority to Applications for Loans for Projects intended to meet Pollution Control Requirements pending or enacted but not yet effective.

Credits

Note: Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.