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§ 8078.17. Loan Enrollment.

4 CA ADC § 8078.17Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 4. Business Regulations
Division 11. California Pollution Control Financing Authority (Refs & Annos)
Article 7. Capital Access Program for Small Businesses
4 CCR § 8078.17
§ 8078.17. Loan Enrollment.
(a) The terms and conditions of the Qualified Loans, including rates, fees and other conditions, shall be determined solely by agreement of the Participating Financial Institution and the Borrower, consistent with the Participating Financial Institution's usual methods for making determinations on loans that are not enrolled in the Program and subject to the safety and soundness standards as set forth in applicable federal banking regulations or State law regulating the Participating Financial Institution.
(b) A Participating Financial Institution shall be authorized to enroll under the Program all or a part of any Qualified Loan:
(1) by notifying the Authority in writing, within 15 business days after the Qualified Loan is made, that it is enrolling a Qualified Loan. For purposes of this section, the date on which the Participating Financial Institution makes a Qualified Loan is the date on which the Participating Financial Institution first disburses proceeds of the Qualified Loan to the Borrower; and
(2) by transmitting to the Authority the Fees collected from the Participating Financial Institution and the Borrower in connection with the Qualified Loan, and by providing written evidence that the Fees have been deposited in a Loss Reserve Account held either by the Participating Financial Institution or the Program Trustee.
(c) A Participating Financial Institution may enroll all or any portion of a Qualified Loan in the Program by submitting a CalCAP/Seismic Safety Loan Enrollment Application which shall include the following information:
(1) The name of the Borrower, including an official business name or “Doing Business As”, if any.
(2) Name and title of individual(s) responsible for signing for the Qualified Loan on behalf of the Borrower.
(3) If a small business owner, brief description of the Borrower's business and regular activities and either the SIC Code(s) or the NAICS Code(s) applicable to such business.
(4) Brief summary of the intended use of the proceeds of the Qualified Loan consistent with uses permitted as Eligible Costs for Seismic retrofit construction.
(5) Location(s) of the Qualified building, including physical address.
(6) Whether the Qualified building is a residential or commercial property, and the number of dwelling units.
(7) Amount of the Qualified Loan being enrolled in the Program, and total loan amount if different, and the Participating Financial Institution loan number.
(8) Type of the Qualified Loan (e.g., secured, unsecured, term loan).
(9) Date of the Qualified Loan.
(10) Interest rate applicable to the Qualified Loan.
(11) Term or maturity date of the Qualified Loan.
(12) Whether the loan is for alteration(s) or retrofit(s) of a Qualified building located in a Severely Affected Community.
(13) If a Qualified small business, number of employees employed by the Borrower at the time of loan origination.
(14) The Participating Financial Institution's certification that the loan is a Qualified Loan, and that the property owner receiving the Qualified Loan is a Qualified small business, Qualified residential property owner, or Qualified commercial property owner.
(15) The Participating Financial Institution's certification upon enrollment of a Qualified Loan that the proceeds of the loan will be used for the Eligible Costs of Seismic retrofit construction.
(16) The Participating Financial Institution's certification that, upon request of the Executive Director, the Participating Financial Institution will provide information from the financial records of the Borrower, and that the Participating Financial Institution has obtained the consent of the Borrower to such disclosure.
(17) The Participating Financial Institution's certification that the total amount of loans for the Borrower enrolled in the CalCAP/Seismic Safety Program does not exceed $250,000.
(18) The Participating Financial Institution's certification that it has obtained a written representation from the Borrower that the Borrower has no legal, beneficial or equitable interest in the CalCAP/Seismic Safety Contribution.
(19) The Participating Financial Institution's certification that the Borrower has provided a Cost Estimate prepared by an engineer, architect or a licensed contractor, and that the Cost Estimate for Seismic retrofit construction to be financed is limited to Eligible Costs.
(20) The Participating Financial Institution's certification, when the Qualified building is a mobilehome or manufactured home, that the Borrower has provided a record of Borrower's name on a current registration from the Department of Housing and Community Development for the mobilehome or manufactured home.
(21) The Participating Financial Institution's certification that its usual methods of securing collateral have been applied, including if applicable that a lien has been placed on the Borrower's Qualified building for the amount of the Qualified Loan.
(22) The Participating Financial Institution's certification that the Borrower will provide all applicable licenses and permits needed for the Seismic retrofit construction and satisfy the local building enforcement agency and the Department of Housing and Community Development compliance and inspection requirements once Seismic retrofit construction is completed.
(23) The Participating Financial Institution's certification that the Qualified Loan is not a restructured or refinanced loan and has not previously been enrolled in the Program.
(24) Acknowledgment that the lending activities of the Participating Financial Institution are subject to any applicable safety and soundness standards as set forth in applicable lending regulations.
(25) The Participating Financial Institution shall be authorized to certify to the information requested by subsections (13), (14), (15), (19) and (22) above based upon the Participating Financial Institution's established due diligence and underwriting standards, and shall maintain substantiating documentation in the Borrower's loan file.
(26) Certification from the Participating Financial Institution that it has not, and will not, enroll the Qualified Loan, or any portion thereof, in any other Capital Access Loan Program for Small Business offered by the Authority as long as funds are available for this Program.
(27) Certification from the Participating Financial Institution that it has provided the Borrower CPCFA's Privacy Notice for the CalCAP/Seismic Safety Financing Program, which provides the notice required under the California Information Practices Act (CIPA) (Civil Code section 1798.17). The Privacy Notice for the CalCAP/Seismic Safety Financing Program informs the Borrower that personal information protected by the CIPA may be disclosed under the following circumstances:
(A) To consultants, auditors or contractors retained by the CPCFA where disclosure is required to fulfill CalCAP program requirements and subject to a nondisclosure agreement;
(B) To another governmental entity where required by state or federal law; or
(C) As otherwise required by law.
(28) The submittal of a completed Borrower's Eligibility Criteria and Self-Certification form in which the Borrower certifies to the following:
(A) That, when applicable, it and the Eligible project satisfy the definitions in Sections 8078.15(d), (e), (g), (h), (i), (j) and (k) of the California Seismic Safety Capital Access Loan Program Regulations;
(B) The Qualified building is located within the boundaries of the State of California;
(C) The Borrower has legal control of the facility for a term that is equal to or greater than the length of the enrolled loan, and assumes financial liability of the loan;
(D) The Borrower agrees to allow the Participating Financial Institution to provide information from financial records of the Borrower upon request of the Executive Director of CPCFA;
(E) The Borrower has no legal, beneficial, or equitable interest in the CalCAP/Seismic Safety Contribution;
(F) If the Seismic retrofit construction financed through this Program is a part of a larger construction project carried out by the Borrower, the enrolled amount of the Qualified Loan in this Program is limited to Eligible Costs necessary and allocable to the Eligible project;
(G) The Borrower will provide all applicable licenses and permits needed for construction related to Eligible Costs for the Seismic retrofit construction to the Participating Financial Institution;
(H) The Borrower has provided verification of Eligible Costs less the amount of any grant provided by a public entity for the Eligible project to the Participating Financial Institution;
(I) The Borrower's certification that the proceeds of the loan will be used for the Seismic retrofit construction of an Eligible project;
(J) The Borrower's certification when the Qualified building is a mobilehome or manufactured home that it is currently registered with the Department of Housing and Community Development and the Borrower's name is on the Department of Housing and Community Development registration for that mobilehome or manufactured home;
(K) The Borrower agrees to allow CPCFA staff or its designee to inspect the project site.
(d) Upon enrollment of a Qualified Loan, the Participating Financial Institution shall elect a Contribution between 2 and 3.5 percent of the Qualified Loan, and shall deposit the Participating Financial Institution's and Borrower's Contributions each in the elected amount into the Participating Financial Institution's Loss Reserve Account established for the Program pursuant to Section 8078.18.
(e) Upon verification of the deposit of the Participating Financial Institution's and Borrower's Contributions, Qualified Loans with a term of sixty (60) months or less shall receive a CalCAP/Seismic Safety Contribution equal to four times the amount of the Participating Financial Institution's Contribution. All other Qualified Loans shall receive a CalCAP/Seismic Safety Contribution equal to three times the amount of the Participating Financial Institution's Contribution.
(f) All Qualified Loans with a term of sixty (60) months or less that support Eligible projects located in a Severely Affected Community shall receive an additional CalCAP/Seismic Safety Contribution in the amount of two times the Participating Financial Institution's Contribution. All other Qualified Loans that support Eligible projects located in a Severely Affected Community shall receive an additional CalCAP/Seismic Safety Contribution in the amount equal to the Participating Financial Institution's Contribution.
(g) Without regard to the terms of the loan, the term of enrollment in the Program shall not exceed one hundred twenty (120) months from the date of first disbursement of the Qualified Loan.
(h) Qualified Loans shall no longer be enrolled in the Program upon the sale, transfer or refinancing of the Qualified building or Qualified Loan, and shall be deemed to have matured within the meaning of 8078.18(c) upon the date of such sale, transfer or refinancing.

Credits

Note: Authority cited: Sections 44520, 44559.5, 44559.11 and 44559.14, Health and Safety Code. Reference: Sections 18613, 44559.2 and 44559.4, Health and Safety Code.
History
1. New section filed 12-22-2016 as an emergency; operative 12-22-2016 (Register 2016, No. 52). This filing is deemed an emergency pursuant to Health and Safety Code section 44520(b) and 44559.14(e). A Certificate of Compliance must be transmitted to OAL by 6-20-2017 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-22-2016 order, including amendment of subsection (c)(13) and amendment of Note, transmitted to OAL 6-19-2017 and filed 7-26-2017; amendments operative 7-26-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 30).
This database is current through 7/5/24 Register 2024, No. 27.
Cal. Admin. Code tit. 4, § 8078.17, 4 CA ADC § 8078.17
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